Friday, August 31, 2012

Reuters: Small Business News: Startup NuScale holds its own in game of nuclear giants

Reuters: Small Business News
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Startup NuScale holds its own in game of nuclear giants
Aug 31st 2012, 14:55

A simulated control room for the NuScale nuclear power plant is pictured in this undated handout photo supplied to Reuters August 30, 2012.REUTERS/NuScale Power/Handout

1 of 5. A simulated control room for the NuScale nuclear power plant is pictured in this undated handout photo supplied to Reuters August 30, 2012.

Credit: Reuters/NuScale Power/Handout

By Braden Reddall

CORVALLIS, Oregon | Fri Aug 31, 2012 10:55am EDT

CORVALLIS, Oregon (Reuters) - Nuclear power startup NuScale Power LLC is competing against some of the biggest names in the business for a U.S. federal grant to develop the next generation of nuclear reactors -- and it is playing the safety card.

The smart money may be on Babcock & Wilcox Co, a long-time provider of reactors for U.S. submarines, in the competition to be one of two companies to split a $452 million grant, according to industry experts.

But NuScale is trumpeting the safety aspects of its new technology, and has found helpful supporters including U.S. engineering giant Fluor Corp, which bought a majority stake in the 5-year-old company last October.

Besides the money, winning a vote of confidence from the Department of Energy is perhaps worth more to NuScale, which was on the verge of collapse in early 2011 after finding out that its main backer, hedge fund manager Francisco Illarramendi, had been running a Ponzi scheme.

Then, only days after Illarramendi pleaded guilty, came the Japan earthquake and tsunami that crippled the Fukushima nuclear power plant and curtailed global demand for new reactors.

Until then, advocates had talked of a nuclear renaissance because of its low carbon footprint. But public reaction to the months of scary headlines out of Japan put many nuclear investment plans on hold.

In the wake of Fukushima, the Corvallis, Oregon-based company has been trumpeting the safety of its own small modular reactors (SMR), and continues to believe that gives it a winning edge over competitors for the federal SMR grant. Applicants also include Toshiba Corp's Westinghouse, supplier of the first U.S. nuclear reactor in 1957, and Florida-based Holtec International Inc, a maker of casks for storing nuclear waste.

NuScale's 45-megawatt reactor, which can be grouped with others to form a utility-scale power plant, would sit in a 5 million-gallon pool of water underground, meaning it would require no pumps to inject water to cool it in an emergency.

"When we first started talking about SMRs, it was all about economics," Chief Executive Paul Lorenzini said in an interview. Piecing together many small reactors, which are 60 percent-built in a factory, would be easier to finance than the $6 billion minimum for existing reactor designs of 1,000 MW or more.

After Fukushima, NuScale reversed its approach to promoting the design, and safety now overrides all other concerns, he said.

Charles Ferguson, president of the Federation of American Scientists, said Babcock & Wilcox was clearly a favorite to be one of the two winners of the grant, pointing to the company's strong track record and long service for the U.S. Navy.

"But I'd be disappointed from a technological standpoint" if NuScale didn't get the second spot, said Ferguson, who served on a ballistic missile submarine and studied nuclear engineering at the Naval Nuclear Power School.

THE GREAT PAUSE

NuScale staff half-jokingly refer to the first half of 2011 as the "Great Pause," when NuScale could not pay its bills and dozens among its 100 employees at the time had to be let go. It now employs 260 people, and hopes to add another 70 by year-end.

The firm's forest-covered home state certainly seems an unlikely place for anything nuclear to emerge. It was 20 years ago this month that Portland General Electric decided to close Oregon's only nuclear plant, Trojan, due to chronic steam generator problems. A few months later the plant was shut down permanently after 16 years in operation.

Yet the NuScale design has managed to win over Oregon's national representatives, who tend to be against nuclear power. Senator Jeff Merkley, a self-described "proud progressive," surprised Lorenzini by throwing his support behind SMRs.

Nonetheless, critics are quick to point out that they do not solve the long-debated problem of storing nuclear waste.

"SMRs are just the next chapter in a nuclear industry that can't stand up on its own," said Don Hancock, director for nuclear waste safety at the Southwest Research and Information Center. "So it always has to be funded by the government."

B&W is known as a politically savvy operator. The Charlotte, North Carolina-based company garnered public support from Ohio's two U.S. senators for its memorandum of understanding for SMRs with Ohio utility FirstEnergy, signed late last month.

Five days later, B&W opened a fuel technology center for its mPower 180 MW design in Virginia -- about a three-hour drive from Washington, D.C. On top of that, mPower has the backing of leading U.S. engineering company Bechtel.

Westinghouse, for its part, can point to a long relationship with the U.S. government, starting with its work with the Atomic Energy Commission that led to its pioneering commercial reactor in Pennsylvania in 1957. Westinghouse has the backing of utility Ameren Missouri, which committed to applying to build its 225 MW SMR if Westinghouse gets a piece of the DoE money.

The Oak Ridge National Laboratory has cited advantages in the NuScale reactor and Holtec's HI-SMUR 140. The laboratory found the natural water circulation force in both was strong enough to cool them - "thus eliminating the need for pumps entirely."

NuScale Chief Technology Officer Jose Reyes, who spent nearly a decade at the Nuclear Regulatory Commission, said it would take 30 days for the water to boil off after any accident that shut down a NuScale reactor.

The NuScale design was originally developed with a Department of Energy grant in 2000, before it was refined with backing from Oregon State University in Corvallis. The firm secured the patents by giving OSU an equity stake.

As for its main shareholder, Fluor says it is committed regardless of whether NuScale wins in the "FOA" - or funding opportunity announcement, as the DoE grant award is known. Fluor has its eyes on deploying the reactors for clients, like miners, who need power in remote places without access to the grid.

Lorenzini said he would simply have to reassess strategy if NuScale does not win the award. Yet it clearly weighs on the minds of many at NuScale headquarters, where there was audible chatter about the FOA among junior staff in one conference room.

(Reporting by Braden Reddall; Editing by Phil Berlowitz)

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Reuters: Small Business News: Consumer spending posts biggest rise in five months

Reuters: Small Business News
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Consumer spending posts biggest rise in five months
Aug 31st 2012, 13:08

Women carry shopping bags through Times Square in New York, July 27, 2012. REUTERS/Andrew Burton

1 of 3. Women carry shopping bags through Times Square in New York, July 27, 2012.

Credit: Reuters/Andrew Burton

By Lucia Mutikani

WASHINGTON | Fri Aug 31, 2012 9:08am EDT

WASHINGTON (Reuters) - Consumer spending got off to a fairly firm start in the third quarter, rising by the most in five months and offering hope economic growth would pick up this quarter.

Other data on Thursday showed the number of Americans filing new claims for jobless benefits held steady last week.

The reports were consistent with only moderate economic and job growth, and they kept alive the prospect of additional monetary stimulus from the Federal Reserve.

"The economy does not seem to be faltering or going into reverse," said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi in New York. "(But) for a Fed that thinks the economy is not good enough, the data today is not consistent with 3 percent-plus growth or a falling unemployment rate."

Officials at the central bank are debating whether a third round of bond purchases is warranted to spur a stronger recovery, and investors will look to a speech by Fed Chairman Ben Bernanke on Friday for clues on the Fed's next step.

The Commerce Department said consumer spending increased 0.4 percent in July after a flat reading in June. The rise was in line with economists' expectations.

With a gauge of prices holding steady, spending was also up 0.4 percent on an inflation-adjusted basis, which was also the largest increase since February.

While separate reports from U.S. retailers indicated some of the spending momentum carried into August, economists expect spending to cool a bit in the months ahead because of sluggish income growth and a recent rise in gasoline prices.

A range of retail outlets from Costco Wholesale Corp to Limited Brands Inc posted better-than-expected sales gains.

"There was some pent up demand after soft spending through the second quarter," said Robert Dye, chief economist at Comerica in Dallas. "What we are going to need to see is consumer confidence holding its own and moderate job growth for that to continue through the third quarter. Those two key issues are still in doubt."

The Labor Department said first-time applications for state unemployment benefits were unchanged last week at 374,000. The four-week moving average for new claims, a better measure of labor market trends, rose 1,500 to 370,250 - a level economists views as consistent with only sluggish hiring.

Stocks on Wall Street fell as investors turned defensive ahead of Bernanke's speech, while Treasury debt prices rose. The dollar moved up against a basket of currencies.

LABOR MARKET KEY

The level of new claims last week was 10,000 above where it stood at the beginning of the month, suggesting job growth moderated. In July employers had added 163,000 workers, which was a sharp step up from June, when the economy created only 64,000 new jobs.

Even though data on consumer spending and housing suggest economic activity picked up early in the third quarter, business spending is weakening and inflation is slowing.

The jobless rate, which ticked up to 8.3 percent in July, has been stuck above 8 percent for more than three years, the first time this has happened since the Great Depression.

With the labor market not showing decisive improvement, the question of whether the Fed will ease monetary policy further at its September 12-13 policy meeting remains firmly on the table. Atlanta Fed Bank President James Lockhart told CNBC the central bank's decision would be a "close call."

A Reuters poll of fund managers found that only 44 percent think the Fed will announce a third round of bond purchases in September, down from 70 percent last month before July's employment data was released.

The pickup in consumer spending was a welcome bit of news that buttressed the case of hawks at the central bank who think monetary policy has already done enough.

In the second quarter, consumption had expanded at the slowest pace in a year, helping to hold back economic growth to a modest 1.7 percent annual rate.

Others at the central bank could argue that with inflation slowing, there is room to act to spur more vigorous growth.

A price index for personal spending was flat after edging up 0.1 percent in June. In the 12 months through July, this index was up just 1.3 percent -- the smallest gain since October 2009.

A core measure that strips out food and energy costs also held steady last for the first time since September. Over the past 12 month, it has risen 1.6 percent, the least since October.

The Fed aims for inflation of 2 percent. Both the overall and core indexes have been below that target since March, a factor some analysts said could tip the balance toward more easing in the debate at the central bank.

"The Fed is now in danger of falling short on its price stability mandate," said Jeremy Lawson, a senior economist at BNP Paribas in New York. "At the margin, this will make it easier for the doves to make the case for the need to launch a new asset purchase program in September."

Last month, household income increased 0.3 percent after rising by the same margin in June. Income available to households after stripping out inflation and taxes increased 0.3 percent after gaining 0.2 percent in June.

With spending a touch above income growth, the saving rate slipped to 4.2 percent in July from 4.3 percent the prior month.

(Editing by Neil Stempleman and Tim Ahmann)

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Thursday, August 30, 2012

Reuters: Small Business News: Panic rooms and gun safes on rise in London luxury homes

Reuters: Small Business News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Panic rooms and gun safes on rise in London luxury homes
Aug 30th 2012, 15:08

By Tom Bill

LONDON | Thu Aug 30, 2012 11:08am EDT

LONDON (Reuters) - Panic rooms, gun safes and machinegun-proof doors are increasingly appearing in London homes as super-rich foreign newcomers bring their security fears to the UK capital.

Many wealthy homebuyers are drawn to the political stability of London and the buoyancy of its property market. But concerns about the kind of lawlessness typical of their home countries or fears of reprisal from business or political opponents mean they demand the most hi-tech security systems around.

"I recently showed a property to a billionaire eastern European and when he walked outside I presumed he had gone to look at the wonderful garden," said Andrew Langton, managing director of high-end estate agent Aylesford. "He was actually inspecting the buildings that overlooked it."

Overseas investment in top London homes used to be dominated by Middle Eastern oil money and U.S. bankers, but the current financial crisis and political tensions in areas like North Africa and Russia mean over 100 nationalities now park money in top London property, said property agent Savills.

The capital does not have the same reputation for danger as cities like Cape Town or Rio de Janeiro, but incidents in recent years demonstrate overseas residents are not necessarily safe from their foes in London.

In 2009, former Russian spy Alexander Litvinenko was killed with radioactive polonium in London. In March this year, a Russian banker was shot five times and badly injured, later claiming his former business partners were behind the attack.

NO GUARANTEE

Russian tycoon Boris Berezovsky, a Kremlin insider-turned-critic now based in London, told Reuters: "There is no place safer than London from Kremlin bandits or from Russian or international criminals. But that of course is no guarantee they won't get you.

Not every buyer faces such dramatic personal threats, but many fear crime because it is prevalent in their native country. "If you are a rich Eastern European you have been brought up in fear of others 'borrowing' your possessions," Langton said.

One Hyde Park, a development in which the most expensive flat sold for 136 million pounds, has panic rooms and bullet-proof windows.

A 16 million-pound ($25 million) house on sale in the district of Kensington includes two panic rooms, two separate CCTV systems, safes for 24 guns and ammunition, bullet-proof windows and machinegun-proof doors.

Measures previously used by museums to protect artwork such as "security fog" are also now more common in homes, said Edo Mapelli Mozzi, managing director at consultancy Banda Property. Rooms fill with a thick fog in seconds to disorient intruders.

International security company Westminster Group, which provides services ranging from military training to fire safety, increased turnover to 10.1 million pounds from 3.8 million in 2011. It cited contracts won for "several high-net-worth properties in the UK including a stately home".

"We are seeing more out-of-the-ordinary security with the huge influx of foreign investment in London," said Westminster sales director Shires Crichton, referring to measures including armored cars and 24-hour surveillance.

The company also carries out pre-sale threat assessments. "An alleyway down the side of a house can make it easier to snatch someone," said Crichton. "We also ensure there is nobody living nearby they don't get on with."

The risks aren't necessarily greater now in London but the insecurities people bring with them are, said Stephan Miles-Brown, head of residential development at property consultant Knight Frank.

He said there was more state-of-the art security in London homes because it was more readily available. "A few years ago, everyone was demanding air conditioning as a 'must-have'. Now their attention has turned to 24-hour concierge teams and state-of-the-art security systems."

Despite the gadgetry, traditional methods such as bodyguards are still widely used, said Langton. "The main form of security used still seems to be someone hanging around who's not a member of the family." ($1 = 0.6318 British pounds)

(Editing by Andrew Roche)

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Reuters: Small Business News: Consumer spending posts biggest rise in five months

Reuters: Small Business News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Consumer spending posts biggest rise in five months
Aug 30th 2012, 13:24

A man holds his briefcase while waiting in line during a job fair in Melville, New York July 19, 2012. REUTERS/Shannon Stapleton

1 of 3. A man holds his briefcase while waiting in line during a job fair in Melville, New York July 19, 2012.

Credit: Reuters/Shannon Stapleton

By Lucia Mutikani

WASHINGTON | Thu Aug 30, 2012 9:24am EDT

WASHINGTON (Reuters) - Consumer spending got off to a fairly firm start in the third quarter, rising by the most in five months and offering hope economic growth could pick up this quarter.

Other data on Thursday showed the number of Americans filing new claims for jobless benefits was unchanged last week, indicating a lack of strong improvement in the labor market and keeping additional monetary stimulus from the Federal Reserve on the table.

The Commerce Department said consumer spending increased 0.4 percent after a flat reading in June. Last month's rise in consumption, which accounts for 70 percent of U.S. economic activity, was in line with economists' expectations.

When adjusted for inflation, consumer spending increased 0.4 percent, also the largest increase since February.

"The improvement in spending activity suggests that overall economic activity may be off to a fairly decent start in the third quarter," said Millan Mulraine, senior macro strategist at TD Securities in New York.

A second report from the Labor Department showed first-time applications for state unemployment benefits were unchanged at 374,000. The four-week moving average for new claims, a better measure of labor market trends, rose 1,500 to 370,250. Jobless claims have risen by 10,000 in August, suggesting some moderation in the pace of job growth this month after payrolls increased 163,000 in July from 64,000 in June.

Even though data on consumer spending and housing suggest that economic activity picked up early in the third quarter, the state of the labor market could determine whether the Fed offers additional monetary stimulus to the economy at its September 12-13 policy meeting.

The unemployment rate, which ticked up to 8.3 percent in July, has been stuck above 8 percent for more than three years, the first time this has happened since the Great Depression.

In addition, business spending is weakening and inflation is slowing.

"Today's data...are not strong enough to prevent the Fed from launching QE3 in mid-September," said Paul Dales, a senior economist at Capital Economics.

U.S. stock index futures held onto earlier losses, while U.S. Treasury debt prices extended earlier gains. The dollar maintained its losses versus the euro and yen.

INFLATION SUBDUED

Consumer spending dipped 0.1 percent in June when adjusted for inflation and last month's increase was an encouraging sign after consumption growth slowed by the most in a year in the second quarter.

Sluggish consumer spending held back economic growth to a 1.7 percent annual pace in the April-June period.

Real spending last month was lifted by subdued inflation pressures. A price index for personal spending was flat after edging up 0.1 percent in June.

In the 12 months through July, the PCE price index rose 1.3 percent -- the smallest increase since October 2009 -- after increasing 1.5 percent in June.

A core measure that strips out food and energy costs was also flat for the first time since September after gaining 0.2 percent in June.

In the 12 months to July, the core PCE price index increased 1.6 percent, the smallest rise since October, from 1.8 percent. The Fed aims for inflation of 2 percent.

Last month, households increased spending as income increased 0.3 percent after rising by the same margin in June. Income available to households after stripping out inflation and taxes increased 0.3 percent after gaining 0.2 percent in June.

With spending a touch above income growth, the saving rate slipped to 4.2 percent in July from 4.3 percent the prior month.

(Editing by Andrea Ricci)

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Wednesday, August 29, 2012

Reuters: Small Business News: Small business owners see sluggish economic growth: WSJ

Reuters: Small Business News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Small business owners see sluggish economic growth: WSJ
Aug 30th 2012, 05:02

Thu Aug 30, 2012 1:02am EDT

(Reuters) - About half of 799 owners of small businesses in the United States expect economic growth to remain sluggish in the year ahead, according to the August Wall Street Journal/Vistage Small Business CEO Survey.

Against a backdrop of economic and political uncertainties, many small business chiefs said they did not plan to boost hiring or increase investment spending any time soon, the Journal said.

Only 37 percent said they planned to increase plant and equipment spending within the next 12 months, up 1 percent from July, but still down from 40 percent in June, according to the survey.

Also, fewer than half surveyed said they expected to hire new workers within the next 12 months, largely unchanged from July.

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Reuters: Small Business News: Second-quarter growth revised up, Fed still seen in play

Reuters: Small Business News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Second-quarter growth revised up, Fed still seen in play
Aug 29th 2012, 14:05

A man pushes his shopping cart down an aisle at a Home Depot store in New York, July 29, 2010. REUTERS/Shannon Stapleton

A man pushes his shopping cart down an aisle at a Home Depot store in New York, July 29, 2010.

Credit: Reuters/Shannon Stapleton

By Lucia Mutikani

WASHINGTON | Wed Aug 29, 2012 10:05am EDT

WASHINGTON (Reuters) - The economy fared slightly better than initially thought in the second quarter, but the pace of growth remained too slow to shut the door on further monetary easing from the Federal Reserve.

Gross domestic product expanded at a 1.7 percent annual rate, the Commerce Department said on Wednesday as stronger export growth offset a pull-back in restocking by businesses wary of sluggish domestic demand.

That was up from the government's initial estimate of 1.5 percent growth released last month and in line with economists' expectations. The economy grew at a 2.0 percent pace in the January-March period.

The report also showed that after-tax corporate profits unexpectedly rose at a 1.1 percent rate after sinking 8.6 percent in the first quarter.

While the composition of economic activity was fairly favorable, growth remains well below the 2-2.5 percent rate required every quarter to hold the unemployment rate steady, which could compel policymakers at the U.S. central bank to offer additional stimulus at their September 12-13 meeting.

"It shows slightly better government spending and consumer spending but overall the data suggest the economy stays in slow growth mode and is not likely to change," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York. "This certainly strengthens the hands of the Fed to aid the economy."

U.S. stock index futures were little changed on the data, while Treasury debt prices held steady. The dollar held its gains versus the euro and yen.

Speculation the Fed would loosen policy further had been dampened by a pick-up in job growth and a rebound in retail sales in July, but other data on business spending and inflation supported more action.

Fed Chairman Ben Bernanke could offer more clarity on the near-term outlook for monetary policy when he gives a speech at the Kansas City Fed's high-profile gathering in Jackson Hole, Wyoming, at the end of the week.

The jobless rate rose to 8.3 percent in July from 8.2 percent the prior month. The weak economy could be a stumbling block to President Barack Obama's quest for a second-term in office in November.

EXPORTS UP, INVENTORIES RETREAT

First-quarter economic growth was revised up to show strong export growth, despite slowing global demand. Import growth was the smallest in a year. Trade contributed 0.32 percentage point to GDP growth instead of subtracting a third of a percentage point, as previously reported.

That helped to offset the drag from inventories. Business inventories increased $49.9 billion instead of $66.3 billion and subtracted 0.23 percentage point from GDP growth in the April-June period. However, the careful management of stocks can be a boost to the economy in the third quarter.

Excluding inventories, GDP rose at a 2.0 percent rate rather than 1.2 percent. In the first quarter, final sales of goods and services produced in the United States increased at a 2.4 percent pace.

There were also upward revisions to growth in consumer spending, which was bumped up to a 1.7 percent pace from the previously reported 1.5 percent. That was a step-down from the 2.4 percent pace recorded in the first quarter.

Investment in the construction of nonresidential structures was stronger than previously reported. But growth in business investment in equipment and software was lowered to a 4.7 percent pace, the slowest since the third quarter of 2009, from 7.2 percent previously.

Spending by businesses on equipment and software has slowed sharply from a peak of 18.3 percent in the third quarter of last year.

That appears to have intensified early this quarter, with a measure of business spending plans falling sharply in July. The pullback likely reflects worries of deep government spending cuts and higher taxes scheduled to kick in at the start of 2013, as well as troubles from the debt crisis in Europe.

Growth in spending on homebuilding was cut to an 8.9 percent rate from 9.7 percent. The decline in government spending was not as deep as previously reported, with defense outlays falling at a 0.1 percent rate instead of 0.4 percent.

Though consumer spending was revised up, inflation pressures remained muted.

A price index for personal spending rose at an unrevised 0.7 percent, the slowest pace since the second quarter of 2010. It rose 2.5 percent in the first quarter.

A core measure that strips out food and energy costs advanced at an unrevised 1.8 percent pace, slowing down from 2.2 percent in the prior quarter.

(Editing by Andrea Ricci)

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Monday, August 27, 2012

Reuters: Small Business News: Small business borrowing woes hurt jobs: NYSE CEO

Reuters: Small Business News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Small business borrowing woes hurt jobs: NYSE CEO
Aug 27th 2012, 12:32

Duncan Niederauer, chief executive officer of the New York Stock Exchange, speaks during the Sandler O'Neill + Partners, L.P. global exchange and brokerage conference in New York June 8, 2012. REUTERS/Lucas Jackson

Duncan Niederauer, chief executive officer of the New York Stock Exchange, speaks during the Sandler O'Neill + Partners, L.P. global exchange and brokerage conference in New York June 8, 2012.

Credit: Reuters/Lucas Jackson

By John McCrank

NEW YORK | Mon Aug 27, 2012 8:32am EDT

NEW YORK (Reuters) - A majority of U.S. small businesses are having a tough time accessing funding, holding back job growth and stunting economic growth, Duncan Niederauer, chief executive of NYSE Euronext, said in an interview.

New York Stock Exchange parent NYSE released the results of an annual survey on Monday on the economy, business and job creation. It included 340 CEOs from companies listed on NYSE Euronext markets from 26 countries, and 285 U.S. small business owners.

It was the first time in the survey's eight years that Main Street business owners were included, and 47 percent of them said their capital needs were being met marginally or not at all. Just 21 percent said they have sufficient capital.

Niederauer, who was active in promoting the Jumpstart Our Business Startups Act, or JOBS Act, said that anecdotally he had been hearing for the past couple of years that small business has been having a tough time raising capital.

"Our early sense is that the lack of access to capital is having the biggest impact on job creation," he said.

Two-thirds of the small businesses, which Niederauer called the U.S. job creation engine, do not expect add jobs in 2013, or will be cutting jobs, according to the survey.

Banks are less willing to bet on small businesses than in the past, especially on newer ones that have not yet built a strong credit history, Niederauer said.

Small businesses less than 10 years old have had almost twice as much difficulty in accessing capital as companies that have been in business for over 25 years, the survey found.

Concern over future economic growth, and the amount of costs related to red tape when preparing loans for small businesses, have also put a damper on lending by banks, Niederauer added.

"There is not much profit in a $100,000 loan if you are going to provide that capital at an affordable price, and yet there is a tremendous amount of work that has to be done to make that loan," he said.

The story was slightly better for large global companies, with 43 percent of CEOs saying their need for capital is fully met, while 20 percent said they do not have enough.

But the study suggested that is leading to a spilt-level recovery of the economy, with large companies growing while smaller ones struggle.

There was a disparity between the two groups' thinking on the U.S. economy, with 69 percent of the CEOs of public companies saying conditions were fair, 20 percent saying conditions are poor, and 11 percent saying they are good.

Just under half of the small-business owners saw U.S. economic conditions as fair, 39 percent saw them as poor, and 12 percent said they were good.

"If that all translates to minimal growth and hiring, then that to me is the call to action," Niederauer said.

Aside from its support of the JOBS Act, which was enacted in April and makes it easier for young companies to raise money while reducing regulatory burdens in the startup phase, the Big Board parent in May launched The NYSE Big StartUp, which provides small businesses with micro-loans and mentoring.

(Additional reporting by Rodrigo Campos; editing by Matthew Lewis)

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Thursday, August 23, 2012

Reuters: Small Business News: Who's your daddy? DNA clinic gives answers, sparks concerns

Reuters: Small Business News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Who's your daddy? DNA clinic gives answers, sparks concerns
Aug 23rd 2012, 18:19

Jared Rosenthal, president of Health Street, poses with his ''Who's Your Daddy?'' DNA testing van in New York August 16, 2012. Rosenthal drives the van around the city offering portable DNA paternity testing as well as drug and alcohol testing services. Picture taken August 16, 2012. To match Feature USA-HEALTH/DNA REUTERS/Andrew Kelly

1 of 15. Jared Rosenthal, president of Health Street, poses with his ''Who's Your Daddy?'' DNA testing van in New York August 16, 2012. Rosenthal drives the van around the city offering portable DNA paternity testing as well as drug and alcohol testing services. Picture taken August 16, 2012. To match Feature USA-HEALTH/DNA

Credit: Reuters/Andrew Kelly

By Lily Kuo

NEW YORK | Thu Aug 23, 2012 2:19pm EDT

NEW YORK (Reuters) - A mobile DNA testing facility that looks more like a motor home than a medical clinic is raising questions about the ramifications of quick and easy tests to determine paternity and other biological connections.

Once a time-consuming and complicated process, DNA testing has become so accessible that experts worry families and individuals may not be properly prepared for the results.

A 28-foot (8.5-meter) recreational vehicle cruising around New York City emblazoned with the question "Who's Your Daddy?", and offering on-the-spot DNA testing services starting at $299, has renewed those concerns.

The clinic, operated by a New York company called Health Street, started in 2010 but was revamped two months ago.

Passersby can hail the conspicuous brown and blue Winnebago to have DNA samples taken by a technician, packaged and sent to a laboratory in Ohio. Results are returned within three to five business days. Mandatory prescriptions for the tests from a customer's physician can be faxed via the Internet to the RV.

While it is common for DNA testing distributors, companies who take the samples and send them to labs for analysis, to offer mobile collection services, Health Street appears to be the first to splash exactly what it does on the vehicle. "DNA TESTING" in bold red lettering is painted on the side.

Jared Rosenthal, who founded Health Street and drives the RV, recounts some of the people affected by his service: Two women who learned they were half-sisters, and a man whose suspicion that he might be the father of a friend's daughter was confirmed.

"It's just such a serious, fundamental question ... who are your children? Who are your parents?" Rosenthal, 42 said.

Experts say there has been a steady increase in demand for such tests in the United States, reaching close to 500,000 a year, according to Michael Baird, director of DNA Diagnostics, a DNA testing laboratory, in part because the rate of births to unmarried women has also been increasing.

In 2010, at least 382,199 relationship tests were conducted in the United States, although the total is likely higher because some labs don't submit data, according to the AABB, formerly known as the American Association of Blood Banks, which accredits relationship testing facilities.

State child-support agencies make up the bulk of this demand, but experts said the number of people simply seeking answers, and the accompanying number of venues and ways to test for family relationships, have increased.

Susan Crockin, a lawyer who teaches at Georgetown Law Center and specializes in reproductive technology, said families should be careful of the reliability of the growing variety of relationship tests around the country, which range from at-home DNA kits that critics say can be subject to contamination, to on-site tests used to prove legal paternity.

"The underlying issues are obviously the quality of testing," Crockin said.

Health Street's DNA tests are analyzed in a lab certified by the AABB as well as the New York State Department of Health, Rosenthal said.

Health experts advise customers to only use labs accredited by AABB or distributors who use those labs, but there are no regulations on the outfits themselves. It is also not illegal to run a DNA testing laboratory that is not AABB-certified, Baird said.

Customers at Health Street must have a prescription from a doctor requesting the tests, Rosenthal said. Paternity testing is usually not covered by health insurance unless there is a medical need.

HEARTBREAK CASES

Aside from questions about reliability, experts said wider DNA testing raises concerns of whether families and individuals are psychologically prepared for the results.

"The bigger question is what do we do with this information. Why are we looking for it and what do we think it means?" Crockin said.

Crockin said individuals, especially children, should have the advice of trained genetic counselors before and at the time of receiving the results of the DNA match.

Others say the promotion and presence of these DNA testing clinics and methods could devalue past family relationships when new biological connections are discovered.

"As this (industry) evolves it will create... a social expectation that, despite a past relationship between a social father and a child, DNA is everything," said David Bishai, a professor at Johns Hopkins Bloomberg School of Public Health.

Typical customers at Health Street include men who are engaged and want to confirm offspring from a past relationship, returning soldiers seeking reassurance that they fathered newly-born children, and women inquiring about paternity on behalf of their children, Rosenthal said.

The door, however, is open to heartbreak, especially when men discover that somebody else fathered their children.

"If you're really happy with the children in your life, don't go near these things," Bishai said.

Others are happy to receive the results.

Cornelia Heggs, 40, of Carrollton, Georgia, grew up knowing she had half-siblings from her absent father's other marriages but never met them. She was contacted in 2009 by a half-sister who promised their mutual grandmother that she would find Heggs. The two women confirmed their relationship in June through a test at Health Street.

"We found each other and now we have the proof. There's no more guessing. I'm just happy to know," she said.

For others the information opens an uncertain chapter.

A 44-year-old married father of two in New York City confirmed in July through a DNA test at Health Street's mobile clinic that the adult daughter of a woman he dated some 20 years ago was his.

The man, who declined to give his name for reasons of privacy, said he is slowly and cautiously building a relationship with his 20-year-old daughter, a student in Ohio.

"This issue is still raw and very sensitive," he said.

"I will get to know my daughter ... this is something I'm taking one day at a time."

(Reporting by Lily Kuo; Editing by Dan Burns and Paul Simao)

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Reuters: Small Business News: Data point to slow pace of healing in economy

Reuters: Small Business News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Data point to slow pace of healing in economy
Aug 23rd 2012, 18:21

General Dynamics employees work on an Abrams battle tank during a tour of the Joint Systems Manufacturing Center, Lima Army Tank Plant, in Lima, Ohio, April 23, 2012. REUTERS/Matt Sullivan

1 of 2. General Dynamics employees work on an Abrams battle tank during a tour of the Joint Systems Manufacturing Center, Lima Army Tank Plant, in Lima, Ohio, April 23, 2012.

Credit: Reuters/Matt Sullivan

By Jason Lange

WASHINGTON | Thu Aug 23, 2012 2:21pm EDT

WASHINGTON (Reuters) - Growth in the manufacturing sector picked up in August, a sign the economy is resisting the global economic chill although a rise in new jobless claims last week pointed to a still-sluggish labor market.

Financial information firm Markit said on Thursday its "flash" index for U.S. manufacturing edged up a half point to 51.9 in August. A reading above 50 indicates expansion.

That was still some of the weakest growth in the factory sector in the last three years, reinforcing the view that U.S. economic growth will pick up in the second half of the year but remain lackluster.

"The U.S. economy is slowly turning the corner," said Robbert Van Batenburg, head of global research at Louis Capital Markets in New York.

The reading, based on a survey of purchasing managers, beat expectations and rose despite sluggish overseas demand for American goods.

Still, the modest improvement was not enough to dissuade investors' bets on more monetary stimulus from the Federal Reserve. U.S. government debt prices rose, although stocks slumped on Wall Street amid signs of further weakness in the global economy.

Many economists think the Fed could unveil a new bond buying program to prop up economic growth as soon as its next meeting September 12-13, although an improvement in hiring this month could make that less likely.

The data on initial jobless claims suggested employers remain cautious about adding staff.

The Labor Department said initial claims for state unemployment benefits rose 4,000 last week to a seasonally adjusted 372,000.

"Jobless claims continue to indicate ... a sluggish labor market," said Peter Cardillo, an economist at Rockwell Global Capital in New York. "The numbers also strengthen the hand of the Fed to aid the economy with more stimulus."

However, Cardillo and other economists said the slow pace of healing in the labor market doesn't necessarily point to immediate action by the Fed.

The data keeps pressure on President Barack Obama ahead of his November re-election bid. Republican challenger Mitt Romney is trying to focus voters' attention on a lofty unemployment rate that has dogged Obama's presidency.

HIRING OUTLOOK

The U.S. economy faces a number of threats In the coming months, including the looming possibility the government will raise taxes and cut spending. That is already hurting business sentiment.

Europe's festering debt crisis also menaces the global economy. Business surveys released on Thursday painted a global picture of economic malaise from Beijing to Berlin.

Minutes from the Fed's July 31-August 1 policy review, released on Wednesday, suggested the central bank is likely to deliver another round of monetary stimulus "fairly soon" unless the economy improves considerably.

One tiny sign of improvement has come in the housing market, although home building is still too slow to add very much to the broader economy.

The Commerce Department said new single-family home sales edged higher in July while data from the Federal Housing Finance Agency showed home prices rose in June.

"We're moving in right direction but at a slow pace," said Fred Dickson, a market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon.

Despite the increase in jobless claims last week, there was a silver lining to the report on layoffs.

The data covers the same week looked at by the government for its monthly measure of employment, and showed a slight drop in layoffs from the survey week last month, which is a mildly positive signal for hiring in August.

The four-week moving average for new claims, a measure of labor market trends, was 368,000 last week. That was a slight increase from the prior week, but still 2.1 percent lower than in the second week of July.

That week, the government surveyed employers and concluded 163,000 new jobs were created in July - an improvement from the prior three months though the unemployment rate still ticked higher to 8.3 percent.

"No signs here that there's been a notable pick-up in layoffs, and (that) would suggest to us that moderate job growth continued in August," said Ellen Zentner, an economist at Nomura Securities in New York.

The government will release its employment report for August on September 7, and policymakers at the Federal Reserve will scrutinize the data for signs the economy is improving.

Economists at Barclays said the claims data was consistent with payroll growth of 150,000.

(Additional reporting by Steven C. Johnson in New York; Editing by Neil Stempleman)

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Reuters: Small Business News: Kay Jewelers' sales gains lift Signet quarterly results

Reuters: Small Business News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Kay Jewelers' sales gains lift Signet quarterly results
Aug 23rd 2012, 13:21

Thu Aug 23, 2012 9:21am EDT

(Reuters) - Signet Jewelers Ltd (SIG.N) (SIG.L) posted a larger-than-expected quarterly profit on Thursday, with big gains at its mid-priced Kay Jewelers chain spurring renewed sales momentum.

Sales at all of its major chains rose and showed more vigor in the second quarter that ended July 28 than in the preceding quarter when U.S. consumer confidence waned and fears of a worsening eurozone crisis led many middle-class shoppers to hold off on buying jewelry.

At its U.S.-based Kay chain, which accounts for almost half of revenue and caters to more price-conscious shoppers, sales at stores open at least a year rose 12.5 percent, compared with a 2.1 jump in the first quarter. At Signet's higher-end Jared stores, they rose 2.4 percent, after barely rising in the spring quarter.

In the United States, Signet competes most directly with Zale Corp (ZLC.N) and Tiffany & Co (TIF.N), which both report results next week.

In Britain, sales continued to improve despite what Signet had warned in May would be a "promotional" quarter. Its Ernest Jones chain's same-store sales rose 4.4 percent. Still, the company's gross margin there took a hit from shoppers' preference for items that were on sale, Signet said.

Companywide, same-store sales rose 7.1 percent, compared with a slower 1.2 percent in the preceding quarter.

Signet said it expected companywide same-store sales to be up by a low- to mid-single-digit percentage rate this quarter.

The company forecast earnings of between 34 cents and 38 cents per share for the current quarter, compared with the 36 cents Wall Street was expecting, according to Thomson Reuters I/B/E/S.

Net income rose to $70.7 million, or 85 cents per share, from $66.3 million, or 76 cents per share, a year earlier, beating Wall Street forecasts by 2 cents a share.

Its shares rose 1.3 percent to $48.10 in premarket trading in New York, and were up 0.6 percent in London.

(Reporting by Phil Wahba in New York; Editing by Lisa Von Ahn and Maureen Bavdek)

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Reuters: Small Business News: Management Tip of the Day: Try to see the big picture first

Reuters: Small Business News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Management Tip of the Day: Try to see the big picture first
Aug 23rd 2012, 12:56

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Analysis & Opinion

A businessman walks on an illuminated walkway in Tokyo November 13, 2008. REUTERS/Yuriko Nakao

A businessman walks on an illuminated walkway in Tokyo November 13, 2008.

Credit: Reuters/Yuriko Nakao

BOSTON | Thu Aug 23, 2012 8:56am EDT

BOSTON (Reuters) - The best strategic thinkers have the knack of considering the potential impact of their actions far beyond their own team or unit, and you can do it too, says Harvard Business Review.

The Management Tip of the Day offers quick, practical management tips and ideas from Harvard Business Review and HBR.org (www.hbr.org). Any opinions expressed are not endorsed by Reuters.

"Successful strategic thinkers always have perspective. They consider the potential impact of their actions on those beyond their team or unit.

Next time you need to make a big decision, here are three ways to make sure your thinking isn't too narrow:

1. Explore the outcomes. With every idea, ask yourself, "If we implement this idea, how will other units and stakeholders be affected? What might be the long-term ramifications?"

2. Expand your range of alternatives. Gather ideas and concerns from everyone who has an interest in the decision or who will be affected by the outcome.

3. Consider the customer. Look at the decision through your customers' eyes. What will they think and which alternative will they prefer? If you're not sure, think about asking them."

- Today's management tip was adapted from "The Harvard ManageMentor Online Module: Strategic Thinking."

(For the full post, see: here)

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We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

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Reuters: Small Business News: Breakingviews: Korea, Taiwan are global stimulus weather vanes

Reuters: Small Business News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
Breakingviews: Korea, Taiwan are global stimulus weather vanes
Aug 23rd 2012, 13:02

By Wayne Arnold

Thu Aug 23, 2012 9:19am EDT

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)

The economies of export-reliant South Korea and Taiwan are suffering as global growth cools. Yet foreign investors have been snapping up their stocks on the hunch that China, Europe or the United States will respond with major economic stimulus measures.

It's hard to be optimistic about the short term economic prospects of either South Korea or Taiwan. In Korea, exports are shrinking, industrial production is slowing and the GDP growth rate has cooled to 2.4 percent. In Taiwan, all three indicators are negative. For both, weak exports are to blame: shipments abroad are equivalent to nearly 60 percent of Korea's GDP and 68 percent of Taiwan's.

So it may seem odd that foreign investors, after two months of selling, have regained their appetite for Korean and Taiwan stocks. In the past month, they've bought at least $5 billion in Korean equities, the fastest pace since mid-February. They've purchased $2.8 billion in smaller Taiwan, the most since mid-2011.

Their hope is policymakers will give the stocks some artificial life support. Weak economic conditions increase the likelihood that Seoul and Taipei cut interest rates and boost government spending, supporting local demand. But even more important in economies so reliant on exports is stimulus in their biggest markets. The European Central Bank could pump more cash into supporting heavily indebted governments or the Federal Reserve could resume printing money to support a sluggish U.S. recovery. Either could revive demand for Asian exports -- and would provide more cheap investment cash that might support Asian markets.

But China is the biggest market for both Korea and Taiwan. Slowing growth in the Middle Kingdom could prompt Beijing to cut rates further or boost spending. If it does, Korean and Taiwan stocks will seem cheap now. Korean stocks are trading at roughly 8.8 times estimated earnings, their lowest since 2007. Taiwan's stocks are more expensive at roughly 14 times, but offer an average dividend yield of 3.45 percent. For investors confident in central banks' sympathetic tendencies, the global economy's pain may prove to be their gain.

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