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Housing starts rose less than expected in May, likely reflecting labor and material constraints, but the overall trend remained consistent with strength in the housing market. _0"> Though permits for future home construction fell, that followed a surge in April, which hoisted them above the 1 million-unit mark. The pullback last month reflected a drop in the volatile multi-family sector, but permits for single-family construction touched their highest level in five years. The Commerce Department said on Tuesday housing starts rose 6.8 percent to a seasonally adjusted annual rate of 914,000 units. April's starts were revised up to show a 856,000-unit pace instead of the previously reported 853,000 units. Economists polled by Reuters had expected groundbreaking to rise to a 950,000-unit rate last month.   Builders, who are ramping up construction to meet demand for housing against the backdrop very low inventory, have been complaining about labor shortages and increased

Philadelphia-based brokerage Janney Montgomery Scott LLC has hired a team of veteran advisers from Morgan Stanley Wealth Management to join its private client group in Maryland, Janney said on Tuesday. _0"> Advisers Alfred DeRenzis and Scott Ford joined Janney in late May from Morgan Stanley, where they managed $159 million in client assets and had annual revenue production of more than $1.2 million. DeRenzis, who has worked in the advising industry for 32 years, joined Janney as a senior vice president. Ford, a 26-year industry veteran, joined Janney as a first vice president. They were joined by registered private client assistant Karen Seipp, also from Morgan Stanley.   The team joined Janney's new Westminster, Maryland, office, a satellite of the Baltimore branch. Morgan Stanley Wealth Management, formed in the merger of Morgan Stanley's wealth unit and Citigroup's Smith Barney, is the largest U.S. brokerage by client assets and adviser headcount. Morgan

Hedge funds, once seen as a quick route to riches for managers and investors alike, are trying to reinvent themselves as more socially conscious and make money all the same. After an extended run of poor returns, executives at a slimmed-down annual industry conference in Monaco on Tuesday were as likely to be found talking about charitable giving as top trading ideas. Managers have latched onto the idea that social responsibility and making money could go hand in hand.   "I think impact investing is the new buzzword," said Jeroen Tielman, CEO of hedge fund investor IMQubator. "It's after things like the Bangladesh factory disaster. Investors are starting to think and are realizing they can make a difference." This year's mood marked a dramatic change from the 2008 conference, when the industry was at the height of its powers and superstar of the moment John Paulson - fresh from earning $3.7 billion personally from betting on the subprime meltdown - pred

Investors accustomed to late market volatility at the end of the quarter should expect an extra jolt on June 28, when billions of dollars in stock trades will be executed in less than two seconds. That is the day Russell Investments sets the final update for the annual reconstitution of its indexes after the close of trading. This rebalancing creates a surge of liquidity as investors readjust portfolios and try to take advantage of dislocations in stock prices.   "If you are looking to significantly alter your basket or portfolio, or liquidate or try to buy on the dip... this is a good place to go to do that because there is going to be more volume in the last few minutes of trading on the day of the Russell then there might be over the course of a whole day on another day," said Gordon Charlop, managing director at Rosenblatt Securities in New York This year's changes do not contain an addition as dramatic as the inclusion of Berkshire Hathaway was, but there are a

The number of millionaires in the world jumped 9.2 percent to 12 million last year, in part because of simultaneous strength in the stock, bond and real estate markets, according to a study of the high-net-worth population. The survey, released Tuesday by RBC Wealth Management and Capgemini Financial Services, tracked high-net-worth people, whom it defined as those with more than $1 million that they can invest. North America was home to the highest number of millionaires - 3.7 million. But the study projected that the Asia-Pacific region, which held the top spot in 2011, would reclaim it. Part of the strength in North America came from rising equities markets - the Standard & Poor's 500 stock index gained 13 percent in 2012. North American investors put 37 percent of their money into stocks, a higher proportion than people in the Asia-Pacific region, where investors tend to be more conservative, the study said.   The amount of wealth held by the world's richest peopl

Inflation showed signs of stabilizing in May after a long decline, a potential comfort to Federal Reserve policymakers who want to avoid any chance of a debilitating bout of deflation. The Labor Department said on Tuesday the consumer price index edged 0.1 percent higher last month after two straight months of declines, while the so-called core index, which excludes food and energy costs, rose 0.2 percent, just above the pace clocked in April.   The core index, which the U.S. central bank monitors closely because it is less volatile and provides a better sense of price trends, was up 1.7 percent in the 12 months through May. The increase matched the gain in April and suggested that a worrisome downward trend in core inflation, which began a year ago, might be coming to an end as consumer demand strengthens. That would be a relief to Fed officials who worry that a big drop in inflation could lead to a spiral of falling prices and wages. Removing this risk could make the Fed more c

New York state lawmakers on Tuesday announced plans to create a financial restructuring board and binding arbitration process to help struggling municipalities manage their finances. _0"> The legislation, which will be taken up by the state legislature soon, is designed to shore up fiscally distressed communities with shrinking tax bases and high expenses. "Localities across the state are facing a growing financial crisis of soaring retirement costs while their populations stagnate and property values drop," said New York Governor Andrew Cuomo, announcing the deal with the majority leaders in both houses of the state legislature. "The only options for struggling municipalities cannot be bankruptcy or being subject to a financial control board."   The governor did not indicate which cities and towns would likely take part in the new program. The board would be charged with making recommendations on improving fiscal stability, management and the delivery