My finance view

Stock markets steadied Tuesday after the previous day’s big declines when investors fretted over the deal to fix the euro crisis by binding member economies closer together.

Optimism over last Friday’s agreement by the 17 euro countries and nine others to adopt a new fiscal pact to prevent a repeat of the debt crisis evaporated Monday after credit rating agencies Moody’s and Fitch both said it was insufficient and would not materially address the crushing debt loads of some nations or their rising borrowing costs.

Moody’s warned that it will review all EU governments’ ratings for possible downgrades in early 2012 _ a threat that analysts said was particularly worrisome to France, a major contributor to the European Financial Stability Facility, Europe’s emergency bailout fund. A downgrade of France’s triple A rating could hurt its ability to fulfill its commitments to the fund.

Investors are also awaiting the response of rival agency Standard & Poor’s. Last week it warned that it could downgrade most of the eurozone economies, including Germany, if the deal failed to deliver.

“It was not the reaction to the summit that politicians had hoped for, but it was in line with previous market response to summits which are sold as being the solution to all of Europe’s problems but end up raising more questions than they answer,” said Gary Jenkins, an analyst at Evolution Securities.

Following Monday’s big retreat, there’s been a calmer tone in the markets, though skepticism over the deal’s details remain.

In Europe, Germany’s DAX recouped some of Monday’s lost ground, trading 0.5 percent higher at 5,815 while the CAC-40 rose 0.1 percent to 3,092. The FTSE 100 index of leading British shares rose 0.4 percent to 5,450.

Wall Street was poised for modest gains at the open _ Dow futures were up 0.4 percent at 11,991 while the broader Standard & Poor’s 500 futures rose an equivalent rate to 1,235.

The calmer tone was evident in the performance of the euro, which was trading 0.2 percent higher at $1.3195. On Monday, the single currency fell to a 10-week low over worries that Europe’s new financial pact won’t be enough to stop the region’s growing debt crisis.

“The financial markets are now digesting the details of the EU deal struck last Friday, and it is quickly becoming apparent that the financial markets have once again given it the thumbs down, which could quickly result in increased concerns of major funding difficulties emerging in the first half of 2012 when there is sizable sovereign debt to be rolled over, in particular in Italy,” said Derek Halpenny, an analyst at The Bank of Tokyo-Mitsubishi UFJ.

Another currency in the headlines was the Indian rupee, which hit a fresh record low Tuesday, after a contraction in industrial output reported the day before. The currency touched 53.52 against the dollar, down over 21 percent since late July. It is the third time in three weeks that it has breached prior lows.

The plunging currency is further darkening the economic outlook for Asia’s third largest economy. While a weak rupee can help exporters, it wreaks havoc with India’s giant oil import bill, deepening the country’s growing deficit.

“It clearly reflects the slowing economy in India and also the flight to the dollar of global money,” said SMC Global Securities strategist Jagannadham Thunuguntla.

The benchmark Sensex index was up 0.6 percent in midday trade in Mumbai, as trading held steady after a punishing three-day slide.

Elsewhere in Asia, stocks took a battering following the previous day’s retreats in Europe and the U.S.

Japan’s Nikkei 225 fell 1.2 percent to close at 8,552.81 while South Korea’s Kospi gave up 1.9 percent to 1,864.06 and Hong Kong’s Hang Seng lost 0.7 percent to 18,447.17. On mainland China, the benchmark Shanghai Composite Index fell 1.9 percent to 2,248.59, its lowest in closing since March 2009. The Shenzhen Composite Index lost 3 percent to 921.32.

Oil prices tracked equities in Europe modestly higher ahead of a meeting of the OPEC oil cartel in Vienna, Austria, which is expected to see production levels left unchanged _ benchmark oil for January delivery was up 38 cents to $98.14 per barrel in electronic trading on the New York Mercantile Exchange.

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OTTAWA—The New Housing Price Index rose 0.2 per cent in October after a similar increase in September.

Statistics Canada reports the metropolitan regions of Toronto and Oshawa, and Edmonton were the top contributors to the increase.

The agency says their positive impact was offset in part by decreases in Vancouver and Victoria.

Between September and October, Edmonton (up 0.6 per cent) posted the largest monthly price advance, followed by Toronto and Oshawa (0.4).

In Edmonton, price increases were primarily the result of higher material and labour costs as well as higher land values, while in Toronto and Oshawa, some builders cited good market conditions paperless payday loans.

The agency says prices were unchanged in nine of the 21 metropolitan regions surveyed.

The most significant monthly price declines were recorded in Victoria (down 0.6 per cent) and Saskatoon (down 0.3).

Year over year, the index was up 2.5 per cent in October.

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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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Ski resort operator Peak Resorts filed documents with federal authorities this month that more than doubles its plans for an initial public offering of its common stock to $103.5 million. 

Wildwood-based Peak Resorts, which owns the Hidden Valley ski area locally and owns or leases 11 other ski properties nationwide, originally filed for a $40.3 million IPO in mid-April, but shelved its plans to go public for several months.

According to documents Peak Resorts filed with the Securities and Exchange Commission on Nov. 21, the company has significantly expanded its IPO plans and now will offer 5 million shares of its stock  on NASDAQ under the symbol PEAK, priced between $16 and $18 per share.

The prospectus also reveals other details about the company’s operations and its growth in recent years. Peak Resorts, led by CEO Tim Boyd, has grown its revenue 305 percent from fiscal 2006 to fiscal 2011, when it had $98 million in revenue, according to its prospectus. In fiscal 2010, the company had $90 million in revenue.

Peak Resorts, which says it owns more ski areas in the U.S. than any other company, plans to use the $79 million in proceeds from the offering to repay debt on several of its properties, including $9 million to purchase the land beneath two ski areas in northeastern Pennsylvania, Jack Frost and Big Boulder, that it currently leases. The properties are both under contract with closing dates expected before the end of the year. 

Peak Resorts also plans to use $6.5 million of the IPO proceeds to construct a new high-speed chair lift at its Mount Snow ski area in southern Vermont.

The economic downturn did not stop customers from hitting the slopes, Peak Resorts stated in its prospectus, and the number of visitors to its 12 ski resorts increased during the past two winter ski seasons. 

Locally, Peak Resorts’ 250-acre Hidden Valley ski area and tube park opens from mid- December through February. Boyd developed Hidden Valley in 1982 and incorporated Peak Resorts as a holding company in 1997. In Peak Resort’s fiscal year, which ended April 30, 2011, Hidden Valley had $3.6 million in revenue, accounting for 4 percent of Peak’s total revenue.

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UPDATED at 7:15 a.m. with more stories from early morning shoppers.

HAZELWOOD

Unemployment rates fell in three-quarters of U.S. states last month, a sign that many parts of the country are experiencing modest job gains.

The Labor Department says unemployment rates fell in 36 states in October and rose in only 5. Rates were unchanged in 9 states. That’s the best showing since April, when rates fell in 39 states.

Nationally, the unemployment rate ticked down to 9 percent in October, from 9.1 percent the previous month. Employers added a modest 80,000 net jobs last month and the previous two months were revised to show much stronger gains payday advance lender.

Still, at least 125,000 jobs a month are needed to keep up with population growth, and at least double that amount to rapidly reduce the unemployment rate.

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Metropolitan Urological Specialists PC, a leading St. Louis area medical practice, appears to be digging itself out of a $1.3 million tax problem.

Public records filed this year indicate that the Chesterfield-based medical practice and its property affiliate — Metropolitan Urological Properties LLC — has owed at least that much in delinquent federal, state and local taxes, interest and fees.

Metropolitan, which operates a sexual health clinic and offers surgery and radiation treatments, has about a dozen physicians. The medical firm has an imaging center, a laboratory, and doctors’ offices at various locations in Crestwood, Creve Coeur, Florissant, and Chesterfield including offices on the campuses of Mercy Hospital St. Louis and St. Luke’s Hospital.

Metropolitan’s new interim chief executive, Bob Lawson, and several doctors did not respond to requests to comment. The firm referred questions to its attorney, Mayer Klein. The medical firm has substantially paid down its tax liabilities in recent months, Klien said. He would not specify Metropolitan’s remaining balance of delinquent withholding taxes, he said, because the company is privately held.

“Metro is strong and very successful and a very solid company,” Klein said. ”I’m aware of our financial condition and we do not have any tax concerns.”

On Sept. 16 of this year, the Internal Revenue Service filed an $855,291 tax lien on “all property and rights to this property” belonging to the medical practice, federal records show.

The IRS filed the tax lien after Metropolitan fell behind on its federal taxes - namely, the employer’s quarterly payments of funds it must withhold from its employee’s paychecks for Social Security and Medicare. “We have made a demand for payment of this liability, but it remains unpaid,” the federal tax lien states.

Earlier this year, the Missouri Department of Revenue placed three tax liens on the firm totaling $154,103 involving overdue withholding taxes, state records show. The smallest of those state tax liens, totaling about $405, has been released.

Metropolitan’s delay in meeting its federal and state tax obligations echoes its difficulties paying its property taxes. The Post-Dispatch reported last week that the medical firm’s property affiliate - Metropolitan Urological Properties LLC - owes state and local tax authorities $338,224 in delinquent taxes, interest and penalties from 2009 and 2010 on two of its properties, which include medical office buildings at 10296 Big Bend Boulevard in Crestwood and at 215 Dunn Road in Florissant, according to St. Louis County Department of Revenue.

According to Missouri Department of Revenue records, Metropolitan’s problems paying its wittholding taxes began in early 2009.

In 2010, Missouri state tax authorities placed a $8,854 tax lien on Metropolitan, but the medical firm paid those delinquent withholding taxes and that lien was released in February of this year.

The medical firm’s former chief executive, Dunard Morris, left the firm last month for unexplained reasons. He did not return calls Thursday for comment.

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Airbus on Monday fattened an order for its new A320neo jets and Boeing snagged another customer for the 787 at the Dubai Airshow as Mideast buyers showed they remain bullish despite the uncertain global economy.

The deals, which followed a record $18 billion airplane order from Dubai airline Emirates the day before, added ammunition to forecasts from the two major aircraft manufacturers that predicted the region will continue to generate hundreds of billions of dollars in demand for new planes for years to come.

European manufacturer Airbus predicted Monday that the Middle East will require some 1,920 new planes worth more than $347 billion through 2030. It estimates Mideast passenger numbers will grow 6.4 percent annually _ well above the predicted world average increase of 4.8 percent.

Boeing thinks the potential market is even bigger. Its own forecast, released shortly after its rival’s, puts Mideast demand at 2,520 planes worth $450 billion by the end of next decade.

Much of the growth is driven by fast-growing Gulf airlines, which have boomed in recent years by funneling long-haul travelers through expanding global hubs like Dubai and the Qatari capital Doha.

In terms of deals, Airbus scored the biggest prize of the day, boosting an existing commitment from Kuwait’s Aviation Lease and Finance Co. for the A320neo to 50 planes. The leasing firm, known as ALAFCO, also took options to buy another 30 of the planes.

The deal extends an initial agreement signed by ALAFCO at this summer’s Paris Le Bourget show, when it agreed to buy 30 of the narrow-body planes.

The A320neo offers a new engine option and other features designed to use 15 percent less fuel than older models of the single-aisle A320. It is scheduled to enter service in 2015.

The deal, before options, is worth about $4.6 billion at list prices, though buyers typically negotiate discounts.

Leasing companies like ALAFCO rent out planes to airlines, so the carriers don’t have to assume the costs and risks of owning all the planes in their fleets. It leases planes mainly to regional airlines in the Middle East and Asia.

Boeing Co., meanwhile, picked up a new regional customer for its much-hyped 787.

It and Oman Air said the carrier ordered six Boeing 787-8 aircraft, though the twin-engine planes won’t translate into additional business for the Chicago-based plane maker. That’s because Oman Air is taking over orders previously placed by ALAFCO.

Each 787-8 costs $193.5 million at list prices.

ALAFCO Chairman Ahmed al-Zabin said the decision to shift the 787 orders to Oman Air represented an extension of the company’s view that it is a “strategic partner” for Boeing in the region. It previously announced plans to lease the planes to the Omani carrier.

“Whatever is good for us and Boeing and the customer, we just do it, and that’s what you’re seeing,” he said when asked about the Oman Air deal.

Japan’s All Nippon Airways operated the first commercial flight of the 787 late last month following a series of manufacturing delays. The plane is made of lightweight composite materials and promises to be 20 percent more fuel-efficient than similar planes.

Long lines of curious spectators have lined up in Dubai to step aboard a 787 display model, which is making its debut at the Mideast airshow.

Oman Air is the flagship carrier of the Sultanate of Oman, located on the southeastern tip of the Arabian Peninsula. The airline, set up in 1993, is far smaller than Gulf behemoths such as Dubai’s Emirates and Qatar Airways.

Qatar Airways is among the regional carriers that have already signed up for the Dreamliner. It has ordered 30 of the planes and has options for 30 more. The carrier is expected to announce additional aircraft orders at this week’s show.

Its Dubai-based rival Emirates, the region’s biggest carrier, on Sunday placed an unexpectedly large order for 50 more Boeing 777s, signaling it remains optimistic about its ambitious growth plans despite the shaky global economy.

Boeing said the deal, worth $18 billion at list prices, was its biggest-ever single order by value.

In an interview Monday, Emirates airline President Tim Clark said the carrier would have “no problem” filling those new planes and the nearly 190 other aircraft it has ordered. It helps that the latest batch of 777s won’t begin to be delivered until 2015, giving the world economy time to recover.

“We’ve always been fairly bullish, and that is reflected in the size of the order and the value of the order. We’ve always taken a long-term view in regards to what is happening in the global economy. And we still take that view,” Clark said.

Clark said Emirates needs the extra planes to keep up with passenger demand and cope with marathon flights that can last more than 14 hours, as it pursues its strategy of linking far-flung cities through Dubai.

The carrier is increasingly focusing on emerging markets in Asia, Africa and Latin America, which Clark said older airlines have long shied away from. Over time, he expects bilateral ties between those regions to grow, producing even more business for carriers like Emirates.

At the same time, Clark said Emirates plans to expand its presence in Europe and the U.S. even further. The carrier already flies to Los Angeles, San Francisco, New York and Houston, and it recently announced plans to add service to Dallas and Seattle.

Other cities on Emirates’ radar for possible future expansion are Chicago, Washington, Detroit and Atlanta, Clark said.

“There’s more coming,” he noted. “It’s just a question of timing.”

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One of the St. Louis area’s leading medical practices for urologists owes more than $338,000 in delinquent property taxes, interest and penalties, St. Louis County records show.

Five years ago, Metropolitan Urological Specialists announced its plan to invest about $15 million in three outpatient centers, including a sexual medicine clinic, and to take on additional urologists as private physician shareholders. The firm, based in Chesterfield, also planned to invest heavily in laboratory and imaging equipment.

Dunard Morris, the medical firm’s former chief executive, said at the time that Metropolitan’s expansion would help meet the growing needs of the baby boomer generation. A large proportion of the firm’s business involves Medicare patients. Morris recently left the firm for unknown reasons.

But the firm, which still lists 14 physicians on its website, now struggles to pay its taxes. The county has sought to collect the back taxes by filing liens on the firm’s property.

The medical firm’s affiliate, Metropolitan Urological Properties LLC, owes state and local tax authorities $338,223 in delinquent taxes, interest and penalties from 2009 and 2010 on its medical office buildings at 10296 Big Bend Boulevard in Crestwood and at 215 Dunn Road in Florissant, according to the St. Louis County Department of Revenue.

Metropolitan Urological Properties also owes state and local property taxes for 2011 totaling $172,652 on those two parcels and improvements to those sites. That amount is due by Dec. 31, and becomes delinquent if not paid or postmarked before Jan. 1, 2012.

If the firm’s 2009 tax bill remains unpaid on its medical office complex in Crestwood, whose market value has been appraised at $4.9 million, county authorities are prepared to auction the property next August.

It is unclear when exactly Metropolitan started falling behind on its taxes or what specifically may have caused any related financial troubles. As shareholders, Metropolitan’s physicians could be on the hook if the firm defaults on any of its financial obligations.

Metropolitan’s property affiliate was able to pay a $29,481 tax bill on its Dunn Road parcel for 2009, but not a larger tax bill on its Big Bend parcel for that year. It did not pay its 2010 tax bills on either parcel.

Bob Lawson, the medical firm’s newly hired interim chief executive, did not return calls requesting comment. Several doctors affiliated with Metropolitan Urological Specialists also did not return phone calls.

Morris, who left the medical practice this fall, returned phone calls placed to one of his residences by leaving a voicemail message that said he was “out of state,” without saying exactly where.

“I have a lot to tell regarding health care and other things. I won’t talk with you if you run your story,” Morris said in the voicemail message. “I got sick of what I see in health care, and specifically in our group. And it’s a much wider story than me or anyone else.”

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Bloomberg News is reporting that Stifel Nicolaus has resumed talks with Regions Financial to buy Morgan Keegan, citing people familiar with the talks.

According to the Bloomberg report, private equity firms recently lowered their bids to acquire Memphis-based investment banking and securities brokerage firm Morgan Keegan, which has more than 3,100 employees in more than 300 offices nationwide.

In June, Birmingham, Ala.-based Regions announced it hired Goldman Sachs to help explore a sale of Morgan Keegan.

Bloomberg reported last week that the private equity firms lowered their bids for Morgan Keegan by at least $200 million, prompting Regions to resume talks with St. Louis-based brokerage firm Stifel Financial. The highest bid from the private equity firms was about $750 million, according to Bloomberg, and earlier this year, Stifel indicated it would pay more than $1 billion for Morgan Keegan.

Private equity firms Thomas H. Lee Partners LP and Aquiline Capital Partners LLC made a joint bid for Morgan Keegan, as did Carlyle Group LP and Blackstone Group LP, according to Bloomberg. Lowering market conditions and MF Global Holdings’ bankruptcy affected their bids, Bloomberg reported.

Representatives from Regions did not immediately return calls for comment. Stifel declined to comment.

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