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By GILLIAN RICH, INVESTOR’S BUSINESS DAILY Posted 05/15/2012 02:40 PM ET
Many industrial, tech and consumer goods companies rely heavily on Chinese sales to drive the overall bottom line. But Deere Co. (DE), maker of tractors and other farm equipment, also likely is getting a boost thanks to higher crop production in China.
Wall Street is expecting Deere early Wednesday to report a 19% rise in second-quarter earnings to $2.53 per share. Sales are seen up 16.5% to $9.7 billion. Deere is expecting only a 15% increase in second-quarter and full-year sales.
Greece’s financial problems shouldn’t be an issue with Deere, as southern Europe is not a key market. Grain, beef, and milk prices are all at high levels in the EU according to the company.
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The company is expecting commodity prices in India to weaken slightly from 2011 levels, but still remain elevated. China is expected to ramp up crop production during the year.
During Q1, the company warned of rising material costs and harsher emissions standards could put a damper on Q2 earnings.
Deere’s Q1 profit rose 8% to $1.20 and revenue was up 11% to $6.12 billion, beating expectations.
In late April Caterpillar (CAT) reported first-quarter profit above expectations, but sales came in below analysts views on a weakened construction market in China.
Earlier this month, CF Industries (CF) reported a 59% rise in EPS to $6.06, smashing views by $1.23 as the fertilizer maker’s sales grew 30% to $1.53 billion. But shares have tumbled ever since on concerns that earnings may have peaked.
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Tags: news
If teaching someone to fish is better than giving them a fish, then teaching your kids about wealth is much better than just leaving it to them.
5 tips on raising your kids to think and grow rich:
Teach them where wealth comes from
Popular culture tends to portray the wealthy as old-money dynasties with wealth being inherited and transferred over and over again. In actuality, most wealthy people are self made. According to Thomas J. Stanley, author of the Millionaire Next Door, only 19 percent of millionaires receive any income or wealth of any kind from a trust fund or an estate.
Most self made millionaires figured out that crucial link between money and value. As one creates and adds value, one commands more and more money. It’s true that many people have accumulated money without adding real value to society, but most were not able to keep that money for very long. Long lasting wealth comes from adding long lasting value to society.
Teach your kids that money comes from providing something of value to others. For example, rather than give them an allowance, pay them fees or commissions for doing chores and odd jobs. When they ask for money, ask them what they would be willing to do for you in return.
Teach them what do with their wealth
Earning money is only half the game. The more important part is using it wisely. In our debt ridden society, people have rejected long held values of living below your means, in favor of big SUVs and flat screen TVs. Learning bad spending behavior early on can have long lasting negative consequences that only become harder to change as one gets older. By teaching kids to delay gratification, something many of us adults have a hard time doing, we can instill the discipline needed to stick to a financial plan.
I recommend teaching kids to do three things with all the money they earn: Save, Spend, Give. By teaching them to save for their future, spend wisely, and give to others, they will learn balance that will guide them for the rest of their lives. By forming the habit early on, the effects of compounding interest will have dramatic effects on the child’s portfolio. Take your kids with you next time you visit your financial advisor and ask them for any education material they might have available. Teach your kids to take pride in their savings, and in the investments they own.
Teach them what not to do:
Sometimes knowing what NOT to do is more important than knowing what to do. Fortunes have been lost because people acted without thinking about the consequences of their actions. As they say, the best offense is a good defense.
My favorite quote from Warren Buffett, (one that’s actually printed on my monitor) is Rule No.1: Don’t lose money…Teach your kids to be smart with there money discuss examples of good vs bad behavior. The difference between needs and wants can be a great conversation starter. Use real life stories about people who made mistakes with money and talk about what it cost them, both financially as well as personally. The stories of lottery winners are great examples because they show that money that comes without providing value is quickly lost. Gambling and debt are great ways to lose wealth so teach your kids to stay away from both.
4. Read, read, read
Readers are leaders and leaders become wealthy. I remember I did not like to read much as a child, but that all changed when I actually read something that was interesting to me. Biographies and stories make for great reads that end up providing education as well as entertainment. Articles about interesting people are great too. For example, with the upcoming IPO of Facebook, talk to your kids about how a kid in a dorm room started a multibillion dollar business that has more than 900 million users worldwide. Along with the risks, the rewards of creating wealth should also be emphasized.
5. Lead by example!
Actions speak louder than words, so if you’re not leading by example, not only will you be ineffective, you could be reinforcing bad behavior. If you’ve made mistakes with money in the past, don’t be shy about discussing them with your kids. Talk about how you corrected bad behavior and keep the dialogue about money open and frequent.
One of most memorable and influential habits my father had, was to discuss stories at the dinner table about people who created wealth, as well as those who lost it. He was never shy about including his own successes and failures and encouraged us to ask questions.
As your children approach adulthood, introduce them to your financial advisor, CPA, and attorney. Take them along with you when possible and include them on the issues and strategies at play. As they see you taking an active role in learning and working with your team, your children will look forward to creating their own wealth and forming their own team of advisors to help them protect it.
Tags: news
Jeff Lawrence. Photo: Justin McManus
THE outgoing head of Australia’s union movement has decried the nation’s growing inequality and warned of the “real danger” of an Abbott Government, in his final speech as secretary of the ACTU.
Jeff Lawrence said that in the last 30 years the richest one per cent of Australians’ share of national income had almost doubled.
“Now nine per cent of national income belongs to just one per cent of Australians,” Mr Lawrence said.
“It is shameful that Australia, a country that prides itself on the fair go, as being egalitarian, is more unequal than most OECD countries.”
Amid the unfolding saga of Craig Thomson and the Health Services Union, Mr Lawrence said that corruption within unions was not acceptable and allegations that HSU members’ money has been misused were alarming.
He warned around 1000 union leaders, gathered at the Sydney Convention Centre this morning for the union movement’s triennial Congress, that the Coalition’s industrial relations policies are being put together to favour employers interests alone, not employees.
“I have no doubt that employer groups are currently writing the Coalition’s industrial relations policy,” Mr Lawrence told delegates this morning, in his final speech as secretary of the ACTU.
Prime Minister Julia Gillard is to address the conference at 2pm this afternoon.
Mr Lawrence also said this morning that every union delegate at the Congress should be “alarmed at the allegations that [HSU] members’ money has been misused. It is not acceptable. And will not be tolerated,” he said.
The ACTU suspended the HSU indefinitely last month, because of the allegations swirling around it and its senior officers.
Earlier, ACTU president Ged Kearney received a rousing round of applause from delegates when she said that the HSU’s “arrogance and contempt” for accountability and its members were unacceptable.
Mr Lawrence warned that many employer groups around the country were using the Howard government’s WorkChoices policy as “their new benchmark” for industrial relations.
He said employer groups wanted to end penalty rates, cut unfair dismissal protections, and reinstate the Australian Building and Construction Commission.
Mr Lawrence, who has been ACTU secretary since 2007, said that the Australian Industry Group was this week arguing before Fair Work Australia that the nation’s lowest paid workers should get a pay rise of $14 a year in the national wage case.
And the Australian Chamber of Commerce and Industry had said the pay increase should be limited to $9.40 — while the Australian Retailers Association was arguing employees not get any wage increase at all.
“It is an outrage,” Mr Lawrence said, and showed why unions were so important.
The ACTU is arguing for a $26 pay rise in the national wage case.
Mr Lawrence said that, in the three years since the last ACTU Congress, the union movement had “got rid of individual contracts” introduced in WorkChoices, and achieved a national paid maternity leave scheme after a 30-year campaign.
“We won the increase to superannuation guarantee to 12 per cent that begins next month,” Mr Lawrence said.
Mr Lawrence attacked the actions of Qantas management in locking out its workers last year, and said the move should not have been rewarded.
“Australian law must not ever again allow employers to hold Australian workers and the national economy to ransom in order to get their way and to undermine workers’ rights,” he said.
During a video presentation ahead of Mr Lawrence’s speech, most delegates loudly booed footage of Qantas chief Alan Joyce (also booed was footage of John Howard and Tony Abbott).
Mr Lawrence also said that union membership had stabilised in recent years.
Figures from the Australian Bureau of Statistics out in the last fortnight showed 18 per cent of Australians were union members, which has held steady from the same time last year.
Mr Lawrence said stopping the decline in union membership from the 1990s was an achievement for Australian unions.
“But it is not enough. … We must grow,” he said, “so we can turn back the rising inequality in Australia”.
The incoming secretary of the ACTU, Dave Oliver, will be elected at noon today.
Tags: news
Hanski and his colleagues investigated the idea that the global decline in biodiversity and decreasing human contact with it is linked to the escalating prevalence of chronic inflammatory and autoimmune diseases.
To test whether biodiversity creates a shield against such conditions, the team investigated the microbial diversity in 118 teenagers. The study participants, who had lived in the same houses their whole lives, were chosen at random from an area in eastern Finland. Some lived on rural, isolated farms; others lived in towns. The researchers controlled for factors such as whether family members smoked, if pets lived in the house and to what type of allergens the subjects were sensitive.
The researchers took microbial samples from the participants’ forearms and sequenced the DNA to find which species of microbes were present. They also surveyed all of the types of plants growing around the adolescents’ homes. The participants were part of a separate long-term allergy study, so the researchers took advantage of that data to investigate the connection between biodiversity and allergies.
Although individuals with allergies were found throughout the study area, the authors discovered that the likelihood of allergies was related to the amount of biodiversity around the teenagers’ homes: The more forest and agricultural land, the lower the prevalence of allergies, and those living near bodies of water or in urban centers had significantly higher levels of allergies.
In particular, the researchers report online in the Proceedings of the National Academy of Sciences, the number of species of a certain group of flora — uncommon native flowering plants — was 25 percent higher in the yards of nonallergic teens than in the vicinity of their allergic counterparts. Whether there is something special about Finland’s native plants is an open question, Hanski says. “Many research groups worldwide could easily attain these data from their study populations, and then we’d know how general these results might be,” he says.
In addition to having higher levels of plant biodiversity around their homes, nonallergic individuals sported a larger number of microbial species on their skin. One group of bacteria, called gammaproteobacteria, was especially more prevalent, and one member of this group may be responsible for convincing the immune system to ignore allergens. These types of bacteria seem to play an important role in explaining why children develop allergies or not, says Thomas Abrahamsson, a pediatrician at Linkoping University in Sweden, who was not involved in the study.
Allergies aren’t the only thing at stake here, says Hanski. He thinks the diversity of microbes living with humans “absolutely” influences other diseases, such as Type 1 diabetes, asthma and even depression. “We’re not claiming that contact with nature and biodiversity is the only important thing, but it could be a significant contributing factor,” he says.
This article is from ScienceNOW, the daily online news service of the journal Science.
Tags: news
ATT Inc. Chief Executive Officer Randall Stephenson said traditional economic indicators have become less reliable as the spending patterns of affluent and lower-income Americans grow further apart.
An economy of haves and have-nots is evident in both the consumer and business sectors, Stephenson said in an interview last week at Bloomberg headquarters in New York. Companies and individuals with money are spending it, while the rest are more constrained than usual, he said.
Stephenson, who runs the largest U.S. phone company, has a broad view of consumer and corporate spending. While he sees signs of strength in areas such as home construction, there’s a lingering slump in the number of new businesses being created. That makes it hard to predict the direction of the economy almost three years after the official end of the last recession.
“I’ve never seen it like this,” Stephenson said. “Small business starts are still negative. That used to be the early warning indicator. When you saw small business starts turn positive, that was a great sign.”
Government spending and near-zero interest rates have helped keep the U.S. economy growing, even as Europe falls back into recession. America’s GDP will expand 2.3 percent this year, while Europe’s economic output shrinks 0.3 percent, according to surveys of economists.
‘Alive and Well’
On the positive side, the high-end consumer market is “alive and well,” Stephenson said.
“They are spending money,” he said. Those consumers are so eager to upgrade their phones that it’s constraining Dallas-based ATT’s network, Stephenson said. “They’ll upgrade as fast as you upgrade.”
ATT also is looking at the need to increase spending on network facilities to handle new home construction, he said. That hasn’t happened in four or five years, Stephenson said.
The business sector’s continued doldrums are working against those trends, he said. While larger corporations are spending more on telecommunications, those investments are going toward efficiency and not toward expansion.
The real driver for us is “hiring and putting people on payroll — that’s when our business catches leverage and starts to take off,” Stephenson said. “We’re still not seeing that.”
© Copyright 2012 Bloomberg News. All rights reserved.
Tags: news
By Guest Columnist DANIEL BACKHAUS, chief marketing officee of Atlanta-based PodPonics
When it comes to food in America, we face a Dickensian dichotomy. Parts of our population enjoy abundance and an unprecedented variety of food choices, while others live in so-called food deserts with no easy access to fresh, wholesome food at all.
Similarly, obesity and related diseases like Type-2 Diabetes have reached epidemic proportions, while a large percentage of our population regularly faces food insecurity or outright hunger. How is it that a society as advanced and rich as ours is forced to deal with such seemingly contradictory challenges?
Well, it’s not due to a lack of food; not yet, at least. Our country continues to set new records in food production, while also importing a record amount from abroad. So, clearly, the problem lies not with the overall amount of food we produce but, instead, with the type of food produced and how and where we produce and distribute it.
Take fresh produce as an example. Consumers have become accustomed to having access to just about any type of fresh produce at any time of year, regardless of season, weather or where they live. As a result, the global produce industry now boasts one of the most advanced logistics and distribution networks in the world.
Walk into any Whole Foods and you will find cucumbers from Holland, peppers from Peru and lettuce from Arizona, Mexico and Honduras. Of course, while many of these products might look impeccable, they often disappoint in terms of taste, texture and nutritional value.
Daniel Backhaus
Growing food in these faraway places and then transporting it by air or refrigerated truck for thousands of miles is not only hard on the food, it also causes pollution, traffic congestion and host of other problems, including lack of access in many parts of our society, such as our inner cities.
Unfortunately, our current food system is geared for centralized production in places far from our urban population centers, making long, complex and energy-intensive supply chains necessary. With the cost of oil rising, however, there is increasing interest in local food production in or near cities.
Urban gardens are becoming increasingly popular and they play a crucial role in building awareness of food issues and helping to educate our young citizens – and those not so young – to make good food choices.
They are also spurring renewed interest in food production and gardening. It is estimated, for example, that up to 10 million people began growing food in their garden when First Lady Michelle Obama planted vegetables in the White House garden.
This sort of involvement by high profile, influential people – and the publicity and attention that comes with it – creates awareness, drives education and fosters engagement. It will not, however, fix our food system or solve the problems that result from its current dysfunction.
Instead, radical innovation – the kind we have seen transform other sectors, including information technology, communications and medicine – is needed to meet the challenges we face. The fact of the matter is that our current approach, with its heavy dependence on increasingly scarce resources such as oil, water, and arable land, has inherent limits; and we are quickly bumping up against them.
Previously, we were able to increase production by simply adding more inputs, primarily in the form of more land by converting more and more acreage (usually in faraway places) into farmland.
Unfortunately, land suitable for farming has become scarce and we are now forced to resort to less-suited options. These tend to be further away from the point of consumption, often involve converting them from other uses such as forestry or wildlife habitats, or have less suitable climate, lack access to water or poor soil quality.
While we can overcome nearly all of these limitations, doing so usually requires a lot of energy — energy for transport, to create synthetic fertilizers and pesticides, pumping water, plowing and tilling soil, seeding and harvesting crops.
Agriculture is one of the few sectors that has not fundamentally changed in over 50 years. Nearly all innovation during this time has taken place in ancillary fields, including logistics and supply chain management, seed technology, and fertilizer and pesticide development.
One side effect of this is that less and less of what we spend on food – our so-called “food dollars” – ends up with the folks actually growing the crops, the farmers and their workers.
Instead, the vast majority is spent on energy, processing, distribution, retail and marketing. And, for all the money spent on today’s well-travelled and heavily processed food, it’s not any better than what our parents ate.
Quite the opposite, in fact. Studies have shown that the average nutritional value of common produce has declined steadily and anyone who has had a tomato grown in Florida in December can attest that the same is true of flavor and texture.
But it is possible to grow food at or near the point of consumption; and there are quite a few innovative companies showing us how. New York-based BrightFarms, for instance, is company that builds and operates rooftop greenhouses right on top of supermarkets and old warehouses in our country’s largest city. Gotham Greens, also a New York company, grows fresh produce in rooftop greenhouses in Brooklyn.
Another example is Atlanta-based PodPonics, which recycles shipping containers into controlled-environment “GrowPods” used to cultivate lettuce, micro-greens, and other produce. PodPonics grows their crops without any pesticides, uses 80 percent less water and vastly less fertilizer, none of which runs off to pollute streams and waterways. Plus they supply some of the city’s best restaurants with produce delivered within mere hours of harvest.
While we face significant challenges in re-engineering our food system, they are not intractable.
But, more importantly, great rewards exist for those innovators willing to disregard convention, think outside the box and re-imagine a food system that works for everyone in a crowded world where oil and energy are scarce.
Tags: news
CLASS FOR LIFE 6:30 to 8 p.m. Wednesdays, beginning this week, Unity Church of Modesto, 2467 Veneman Ave., Modesto. Eight-week “Motivational Class for Life” based on book “Think and Grow Rich!” available from church bookstore for $19.95. Offering for class. (209) 578-5433.
MISCELLANEOUS
CENTENNIAL ANNIVERSARY 9:30 a.m. today, Modesto Free Methodist Church, Briggsmore and Rose avenues. Former members and pastors will speak on “Touching Lives for 100 Years.” Refreshments follow service. (209) 522-3583.
REVIVAL 7 p.m. May 18-19 and 21, 5:30 p.m. May 20, Holy Ghost and Fire Church, 365 E. Krell Lane, French Camp. Speakers include bishops and leaders from churches in Oakland and Stockton. (209) 982-0477.
PET BLESSING 10 a.m. May 19, front lawn at Church of the 49ers, 11155 Jackson St., Columbia. Well-behaved pets, any kind, on leads or in carriers invited to second annual event. Each pet will be given a personalized blessing. Event followed by Yappy Hour with treats for pets and owners, and pictures taken with pets. Free. (209) 532-2441.
75TH ANNIVERSARY 9:30 a.m. May 20, Modesto Christian Reformed Church, 2620 College Ave., Modesto. 75th anniversary of church celebrated with music by adult and children’s choir, handbell ensemble, praise team and congregational singing. Offering. (209) 523-1906.
Send faith-based events by noon Tuesdays to snowicki@modbee.com or fax to (209) 578-2207.
Tags: news
Just offshore, we have one of the most productive habitats on Earth that supports extremely high biodiversity. The giant kelp forests of Southern California are dominated by two large brown algae species, the giant kelp (Macrocystis pyrifera) and bull kelp (Nereocystis luetkeana).
Giant kelp near the surface of the water. Photos by Kelly Stewart
Kelp forests provide homes and food for fish like the black sea bass.
Giant kelp grows along rocky coastlines in cool, nutrient-rich waters at depths of up to 90 feet. Attached to the rocky seafloor by a holdfast, which somewhat resemble aboveground roots, kelp rises up through the water column supported by tiny air bladders (pneumatocysts) at the base of each blade.
Once it reaches the surface, it forms a broad canopy with a rich habitat below the surface. Giant kelp thrives in clear water that gets a lot of sunlight, and must always have a wave surge to keep it healthy, so Southern California is a perfect environment.
Kelp may grow up to 2 feet per day, making it one of the quickest growing organisms on Earth.
Kelp forests are home to many fish and invertebrates that depend on the productivity of the forest for food, shelter and survival. Seals and sea lions use the mysterious tall forests as a refuge from predators; gray whales have even been spotted within the kelp forest, presumably avoiding killer whales. Other animals may seek out kelp forests during storms because kelp helps dissipate the energy from waves, thus making a more stable environment.
On the surface of the ocean, kelp looks only like a lifeless brown mat, but for those lucky enough to venture down into the water column, there exists a magical and peaceful green-lit world populated by many cryptic creatures.
Related posts:
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- Natural La Jolla: Spiny lobster season begins in local waters
- Natural La Jolla: Night sky a blanket of stars during blackout
- Natural La Jolla: The grunion run — an amazing natural spectacle
- Natural La Jolla: Western gulls a common sight along our coast
Short URL: http://www.lajollalight.com/?p=63619
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on May 11, 2012. Filed under Natural La Jolla.
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Tags: news
Copano Energy LLC said on Thursday the company will spend about $190 million to add 400 million cubic feet of cryogenic processing capacity to its Houston Central complex in Colorado County.
Deon Daugherty
Reporter- Houston Business Journal
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(NYSE: CPNO) said on Thursday the company will spend about $190 million to add 400 million cubic feet of cryogenic processing capacity to its Houston Central complex in Colorado County.
The expansion, which is needed to respond to producer demand in the liquids-rich Eagle Ford shale formation, will bring Copano’s total capacity at the site to 1 billion cubic feet per day by the middle of 2014.
The Houston-based natural gas storage and processing company has also announced the execution of a long-term fee-based fathering and processing agreement with an unnamed Eagle Ford producer.
“This second cryogenic expansion project reaffirms our commitment to being a leading midstream service provider in the Eagle Ford shale,” R. Bruce Northcutt, Copano’s president and CEO, said in a statement. “While we expect to invest capital for this project at a five-times multiple or better, our producers and customers will also benefit from the expansion through enhanced performance and improved recovery of natural gas liquids.”
Deon covers energy and law for the Houston Business Journal.
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Tags: news