My finance view

A judge has appointed a receiver for the Ridge Point Crossing apartments in St. Louis County, a two-property complex that’s owned by an affiliate of Gannon International.

The appointment is the latest of a string of apartment properties owned by Creve-Coeur based Gannon that have been put in receivership following loan defaults in the past year.

Ridge Point Crossing includes 292 units at 11251 Graben Drive in St. Ann and 96 apartments at 11302 Bonanza Drive in Maryland Heights.

Wells Fargo sought a receiver for Ridge Point Crossing last month after an affiliate of Gannon defaulted on a $9.9 million loan secured by the property, according to court filings.

The Gannon affiliate “has failed to make debt service payments, make critical vendor payments and keep up with payroll obligations,”  St. Louis County Circuit Court Judge Robert Cohen wrote in his order appointing Nolan Real Estate Services receiver of Ridge Point Crossing on Dec. 13.

As receiver, Nolan Real Estate will collect rent at the property, make repairs and pay utilities.

Bill Schierholz, president of Gannon’s real estate group, could not be reached for comment payday loan. Daniel Spirn, an attorney representing Wells Fargo, declined to comment.

The appointment of a receiver at Ridge Point Crossing follows similar appointments at Gannon-owned apartment complexes in the past year.

In April, a receiver was appointed for the 272-unit Springwood Apartments in Bel-Ridge after PNC Bank alleged Gannon defaulted on a $5.7 million loan secured by Springwood and failed to properly maintain the apartments. Springwood has since been sold.

In June, a receiver was appointed for the 336-unit Suson Pines Apartments at 5625 Suson Hills Drive in south St. Louis County after PNC alleged Gannon defaulted on a promissory note and owes the bank more than $13 million.

The real estate arm of Gannon International, which is owned by Chief Executive William Franke, owns nine apartment properties in the St. Louis area.

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Shares in UniCredit, Italy’s largest bank, slid Wednesday after the company priced its euro7.5 billion ($9.8 billion) cash call from shareholders at the bottom end of market expectations.

UniCredit shares dropped 14.5 percent lower at euro5.42, as investors were spooked by the scale of the discount in the company’s rights issue. Other European banks, many of which are looking to raise money to plug financial holes, also saw their share prices take a hit amid concerns that they too would be forced to price their cash calls at low levels too.

The aim of UniCredit’s rights issue _ shareholders have been asked to buy two new shares for every one they hold _ is to help the bank shore up its capital reserves, in line with European regulatory demands. Last month, industry regulator, the European Banking Authority, said the bank needed to raise around euro8 billion.

Earlier in the day, UniCredit shares were briefly suspended after the cash call was priced at a 69 percent discount to Tuesday’s close, much lower than most predictions. So far, only 24 percent of the shares on offer have been taken.

The discount was bigger than those that have been offered by UniCredit’s peers recently and knocked sentiment in Europe’s banking sector as a whole, notably of Germany’s Commerzbank AG, which has been asked to raise euro5.3 billion ($6.9 billion) by the European Banking Authority. Its share price fell 4 percent.

Last month, the EBA said European banks have to raise about euro115 billion ($150 billion) to meet a new standard meant to inoculate the lenders against market turmoil, including bad government debt.

European banks have billions of euros of risky government bonds on their books, and, as the continent’s crisis has deepened, investors have become increasingly concerned the lenders won’t be able weather all of the expected losses on those loans.

That, in turn, has made banks wary of lending to one another _ since they worry that one of their number could go under at any moment. When banks stop lending to one another and businesses, the entire economy seizes up.

Much of the current focus in Europe’s debt crisis has centered on Italy, the third-largest economy in the eurozone.

International markets have punished Italy in recent months for failing to come up with a coherent strategy to deal with its euro1.9 trillion ($2.5 trillion) debt mountain. That drove up the borrowing rates for the eurozone’s third-largest economy and effectively forced Silvio Berlusconi from office.

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Reflecting on a challenging year, President Barack Obama says he’s hoping for more economic progress following action by Congress to prevent tax increases at the start of 2012.

“It was good to see members of Congress do the right thing for millions of working Americans,” said Obama, using his weekly radio and Internet address Saturday to deliver a New Year’s message.

He said the public made itself heard on a Social Security payroll tax cut and that was one big reason that lawmakers agreed to extend it for two more months.

The American people, Obama said, “had the courage to believe your voices could make a difference.”

The president said he expects Congress to finish the job when lawmakers return to Washington in January and extend the tax cut through the end of the year.

Reflecting on 2011, Obama said it was a time of great challenge and progress, including the end of the war in Iraq, the death of Osama bin Laden and signs of an economic recovery.

“There’s no doubt that 2012 will bring even more change,” Obama said. “And as we head into the new year, I’m hopeful that we have what it takes to face that change and come out even stronger _ to grow our economy, create more jobs and strengthen the middle class.”

On the eve of an election year, Obama said the months ahead will help determine “what kind of country we want to be and what kind of world we want our children and grandchildren to grow up in.”

Sen. Johnny Isakson, delivering the GOP address, outlined his party’s commitments to the American people for 2012.

The Georgia lawmaker said his party’s No. 1 goal is to make it easier for small businesses to create jobs.

“We’ll accomplish this by focusing on three things: fundamental tax reform, regulatory reform and energy security,” he said.

Isakson said that while some people may think Congress will be too consumed with the 2012 elections to accomplish anything significant, the public deserves better.

“Americans cannot wait until after the November election,” he said. “They need us to do our job and do it right now to create an economic climate that makes it easier to put people back to work.”

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Turkey and Azerbaijan will sign a memorandum of understanding tomorrow, establishing a consortium that will build a pipeline to ship natural gas from the BP Plc- operated Shah Deniz field to Europe via Anatolia.

State Oil Co. of Azerbaijan, or Socar, Turkey

Stephen Wancha was promoted to food and beverage director at Four Seasons St. Louis Hotel.

Wancha is responsible for overseeing Cielo restaurant and bar at the hotel as well as the food/beverage service for banquets and catering. He manages a staff of about 110 people.

Wancha previously worked at the Four Seasons Hotel here before briefly taking a job in food service at Four Seasons San Francisco Hotel cash till payday. He visited 91 regional wineries during his 18 months in San Francisco and says the contacts he made there will help Cielo bring new wines to St. Louis that aren’t usually available in the area.

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European Central Bank president Mario Draghi says there’s “no external savior” for heavily indebted governments in the eurozone debt crisis and gave no sign the bank is ready to step in and support their finances.

Draghi said governments must take the tough steps to balance budgets and reform economies to promote growth.

“I will never tire of saying that the first response should be from government,” Draghi said Thursday at a speech in Berlin. “There is no external savior for a country that doesn’t want to save itself.”

As a “firewall” to calm markets in the meantime, Draghi said, the EU has its newly strengthened bailout fund.

Some economists have urged the ECB to support governments with bigger purchases of government bonds. So far the bank has made some purchases but kept them limited and said the program is temporary, stressing that governments must not rely on such help from the ECB.

Draghi said that the purchases were “neither eternal nor infinite.”

In his speech, Draghi focussed instead on the European Financial Stability Facility, the current EU bailout fund, as the “firewall” against the crisis. He urged EU officials to quickly implement decisions to strengthen it to assure markets governments will pay their debts on time.

Governments have agreed on ways to increase the fund’s lending power and are seeking outside investors such as countries in emerging markets to contribute to its lending power, so far without much progress.

Economists say the EFSF is too small to bail out Italy, the most recent focus of the debt crisis that has seen Greece, Ireland and Portugal seek bailouts from other eurozone governments and the International Monetary Fund.

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Britain’s Treasury chief defended Prime Minister David Cameron’s decision to veto changes to the European Union treaty, saying Saturday the move protected U.K. economic interests.

Cameron rejected an invitation to join 26 European partners in a tighter financial alliance to save the euro which he said didn’t adequately protect Britain’s national interest and meant giving up too much control over regulation of Britain’s dominant financial sector.

The move isolated Cameron from the European Union and raised doubts about whether Britain realistically can remain a member of the 27-nation bloc _ prompting cheers from the prime minister’s typically anti-EU party and jeers from the opposition.

Britain’s typically brash media reflected the divide Saturday, with The Guardian headline “Cameron Cuts UK Adrift” batting against the Daily Mail’s “The Day He Put Britain First.”

Treasury chief George Osborne defended Cameron on BBC radio, saying he thinks Britons are pleased the prime minister “stood up for the British national interest.

“We have protected Britain’s financial services and manufacturing companies that need to be able to trade their products into Europe from the development of eurozone integration spilling over and affecting non-euro members of the EU,” he said.

Osborne added that if the prime minister had “caved in” to signing the treaty, the “full force” of the EU could have undermined British interests.

“We were not prepared to let that happen,” he said.

Osborne’s vote of confidence echoed support from other Conservative lawmakers over the prime minister’s move to set Britain apart.

But Cameron also is facing a chorus of criticism from the opposition Labour Party and growing tensions with his Conservative Party’s junior coalition partner, the Liberal Democrats.

Deputy Prime Minister Nick Clegg has rejected talk of a rift between his Liberal Democrats and the Conservatives and backed Cameron’s move, but dissent bubbled up from elsewhere in the party.

One Liberal Democrat lawmaker accused Cameron of “betraying Britain,” while another called the fallout “a black day for Britain and Europe.”

Emboldened by Cameron’s move, Conservatives stepped up calls for a full re-negotiation of Britain’s position in the EU, but Liberal Democrat deputy leader Simon Hughes shot down that idea in an interview with Sky News, insisting the issue was “not on the table” and telling the Tories to “calm down.”

In Italy, Premier Mario Monti has summoned union leaders to discuss his new austerity plan as lawmakers tinker with his tough proposals to try to rescue the country from its debt load and get the economy growing again.

Unions have bitterly contested Monti’s proposal to reform Italy’s generous pension system and have called a strike for Monday. Monti’s office said Saturday the premier, fresh from the EU summit in Brussels, would meet with union leaders on Sunday to discuss the proposals.

Monti has also proposed restoring a property tax suspended during Premier Silvio Berlusconi’s government. The proposal has renewed criticism of the tax-exempt status of the Catholic Church in Italy, even though the church merely enjoys the same tax-exempt status as any non-profit.

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Lee Enterprises, the owner of the St. Louis Post-Dispatch and one of the largest newspaper publishers in the country, announced Friday that it will file for bankruptcy after efforts to work out a debt exchange deal with its lenders failed.

In a press release, Lee Enterprises, based in Davenport, Iowa, didn’t say when it would file for “pre-packaged” Chapter 11 bankruptcy.

However, the publisher said the bankruptcy will cause no changes to its business. Vendors, subscriptions, employees and the company’s operations will not be affected.

The publicly-held company said earlier this year it would seek a ‘prepackaged’ bankruptcy if it failed to refinance $904.5 million in debt that matures in April 2012.

In an debt exchange proposal, Lee had tried to convince at least 95 percent of its lenders to swap existing debt for new debt with a later maturity date and a higher interest rate. At one point, it had 90 percent acceptance for the swap.

Those efforts ultimately failed, however, in reaching that level, prompting Lee to proceed with the bankruptcy filing.

However, the level of support for debt restructuring by the vast bulk of creditors will allow the company to file a prepackaged bankruptcy, the company said.

“We have achieved agreements with an overwhelming majority of our creditors to extend our existing loan agreements on reasonable terms that preserve stockholders’ ownership interests in the company with only 13% dilution,” Lee Chief Executive Mary Junck said in a press release.

With a prepackaged deal, Lee expects to exit bankruptcy in sixty days or less.

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Employers likely added more jobs in November, encouraged by signs of modest economic growth. But the gains aren’t expected to be enough to lower the unemployment rate.

Economists forecast that employers added a net 125,000 jobs last month, an improvement from October’s gain of 80,000. The unemployment rate is expected to stay at 9 percent for the second straight month.

Some economists have revised their estimates even higher _ to roughly 150,000 _ after a spate of positive economic reports. And payroll provider ADP said Wednesday that private companies added 206,000 jobs last month.

Still, analysts say that while the economy is growing at a steady pace, it’s not accelerating enough to prompt employers to hire more aggressively.

And Europe’s financial crisis threatens to slow U.S. growth next year. A recession in Europe could reduce U.S. exports, hurt global financial markets and dampen business confidence.

Paul Ashworth, an economist at Capital Economics, estimates that the economy will expand 2.5 percent in the last three months of this year. But he expects growth to slow to 1.5 percent in 2012, partly because of the crisis in Europe.

“Things are getting a bit better, but perhaps only temporarily,” Ashworth said.

Weak job growth means companies don’t have to raise pay to keep their employees. Fewer jobs and lower pay leaves consumers with less money to spend. That’s holding back economic growth.

In the past three months, the economy has added an average of 114,000 net jobs per month. That’s barely enough to keep up with population growth. In the first four months of this year, the economy generated an average of 179,000 jobs per month.

For now, most recent economic reports have been positive.

Factories are expanding. The Institute for Supply Management, a trade group of purchasing managers, said Thursday that its manufacturing index rose to 52.7 in November, up from 50.8 in October. Any reading above 50 indicates expansion.

The ISM’s report also found that new orders and production both rose to seven-month highs. That’s a good sign for future output. Even export orders increased, despite the turmoil overseas.

Retailers reported a strong start to holiday sales over the Thanksgiving weekend, consumer confidence surged in November to the highest level since July, and Americans’ pay rose in October by the most in seven months.

Car sales also rose sharply in November, normally a lackluster month for the auto industry. Chrysler, Ford, Nissan and Hyundai all reported double-digit gains on Thursday, compared to a year ago.

Another report Thursday showed that U.S. builders spent more in October on new homes, offices and shopping centers. Construction spending rose for a third straight month, the Commerce Department said. Despite the gains, overall construction spending remained depressed.

Those reports have caused many economists to forecast a pickup in growth in the final three months of the year, to about a 3 percent annual rate. That would be an improvement from growth of 2 percent in the July-September period.

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Ratings agency Standard & Poor’s on Thursday pushed Egypt’s sovereign credit ratings deeper into junk status, citing the country’s dire political and economic situation and the increased risk of civil strife.

The cut is the latest blow to Egypt, whose economy is reeling from nine months of protests and strikes since the mid-February ouster of former President Hosni Mubarak. Last month, Moody’s Investors Service also cut its ratings for Egypt, citing the ongoing political challenges and the weak economy.

S&P said it cut Egypt’s long-term foreign and local currency sovereign ratings to B+ from BB-, with a negative outlook.

“The downgrade reflects our opinion that Egypt’s weak political and economic profile … has deteriorated further,” the agency said in a statement.

In addition to the current wave of protests against the ruling military council, it cited the erosion of the country’s net international reserves and the risk of further unrest stemming from rising expectations.

“These challenges could arise if populist demands for greater political participation are thwarted, or from demands for improved living standards from different sectors of the population no matter who is governing Egypt,” the agency said.

The timing of the ratings cut is also troubling for Egypt, coming days before the Nov. 28 parliamentary elections _ the first since Mubarak left office. The fate of the elections is uncertain following the latest protests, in which demonstrators have called for the country’s military rulers to step down and transfer power to a national salvation government payday advance online.

Months of unrest have led analysts to cut forecasts for Egypt’s economic growth. A nation that just a few years earlier had boasted growth rates of 7 percent is expected to realize anemic growth of around 1 percent this year, according to the International Monetary Fund.

Equally troubling has been the drop in international reserves, which fell from $36 billion at the end of December to $22 billion by the end of October. That decline, in part, has been linked to the Central Bank’s efforts to prop up the Egyptian pound.

The stock market’s benchmark index has shed almost 48 percent since the start of the year, losing around 190 billion pounds ($32 billion) and earning the dubious distinction of being among the worst performing in the world after Greece and Cyprus. On Thursday, the EGX30 index was up about 1.6 percent.

Bond and Treasury bill yields have climbed sharply, reflecting the premium the government must pay to borrow money, and the deficit is expected to climb above earlier forecasts of around 8.6 percent as officials are forced to increase spending to meet incessant popular demands for a boost in the standard of living.

“Following Egypt’s popular uprising of January 2011, public expectations regarding the government’s ability to promptly deliver improved living standards remain high,” S&P said.

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