News Bites and Updates – Week of February 6, 2012

Postal Service Delays Consolidations

The US Postal Service has delayed plans to close more than 3,600 post offices until at least May. Decisions regarding the closing of mail processing centers and changes in standards for first-class deliver service are also on hold.

The Postal Service, which is projected to be $10 billion in the red for 2012, says the moves are necessary to make the agency solvent.

Business owners in numerous industries are concerned that the possible changes in first-class delivery will negatively impact deliveries, paper-based correspondence, and the timing of accounts payable and receivable.

Social Security Tax Holiday in Limbo

Congressional leaders have yet to make serious progress in determining the fate of the Payroll Tax Holiday instituted last year.

Prior to the holiday recess in December, the House extended the break through March 31. If no action is taken rates revert to the previous level of 6.2%, up from the 4.2% “Holiday Rate.”

Stocks Tally Best January Ever

The Dow Jones Industrials added 415 points, a 3.5% jump, in January, leading to the Index’s best ever start to a year.

Historically, a January up-market has led to gains for the year 75% of the time.

Venture Capital Firms Raising Cash

In what could be interpreted as an optimistic view of the economic picture, venture capital firm Bain Capital reported that it had raised $600 million for a new investment fund.

Andreessen Horowitz, a venture capital fund tied to Silicon Valley, is reported to be in the process of raising $1.6 billion.

Facebook Files for Offering

Social media juggernaut Facebook filed registration documents in anticipation of an initial public offering sometime this spring.

Analysts are in disagreement regarding how much cash the stock issue might raise, but most estimates range from $75 billion to $100 billion.