Time Warner bags deal with Meredith and spins off Time, Inc.
Time Warner, Inc. is getting rid of Time. After originally promising to sell Time magazine and other publications to Meredith Corp., the company has decided to spinoff Time, Inc. into a separate public company. According to the Wall Street Journal, the spinoff comes at a time when the industry faces what appears to be a permanent decline in newsstand sales. Time, Inc. currently accounts for 12 percent of Time Warner’s sales. It will include Time magazine, Sports Illustrated, as well as other popular brands. In 2012, Time, Inc. had $3.43 billion in revenue. Without the magazines, Time Warner remains an entertainment company with Warner Bros. film studio, HBO, CNN and TNT.
Despite sequester, TSA gets new uniforms
Despite the threats of furloughs and 90 minute flight delays, the TSA signed a $50 million contract for new TSA uniforms. According to Fox News, the contract was signed on the same day that Transportation Secretary Ray LaHood indicated that sequester cus could result in 90 minute delays in New York, Chicago and San Francisco. Homeland Security Secretary Janet Napolitano indicated that long lines were already forming at major airports. At least the TSA agents will look good while we are standing in the long lines.
Google tip-off leads to Microsoft EU penalty
The Financial Times is reporting that Google is responsible for the 561 million euro ($731 million) penalty enforced against Microsoft for its failure to provide 15 million consumers a choice of web browser. The violation was part of a voluntary antitrust pact with the EU and was spotted and raised by Google and Opera. Microsoft was traditionally the company being fined for anti-trust in Europe until recently when Google’s search business became the brunt of regulatory inquiries. This is the first sanction that has been brought against a company for breaching a settlement agreement.
Investors have change in heart over stock funds
After seven consecutive weeks of pouring cash into stock mutual funds, investors pulled $1.1 billion out of these funds in the last week of February. According to USA Today, the prior weeks had shown $22.1 billion of net inflows. The retraction questioned Wall Street’s belief that investors were beginning to shift out of bonds and into stocks in a movement that has been deemed the “Great Rotation”. Perhaps fear that the market has reached the top is impacting investors?
Fed Beige Book reports modest growth
The US economy expanded a modest amount and the labor market also improved a little in January, according to the Federal Reserve. The Wall Street Journal reports that the “Beige Book” indicates that most of the Fed’s 12 districts have seen either “modest” or “moderate” growth since the start of January. Two districts, Boston and Chicago, reported slow growth. The central bank watches the reports closely as it make decisions regarding its purchase of long term Treasuries in an effort to keep interest rates low.
Spain sells debt at lower rates
In a sign that confidence is growing in how the Spanish government is managing its debt, Spain sold 5 billion euros of bonds at a lower cost today. According to the Associated Press, Spain sold 2.44 billion euros of 10 year bonds at 4.92 percent compared to a 5.2 percent rate a few weeks ago. The country, however, remains stuck in a recession with a 26 percent unemployment rate.
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.