My finance view

Taiwan says fishermen on a Taiwanese boat fought back against Somali pirates and freed themselves after a hijacking in the Indian Ocean.

Some of the 28 crew on the Chin Yi Wen overcame the hijackers then the boat met up with British anti-piracy vessels nearby. Three crew had minor injuries.

The government news agency said the fight happened about 4 a.m. Sunday Taiwan time (2000 Saturday GMT). That was some 48 hours after the boat was reported missing.

The Central News Agency report cited the island’s Fisheries Agency. It said the 260-ton Chin Yi Wen is now heading to Port Victoria in the Seychelles.

Piracy is rife off the Somali coast. Somalia has not had a functioning government since 1991.

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It’s moving day for bank customers.

A grassroots movement that sprang to life last month is urging bank customers to close their accounts in favor of credit unions by Saturday.

The spirit behind “Bank Transfer Day” caught fire with the Occupy Wall Street protests around the country and had more than 77,000 supporters on its Facebook page as of Friday. The movement has already helped beat back Bank of America’s plan to start charging a $5 debit card fee.

It’s not clear to what extent the banking industry’s about-face on debit card fees will extinguish the anger driving the movement. But many supporters say their actions are about far more than any single complaint.

“It’s too little, too late,” said Kristen Christian, the 27-year-old Los Angeles small business owner who started “Bank Transfer Day.” She already opened accounts at two credit unions in preparation for cutting ties with Bank of America this weekend.

“Consumers are waking up and seeing that they have options,” she said.

Even with its public support, however, it’s not likely that any account closings that take place on Saturday will make a big dent with industry titans such as Chase, which is the largest bank in the country with some 26.5 million checking accounts.

But the call to action shows just how incensed consumers were at the prospect of a debit card fee at a time of so much economic uncertainty. Even those who were appeased by the industry’s reversal may have tapped into a new sense of empowerment.

That’s the case for Dan Blakemore, a Bank of America customer for the past 10 years. He said he no longer plans to close his checking account now that the debit fee has been scrapped. But he’ll be on the lookout for any other changes that might hit his wallet.

“I’m pretty confident they’re going to find some way to get that extra money,” said Blakemore, a 28-year-old who works for a nonprofit fundraiser in New York City. “I’ll just have to see if it offends my sensibility enough to close the account.”

Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. are keeping mum on whether they’ve seen an uptick in account closures in recent weeks. But credit unions and small community banks have been basking in the spotlight and issuing press releases highlighting what they say are superior interest rates and more intimate service, along with tips on how consumers can transfer accounts. They haven’t been shy about the surge in new business they’re enjoying either.

Navy Federal Credit Union, the largest credit union in the country, says new account openings in September and October were up 38 percent from a year ago. National Capital Bank, a two-branch community bank in Washington, D.C., says the vast majority of its new account openings in recent weeks have been by fed up Bank of America customers.

“The debit fee was definitely a driver,” said Noah Wilcox, president of Grand Rapids State Bank in Minnesota, which is also enjoying a lift in account openings freecreditscore.

Because credit unions and community banks vary so greatly in size, however, it’s hard to gauge the total scope of the defections they’re reporting. For example, the Lower East Side People’s Federal Credit Union in New York City says it’s enjoying more than 55 new account openings a week. That’s a big jump from its average of about 10 new accounts per week, but insignificant when weighed against the portfolios of the nation’s largest banks.

Big banks have also learned that customer grumblings don’t always translate into action. That’s particularly true for those who have multiple accounts, direct deposit and automatic bill pay; many decide that switching just isn’t worth the hassle.

“People will do a lot of complaining before they actually uproot and move,” notes Mark Schwanhausser, a banking analyst with Javelin Strategy & Research.

The recent firestorm over debit card fees was “in a class of its own” because customers saw it as a charge for accessing their own money, he said.

The timing of Bank of America’s fee announcement was unfortunate on multiple levels as well. In addition to the anxiety many are feeling amid high unemployment and stagnant wages, the news broke just as the Occupy Wall Street protests were capturing the national spotlight.

And big banks have been a key target for Occupy Wall Street, which has tapped into the lingering resentment many harbor over the role of banks in the financial meltdown of 2008.

Last month, two dozen Occupy Wall Street protestors were arrested when they entered a Citibank branch in New York City and refused to leave. Protestors have also banged drums and demonstrated outside bank branches in other cities; PNC Bank twice closed branches in downtown Pittsburgh last week after protestors entered.

But those are the extremes. Schwanhausser of Javelin said many customers will likely be placated by the industry’s white flag on debit card fees.

“People are people going to look at that Nov. 5 date and say `We made our point’,” Schwanhausser said

The banking industry may feel the same way; representatives for Bank of America, Chase, Citi and Wells Fargo indicate they haven’t done anything to prepare branch employees for a surge in account closings this weekend. Then again, many of the closures may have already taken place.

Molly Katchpole, a 22-year-old nanny in Washington, D.C., who started an online petition urging Bank of America to drop its debit card fee, says the bank’s about-face won’t win her back.

“The damage is done,” said Katchpole, who has since joined a credit union in Washington, D.C.

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Gunmen wearing military-style uniforms broke into the house of a pro-government Sunni militiaman early on Wednesday and killed five members of his family, including three children, Iraqi officials said.

A police official said the gunmen shot the women and children as they were sleeping in their home in Abu Ghraib, a Sunni-dominated area that used to be a haven for al-Qaida in Iraq.

Seven other family members were wounded in the attack. The militiaman, Hameed al-Zobaie, was not in the house at the time of the attack, the police official said.

A medical official in a nearby hospital confirmed the casualties. The officials spoke on condition of anonymity because they were not authorized to release the information.

Police said the gunmen likely were targeting al-Zobaie, who is a member of the Iraqi Sahwa, or Awakening Councils personal loans for bad credit. The group joined forces with U.S. troops at the height of the Iraq war to fight al-Qaida. Ever since then, it has been a target for Sunni insurgents who call its members traitors.

Insurgents have stepped up attacks in Iraq recently as the U.S. military prepares to withdraw from the country by the end of the year.

In an earlier attack, a car bomb exploded near a popular restaurant in a Shiite neighborhood in southwestern Baghdad late on Tuesday night, killing three people and wounding 10 others, police said Wednesday.

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The Toronto stock market reduced afternoon losses but closed down more than 200 points amid plummeting gold prices and fresh anxiety over a potential default by the Greek government on its loans.

The S&P/TSX composite index was down two per cent or 238.71 points at 12,148.83. The TSX Venture Exchange lost 39.57 points to 1,745.53.

The Canadian dollar was up 0.40 of a cent at 100.80 cents (U.S.) after earlier dipping below parity for the first time since January as investors nervous about Europe

ST. THOMAS, ONT.

World stock markets advanced Tuesday as investors awaited new U.S. economic data amid hopes that more measures are on the way to spur lackluster growth in the world’s biggest economy.

Oil prices hovered above $87 a barrel in Asia while the dollar strengthened against the euro but was down against the yen.

European shares were mostly higher in early trading. Britain’s FTSE 100 jumped 2.4 percent to 5,251.53, catching up on gains after being closed for a holiday Monday. Germany’s DAX slipped less than 0.1 percent to 5,664.99 while France’s CAC-40 rose 0.5 percent to 3,168.41.

But Wall Street turned jittery after a strong start to the week Monday. Dow Jones industrial futures fell 0.3 percent to 11,486 while S&P 500 futures lost 0.3 percent to 1,204.

Asian shares registered gains in a day absent the volatility that has shaken markets recently. The Nikkei 225 index in Tokyo added 1.2 percent to 8,953.90 as investors seized on positive U.S. consumer spending figures and overlooked a rise in Japan’s unemployment rate.

Hong Kong’s Hang Seng gained 1.7 percent to 20,204.17 and South Korea’s Kospi was 0.8 percent higher at 1,843.82. Australia’s S&P/ASX 200 rose 0.1 percent to 4,269.20.

Signs that the U.S. may be staving off another recession helped exporters that depend heavily on demand from the West. Sharp Corp. rose 2.8 percent and Panasonic Corp. was 3.3 percent higher. Isuzu Motor Corp. rose 3.4 percent.

One sign of possible help on the horizon was the Federal Reserve’s decision to extend its upcoming policy meeting to two days instead of one. That raised the possibility of action, at least in the eyes of traders, to jolt the economy.

Another reason for the upbeat mood: investors were anticipating an announcement next week by President Barack Obama on a new jobs initiative.

“I think the focus is on President Obama’s speech, which is related to measures that will revive the economy,” said Kwong Man Bun, chief operating officer at KGI Securities in Hong Kong. “All this provides some of sort positive expectations for investors.”

Mainland Chinese shares lost ground, however, with the benchmark Shanghai Composite Index falling 0.4 percent to 2,566.60. The Shenzhen Composite Index fell 1 percent to 1,148.29.

Shares in food-related companies and financials advanced while shares in manufacturing and plastics companies weakened on expectations that upcoming manufacturing data could be worse than earlier forecast guaranteed payday loans.

European shares jumped Monday after Greece’s second- and third-largest lenders agreed to combine, creating the country’s largest bank. Greece’s government and central bank have been urging banks to merge, saying it would help them survive.

In the U.S. on Monday, stocks rose broadly after it became clear that Tropical Storm Irene had caused far less damage than many had feared. Insurance shares rose sharply as analysts lowered their estimates of how much damage the storm would cause.

An increase in consumer spending also helped to push stocks higher. The government reported that spending rose 0.8 percent in July. It was a sharp turnaround from June, when Americans cut spending 0.1 percent, the first decline in 20 months.

The Dow Jones industrial average rose 2.3 percent to close at 11,539.25. The Standard & Poor’s 500 index rose 2.8. The technology-focused Nasdaq rose 3.3 percent to 2,562.11.

Despite Monday’s gains, analysts warned market sentiment will remain fragile ahead of U.S. economic indicators this week that could show slowing growth. Later Tuesday, the Consumer Confidence Index for August will be released. Then on Friday, the Labor Department will release U.S. employment data for August.

“The perception that stocks are more cheaply valued has helped to feed into appetite for equity markets. However, likely weak data in the days ahead both in the US and Europe may result in a reality check for markets,” Credit Agricole CIB said in a research note.

In currencies, the euro dropped to $1.4438 from $1.4505 late Monday in New York. The dollar slipped to 76.73 yen from 76.95 yen.

Benchmark oil for October delivery was down 22 cents to $87.05 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.90 to end at $87.27 per barrel on the Nymex on Monday.

In London, Brent crude for October delivery was down 23 cents to $111.64 on the ICE Futures exchange.

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Ralcorp Holdings makes some of the most tame-sounding brands in the cereal aisle, from Shredded Wheat to Bran Flakes. And it often flies under the radar, with most of the pasta, cereal and crackers it produces sold at grocery stores under store-brand labels.

Ralcorp doesn’t even hold conference calls with analysts when it announces quarterly earnings, a practice mostly unheard of among public companies.

But lately, the company, headquartered at 800 Market Street in downtown St. Louis, has been anything but boring. Great change is afoot for its 9,000 employees, of which about 300 work downtown.

ConAgra Foods’ unsolicited bids to buy Ralcorp has set off a chain of events that ensures one of St. Louis’ largest publicly held companies will no longer look like it does today.

Within the past week and a half, several new scenarios have emerged for Ralcorp. As a defensive move, the company said it’s planning to spin off its Post Foods cereal business unit as a standalone company, with Ralcorp’s chairman, Bill Stiritz, taking over as chairman of Post Foods.

Most analysts don’t see the strategy as a plan to stop ConAgra’s bid for Ralcorp, with more than $4 billion in sales last year. Instead, the move is being viewed by some as a crafty way for Ralcorp’s board to elicit the most value for its shares.

Should the Post spinoff happen, that would likely mean the end of St. Louis as the hub of decision making for a portfolio of some of the country’s most recognizable cereal brands, which also includes Honey Bunches of Oats, Grape-Nuts, Raisin Bran, Golden Crisp, Honey-Comb, Alpha-Bits, Pebbles and Waffle Crisp.

Post Foods’ divisional headquarters is in Parsippany, N.J. The spinoff would result in Post Foods emerging as a new publicly traded company listed on the New York Stock Exchange.

Unwelcome suitor

ConAgra first offered to buy Ralcorp in March, and in May sweetened its bid to $86 a share, or $4.9 billion.

Ralcorp’s board of directors rejected both of ConAgra’s offers, but the rejections haven’t dampened ConAgra’s appetite for Ralcorp.

When Ralcorp announced its Post Foods spinoff plans on July 14, ConAgra released a statement the same day saying its bid to buy all of Ralcorp remains in the best interests of Ralcorp’s shareholders. Neither ConAgra or Ralcorp made executives available to comment for this story.

ConAgra’s executives have indicated they are most interested in adding Ralcorp’s private-label cereal, pasta, crackers and other foods that are sold under store names. Private- label products accounted for three-fourths, or $3.5 billion, of Ralcorp’s sales for the 12 months that ended March 31.

“In light of the current economic environment - where high gas prices, anemic wage growth, and elevated unemployment levels are weighing on an already fragile consumer - we still think that by extending its offerings beyond its lackluster brand portfolio, ConAgra may be able to benefit as consumers opt for lower priced products and retailers increasingly tout value offerings,” Morningstar analyst Erin Lash wrote in an investors’ note July 15, referring to the appeal of Ralcorp’s private-label products.

Ralcorp’s roots in St. Louis date to 1894 when William Danforth founded the Robinson-Danforth Commission Co., which made animal feed. The company later added breakfast cereals, and in 1902 changed its name to Ralston Purina. In 1994, Ralston Purina spun off its cereal business and a few other businesses outside of pet food, and Ralcorp was formed.

Ralcorp acquired Post Foods from Kraft in 2008 for $2.7 billion. Through its Post Foods division and private-label offerings, Ralcorp has grown to become the third-largest maker of cereal nationwide in the ready-to-eat category, behind Kellogg and General Mills.

By spinning off its Post business, Ralcorp could prompt other parties to make a competing offer for all or part of Ralcorp, analyst Alexia Howard of Sanford C. Bernstein wrote in a note to investors July 20.

“We now believe that Ralcorp may be prepared to sell if a sufficiently high price is offered for either the whole company or its components,” Howard wrote in the note.

Separately, The Sunday Times newspaper in the United Kingdom reported last week that Lion Capital LLP, a London-based private equity firm, plans to offer $1.5 billion for Post Foods.

Lion Capital already owns Weetabix, the second-largest maker of cereals and cereal bars in the U.K. Post Foods recently added Pebbles Treats, its first foray outside of the ready-to-eat cereal category, which would complement Weetabix’s cereal bar offerings.

Still, ConAgra might not choose to patiently wait for Post to be spun off.

Christopher Growe, an analyst at Stifel Nicolaus, wrote in a research note July 15 that he expects ConAgra to increase its price per share bid to the mid-to-upper $90s.

Last week, Ralcorp’s shares hovered above $86, closing Friday at $87.92 a share.

“Could it wait until the breakup occurs and just go after the private- label business?” Growe wrote in his note. “Sure. However, we believe the company would be better suited to purchase the whole Ralcorp.”

Still, the surprise twists and turns taken in the past few months mean Ralcorp’s future path won’t be decided any time soon, according to Morningstar’s Lash.

“This saga has been ongoing for the past several months and it might continue for some time, in our view,” she wrote in the note.

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The European Union is introducing new rules that would make it cheaper to use mobile and smartphones abroad.

The proposals from the EU’s executive Commission Wednesday seek to spur competition among providers and put new caps on roaming charges.

For the first time, the EU is slapping caps on the price individuals have to pay for going online from a smartphone or tablet computer when moving from one country to another. The EU is made up of 27 countries.

The European Commission also said that from July 2014 operators will have to open their networks to providers from another EU state, which would give consumers more providers to choose from. At the same time, consumers will be able to sign a separate roaming contract, allowing them to take advantage of cheaper offers when moving about.

The new rules will kick in when the bloc’s existing regulation on mobile roaming expires at the end of June next year.

While the current rules have forced the price of making calls down to 35 euro cents (about 50 U.S. cents) a minute when traveling in another EU country and kept a lid on the cost of receiving calls and sending text messages, the Commission believes that charges remain way too high.

The Commission’s goal is to bring roaming prices in line with national ones by 2015, an important step in getting the 27-country bloc closer together and spurring business and freedom of movement in the EU’s internal market. The new rules would also apply in non-EU states Iceland, Liechtenstein and Norway.

“This proposal tackles the root cause of the problem _ the lack of competition on roaming markets _ by giving customers more choice and by giving alternative operators easier access to the roaming market,” Neelie Kroes, who is in charge of the EU’s digital agenda, said in a statement.

For the first time, the rules would also cap the price of going online from a smartphone or tablet computer. Using mobile Internet in another EU country can quickly drive up phone bills, with prices for downloading one megabyte of data averaging euro2.23 ($3.22) but sometimes going up to euro12 ($17.35), according to the Commission.

One megabyte is equivalent to about 100 e-mails without attachments or a few seconds of streaming video online. Under the new proposal, charges for data roaming would have to come down to 90 cents a megabyte by July next year and sink to 50 cents by 2014.

By that date, the price of making calls would be capped at 24 cents a minute, while incoming calls and text messages would cost 10 cents.

At the center of the Commission’s proposals are efforts to increase competition between providers. From July 2014, operators will have to open their networks to providers from another EU state, which would give consumers more services to choose from.

At the same time, consumers will be able to sign a separate roaming contract, allowing them to take advantage of cheaper offers from a different provider while keeping their regular number and SIM card.

The Commission believes that more competition is the best way of forcing operators to bring down prices and stop price ceilings from effectively becoming price floors.

The new rules still have to be approved by EU states and the European Parliament.

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Top U.S. and Indian officials are discussing economic cooperation and financial sector reforms that could promote American investment in the fast-growing Asian country.

U.S. Treasury Secretary Timothy Geithner is hosting Indian Finance Minister Pranab Mukherjee for the second annual meeting of the U.S.-India Economic and Financial Partnership.

The central bank chiefs and top regulators are also attending. A conference on Monday will be followed by formal talks at the Treasury on Tuesday instant credit report.

Among the issues for discussion will be how to finance the development of India’s creaking infrastructure, which offers major opportunities for U.S. companies.

The U.S. is gently urging India to expedite economic reforms that could prove politically unpopular in India.

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French and British food safety officials on Saturday were investigating seeds from a British company linked to an E. coli outbreak near Bordeaux.

France halted the sale of fenugreek, mustard and arugula sprout seeds from British seed and plant vendor Thompson & Morgan after eight people were hospitalized following an E. coli outbreak. French investigators found that two of them were sickened after consuming sprouts from the three seed types in the southwestern town of Begles, a suburb of Bordeaux.

Some of those affected were infected by the same strain of E. coli that has killed 44 people _ all but one in Germany _ and sickened more than 3,700 in recent weeks.

The company cautioned the link was unsubstantiated, arguing in a statement that it believed that “something local in the Bordeaux area, or the way the product has been handled and grown, is responsible for the incident rather than our seeds.”

The company said it understood that French officials were still testing the seeds and investigating how they were grown. In the meantime, Thompson & Morgan said it had submitted samples of its seeds to British health authorities for investigation.

A spokesman for Britain’s Food Safety Agency said that officials “don’t have definitive evidence that the company is the source of the contamination” and that an investigation was ongoing. He noted that European health authorities have misattributed the source of E. coli outbreaks in the past. Spanish cucumbers, for example, were wrongly blamed for the illnesses in Germany.

The food safety official spoke on condition of anonymity, in line with department policy.

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