Economy

Canadian Franchises Consider Taxing Visiting Teams

How can tax be a good thing?

Chicago Board of Trade Proposes Split

Fearing a growing competitive threat from electronic trading systems, the Chicago Board of Trade voted yesterday to split the 150 year old exchange in two companies -- one that operates as a "traditional" exchange and one that operates exclusively as an electronic exchange.Both companies would provide a medium for the consumer to operate in a way that they are most comfortable.Open floor trading would continue in the traditional exhange, and would be run by a privately held for-profit corporation.The electronic trading company would be spun off into a

Economists Optimistic for 2000

It's a time for predictions, and economists are optimistic about the economic outlook for the U.S. economy in 2000, with annual growth predicted to range from 3.1 to 3.8 percent.At the beginning of 1999, the same economists who review annual growth, as well as the outlook for stocks, bond and other funds, predicted the economy would grow to a little more than two percent. Year-end estimates actually were twice as high with growth of four percent.Experts say we should not be concerned about the missed spread for 1999 because this year's figures were heavily tainted by Y2K bug concerns.

10 Biggest M&A Bloopers of 1999

As 1999 draws to a close, the final price tag on corporate mergers and acquisitions has surpassed the $3 trillion mark. But not all of these transactions have contributed to shareholder value.Mark N. Clemente and David S. Greenspan - M&A consultants and authors of the best-selling book, Winning at Mergers and Acquisitions - have identified the Top Ten Bloopers of the M&A world this year, indicating that even the biggest companies with the brightest minds and unlimited resources stumble along the way.From Mr. Clemente and Mr.

Small Business/Seller Financing in Jeopardy

President Clinton is about to sign a tax bill that would, in effect, eliminate a provision used by sellers of small busineses to defer capital gains for tax purposes until the seller receives the money.Seller financing is a traditional method to buy businesses and real estate.

Final Report on Federal Budget: No Big Changes

AccountingWeb has tracked a number of stories over the past few months on Congress and the President's battles over the Federal budget.Based on recent reports, now that the budget year ended Nov. 20, not balancing the budget really isn't so terrible, after all. Among the focus is how Social Security was protected, albeit concern by Republicans and Democrats on securing the senior vote next year.Also under tremendous scrutiny was the proposed Republican tax cut of $792 billion.

California Looks at Raising Property Taxes

Boy have times changed. Just 20 years ago, anyone who simply suggested raising property taxes in California would have been driven out of the state ... never to be let back in.Now, a March 2000 ballot will ask voters to make it easer to pass local bond elections by moving from a two-thirds majority to a simple majority vote. In turn, experts believe property taxes would increase as a way to finance bond issues like the building of new schools.The last time California attempted something similar was in 1993.

Fed Raises Short-Term Interest Rate

The Federal Reserve Bank announced Tuesday that it would raise the short-term interest rate by a quarter percentage point, marking the third time this year the Fed has raised the rate.The interest rate was raised by the Fed both to slow down the economy and curb inflation.Also raised was the Fed's "fund" rate, or the amount banks lend to one another.
Community News

Arthur Andersen Opens Austin Office

Another sign of the booming Austin, TX economy is evident by the opening of the Arthur Andersen office in the state's capitol. It has been almost 10 years since the Big 5 firm had an office in Austin.The office will focus primarily on providing services emerging technology companies, defined as businesses reaching revenues of $100 million.

Do You Live in one of the Nation's Hottest Entrepreneurial Cities?

On the heels of MONEY's recent "Best Places to Live" survey, Dun & Bradstreet has released its annual survey focused on the best metropolitan cities for entrepreneurs. And the winner? West Palm Beach-Boca Raton, Fla. was first on the list as the best location for small businesses. Salt Lake City, Utah and Raleigh-Durham, NC came in second and third, respectively.
Practice

Focus on Retirement Programs for Baby Boomers

The way people retire is going to change dramatically in the new millennium. As 80 million baby boomers prepare to retire in the next 10 years, financial service professionals are setting their sites on helping this generation find the best ways to spend their nest egg. It is believed that many retirees will take the non-traditional retirement route and pursue second careers, explore educational options or take vacations that are tied to the ability to generate income.
A&A

Regulators to Increase Supervision of U.S. Big Banks

In his speech to the American Bankers Association's annual convention in Phoenix on Monday, Federal Reserve chairman Alan Greenspan said that few regulatory changes are needed for the majority of banks in the U.S. However, regulators are looking into increasing the level of supervision of the country's largest banks because of the negative impact they could bring upon the U.S.
Technology

Guru.com Provides Services and Support for Business Consultants

Freelancers and small business owners, this one is for you! If you're looking for an electronic support site, check out Guru.com. The site, which went live in June, is slated to offer a host of services for the nation's 25 million self-employed professionals when it is fully operational later this fall.Site creators Jon and James Slavet refer to independent professionals as gurus, and plan to provide everything from vendors for health insurance and bill collection, to expert advice. But the site's biggest draw may be the new job-matching service.
A&A

Dow 41,000?

Are you ready to run with the bulls into the next decade? According to author and prognosticator Harry S. Dent, you should be. In his latest book, "The Roaring 2000s Investor: Strategies for the Life You Want," Dent predicts the current stock-market boom will continue into the first decade of the new millennium and could take the Dow as high as 35,000 to 41,000 at the top of the boom. After the boom, Dent sees a long period of recession or depression beginning around 2009.

Unemployment Rate Falls to 30-year Low

The U.S. Labor Department just released its September unemployment statistics, marking a 30-year low with the rate of 4.2 percent. Overall, the nation's jobless rate has stayed below 4.4 percent since March 1999.Also released were figures regarding the number of payroll jobs, which fell in September by 8,000 positions. The number of positions typically is affected by a major change either in the economy or another sort of large populations-affected change like a natural disaster.

Consumer Installment Credit Skyrockets in August

People were shopping 'til they dropped in August, according to the Federal Reserve. The Fed reported that total consumer installment credit increased $10.8 billion to $1.36 trillion in August, marking the strongest monthly increase in seven months.

3rd Quarter Earnings Expected High for Selected Industries

CPAs either employed by, or working in, energy, financial and technology companies will want to take note: analysts predict earnings in these three industries are expected to hit a four and one-half year high at the end of 3rd quarter 1999.Overall, companies in the Standard & Poor's 500 will grow earnings by 22 percent. Although it may seem that analysts sometimes use crystal balls to foretell earnings potential, there are definitive reasons for the increases.

Fed Says "No" to Raising Interest Rates

For the time being, short-term interest rates will remain the same at 5.25 percent. In a much anticipated announcement, the Federal Reserve Bank said Tuesday that, although it would not raise rates, it indicated that rates may indeed rise should inflation occur.Also unchanged was the discount rate, which will remain at 4.75 percent. The discount rate is used by the Federal Reserve's 12 district banks who provide direct loans to banks and financial institutions.Should rates have risen, this would have been the third time in 1999.

Federal Reserve Bank Advises Banks to Continue Strict Lending Practices

In a supervisory letter delivered Tuesday to banks across the United States, the Federal Reserve Bank advised banks against the practice of easing up on their lending practices due to the inordinate number of weak loans in recent transactions.The Fed commented that optimism on the part of banks, along with continued growth in the economy, contributed to this mindset.

Budget Surplus of $115 Billion Larger Than Expected

The 1999 fiscal-year budget surplus weighed in at $115 billion, much larger than the $99 billion surplus analysts predicted over the summer. The announcement was made by President Clinton on Monday.Clinton asked Republicans to band together with him to determine how best to use the surplus.

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