Maybe more on this later: a recurring theme on this blog is health care cost-shifting due to Obamacare. Now this report, read it closely. It's the most succinct explanation of what I mean by cost-sharing. Bloomberg is reporting:
One-third of U.S. employers plan to move their workers’ health-care coverage to a private exchange in the next few years, a survey found, following the lead of companies like Walgreen Co. seeking to reduce costs.
While 95 percent of employers said they would continue to offer health care in the next three to five years, 33 percent may use a private exchange to provide the benefit up from 5 percent currently, according to a survey released today by a unit of Aon Plc, a London-based insurance broker.
Traditionally, most large employers are self-insured, meaning they take on the financial risk of their employees’ health costs. Under a private exchange, workers are given a subsidy to pick from a limited number of health plans and the insurer takes on the risk.Wal-Mart "badly" misses expectations. Expectations: $1.59 vs actual: $1.34, compared to $1.67 a year earlier. Profit falls 21%; guides lower. I haven't been in a Wal-Mart in months. Our favorite retailer remains Target but we try not to go there, and we definitely never use a credit card there. My wife mentioned that ever since the Target security breach, she has saved a lot of money. I'm impressed.
Russian hockey team loses to Finland; out of the competition. The New York Times reports:
President Vladimir V. Putin and any other Russian who was asked made it plain that the Sochi Games’ success hinged on the Russian men’s hockey team.
Active rigs in North Dakota:Sure, Russia has a formidable delegation, winning medals in many events, from biathlon to bobsled. But it was the hockey team, representing the national sport, that would offer the world the most meaningful symbol of the country’s might.
| 2/20/2014 | 02/20/2013 | 02/20/2012 | 02/20/2011 | 02/20/2010 | |
|---|---|---|---|---|---|
| Active Rigs | 186 | 184 | 200 | 171 | 94 |
Sixteen companies announce increased dividends or distributions, including Alaska Air Group, Flowserve, Foot Locker, Permian Basin (PBT).
Denbury Resources misses by $0.04, misses on revs: Reports Q4 (Dec) earnings of $0.27 per share, excluding non-recurring items, $0.04 worse than the Capital IQ Consensus Estimate of $0.31; revenues fell 1.2% year/year to $596 mln vs the $610.22 mln consensus.
American Railcar Industries beats by $0.14, reports revs in-line: Reports Q4 (Dec) earnings of $1.14 per share, $0.14 better than the Capital IQ Consensus Estimate of $1.00; revenues fell 5.1% year/year to $197.2 mln vs the $196.86 mln consensus. Primary reason for the increase in manufacturing revenue was a higher mix of tank railcars; the primary reason for the increase in leasing revenue was an increase in the number of railcars and an increase in the average lease rate.
Could we see a Balkanization of the union? A segment of Colorada wants to split away from Colorado. Now, a proposition to split California into six states gets the "ok" to gather signatures; 12 senators vs the current two.
RBN Energy: musings on US energy policy.
There is a common theme of surplus in US energy markets today with more natural gas, natural gas liquids (NGLs) and light sweet crude oil being produced than can be processed and consumed domestically. The likely destination of those surpluses is export markets – either directly or in the form of derivative products. How should we think about these exports in the context of “energy independence”? U.S. energy policy since the 1970s has been centered on the importance to national security of reducing dependence on foreign resources—the oft-touted, elusive goal of “energy independence.” Today we examine whether a btu energy balance is a practical and effective measure of energy independence.
One way to look at the energy independence issue is the same way we view US economic national security, where the closely watched statistic is the balance of payments. By that measure if we spend more on imports than we make back on exports there is a net outflow of money. But if we spend about the same amount of money on imports as we make on exports, we have a healthy trading relationship with the world. The same kind of logic could be applied to energy. The theme of today’s blog forms part of the analysis in RBN Energy’s latest Drill Down Report “The Future’s So Bright I’ve Gotta Wear Shades – Crude, NGLs and Natural Gas Outlook."
The Wall Street Journal
Yes, the news that was posted yesterday made the front section of The WSJ: judge in Nebraska says "NO" on the Keystone XL 2.0 North route. Back to square one for the banana republic.
Japan's trade deficit soars.
There is a suggestion that work on widening the Panama Canal may resume.
I first learned about this story in Forbes many, many years ago. Lost track of it. Wondered how it would play out. Grupo Mexico and Kansas City Southern are battling a Mexican bill that would dial back exclusive railroad rights purchased more than a decade ago. I'm amazed the "exclusive deal" last this long.
In the third section, the lead story: Arctic winds put fire under natural gas, which traded over $6 yesterday, at a five-year high. We'll see more of the same this summer when global warming kicks in and everyone turns on their air conditioners.
The Los Angeles Times
In parched states, fracking thirst grows. Greeley, CO, sells water to the oil and gas companies that have bought a drilling boom to town Some residents wonder whether it will run out. Fracking, nationwide, uses much less water than the amount of water used to water golf courses. Another inconvenient truth.
The LA Times is absolutely right: the last argument against raising the minimum wage is over. Presidential wanna-be's need to get out in front on this. The minimum wage needs to be raised to help offset the impact of Obamacare on low-wage earners. Because of Obamacare, the federally-mandated 30-hour work week will result in an immediate 25% pay cut for low-wage earners. That's bad enough, but the same folks will be the first targets for health care cost shifting. I don't think doubling the minimum wage would be enough to offset the losses that low-wager earners will incur because of Obamacare. By the way, those folks who suggest with the 30-hour work week, they will have the opportunity to get a second 30-hour/week job. Not so fast. The jobs may not be available. ObamaCare and an increased minimum wage will both result in lost job opportunities.
A reader sent this comment. I never know whether some folks want to maintain anonymity or not. Not knowing for sure, I will post the comment "over my name" in its entirety, no editing:
ReplyDeleteReferencing the balkanization of the union. Perhaps North Dakota can do the same. We can end up with East and West Dakota. The Marketing vacation people would be happy because they eliminate that word "North" and all it implies. Schools, Roads, and infrastructure would be normalized and built in West Dakota. And East Dakota will lose weight as it wonders where did that pie go I was gorging upon. Besides the more conservative senators that would most likely be gained it seems like a win win for all involved except East Dakota who could continue the slide and morph more fully into an extension of minnesota. The biggest question is what side would minot want to go and who would win the capital. Williston, Dickinson or Minot seem to be the front runners. Hopefully eastern North Dakota will wake up long enough to put down the pie and realize that being overly prudent is not governing but is actually a distinct lack of care for those who are really in need. In the end politics is a slow moving beast... the new money will buy influence and over time border counties near the boom will realize which side of the state is really buttering their bread and will vote accordingly. -- sent in be a reader.
I had thought of writing the same thing, that it would be better for North Dakota to do the same thing, an "eastern" and a "western" North Dakota if the Balkanization of the United States becomes the norm.
DeleteObviously, NYC would separate from the rest of the state in a "New York minute."
And so it goes.