* Short-term rates inch higher after Draghi speech
* Markets still discounting ECB rate cuts in 2012
* Bets may pile up again if Spanish, Greek worries remain
By Marius Zaharia
LONDON, June 6 (Reuters) - Short-term euro zone interest rates rose slightly on Wednesday after the European Central Bank failed to flag it was ready to ease monetary policy, but markets are still pricing in a large probability the bank will cut rates later this year.
The ECB kept its refinancing rate unchanged at a record low of 1 percent and the deposit facility at 0.25 percent and President Mario Draghi warned his bank cannot make up for other institutions' lack of action.
This disappointed markets, which had expected him to at least send out a signal that more easing was forthcoming.
"From the tone of it, as of today we cannot expect any significant measure in July because he looked very defiant and imperturbable - the ball is very much in the court of the politicians," BNP Paribas rate strategist Matteo Regesta said.
However, rate cut bets have not been taken off completely.
Regesta estimated that the forward overnight euro zone interbank EONIA rate markets - which moved 1-3 basis points higher across the 2012 curve after Draghi's speech - was still pricing in 24 percent probability that the deposit facility rate will be slashed in half in July.
For the end of the year, a December EONIA of just over 23 basis points discounted a 66 percent probability of that happening, compared to some 80 percent at the end of last week.
Euribor futures also sold off a few ticks after Draghi's speech, implying expectations for higher fixings of three-month Euribor rates in the future.
The December Euribor contact was 3 ticks lower on the day and also compared with levels seen earlier in the session at 99.43, implying a 0.57 percent Euribor fixing in the last month of the year versus Wednesday's 0.663 percent.
After May's ECB meeting, which also disappointed markets waiting for more central bank easing, the December contract sold off to as low as 99.29, but it was bought back in the past few days as rate cut bets have been put back on the table.
Analysts say the same thing could happen next month if the conditions that led to speculation the ECB could cut interest rates on Wednesday are still in place.
Tensions over Spain's stricken banking sector are rising and the risk that Greece could leave the euro zone after its June 17 election is perceived as high. This is hampering business sentiment and growth potential even in the euro zone's powerhouse Germany, as shown by recent data, strengthening the case for the ECB to act.
"(A rise in ECB easing bets) could happen again, it depends on developments in Spain - if they get help, how large recapitalisation needs for the banking system are," said Commerzbank rate strategist Benjamin Schroeder.
"Also there is no clear indication what the outcome (of the Greek election) would be."
"VERY DYSFUNCTIONAL"
Moody's cut the credit ratings of six German banking groups and Austria's three largest banks on Wednesday, giving a glimpse of how far the ramifications of a potential Greek exit from the euro zone might go.
Banks more than tripled their uptake of ECB dollar funding on Wednesday, the latest indication that some are finding it increasingly hard to source cash in the market.
Traders say three weeks is the longest period for which most banks are willing to lend in cash markets, and that's only to a select group of counterparties, also because they are dressing their books for the half-year turn.
In his post-meeting remarks, Draghi himself described interbank markets as "very dysfunctional".
Money Tips for Globe-Trotters - CNBC
Credit cards and A.T.M.’s may have eased the challenge of spending and exchanging money on a trip abroad, but that doesn’t mean we don’t occasionally find ourselves in a foreign country, fuming in front of machines that have just rejected our plastic cards. Fortunately, American banks have recently begun issuing credit cards that are more widely accepted around the world. Here are some tips on managing your cards and cash based on my recent trip to Japan and Hong Kong.
Get A Credit Card With a Chip
Many globe-trotting travelers have discovered that American credit cards, with their outdated magnetic stripes, are not always accepted now that most of the world has shifted to cards that use a smart chip instead. While merchants in Asia, Europe and elsewhere are supposed to be able to swipe our vintage plastic, many automated kiosks can’t do that, which can be a problem at train stations and subways.
The future has finally arrived — or at least the first wave of progress. Just before I left on my Asia trip, I got a FlexPerks Visa card from U.S. Bank [USB Loading... () 
] that has a chip and a magnetic stripe, one of a growing number of American credit cards that now offer a “chip and signature” option. This isn’t entirely a solution because the global standard is “chip and PIN” technology, meaning you enter a PIN, or security code, after a payment terminal reads the card’s chip.
When I called U.S. Bank before my trip, I was told that I could get a PIN, but that any purchase using this code would be treated like a cash advance with 21 percent interest — obviously, not an option! Fortunately, the card worked fine when I used it without a PIN to buy a train ticket from an automated kiosk in Hong Kong. As I later learned, even without a PIN, a chip-and-signature card will work at most automated kiosks around the world because a signature is not required for purchases under $50. And at payment terminals used by stores and restaurants, the chip essentially tells the machine, “This card doesn’t have a PIN, so spit out a receipt for the customer to sign.”
The annual fee on my card is $49. Other chip-and-signature cards with annual fees under $100 include three options from Chase — the J. P. Morgan [JPM Loading... () ] Select Visa, the British Airways Visa [V Loading... () ] and the Hyatt [H Loading... () ] Visa — and Citi Thank You or Executive/AAdvantage MasterCards. For a more complete list, visit FlyerTalk.com and search for “chip and signature” cards; the frequent fliers who trade tips there keep a running list of these cards and their annual fees.
Check Your Card's Foreign Transaction Fee
Another consideration is whether your credit card issuer charges a foreign transaction fee — usually 1 to 3 percent of every purchase, including the 1 percent Visa or MasterCard [MA Loading... () ] fee that banks pass along to their customers. But now that the government requires card issuers to disclose these fees clearly, some companies have gotten rid of them.
The personal finance site NerdWallet.com lists dozens of cards that do not charge a foreign transaction fee, including all of the credit cards issued by Capital One (which bucked this trend long before other banks). Alas, many of the credit cards that travelers use because they earn frequent-flier miles still impose this charge, like the American Express [AXP Loading... () ] Delta SkyMiles card, and the ones that don’t often have high annual fees, like the Chase British Airways Visa ($95 per year). But unless you travel abroad frequently or spend a lot on your credit card, it’s probably not worth paying a high annual fee to avoid this charge. Since most of my hotels were billed in dollars with no fees, and I paid cash for most purchases, I paid only $10 in foreign transaction fees during my trip.
Tell Your Bank Where You're Traveling
Before I left for Asia, I made four phone calls to let my bank and credit card companies know that I would be traveling abroad — a step banks advise customers to take so an unusual spending pattern doesn’t trigger a fraud alert. As I waited on hold after working through the automated phone menu, I wondered why banks don’t make this chore easier and offer a travel notification tool online.
It turns out, some do. Jim Bruene, who blogs at Netbanker.com, posted the results of an informal test he conducted, finding it took him about a minute each to register travel notifications online with Capital One [COF Loading... () ] and Chase, and 7 to 10 minutes to do it over the phone with Wells Fargo and U.S. Bank (which don’t offer online options). Citi [C Loading... () ] is another bank that does.
Someday, Mr. Bruene predicts, banking apps will provide a better solution to this problem.
“Your mobile banking app will sense where you are and your card will be able to work there,” he said. In the meantime, look for a “travel notification” tool in the customer service area of your bank’s Web site before you pick up the phone.
Learn the Exchange Rate Before You Land
Every time I travel abroad, I stumble off the aircraft, find an A.T.M. in the airport, press the button for English and get stumped when I’m asked, “How many yen (or pesos, or Brazilian real) do you want?” You can’t tell the machine, “Give me the equivalent of $200.”
After landing in Tokyo, I had to cancel the transaction and find a billboard down the hall with the current exchange rate; since $250 is about 20,000 yen, I had panicked about entering such a high number in a fog of jet lag at the A.T.M.
Save yourself that anxiety by visiting a currency conversion site like xe.com before your trip and writing down how much you want to withdraw once you land. I’d also recommend reading the “money” section of a guidebook to see if the country you’re visiting has any financial quirks. For instance, in Japan, many A.T.M.’s don’t accept foreign bank cards, and the ones that do are scarce. At the main train station in Tokyo, an information booth attendant gave us a map and highlighted the route we’d have to follow (down the escalator, left at the second corridor, up the stairs, etc.) to find an “international A.T.M.”
We had 10 minutes before our train left for Kyoto, and after that sprint I learned to keep an eye out for a Citibank or the local version of 7-Eleven, the two main operators of international A.T.M.’s. Belatedly, I noticed that information was mentioned in my guidebook. But it’s good advice anytime you’re in a foreign country, especially if you’re heading off the beaten path: don’t wait until you’re almost out of cash to look for an A.T.M.
Finance leaders report demands on the 'finance function' are increasing further - Director of Finance online
Finance leaders report demands on the 'finance function' are increasing further.
Finance Leaders are bucking the current trend for negativity on the economic outlook with over 60% of attendees at PwC's Finance Leaders' Summit expecting positive growth in their industry over the next 12-18 months.
The summit, which was held in London by PwC for CFOs and finance leaders from 98 multi-national companies, also touched on how the emerging markets continue to be important for growth.
Top locations were identified as China followed by Brazil, India, the US and Russia.
As the push for growth in new markets continues, an increasing importance is placed on understanding local requirements and demand with 90% of attendees saying they were increasingly moving away from simply exporting products towards developing products and services that are modified to meet local market needs.
Nick Atkin, partner in PwC Consulting's Finance Effectiveness practice said:
"In today's competitive economic landscape and global marketplace, it is no longer enough to export your home-grown products and services. Understanding the opportunities and risks in the local target market and innovating to develop tailor-made products and services is pivotal to success in the emerging markets."
When looking at business in the emerging markets, 60% of finance leaders cite finding and retaining the right talent as the key consideration for their function, followed by compliance and regulatory control risk.
Talent issues remain a concern for finance functions also when doing business in their own countries. Whilst 89% of finance leaders said that the demands on the finance function have increased over the past year, an overwhelming 92% of attendees reported gaps within their existing finance talent base to be able to effectively deliver against the business strategy - with more than a quarter saying those gaps are significant.
Nick Atkin, PwC partner, continues:
“Finance leaders are increasingly focusing on talent management, on attracting and retaining the right talent and on developing the skills of their teams. As organisations grow and expand internationally this is a top priority for business leaders today."
The drive for finance to become a partner of the business and driver of strategy as opposed to a department of report churners seems to continue unabated. Over half of the finance leaders believe that finance should have the responsibility for driving the right data, information and analytics across the business.
Yet a quarter of the respondents stated that the management information produced by finance failed to meet the needs of the business, with a further 37% only neutral about its impact.
Nick Groves, PwC partner and global leader of the enterprise performance management team said:
"Far too much time is still spent on manipulating data rather than on analysing information to deliver insightful solutions. Whilst finance leaders clearly recognise the importance of their role in driving the right data, significant opportunity remains in aligning management information to the needs of the business."
Whilst adding insight and maintaining control are clearly high on Finance Leaders' agendas, continuing to strive for an efficient organisation is still an important balancing act. 70% of Finance Leaders' said that they are now considering a move towards multi-functional shared services, with Finance, IT, HR and Procurement functions being the top candidates. This generates significant benefits to organisations yet also creates certain complexity
Nick Atkin, PwC partner, concluded:
"Organisations continue to look to drive efficiency across the support functions and deliver high quality services to internal customers freeing up time for finance leaders to support more effective decision making. With more free time, finance can focus on putting information at the heart of the organisation to drive better outcomes, growth and prosperity for the business, its employees and shareholders."
YOUR MONEY-How couples sabotage their finances - Reuters UK
(The author is a Reuters contributor. The opinions expressed are his own. This is part of a five-story package on marriage and money moving June 4-7)
By Chris Taylor
NEW YORK, June 6 (Reuters) - With a wedding coming up, you'd think Jay Buerck would be obsessing about the usual details: Writing vows, choosing appetizers, or figuring out seating charts to accommodate challenging relatives.
But what worries the 29-year-old St. Louis marketing professional isn't any of those things: It's money.
Not that he and his bride-to-be Liz Downey won't have enough; they earn comfortable salaries. What really freaks him out is the inherent challenge of joining two people's finances.
"Money is the reason why many people get divorced," says Buerck. "I have a buddy who got married and didn't tell his wife about the extent of his debt, and they had a rough go of it when he came clean. That's something I want to try and avoid."
The couple has already taken steps to prepare their finances. That's a smart strategy, according to financial experts, especially now that U.S. couples are waiting longer to marry, and many people have thousands of dollars in student loans and credit card debt by the time they take their vows.
Money causes more arguments than other typical flashpoints, according to a recent survey by the American Institute of Certified Public Accountants and Harris Interactive.
A full 27 percent of respondents said their spats started over money, more than problems with kids (16 percent) or chores (13 percent).
Couples who lock horns over finances at least once a week are 30 percent more likely to get divorced, according to a 2009 study by researchers at Utah State University,
"I probably spend 15 percent of my time with couples actually talking about money, and the other 85 percent talking about personal issues," says Chris Kimball, a certified financial planner in Lakewood, Washington, who also has a Masters of Divinity degree.
"It all ties into money. It's a very powerful thing that can do great things in people's lives, or can really mess them up."
Shockingly, nearly one-half of all people have lied to their significant other about money, according to an April poll by Self Magazine and Today.com. (For a graphic representation of our financial State of the Union, click (link.reuters.com/zyw58s)
And a survey conducted this spring by CreditCards.com revealed that 6 million Americans have hidden financial accounts from their spouses or live-in partners.
The deception isn't usually malicious. Often it's prompted by guilt and embarrassment about spending. Compounding the problem is that financial behavior is very deeply set, and can't be altered easily.
So where do couples go wrong, when it comes to money -- and how can they make it right?
HAVE THE MONEY TALK
Only 43 percent of couples talked about money before marriage, according to a May 2010 survey conducted for American Express.
But lack of disclosure about your financial issues -- maybe you're struggling with $100,000 in student debt, or maybe you filed for bankruptcy at some point -- isn't really any different from lying. Be up front about your financial situation, have the "money talk" long before the big day, and tackle any challenges as a couple.
"My significant other didn't tell me about the money problems we were having, and then one day we had no credit left and had lost pretty much everything," says Holli Rovenger, an author and speaker in Greenville, South Carolina. "If we'd worked together, maybe our finances wouldn't have spiraled out of control."
Minor money differences can be overcome as long as you have the basics covered: You have your daily needs met, you're bringing in more than you're paying out, and you're able to build a nest egg for the future. But once overspending and debt enter the picture, all bets are off.
"I was always a black-belt shopper, and hated to miss a sale," says Jenny Triplett, an entrepreneur in Powder Springs, Georgia, who's been married to husband Rufus Triplett for 22 years. "I'd have bags full of new clothes in the closet, and only bring them out one piece at a time. But eventually we came to a compromise, and I got my spending under control."
That's exactly the right template for resolving money disputes, planners advise. Even with differing money styles, if both partners take strides toward the middle and agree on broad outlines of a budget, it could prevent countless disputes.
HIDING FROM HELP
Money is such an emotional issue that it could be difficult for couples to untangle all the knots on their own. A trained third party can help you figure out the core issues, and mutually agree on a financial plan.
"I've had clients yelling at each other in the parking lot, who came into the conference room and then wouldn't say a word to each other for the first hour," says Kimball. "But eventually we were able to work through it. Talking to someone can help air these financial issues in a safe environment."
Check out the website of the Association for Financial Counseling and Planning Education (www.afcpe.org), which has a searchable database of trained financial counselors.
BEING ON SAME PAGE
It's helpful to have basic guidelines in place that will keep you on the same page. For instance, purchases under a certain dollar amount can be left to each spouse's discretion, while larger ones should to be cleared with your partner.
Some couples might be comfortable pooling all of their money, and others may not; neither is the "right" choice, but that should be decided explicitly.
"Understanding your partner's values on money is so very important," says Andi Wrenn, a financial counselor in Boston with a master's in marriage and family therapy. "Talk about how they learned money management, and what they plan to do in the future with the money they have and earn. Not often do people marry that are from exactly the same background."
That certainly applies to Jay Buerck and his bride-to-be. She's traditionally been more of a budgeter, and he's more laissez faire when it comes to counting pennies. But since they set up a joint account and moved in together, finances have "actually become less stressful," he says. "It's all about being open and honest." (Follow us @ReutersMoney or here; editing by Jilian Mincer, Linda Stern and Jeffrey Benkoe)
Money Matters - Avoiding Airline Fees - KAKE TV
Wednesday, June 06, 2012
If you’re planning on flying the friendly skies this summer, but don’t want to break the bank, you need to be aware how to avoid various fees.
Alicia Jao with U.S. News and World Report says baggage fees in the U.S. generate about $3.4 billion dollars a year for the airlines. Cancellation and change fees provide about $2.4 billion a year for them.
1. Fly Southwest or Jet Blue. At some point AirTran Airlines will turn into Southwest Airlines in Wichita since Southwest bought the struggling airline. Unlike many other airlines, Southwest and Jet Blue still offer free carry on luggage and also waive the baggage fee for the first checked bag. In fact, with Southwest you get the second checked bag free as well.
2. Measure and weigh your bags. Buy one of those portable bag scales that fit in your hand and make sure your checked bag is 50 pounds or lighter. The overweight bag fees can be quite high. Also if your bag is more than 62 linear inches (length+width+ height) you'll likely be charged a fee.
3. Book you tickets online. In most cases booking online will help you avoid phone booking fees which can run from $15 to $45.
4. Be certain about your travel plans. Refundable tickets are significantly more expensive. If you buy non-refundable tickets and have to make a change it could cost you $75 to $175. Southwest is the only major airline to not charge for a ticket change.
5. Book your tickets directly through the airline. Surprisingly, some airlines charge extra if you need to make a change on a ticket that was purchased through a third party. United, Frontier and Delta have ticket change agency fees ranging from $25 to $50.
6. Make sure your carry-on items fit underneath the seat. Overhead bins fill up fast and may not always be available. At least one airline, Spirit, is going to charge $100 for a bag checked at the gate starting in November. If you're flying on one of the smaller planes that seat less than 100 people, you may not bring on board anything larger than a backpack or computer case even if that bag fits in the overhead bin or under the seat. Get a rolling backpack and cram your belongings into that.
7. Bring a good book or magazine. You can bring reading material on board separately. That way you won't be tempted to by the on board WIFI, which can cost as much as $12 for a 24-hour pass.
8. Bring your own food. You can bring your own snacks on board and avoid the inflated prices airlines charge for anything more than pretzels. You'll have to buy it after you go through security but it will still be cheaper than on the plane.
9. Bring your own neck pillow and a sweater or jacket. It can get chilly at cruising altitude. But when you bring your own items you'll avoid a few bucks that many airlines now charge for a blanket or pillow.
Black money: Pawar backs Ramdev, says no politics - Hindustan Times
This is a major embarrassment for the Congress, as key UPA ally Sharad Pawar has expressed his support for Baba Ramdev a day after the Prime Minister Manmohan Singh and Congress President Sonia Gandhi hit out at the civil society for targeting the Prime Minister.
"Ramdev made suggestions like enacting such tax laws that do not make a person necessary to hide his wealth. Such wealth can be used for various development purposes," Pawar told reporters after meeting the yoga guru.
The minister said he did not "smell politics" in Ramdev's campaign as he has announced that he will meet leaders of all political parties ranging from Congress chief Sonia Gandhi, CPI(M) general secretary Prakash Karat to AIADMK supremo Jayalalithaa and SP chief Mulayam Singh Yadav.
"He (Ramdev) has said he will meet responsible leaders in all the states and important persons who take key decisions.
He has done one good thing that he has not spoken of any one party. He has talked about all parties and we liked this approach," Pawar said.
Pawar is among the 15 Union ministers against whom Team Anna has leveled allegations of corruptions.
Finance directors’ income at average of £1m - WalesOnline
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