| Downsizing to pay the mortgage
Newlywed Aucklanders Mike and Marie Wickham know first-hand about the stress of rising mortgage bills. Last week, National leader John Key said more Kiwis were downsizing to cope with rising mortgages. Three weeks ago the couple, who married in October, downsized from their small Mt Wellington home to a more modest property in New Lynn. The Wickhams decided to bite the bullet before their mortgage became impossible to handle. "As soon as our two-year fixed mortgage rate rolled over we knew we couldn't have afforded the house we were staying in," said Mike, an engineer. "It wasn't even going to be tight - we just couldn't afford it. Interest rates had probably gone up another 2 per cent from what we had." The average lending rates of homeowners coming off their fixed term in the next 12 months is about 7.8 per cent but most fixed lending rates are now around 9 per cent - a big jump.
Hilander Bowl files for Chapter 11
Hilander Bowl has filed for Chapter 11 bankruptcy but plans to remain open as the Kelso business restructure its operations."The good news is that we are open for business as usual while we reorganize our finances," Hilander Bowl & Restaurant owner Jim Springer said in a written statement to The Daily News on Tuesday. "The Chapter 11 program is there to help businesses in our type of situation."A Chapter 11 filing allows a company protection from creditors while the business follows a court-approved plan to reorganize or liquidate.According to bankruptcy court filings, the Hilander filed for Chapter 11 on July 31 to seek protection from 52 creditors who are owed a total of more than $5 million. Some of the creditors include Twin City Bank ($3.1 million), the Internal Revenue Service ($570,000), Washington state for sales taxes ($380,000), Kelso for gambling taxes ($28,650), Cowlitz County for business real estate taxes ($24,500) and the state Department of Labor & Industry ($29,000).
AXA Reports Strong First Half 2007 Performance
AXA has delivered in 1H07 strong numbers again following a very good year in 2006", said Henri de Castries, Chairman of the AXA Management Board. "Revenues, underlying and adjusted earnings grew by more than 20% on a reported basis, as a result of continued organic growth and Winterthur contribution. I am convinced that our business model will continue to prove its efficiency, including in a more challenging environment, and I remain confident that we will continue to deliver according to our Ambition 2012 plan". LIFE & SAVINGS L&S new business APE was up 28% to Euro 3,877 million on a reported basis. On a comparable basis APE increased by 11% as strong growth in the US (+21%), the UK (+26%), Australia / New-Zealand (+28%) and the CEE (+32%) was partly offset by lower growth in some other countries, and a drop in Japan (-16%).
A very civil separation
LONDON and Edinburgh are formally operating as separate administrations, breaking the powerful civil service links that used to bind Scotland into the rest of the United Kingdom, The Scotsman can reveal. The country's most senior civil servant has disclosed that the election of the SNP has brought an end to the informal contacts that used to be commonplace between the Scottish Executive and UK government. .
Gyms deliver strong profits
PUMPING iron is driving bulging profits as gyms around the country grow strong on the back of a growing fascination with fitness. But as consolidation brings more big business to the sector it is the punters who pay but don't turn up who provide the extra cream on the industry's profits. Dreamworld owner Macquarie Leisure is the latest big player to muscle in on the gym industry, this week paying $60 million for the predominantly Queensland-based Goodlife Healthclub business. It is the second most profitable player in Australia, with world leader Fitness First dominating. That company, owned by European private equity group BC Partners, now controls 70 gyms across Australia and has more than 500 gyms across 15 countries. Macquarie Leisure chief executive officer Greg Shaw says there's plenty of room for growth and expansion would be ideally suited to some of the company's existing AMF bowling sites around the country.
After building 'house of plastic,' couple faces drastic changes to stay afloat
To maintain their lifestyle after a job loss, Ginny and Jim Kallioinen built a house of plastic cards. Now it's in danger of tumbling down.
While they are paying their bills on time, their overall debt, including first and second mortgages, has reached scary proportions, consuming nearly 70 percent of their total gross pay. That includes some debt for which they are only paying the interest, not principal.
Their story may ring true with a lot of other indebted couples. To fight inflation, the Federal Reserve has boosted short-term interest rates in recent years, and that raised rates on credit cards, home-equity loans and adjustable home loans—squeezing people like the Kallioinens, who live outside of Orlando.
.
What the Russian papers say
MOSCOW, August 10 (RIA Novosti) Russia's arctic expedition annoys West/ Russia's polar expedition causes more harm than good - scientist/ Georgia hastily wipes out traces of "Russian aggression"/ Does Russia need Iraqi oil?/ Russian debtors will not be allowed to travel abroad Gazeta.ru Russia's arctic expedition annoys West Even the most fervent gung-ho patriots would not dare claim that Russia now has legal rights to the North Pole and its subsoil resources. So why has everyone become so agitated about it? Russia has not made any official claims; and when it does, it will first send its scientific report to the United Nations, not start with a pirate-style takeover. The reason behind such an inadequate response is the West's growing annoyance with Russia, which they take no trouble to hide.
Taiwan says takes over troubled Bowa Bank
TAIPEI, Aug 10 (Reuters) - Taiwan's government said on Friday it had taken over loss-making Bowa Commercial Bank in the latest move to clean up its overcrowded financial sector. "Bowa failed to complete the process of raising capital to save itself," Hu Sheng-cheng, chairman of the Financial Supervisory Commission, told a news conference. "Its book value had turned negative as of June 2007, and it was posting losses every month," Hu said. As of end of June, Bowa's book value was negative T$2.25 billion (US$68 million). The lender had a loss of T$22.4 billion from selling its non-performing loans that it has not booked, the commission said. Bowa reported a net loss of T$8 billion in 2006. The bank is partly owned by GMAC, the finance company once controlled by General Motors Corp.
|
