AP: After fix fail, a dispiriting summer of oil, anger ...

By TED ANTHONY and MARY FOSTER
ASSOCIATED PRESS

BOOTHVILLE, La. -- There is still a hole in the Earth, crude oil is still spewing from it and there is still, excruciatingly, no end in sight. After trying and trying again, one of the world's largest corporations, backed and pushed by the world's most powerful government, can't stop the runaway gusher.

As desperation grows and ecological misery spreads, the operative word on the ground now is, incredibly, August - the earliest moment that a real resolution could be at hand. And even then, there's no guarantee of success. For the United States and the people of its beleaguered Gulf Coast, a dispiriting summer of oil and anger lies dead ahead.

Oh ... and the Atlantic hurricane season begins Tuesday.

For more on this story, see our AP headline scroll below.

State comptroller's office offers business owners' seminar ...

This note comes from the State Comptroller's office in Laredo:

A diverse economy, growing work force and friendly business climate attract more businesses to the Lone Star state every day. Texas Comptroller Susan Combs’ office regularly presents free taxpayer seminars throughout the state to help new and existing business owners understand their state tax responsibilities.

The next seminar in the Laredo area is coming up from 6-8 p.m. Thursday, June 3, at the Comptroller’s Laredo Field Office, located at 1202 E. Del Mar Blvd., Suite 1.

At the seminar, taxpayers can learn about sales tax forms, filing and paying taxes electronically, taxable goods and services, e-services to help taxpayers manage their accounts online, the Comptroller’s e-mail subscription service that alerts taxpayers when new tax information is posted online, and the array of other services and information available from the Comptroller’s office to assist taxpayers. Comptroller representatives will answer questions and provide assistance to attendees.

"A strong and diverse business community is the key to Texas’ economic strength," Combs said. "We are committed to assisting Texas businesses by making taxes simpler, smarter, faster and, above all, transparent. We owe it to our taxpayers to provide the best customer service possible."

For more information about the seminar, call the Comptroller’s Laredo Field Office at (956) 722-2859.

Those who are unable to attend the seminar can call the Comptroller’s tax assistance line at (800) 252-5555. Tax forms and tax information can also be found on the Comptroller’s Web site, www.window.state.tx.us.

Our online house has "spruced up" ...

Just a note that today marks a big breakthrough for the Laredo Morning Times. While I know many of you find a lot of fun in bashing the Times, sometimes it is worthy of pointing out when progress is made.

So in the spirit of progress, I hope you will take a look at our expanded multimedia section at www.lmtonline.com.

A number of people have worked hard and diligently in order to make this happen. I mean people in front of the scenes and behind the scenes here at LMT, too. In this space, I am choosing to honor them all for their tireless efforts.

Am I boasting here? Yeah, yet in a good way.

Leadership is about encouraging, nurturing and helping people become who they want to be within a workplace, family or community. It takes heart, guts and a deep awareness of humanity to be a true leader.

These people are leaders. There are many like them behind the scenes at Laredo Morning Times.

It's just my opinion and, no, I'm not getting a raise for this blog entry either.

Have a great day, Laredo.

-- Joe Rutland

Foxconn opens plant to reporters after suicides ...

By WILLIAM FOREMAN
ASSOCIATED PRESS

SHENZHEN, China — The head of Foxconn bowed deeply several times and apologized Wednesday for a spate of suicides at the factory that makes Apple iPods and iPhones, promising the electronics giant will try to stop more deaths.

But the usually media-shy executive, Foxconn Technology Group Chairman Terry Gou, cautioned there was only so much his company could do.

“We're a company, we are not a society,” said Gou. “We have a company's abilities to do things but we don't have a society's abilities.”

Foxconn on Wednesday opened up its sprawling factory complex in the southern city of Shenzhen to reporters, an unprecedented move from the normally super-secretive Taiwanese company still struggling to come to terms with the suicides of 10 young workers this year. The company has been a lightning rod for labor activists who say its working conditions cause misery for its vast work force.

Factory orders, new home sales rise in April ...

By MARTIN CRUTSINGER
ASSOCIATED PRESS

WASHINGTON — Factory orders rose sharply last month while sales of new homes surged with help from government incentives, giving the economic recovery a jolt in April.

Demand for commercial aircraft lifted requests for big-ticket manufactured goods 2.9 percent last month, the Commerce Department said Wednesday. That was the best showing in three months and more than double expectations.

Excluding transportation, durable goods orders fell 1 percent in April. But that came after the March figures were revised to show a 4.8 percent jump. A durable goods is a product that is expected to last at least three years.

A separate report from Commerce showed of new single-family homes jumped 14.8 percent to a seasonally adjusted annual rate of 504,000 units. The April gain followed a 29.8 percent surge in March, the biggest monthly increase in 47 years.

Downtown Laredo and Mexico's boycott ...

Appliance sales tax holiday coming up this weekend ...

Here's some information that might help you out from the State Comptroller's office in Austin.

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Shop for Appliances This Weekend During ENERGY STAR® Sales Tax Holiday

AUSTIN — This Memorial Day weekend’s third-annual ENERGY STAR® Sales Tax Holiday is a great time for Texans to purchase a new, energy efficient air conditioner, refrigerator, dishwasher or other major appliance. During the three-day tax holiday, running May 29 – 31, shoppers do not have to pay state and local sales and use taxes on certain energy efficient products.

"If you’ve had your eye on a new appliance, or just want to stock up on light bulbs, you can save money by shopping this weekend," said Texas Comptroller Susan Combs. "We expect Texans to save about $3 million overall in state and local sales taxes during this weekend’s event."

The tax holiday begins at 12:01 a.m. on Saturday, May 29, and ends at 11:59 p.m. on Monday, May 31. The tax holiday applies only to the following appliances and household equipment bearing an ENERGY STAR label: air conditioners priced less than $6,000, refrigerators priced less than $2,000, ceiling fans, incandescent and fluorescent light bulbs, clothes washers, dishwashers, dehumidifiers and programmable thermostats, along with installation and delivery charges for these products.

More information about the tax holiday is available at www.texaspowerfulsmart.org.
For details on ENERGY STAR products, visit www.energystar.gov.

Laredo unemployment figure drops for April ...

Laredo’s unemployment rate dropped to 8.8 percent in April, according to Texas Workforce Commission data released Friday.

That’s three-tenths of a percent lower than March’s 9.1 mark. Also, TWC data showed Laredo’s workforce added 200 employed workers in April from a 96,600 civilian labor force.

The downward unemployment rate trend also is noticeable in the Rio Grande Valley.
McAllen-Edinburg-Mission’s metropolitan statistical area posted an 11.1 percent rate, down from 11.6 in March. Brownsville-Harlingen sits at 10.8, down from 11 percent in March.

El Paso remained flat month-to-month at 9.4 percent for April.

Statewide, employers added 32,500 in April and have added 79,000 jobs since the start of 2010.

Texas’ seasonally adjusted unemployment rate rose slightly to 8.3 percent from March’s 8.2 mark. Still, it’s way below the United States’ 9.9 percent unemployment rate.

For more information, pick up a copy of Saturday's Laredo Morning Times.

Economist: U.S. in middle of 'W' economic recovery ...

The United States is at the midpoint of a W-shaped economic recovery entering the second half of 2010, an economist said Wednesday night during a speech at IBC Bank's Annex Building.

Jeffrey Kleintop, senior vice president and chief market strategist of LPL Financial with offices in Boston, Charlotte and San Diego, said he expects the Federal Reserve to raise interest rates in the second half of this year.

As for Texas-Mexico region economics, Kleintop said a lot of growth has come from exports.

For more on Kleintop's speech, be sure and pick up a copy of Thursday's Laredo Morning Times.

Bernal encourages involvement with Junior Achievement ...

Junior Achievement of Laredo helps students learn important lessons about the basics of economics, executive director Oralia Bernal said Tuesday.

Bernal, who spoke at the Noon Kiwanis Club meeting held at the Holiday Inn-Civic Center, said volunteers are sent out as teachers to grades ranging from kindergarten through 12th grade.

"Students at different grade levels learn about entrepreneurship, balancing checkbooks and saving money," she said.

Bernal said JA makes sure its curriculum falls in line with the Texas Essential Knowledge of Skills (TEKS).

"JA reinforces what students are learning and teachers are teaching," she said.
Any person can volunteer to become a teacher for Junior Achievement.

"There is a criminal background performed on each person before they go out and volunteer, though," Bernal said. "The background check is done through the Webb County Sheriff's Department, and we thank them for their support and help."

Each year, JA holds two fundraisers: a Bowl-a-Thon and the Laredo Business Hall of Fame.

Bernal said this school year, Junior Achievement of Laredo will be able to reach more than 9,000 students within the Laredo and United independent school districts. In the summer, JA programs go to the Laredo Public Library as well as the Sacred Heart Orphanage.

"We teach work-readiness," she said. "We're trying to make a difference in the community."

Before joining Junior Achievement of Laredo, which is part of Junior Achievement of South Texas, Bernal spent 23 years with the Boys and Girls Club.

As for being a volunteer and/or teacher with Junior Achievement of Laredo, she said, "It'll make a difference in your heart when you go out and teach."

For more information on Junior Achievement of Laredo, call Bernal at (956) 725-3464 or visit their website at www.jast.org.

-- Joe Rutland

Worry that Gulf oil spreading into major current ...

By JEFFREY COLLINS and JASON DEAREN
ASSOCIATED PRESS

NEW ORLEANS -- BP said Monday it was siphoning some of the oil spewing into the Gulf of Mexico, but worries escalated about the ooze reaching a major ocean current that could carry it through the Florida Keys and up the East Coast.

BP PLC chief operating officer Doug Suttles said Monday on NBC's "Today" that a mile-long tube was funneling a little more than 42,000 gallons of crude a day from a blown-out well into a tanker ship.

That would be about a fifth of the 210,000 gallons the company and the U.S. Coast Guard have estimated are gushing out each day, though scientists who have studied video of the leak say it could be much bigger and even BP acknowledges there's no way to know for sure how much oil there is.

In the nearly a month since an oil rig called the Deepwater Horizon exploded off the coast of Louisiana, killing 11 workers, BP has made several failed attempts to stop the leak, trying in vain to activate emergency valves and lowering a 100-ton container that got clogged with icy crystals.

Industrial output rises strongly, fueling recovery

By JEANNINE AVERSA
ASSOCIATED PRESS

WASHINGTON — Industrial production logged a stronger-than-expected gain in April, more evidence that manufacturing is playing a lead role in powering the economic recovery.

The 0.8 percent increase in output at the nation's factories, mines and utilities reported by the Federal Reserve on Friday marked an improvement from the 0.2 percent rise registered in March. It was the best showing since a 1.2 percent jump in January. The performance of the industrial sector in April was even stronger than the 0.6 percent gain that economists were predicting.

Factories — the single biggest slice of industrial activity — ratcheted up production by a brisk 1 percent for the second straight month, the Fed reported.

Penney's 1Q profit more than doubles; outlook muted

By ANNE D'INNOCENZIO
ASSOCIATED PRESS

NEW YORK — J.C. Penney Co. reported that its first-quarter net income more than doubled as the department store operator benefited from sales improvements across most types of merchandise and tighter inventory.

The retailer raised its full-year guidance on Friday, but even the higher forecast and the second-quarter outlook was muted as its consumers remain “concerned about their budgets.”

The chain on Friday posted net income of $60 million, or 25 cents per share, for the quarter ended May 1. That compares with $25 million, or 11 cents per share, in the year-ago period.

Total revenue rose 1.2 percent to $3.93 billion. Revenue at stores opened at least a year rose 1.3 percent. The measure is considered a key indicator of a retailer's health.

BP tries tube to siphon spewing Gulf oil to tanker ...

By ALLEN G. BREED and CURT ANDERSON
ASSOCIATED PRESS

Undersea robots tried to thread a small tube into the jagged pipe that is pouring oil into the Gulf of Mexico early Friday in BP's latest attempt to cut down on the spill from a blown-out well that has pumped out more than 4 million gallons of crude.

The company was trying to move the 6-inch tube into the leaking 21-inch pipe, known as the riser. The smaller tube will be surrounded by a stopper to keep oil from leaking into the sea. BP said it hopes to know by Friday evening if the tube works and can siphon the oil to a tanker at the surface.

Since an April 20 drilling rig explosion set off the catastrophic spill, BP PLC has tried several ideas to plug the leak that is spewing at least 210,000 gallons of oil into the Gulf a day. The size of the undulating spill was about 3,650 square miles, or the size of Delaware and Rhode Island combined, said Hans Graber, director of the University of Miami's Center for Southeastern Tropical Advanced Remote Sensing.

Federal budget deficit hits April record ...

By MARTIN CRUTSINGER
ASSOCIATED PRESS

WASHINGTON — The federal budget deficit hit an all-time high for the month of April as government revenue fell sharply.

The Treasury Department says the April deficit soared to $82.7 billion, the largest imbalance for that month on record. That was significantly higher than last year's April deficit of $20 billion and was above the $30 billion deficit private economists had been forecasting.

The government normally runs surpluses in April as millions of taxpayers file their income tax returns. However, income tax payments were down this April, reflecting the impact of a severe recession which has pushed millions of people out of work.

BP: 2nd, smaller container reaches Gulf seafloor ...

By H. JOSEF HEBERT AND HARRY R. WEBER
ASSOCIATED PRESS

ON THE GULF OF MEXICO — BP says a second, smaller container has reached the seafloor, but it hasn't yet been placed over the blown-out well fouling the Gulf of Mexico.

BP spokesman Bill Salvin said Wednesday that the 2-ton box had reached the seabed overnight.

He says it hasn't been positioned over the well yet because engineers want to make sure everything is hooked up correctly. Officials want to avoid the same icy, slushy buildup that thwarted their first attempt at using a much larger box that weighed about 100 tons.

Trade deficit rises to $40.4B in March ...

By MARTIN CRUTSINGER
ASSOCIATED PRESS

WASHINGTON — The U.S. trade deficit rose to a 15-month high as rising oil prices pushed crude oil imports to the highest level since the fall of 2008, offsetting another strong gain in exports. The larger deficit is evidence of a rebounding U.S. economy.

The Commerce Department said Wednesday that the trade deficit rose 2.5 percent to $40.4 billion in March. It was close to the $40.1 billion deficit economists had expected and the biggest monthly trade deficit since December 2008.

Exports of goods and services rose 3.2 percent to $147.87 billion, the highest level since October 2008. Imports were up 3.1 percent to $188.3 billion.

Local governments get $567M in sales tax revenue ...

This information comes out of State Comptroller Susan Combs' office in Austin on Wednesday:

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AUSTIN — Texas Comptroller Susan Combs announced the state collected $1.68 billion in sales tax revenue in April, up 1.4 percent compared to April 2009.

"This modest increase is welcome after 14 consecutive months of year-over-year declines," Combs said. "Retail trade saw a nearly 5 percent increase in collections, and gains also occurred in the manufacturing sector. Offsetting this were remittances from the oil and natural gas production sector and construction, which continued to decline, but at rates moderating substantially from those seen earlier this fiscal year. April may signal the beginning of a recovery in sales tax collections, although further declines may occur as the sales tax gradually returns to growth."

Combs will distribute $567 million in May sales tax allocations to local governments on Friday, up 4.7 percent compared to May 2009. So far this calendar year, sales tax allocations to cities, counties, transit systems and special purpose taxing districts are down 4.8 percent compared to a year ago.

Combs will send May sales tax allocations of $385.2 million to Texas cities, up 5 percent compared to May 2009. Calendar year-to-date, city sales tax allocations remain down 4.4 percent compared to the same period last year. Texas counties will receive sales tax payments of $33.7 million, up 3.8 percent compared to one year ago. Calendar year-to-date, county sales tax allocations are 9.4 percent lower than last year.

In addition, $22.4 million will go to 165 special purpose taxing districts throughout the state, up 4.9 percent compared to last May. Ten local transit systems will get $125.5 million in sales tax allocations, up 4 percent compared to a year ago.

May’s sales tax allocations to local governments represent March sales that were reported to the Comptroller in April by monthly tax filers and January, February and March sales reported to the Comptroller in April by quarterly tax filers.

For details of May sales tax payments to individual cities, counties, transit systems and special purpose districts, locate the Monthly Sales and Use Tax Allocation Comparison Summary Reports on the Comptroller’s website at www.window.state.tx.us/taxinfo/allocsum/compsum.html.

The Comptroller’s June sales tax allocation will be made on Friday, June 11.

Texas franchise tax due May 17 ...

This release crossed the LMT Business desk this afternoon, so I'm passing it along to you:

AUSTIN — Texas Comptroller Susan Combs reminds business owners they have one more week to file their state franchise tax. Franchise tax reports are due on May 17.

"This is the third year for businesses to file under the revised franchise tax law," Combs said. "To ease the tax burden on small businesses, the Legislature last year raised the threshold for owing franchise tax from $300,000 to $1 million in total revenue. We have many resources available to help franchise taxpayers with any questions they may have before the filing deadline."

Taxpayers can get more information about the franchise tax at http://www.window.state.tx.us/taxinfo/franchise/index.html, or the Comptroller’s franchise tax experts can answer taxpayer questions at (800) 252-1381.

Franchise taxpayers who are unable to file their reports on or before May 17 may request an extension of time to submit their final reports.

BP faces tough questions ...

BP continues to figure out how in the world it will stop a massive problem in the Gulf of Mexico.

The company tried putting a large box over an area where oil is pouring out hundreds of feet below water level. It didn't work.

Now comes word that BP, with the Environmental Protection Agency's blessing, is spraying chemicals that would help control and -- hopefully -- stop the problems. There is no real gauge on whether or not this will help, not hurt, the all-important offshore shrimpers and other businesses along the Gulf Coast.

I know that many of you might not care one whit about this spill. "What does it do to me and how does it affect me putting food on the table, clothes on my children's backs and gas in my car?"

Let's wait and see.

-- Joe Rutland

IBC: Net income fell 16 percent in first quarter ...

International Bancshares Corp. reported Thursday that its net income fell by 16 percent in the first quarter.

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The Associated Press

International Bancshares Corp. on Thursday said its net income fell 16 percent in the first quarter primarily because of a tax judgment.

For the three months ending March 31, the bank holding company earned $28.8 million, or 42 cents per share. That compared with $34.3 million, or 50 cents per share in the year-ago period.

On average, analysts polled by Thomson Reuters expected earnings of 47 cents per share. The stock of International Bancshares slipped fell 69 cents, or 3 percent, to $21.50 in afternoon trading.

The results took into account a tax judgment involving Local Financial Corp., which International Bancshares bought in 2004.

The dispute involves claims by former Local Financial shareholders over about $14 million in tax refunds received by International Bancshares. The refunds were based on deductions taken by Local Financial in connection with loan losses.

International Bancshares said in a filing with the Securities and Exchange Commission Thursday that it was disappointed with the judgment and believes it has "a number of valid grounds for appeal" that it intends to pursue.

Meanwhile, the company said net interest income in the quarter slipped to $82.7 million, from $85.9 million.

Total non-interest income, which includes service charges and fees on accounts, rose to $71.6 million, from $42 million.

Total assets at the end of the quarter were $10.8 billion compared to $11.8 billion at the end of last year. The decrease was primarily due to the sale of mortgage-backed securities.

Texas Border Coalition workshop focuses on legislative agenda ...

The Texas Border Coalition held a legislative agenda workshop on Tuesday at Laredo Community College.

According to its mission statement, the TBC is a collective voice of border mayors, county judges, and economic development commissions focused on issues that affect more than 2.1 million people along the Texas-Mexico border region and economically disadvantaged counties from El Paso to Brownsville. Its website is www.texasbordercoalition.org.

In opening Tuesday's session, Blas Castaneda, chairman of the TBC Education and Workforce Development Committee, offered these remarks.



More about the TBC workshop will be covered in this coming Monday's LMT Business Journal.

Vision 2010 leaves its mark ...

While I realize the Vision 2010 Economic Outlook Conference is now over, there were many topics touched upon within a nearly 24-hour time frame.

Admittedly, I tried covering them all in the LMT Business Journal center piece story in Monday's Laredo Morning Times. Yet I don't feel like I gave a lot of them justice ... justice as in offering more information.

So over the next few weeks, I'll take pieces of topics touched upon from an infrastructure and economic picture and expound upon them.

I hope you were able to enjoy our expanding social media (Twitter, blogs, Facebook) usage during Vision 2010. I'm not perfect and am quite sure I missed something important along the way.

Hey, I do the best I can and that's all I can do, my friends.

Have a great week and we'll be in touch.

Texas housing market continues recovery ...

The Texas Association of Realtors released its first-quarter findings on Monday. Here's an overview ...

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AUSTIN – The latest Texas Quarterly Housing Report, released today, shows statewide increases in both sales volume and price. Texas sales volume for existing single-family homes was 42,682 for the first quarter of this year, up four percent from the first quarter of last year. The median home price in Texas jumped from $137,200 in first quarter 2009 to $141,500 in 2010, a 3.13 percent increase.

The Texas Quarterly Housing Report is issued four times a year by the Texas Association of Realtors with multiple listing service (MLS) data compiled and analyzed by the Real Estate Center at Texas A&M University. "First quarter 2010 figures were up compared to 2009, despite sales being down in January and February," said Jim Gaines, Ph.D., an economist with the center. Gaines noted that the positive year-over-year gain was due solely to significant March sales being strong enough to bring up the whole quarter. "With March’s increased figures we are cautiously optimistic that we’ll continue to see positive results in the second quarter," he said.