Industry News

Stock Market Kicks Off September with Strong Gains

Stocks jumped Wednesday after surprisingly strong growth in U.S. and Chinese manufacturing allayed some of the worries that had been building over the global economy in recent weeks. The new reports snapped a string of disappointing economic data that sent stocks slumping in August. The Standard & Poor's 500 Index, the benchmark most widely used by professional investors, lost 4.7 percent in the month, its worst performance for the month since 2001. The Dow Jones industrial average jumped nearly 250 points on the first day of September. Broader indexes also rose more than 2 percent. With investors pouring into stocks, Treasury prices fell and interest rates rose.

The Institute for Supply Management said manufacturing activity in the U.S. rose in August, in contrast to regional reports from recent weeks that pointed to a slowdown in growth. Economists had expected a decline.

"It gives us hope that things may not be as bad as they seem," said Zahid Siddique, an Associate Portfolio Manager at Gabelli Equity Trust Inc. Some analysts have said in recent weeks that the slowdown in economic growth could eventually push the country back into recession. Wednesday's manufacturing report, at least temporarily, reduced those fears. Daniel Penrod, Senior Industry Analyst at the California Credit Union League, said manufacturing reports have become increasingly important because they are a leading indicator for whether companies might start adding new jobs. Investors will be closely watching the Labor Department's monthly report on employment, which is due out on Friday. "If manufacturers ramp up ... it's going to require hiring," Penrod said. "Getting closer to that threshold is vital to the economy. Source: Associated Press

How Will U.S. Financial Reform Protect Consumers?

Almost two years after the near collapse of the U.S. financial system, a sweeping reform package has finally been signed into law. Now the real work begins. Government officials are starting to staff a brand-new half-a-billion-dollar federal agency. Regulators are gearing up to conduct 67 studies and write 243 new rules. Wall Street lobbyists and consumer advocates are lining up to influence those watchdogs as the law is put into practice. And financial services companies are adjusting to, or looking to work around, the new rules.  But even amid the uncertainty, some things are clear. "Borrowers and investors are likely to benefit from a higher level of regulation, but at the end of the day we could all be paying more for credit," says Kathleen Engel, a Professor at Suffolk University and a member of the Federal Reserve's Consumer Advisory Board.

The centerpiece of financial reform is the new Consumer Financial Protection Bureau (CFPB), which will write and enforce consumer protection rules for most loans, including credit cards, private student loans, and mortgages. The agency will be housed within the Federal Reserve, but its director will be a presidential appointee. The bureau will consolidate consumer protection staffs from half a dozen existing regulators, and it should be up and running within a year.  Consumers won't have to wait for Congress to pass a law to be protected," says Engel.  The CFPB will operate a toll-free hotline for borrowers to report problems with a loan, and it will have the power to crack down on deceptive practices and hidden fees.  State regulators will also have the right to enforce new federal rules, adding another layer of protection. The CFPB is a major victory for borrowers. "This is the biggest thing in consumer protection since deposit insurance," says Ed Mierzwinski, Consumer Program Director for the U.S. Public Interest Research Group. Source: Money Magazine

Entrepreneurs Seek Safety in Franchises

As the recession continues to hammer small businesses, franchise converts say they’re grateful for the benefits that come from buying into Big Brother: Brand recognition, big advertising, group buying, training, technology and referrals, just to name a few.  "The problem was you're fighting against the dollars of LA Fitness, 24 Hour Fitness and Bally's," said Butcher, 38, who prides himself on turning around underperforming clubs. "We needed some synergy in the corporation. Really the only way of doing that I felt was with a franchise."

Tight small business financing and stiff criteria winnow the field to a select few. But for those who pass muster, franchise conversions can offer a faster track to incremental growth, especially at a time when marketing budgets and other promotional dollars remain under pressure."Certainly the recession has made it more attractive for the franchisor and the independent business," said Alisa Harrison, spokeswoman for the International Franchise Association, a franchisors' trade group. Service industries such as cleaning, automotive repair, and maintenance are particularly attractive for both sides, as they are fairly simple to convert, she said.  Corey Butcher, who eventually plans to own a small empire of Gold's Gym locations, said that's a small price to pay for a shot at larger growth. "There are times when you're frustrated by some of the decisions but, the return on investment has been huge," says Butcher. Source: Reuters

Speech Act Protects American Bloggers

President Barack Obama recently signed the Speech Act, new legislation that will protect journalists, authors, and publishers from becoming victims of defamation lawsuits filed in countries with harsh libel laws that discourage critical media, reports Freedom House. The practice of filing libel lawsuits in foreign countries with weak libel protections is called "libel tourism." Countries like England continue to permit this practice with foreign plaintiffs bringing libel actions against foreign defendants in British courts, regardless of where the alleged offense occurred.  "Libel tourism" is used by wealthy individuals and high-profile public figures to quash accusations of wrongdoing. The legislation signed by President Obama bars U.S. federal courts from recognizing judgments from foreign courts that are not in accordance with U.S. constitutional protections for free expression.

Paul Alan Levy, an attorney at Public Citizen, a Washington-based advocacy group founded by Ralph Nader, successfully persuaded a Congressional staffer that the law’s protections of publishers from foreign defamation judgments should also extend to Internet host services, interactive message boards, and blogs. England is popular with foreign claimants because in British law the defendant carries the burden of proof, suggesting that the reputation of the claimant is more important than the free speech of the defendant.  Source: Senegambia News

Product Spotlight: Demystifying Dynamic Number Insertion

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  • Track phone calls back to keyword and search engine
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For more information about DNI, visit: www.callsource.com. Celebrating our 20th year, CallSource has evaluated literally millions of client calls.  Our in-depth knowledge and experience includes integrated call tracking, call recording, lead management, lead scoring, telephone performance analysis, business analytics, and learning management.