Amateurs vie with the pros in the hunt for undervalued household treasures. Doing your homework can help you compete.
If you're willing to wade through the remnants of another person's life, you can find bargains at an estate sale. You just may have to knock a dealer out of the way to get to them. ¶ Antique sellers, book collectors and EBay users show up to these events early. Often they're armed, with magnifying loupes to scrutinize figurines, research books on vintage furniture or an iPhone to check price comparisons. ¶ The professionals are looking for the same things you are: deals. These days, estate sales -- and more prosaically named yard and garage sales, along with swap meets, flea markets and auction houses -- seem to be full of them. The slumping economy has pushed prices down, as has competition from Internet sites, a dwindling interest in antiques and furnishing trends that veer toward the sleek and uncluttered. ¶ "It's definitely a buyer's market," says Billy Humphries, the co-owner and main auctioneer at South Coast Auction in Santa Ana. "What we were selling 10 years ago for $500 we're selling for $150 now." ¶ Although the term "estate sale" often is used loosely, it's generally expected to mean that all the contents of a household can be purchased, minus, perhaps, items collected in advance by family members. (In some parts of the country, they're called "tag sales" because items are tagged with prices rather than auctioned off to the highest bidder).
Microsoft and Yahoo! were in intensive talks last night over securing a
takeover agreement that would dissuade the software giant from launching a
formal hostile offer for the online search engine. Source: Latest Business News from Times Online | 3 May 2008 | 10:16 pm
Reuters - Deutsche Telekom (DTEGn.DE) is
looking at a possible purchase of U.S. wireless company Sprint
Nextel , a German magazine said on Saturday. Source: Yahoo! News: Business | 3 May 2008 | 11:51 am
AP - The economy showed off unexpected signs of resilience Friday as job losses slowed, the dollar gained a bit of muscle for a change and there were even indications that food prices may be easing. The unemployment rate dipped, though that may not last.
Late word is that the hedge fund business that Citigroup (C) CEO Vikram Pandit sold to the bank for $800 million has lost a huge amount of its value. All of the outside investors in the fund, Old Lane, hit the exits. According to The New York Times "Citigroup said on Friday that “substantially all” outside investors redeemed their investments, leaving the fund with about $1.5 billion." Old Lane had $4.5 billion under management last summer. The sale of Old Lane to Citi is what got Pandit in the door at the money-center bank. As CEO, his track record is...
MADRID (Reuters) - Royal Dutch Shell Plc and Spain's Repsol are negotiating with the Iranian government to pull out of a $10 billion natural gas project due in part to U.S. pressure, Spanish newspaper Expansion reported on Saturday.
European property began to freeze over last year, with almost every European housing market taking a turn for the worse and prices tumbling fast in Ireland and Germany, new research shows. Source: Telegraph Business | 3 May 2008 | 8:40 am
European property began to freeze over last year, with almost every European housing market taking a turn for the worse and prices tumbling fast in Ireland and Germany, new research shows. Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 May 2008 | 8:40 am
The feud between a Stamford, Conn.-based hedge fund manager and his boss over withheld pay intensified yesterday after the fund manager amended his lawsuit to try to collect $900,000 he invested into a... Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 May 2008 | 8:10 am
A judge yesterday tossed out retailer Charming Shoppes' effort to block two hedge funds from running for board seats next week. But the owner of plus-size women's clothier Lane Bryant remains undeterred... Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 May 2008 | 8:10 am
In retailing's latest bust, billionaire Leon Black has pulled the bankruptcy plug on his two-year flop with Linens 'n Things. Black's Apollo Management, which two years ago spent $1.3 billion of investors'... Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 May 2008 | 8:10 am
Marts up Stocks gained, bring ing the market to its first three-week ad vance since October. The Dow Jones indus trial average rose 48.20 to 13,058.20, closing above 13,000 for the second-straight day... Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 May 2008 | 8:10 am
Yahoo! and Microsoft inched closer to a merger yesterday after the software giant run by Steve Ballmer indicated it's willing to raise its offer to end the three-month standoff between the tech giants,... Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 May 2008 | 8:10 am
Strong sales of the video game "Rock Band" helped drive a 33 percent jump in Viacom's first-quarter profit, but CEO Philippe Dauman and finance chief Tom Dooley are the company's true rock stars in the... Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 May 2008 | 8:10 am
Wall Street turned in a mixed performance Friday as investors set aside some initial enthusiasm over a stronger-than-expected employment report to lock in some of their recent gains. Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 May 2008 | 7:00 am
Central bank expands its loan auctions. In a positive sign for the economy, April job losses shrink to 20,000.
Moving to stop the economy from stumbling further, the Federal Reserve said Friday that it would pump more cash into U.S banks to keep the nation's financial system from seizing up.
Valeant Pharmaceuticals International of Aliso Viejo said Friday that it was abandoning hope of becoming a global drug company and would cut nearly half of its workforce as part of a massive restructuring... Source: Infocious RSS raw feed - channel BNPaperBusiness | 3 May 2008 | 7:00 am
Despite a zealous defense, the investment group's 77-year record of clean dealings may be cut short by allegations of improper payments to brokers.
The American Funds mutual fund group has gone 77 years without a significant whack from financial regulators, a track record that is a true rarity in the investment business.
Wall Street turned in a mixed performance Friday as investors set aside some initial enthusiasm over a stronger-than-expected employment report to lock in some of their recent gains.
The software giant reportedly sweetens its takeover offer by billions of dollars to close in on a deal.
After months of posturing by both sides, technology titans Yahoo Inc. and Microsoft Corp. have suspended their tough talk and have entered serious negotiations on a deal to unite against Internet search king Google Inc., people briefed on the talks said Friday.
Ford Motor Co. will offer buyouts to about 1,300 workers at assembly plants in Chicago and Louisville, Ky., as part of the automaker's plan to adjust capacity with demand for its... Source: Infocious RSS raw feed - channel BNewsBusiness | 3 May 2008 | 5:48 am
Jim Schwartz remembers feeling a little bewildered when he started his job developing beauty care products at Procter & Gamble Co. Schwartz, fresh off earning his doctorate in... Source: Infocious RSS raw feed - channel BNewsBusiness | 3 May 2008 | 5:45 am
India's Tata Steel could bid for a stake in Indonesia's largest steel maker PT Krakatau Steel, according to a report here Saturday. "Tata (Steel) has also expressed their... Source: Infocious RSS raw feed - channel BNewsBusiness | 3 May 2008 | 5:23 am
The Federal Reserve's decision Friday to lend more to banks may be a sign that policy makers want to avoid cutting interest rates any further, as they combat a credit crisis that is far... Source: Infocious RSS raw feed - channel BNewsBusiness | 3 May 2008 | 4:46 am
U.S. stock markets, lately rising on investors’ newfound willingness to take on risk, will try to cling to their nearly two-month rally during next week’s round of economic and corporate news.
BOSTON/NEW YORK (Reuters) - Microsoft Corp and Yahoo Inc are making last-minute efforts to seal a deal before Microsoft takes its Yahoo bid hostile or abandons it altogether, sources familiar with the matter said on Friday.
Reuters - Microsoft Corp and
Yahoo Inc are making last-minute efforts to seal a
deal before Microsoft takes its Yahoo bid hostile or abandons
it altogether, sources familiar with the matter said on Friday.
Wine growers are on track to hit their export goal of a billion dollars by 2010.
Revenues have hit a new high, rising 16 per cent in the year to March to $766 million. That's up from $661 million the previous year.
But Winegrowers... Source: New Zealand Herald - Business | 3 May 2008 | 2:30 am
NEW YORK (Reuters) - Stocks made modest gains on Friday after jobs data that offered fresh evidence the economic slowdown is not as severe as feared, but technology shares faded on a surprise loss from Sun Microsystems Inc .
Dear Liz: A few years ago I read that people who took Social Security payments early -- before their full retirement age -- could later opt to pay back their benefits and qualify for a higher payment based on their current age. I called Social Security and the person who answered the phone laughed, saying he had never heard of anyone paying back Social Security. Yet I saw this mentioned again on a financial show. Can you really start over with Social Security?
Merlin Entertainments, the operator of tourist attractions owned by Blackstone, is to buy the London Aquarium to complement sites which include Madame Tussauds and the London Eye. Source: Telegraph Business | 3 May 2008 | 12:01 am
Chevron, the US oil company, cashed in on soaring oil prices to begin 2008 with the most profitable first quarter in its history. Source: Telegraph Business | 3 May 2008 | 12:01 am
Activity in the UK's construction industry sank to its lowest level for nearly a decade last month, according to a report from the Chartered Institute of Purchasing and Supply. Source: Telegraph Business | 3 May 2008 | 12:01 am
There's nothing like a corporate pot boiler to keep us amused over a bank holiday weekend and the one unfolding at Barclays has been simmering for a while. Source: Telegraph Business | 3 May 2008 | 12:01 am
Unachievable targets may have prompted Dawn Airey's surprise move to rival, reports Juliette Garside. Source: Telegraph Business | 3 May 2008 | 12:01 am
Stock markets around the world received an unexpected but much-needed boost after figures showed that the US economy shed just 20,000 jobs last month. Source: Telegraph Business | 3 May 2008 | 12:01 am
The Bank of England has taken further measures to ease the liquidity crisis by more than doubling the amount lenders can place on deposit with it. Source: Telegraph Business | 3 May 2008 | 12:01 am
Centrica, the UK power company, has made a fresh approach to Germany's RWE about mounting a joint bid for British Energy. Source: Telegraph Business | 3 May 2008 | 12:01 am
Microsoft has reportedly dangled a higher takeover bid in front of Yahoo, hoping to reach a friendly deal after weeks of sabre-rattling.
The Redmond, Washington-based software maker upped its offer "by several dollars" per share,... Source: New Zealand Herald - Business | 3 May 2008 | 12:00 am
Rupert Murdoch's News Corp is not planning to raise its $580m bid for Newsday, according to a person close to the company, a stance that would appear to give Cablevision an edge in the competition for the Long Island tabloid Source: FT.com - US homepage | 2 May 2008 | 11:56 pm
In a week furnished with Buffett bookends, there was no shortage of news, and around that news swirled contradictions, confusion and a continuing come-down in consumer confidence.
General Electric is seeking a buyer for its rail services unit, in a deal that could be worth about $4bn, according to people familiar with the company Source: FT.com - US homepage | 2 May 2008 | 11:34 pm
Wall Street is wondering what executives from Walt Disney Co. will say when the entertainment giant outlines how well its theme parks are holding up in the face of a possible recession.
Insurance-focused conglomerate Berkshire Hathaway said first-quarter profit slumped 64% compared with the same period a year earlier, with underwriting income falling sharply.
While these are not the best of times for U.S. horse racing, with the sport facing ever-higher costs and a steady bleed of gamblers away to the still-expanding casino sector, you would never know it on the first weekend in May.
Reuters - Ford Motor Co will offer buyouts
to United Auto Workers union-represented hourly employees at
plants in Chicago and Louisville, Kentucky, to try to trim its
ranks, the company said on Friday.
DETROIT (Reuters) - Ford Motor Co will offer buyouts to United Auto Workers union-represented hourly employees at plants in Chicago and Louisville, Kentucky, to try to trim its ranks, the company said on Friday.
Citigroup and State Street said that they would sell their retirement benefits servicing joint venture to ING Group for $900m in cash Source: FT.com - US homepage | 2 May 2008 | 11:09 pm
Delta Air Lines announced a 3 percent pay raise for its nonunion employees, effective July 1. The announcement Friday comes as Delta flight attendants vote on whether to join the... Source: Infocious RSS raw feed - channel BNewsBusiness | 2 May 2008 | 11:05 pm
Analysts yesterday heaped further pressure on Barclays by predicting a £3
billion capital raising this month, on top of £3 billion in further
writedowns, and the payment of a paper, rather than cash, dividend. Source: Latest Business News from Times Online | 2 May 2008 | 11:00 pm
Protests erupted yesterday from rice-importing nations as Samak Sundaravej,
Thailand's Prime Minister, proposed a cartel of South-East Asian rice
exporters that would seek to gain more control over the price of grain. Source: Latest Business News from Times Online | 2 May 2008 | 11:00 pm
President Bush expressed confidence yesterday that his $168 billion ($£85
billion) tax rebate programme would kick-start an economic recovery as the
US Labour Department reported better than expected unemployment data. Source: Latest Business News from Times Online | 2 May 2008 | 11:00 pm
Merlin Entertainments, the visitor attractions operator behind Madame Tussauds
and the London Dungeon, has acquired the London Aquarium in County Hall from
the Japanese owners of the former Greater London Council headquarters. Source: Latest Business News from Times Online | 2 May 2008 | 11:00 pm
To describe it as opportunistic doesn't do justice to the Thai Prime
Minister's proposal: a rice cartel as food riots erupt over West Africa and
the Philippines, another Asean nation, goes begging for supplies. Source: Latest Business News from Times Online | 2 May 2008 | 11:00 pm
Most traders, market-makers and fund managers have never seen a time like it.
After a hurricane of selling at the start of the year and a breathtaking
plunge in the FTSE 100, London’s leading stock market index has been
suddenly becalmed. Source: Latest Business News from Times Online | 2 May 2008 | 11:00 pm
The US Federal Reserve and the European Central Bank united yesterday to open
a new front in their battle to quell the persistent money market strains
that are fuelling the global credit crunch. Source: Latest Business News from Times Online | 2 May 2008 | 11:00 pm
The number of companies going into administration in England and Wales rose by
more than a fifth in the first three months of this year while those going
bankrupt leapt 25 per cent, government figures show. Source: Latest Business News from Times Online | 2 May 2008 | 11:00 pm
Want to save money on gas? Philip Reed shows Tess how "miracle" gadgets fare against easing off the gas pedal a bit. Source: Marketplace Money | 2 May 2008 | 10:53 pm
Warren Buffett's Berkshire Hathaway was hit by a $1.6bn first-quarter non-cash loss on derivatives contracts – an asset class he once described as "financial weapons of mass destruction Source: FT.com - US homepage | 2 May 2008 | 10:53 pm
Whether they saved too little or want to stay active, more Americans are working past retirement. Stacey Vanek-Smith explains the challenges of staying in the workforce. Source: Marketplace Money | 2 May 2008 | 10:48 pm
It's the end of an era as Rico Gagliano's on-air education draws to a close. Tess and Rico look back at lessons learned in this final episode of "Educating Rico." Source: Marketplace Money | 2 May 2008 | 10:39 pm
On this week's "A Day in the Work Life," we listen in with a sound effects guy who adds a dash of audio magic to the movies. Source: Marketplace Money | 2 May 2008 | 10:33 pm
Microsoft and Yahoo stepped up their takeover talks, bringing the last chance for an agreement that might prevent an all-out hostile takeover fight Source: FT.com - US homepage | 2 May 2008 | 10:21 pm
In this edition of Getting Personal, Chris and Tess talk about purchasing a business, buying foreign real estate, self-employment and financing study abroad. Source: Marketplace Money | 2 May 2008 | 10:20 pm
Retailer Linens 'n Things files for bankruptcy protection, citing problems in the credit and housing markets. Source: BBC News | Business | World Edition | 2 May 2008 | 10:20 pm
LOS ANGELES (Reuters) - Procter & Gamble Co said on
Friday it sued Johnson & Johnson , claiming that J&J's
Listerine Whitening Quick Dissolving Strips violate P&G
patents.
Fannie Mae and Freddie Mac now ask more of lenders making condo loans. Tess asks David Lereah to explain the new regulations making life tough for prospective condo owners. Source: Marketplace Money | 2 May 2008 | 10:13 pm
Delta Air Lines has announced a 3 percent pay raise for its non-union employees, effective July 1. The announcement Friday comes as Delta flight attendants vote on whether to join the... Source: Infocious RSS raw feed - channel BNewsBusiness | 2 May 2008 | 10:12 pm
Berkshire Hathaway Inc. says its first-quarter profit fell 64 percent because it recorded an unrealized $1.6 billion loss on its derivative contracts, and its insurance businesses... Source: Infocious RSS raw feed - channel BNewsBusiness | 2 May 2008 | 10:09 pm
Economic stimulus payments are in the mail, but as Danielle Karson explains, before you blow that check, there are some charities who'd like to make their pitch. Source: Marketplace Money | 2 May 2008 | 10:06 pm
As it becomes harder to get a loan from a bank, alternatives emerge. Economics editor Chris Farrell sets the story straight on the pros and cons of peer-to-peer lending. Source: Marketplace Money | 2 May 2008 | 9:58 pm
Pharmaceutical companies face expiring patents on many blockbuster drugs, with few new medicines in the pipeline to replace them. So the industry's trying creative ways to make money. Some say too creative. Nancy Marshall Genzer reports. Source: Marketplace | 2 May 2008 | 9:48 pm
International Monetary Fund chief Dominique Strauss-Kahn said Friday that he does not see the US economy recovering from its current doldrums this year. Describing a US... Source: Infocious RSS raw feed - channel BNewsBusiness | 2 May 2008 | 9:46 pm
Shares of Microsoft and Yahoo are little changed, though speculation heated up that the world’s largest software firm is considering raising its bid for the Web portal.
The latest European trend arriving in the U.S.: allowing shareholders to vote on executive pay packages. As Ashley Milne-Tyte reports, investors are eager make themselves heard. Source: Marketplace Money | 2 May 2008 | 9:42 pm
The dollar gains against most other major currencies, but off session highs, after a government report shows that the U.S. labor market was not as weak as expected in April.
SAN FRANCISCO (MarketWatch) -- This week's Federal Reserve subtle shift to a neutral bias this week might not have waved a red cape at dollar bulls, but did add to factors already putting a floor under the greenback against the yen and the euro.
Shares in Yahoo jump 7% on expectations Microsoft is preparing to increase its bid for the internet company. Source: BBC News | Business | World Edition | 2 May 2008 | 9:24 pm
Stocks were mixed Friday, following an otherwise upbeat week on Wall Street, as rising oil and gold prices and Sun Microsystems' surprise quarterly loss countered any relief about the April employment report.
The Federal Reserve recently proposed tough new rules for the credit card industry. Now Congress wants its turn. Tess speaks with Congressman Barney Frank. Source: Marketplace Money | 2 May 2008 | 9:14 pm
DETROIT (Reuters) - Toyota Motor Corp is recalling 90,000 model year 2008 Highlander and Highlander hybrid sport utility vehicles due to potential problems with securing child safety seats in third row seats.
Reuters - The Federal Reserve on Friday joined
other U.S. banking regulators in backing new limits on certain
billing practices by credit card companies.
WASHINGTON (Reuters) - The Federal Reserve on Friday joined other U.S. banking regulators in backing new limits on certain billing practices by credit card companies.
The percentage of homeowners who refinanced with a Freddie Mac-owned loan in the first quarter of 2008 and received mortgages with loan amounts higher than their original mortgages, fell to the lowest levels since early 2004.
The US economy lost a fewer than expected 20,000 jobs in April, official figures from the Labor Department show. Source: BBC News | Business | World Edition | 2 May 2008 | 8:52 pm
Reuters - Stocks made modest gains on Friday
after jobs data that offered fresh evidence the economic
slowdown is not as severe as feared, but technology shares
faded on a surprise loss from Sun Microsystems Inc .
The Federal Reserve on Friday pushed ahead with a proposal to stop abuses by credit card issuers, a day after two other key bank regulatory agencies proposed effectively the same package of new rules.
Wall Street shares ended mixed today as investors closed out a positive week and digested a milder-than-expected report on job losses that eased fears of a deep downturn for the US economy.
At the closing bell, the Dow Jones Industrial... Source: New Zealand Herald - Business | 2 May 2008 | 8:45 pm
WASHINGTON (Reuters) - The economy lost jobs for the fourth month in a row in April but at a slower pace than earlier in the year, easing fears that the economy was at a growing risk of slipping into a deep recession.
Astounding profits in the oil industry are becoming as routine as the anguished looks of motorists filling up their gas tanks. Chevron Corp. put yet another exclamation point on the oil Source: Infocious RSS raw feed - channel BNewsBusiness | 2 May 2008 | 8:28 pm
Facing a provincial vote this weekend, Bolivian President Evo Morales has announced he plans to nationalize the nation's biggest telecommunications company and four foreign-owned natural gas companies. Dan Grech reports. Source: Marketplace | 2 May 2008 | 8:27 pm
Stockbroker and business analyst David Johnson chats with host Kai Ryssdal about what happened on Wall Street this week and what may lie ahead. Source: Marketplace | 2 May 2008 | 8:27 pm
With about three months to go before the China Olympics, Beijing is being picky about who it's letting in. Chinese visas are getting harder to come by, and foreign businessmen are crying foul. Scott Tong reports. Source: Marketplace | 2 May 2008 | 8:27 pm
A federal appeals court has told Tyson Foods, the country's biggest chicken producer, to stop an advertising campaign that claims its birds are free of antibiotics -- because they're not. Lisa Napoli reports. Source: Marketplace | 2 May 2008 | 8:27 pm
Linens 'n Things is filing for Chapter 11 bankruptcy. The troubled home store blames the fall-out of the housing market for its decline. But analysts say the company was too highly leveraged. Jill Barshay reports. Source: Marketplace | 2 May 2008 | 8:27 pm
The Federal Reserve has joined with the European Central Bank to pump billions more dollars into the banking system, trying to persuade financial institutions there's money to be had. Bob Moon explains. Source: Marketplace | 2 May 2008 | 8:27 pm
Microsoft and Yahoo began talks on Friday about the US software giant's unresolved quest to take over the struggling Internet pioneer, a source close to the situation told AFP. Source: Infocious RSS raw feed - channel BNewsBusiness | 2 May 2008 | 8:26 pm
Despite all the hype for electric cars and hydrogen fuel cells, experts say we'd better get used to pumping gas, but we can look forward to much better fuel economy down the road.
WASHINGTON/FRANKFURT (Reuters) - The Federal Reserve joined two European central banks on Friday in expanding programs to spread more cash through the banking system in hopes of restoring confidence in credit markets.
The Federal Reserve on Friday proposed sweeping regulations of the business of consumer credit, curbing some of the credit-card companies' most reliable moneymaking practices.
If enacted, the rules would prohibit card companies from boosting interest rates on outstanding balances except in limited circumstances and ensure that payments are allocated to the most expensive debts, at least in part.
"These rules are a big deal," said Elizabeth Warren, a law professor at Harvard University. "The credit-card companies have been using whatever tricks and traps they want in credit-card agreements. These rules signal that those days may soon be over."
But every regulation comes with a cost, and these are no exception. The Fed acknowledged that the card companies could be expected to mitigate their losses by raising rates overall, eliminating discounts and promotions, and restricting credit.
But the greater impact is likely to fall on credit-card issuers. Shares of Capital One Financial, one of the largest credit-card lenders, fell more than 1 percent on Friday, as Wall Street analysts calculated the effects on the industry's bottom line.
A pitched lobbying battle in Washington is almost inevitable as these proposed rules move toward adoption. But Warren said she thinks it will be hard for banks and other issuers to derail the reforms.
The card companies will fight them, and they have billions of dollars to spend to protect their profits," Warren said. "But consumers are getting fed up, and people in Washington are beginning to realize that. Whether these are the final changes or whether the changes come from Congress or elsewhere doesn't matter so much. What matters is that change is coming."
The Fed's policy proposals went beyond its previous efforts to increase disclosure to cardholders. Disclosure, the Fed found in its research, failed to clear up the public's confusion about cards' terms and conditions.
Among them: payment allocation. Banks generally allocate customer payments to the balance with the lowest interest rate. For a cardholder with a balance of $3,000, a payment of $1,500 would be applied entirely to pay down a low-rate balance transfer before it paid down more expensive loans, like cash advances or purchases. This negates the benefit of the promotions, the Fed found.
Its proposal would require that card companies allocate payments more favorably, such as spreading the money around or paying it down in proportion to the size of the debt. This will cost them revenue and "may in turn lead institutions to increase rates generally or offer less favorable promotional rates or fewer deferred-interest plans," the Federal Reserve said.
Policies like these have made credit-card lending one of the most profitable businesses in banking, producing far greater returns on assets than other kinds of loans, according to the Fed. The average return on assets of all commercial banking was 1.94 percent in 2005, compared with the 2.85 percent return reported by large credit-card issuers.
Between 1990 and 2004, industry profits on a $100 balance grew 57 percent, to $3.61 annually from $2.30, according to a congressional report. Revenue from penalty fees on a $100 balance doubled during the same period.
Card-industry critics cheered the new rules. "This is really comprehensive and what consumer groups have been hoping for," said Ellen Cannon, the managing editor of Bankrate.com.
The Fed would also end a practice called universal default, in which banks jack up interest rates—sometimes doubling them—on outstanding credit-card balances when borrowers have problems with unrelated debt like a utility bill.
Consumer advocacy groups have long lamented this policy and appear to have finally won over regulators.
Cardholders "want to be blamed for the mistakes they make with their credit card, not with everything else," Cannon said.
Under the proposal, increases on balances would be limited to times when a cardholder falls more than 30 days behind on a minimum payment.
The Fed acknowledged that the policy "could lead to higher up-front costs and less available credit to consumers."
Brazilian shares continue to climb to a new record on Friday thanks to its new investment rating. Source: BBC News | Business | World Edition | 2 May 2008 | 7:59 pm
As the annual meeting of Berkshire Hathaway kicks off this weekend under ominous, stormy skies, a particular cloud may be hanging over chairman Warren Buffett himself after allegations surfaced Friday that two of his companies may violate corporate ethics rules.
The Connecticut attorney general, Richard Blumenthal, said he was investigating a possible conflict of interest arising from Berkshire's nearly 20 percent stake in credit-rating agency Moody's and the Berkshire Hathaway Assurance Corp., a new municipal-bond insurer controlled by Buffett's $200 billion conglomerate, which receives credit ratings from Moody's.
Blumenthal is probing what he described to Bloomberg News as a "clear and direct conflict of interest for Moody's to rate a company owned by such a significant Moody's shareholder." A favorable credit rating for the Berkshire municipal-bond unit could give it a leg up against competitors M.B.I.A. and Ambac.
Buffett is expected to address the Moody's issue for the first time at Saturday's marathon five-hour question-and-answer session with shareholders.
Tony Mirenda, a spokesman for Moody's, played down the probe, saying the rating agency has "a long-standing policy of not discussing our ratings with shareholders and nonemployee members of the board of directors." Berkshire, he said, is "a passive investor that has never contacted us regarding our ratings."
For the Buffett faithful—the majority of the 30,000 people expected to attend the "Woodstock of Capitalism"—the "Oracle of Omaha" remains above reproach.
"It will be just like the Gen Re thing, which Buffett handled very well," said Berkshire investor Ashley Goul, the president of a sportswear embroidery company in Boise, Idaho, over coffee at Scooter's Coffeehouse in downtown Omaha.
A federal investigation of General Re, the Berkshire-owned reinsurer that was implicated in sham transactions with A.I.G., the insurance giant, led to criminal fraud convictions of four former General Re executives. Last month, Joseph Brandon, the chairman and C.E.O. of General Re and a Buffett favorite, resigned from the company under pressure from federal prosecutors.
"I'm very confident that everything has been done above board, and if mistakes were made, I'm certain they will be corrected," Goul said.
Central banks in the US and Europe launched a fresh co-ordinated assault to ease strains in financial markets, as a fall in unemployment raised questions as to whether the US really was in recession Source: FT.com - US homepage | 2 May 2008 | 7:25 pm
Life Pharmacy has bought Care Chemist Services.
In a statement to the NZX, the companies announced Life Pharmacy had acquired Care Chemists for an undisclosed sum and would continue to operate the Care Chemist franchise as a separate... Source: New Zealand Herald - Business | 2 May 2008 | 6:30 pm
Everyone loves covering Warren Buffett, rain or shine. His long-term shareholders love him, the media follows his every move, and everyone on Wall Street either cares about his potential next buyout or cares about the stock positions he discloses in his latest filings. This weekend is the Annual Meeting for Berskshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B), so you can just about count on steady weekend coverage too. There are two important coverage pieces that Buffett fans and financial viewers will want to see today and this weekend. CNBC has been airing bits of a Becky Quick interview with Warren...
As the cost of running gas-guzzling tractors soars, even-toed ungulates are making a comeback, raising hopes that a
fall in the population of Rajasthan's signature animal can be reversed Source: FT.com - US homepage | 2 May 2008 | 6:05 pm
ANZ and The National Bank have increased their variable home lending rate by 25 basis points, despite a recent decision by the Reserve Bank to leave rates on hold.
The variable rate is now 10.95 per cent, the highest among retail... Source: New Zealand Herald - Business | 2 May 2008 | 5:30 pm
While it may be a foregone conclusion, it is time for Jonathan Schwartz to leave as the CEO of Sun Microsystems (NASDAQ: JAVA). He has done absolutely nothing for the company since taking over from Scott McNealy other than play shell games with your shareholders. The reverse split of the stock and changing the ticker symbol to JAVA had the feel of a carny show. The acquisitions of StorageTek, MySQL, and SeeBeyond have done nothing to improve the company's prospects. They certainly have contributed little to Sun's growth. The company has been modestly profitable at times. Thousand of employees have...
Thousands of packets of frozen mussels are recalled over fears they could cause food poisoning. Source: BBC News | Business | World Edition | 2 May 2008 | 5:05 pm
A central North Island couple living on the pension face ruin because their mortgage has mysteriously blown out from $200,000 to half a million dollars following their investment in a Blue Chip "joint venture".
The $247,000 deposit... Source: New Zealand Herald - Business | 2 May 2008 | 5:00 pm
The proposed sale of Vector's Wellington electricity network and a possible bid for Contact Energy demonstrate that we continue to have major problems with the ownership of our large infrastructure assets.
Our main predicament... Source: New Zealand Herald - Business | 2 May 2008 | 5:00 pm
Microsoft Chief Executive Officer Steve Ballmer says he knows how much he would spend to buy Yahoo and accelerate his company's internet play. But he is not telling anyone else.
"We're willing to pay for that at some level, and... Source: New Zealand Herald - Business | 2 May 2008 | 5:00 pm
New Zealand wine export revenues have reached a record high of $766 million, up 16 per cent from $661 million the previous year.
NZ Winegrowers chief executive Philip Gregan said the growth reflected strong demand for New Zealand... Source: New Zealand Herald - Business | 2 May 2008 | 5:00 pm
The dollar is falling again. Is this the big fundamental shift we've all been waiting for?
There have been so many false starts in the past few years that there will be few if any exporters getting excited about this week's decline.... Source: New Zealand Herald - Business | 2 May 2008 | 5:00 pm
Reuters - Home goods retailer Linens 'n Things
has filed for Chapter 11 bankruptcy protection and plans to
close 120 underperforming stores, the company said on Friday.
Some suppliers for the fashion retailer MK One say they are worried about unpaid invoices as the firm is sold. Source: BBC News | Business | World Edition | 2 May 2008 | 2:57 pm
Shares of both Sirius Satellite radio (NASDAQ: SIRI) and XM Satellite Radio (NASDAQ: XMSR) are trading higher in pre-market trading today. You could say it is the market, but it could also be tied to a letter that went out the FCC. House Commerce Chairman Dingell (D-MI) and Telecommunications Subcommittee Chairman Markey (D-MA) sent a letter to FCC Chairman Martin calling for an "Open Device" condition should the FCC approve the merger. The letter sent to Chairman Martin also calls for an adherence to "at least" the pricing structure and pricing locks that have been already shown. The stated goal...
Central banks move to pump billions of extra dollars into the banking system to ease the continuing credit drought. Source: BBC News | Business | World Edition | 2 May 2008 | 1:21 pm
Chevron Corporation (NYSE:CVX) reported earnings of $5.17 billion and $2.48 EPS for the first quarter of 2008. First Call had estimates at $2.41 EPS. This compared with $4.72 billion and $2.18 EPS for the same period a year ago. Revenues jumped to $65.95 billion, up about 38% from $48.23 billion. Analysts were looking for revenues of $75.64 billion and $2.41 EPS. Refining earnings dropped from $1.62 billion to $252 million, due to higher crude oil costs and lower refining margins. It's a repeat of the same story from all the integrated oil companies. CVX stock is up almost 1% at...
The economy is weak, as evidenced by a fourth consecutive month of job losses, but the numbers are not as bad as economists had feared.
American employers cut 20,000 jobs from their payrolls in April, while, the unemployment rate, which is determined by a different survey method, actually fell to 5 percent from 5.1 percent.
The decline was much less than the forecasted job losses of 70,000 for the month. March's loss was revised to 81,000 from 80,000, and February's was also revised upward slightly.
Construction and manufacturing were again the weakest sectors in the labor market. Construction jobs fell by 61,000, while manufacturing lost 46,000 jobs. Retailers cut 27,000 jobs. Temp jobs, sometime seen as an indicator of future job growth, fell significantly.
Employment in the service sector grew by 90,000, led by job gains in education, health care, and professional and business services.
The data illustrates the unusual nature of this recession. Spawned by the collapse of the housing boom and the credit mess generated by subprime mortgages, it has been a slow, constricting squeeze rather than the swift bust. Manufacturing, which can be devastated by a recession, has been relatively buoyed of late by the weak dollar, which helps American exports.
Given the continued uncertainty in the credit markets and the additional signs of weakness in housing, the course of this downturn is far from clear. The Federal Reserve cut its benchmark interest rate a quarter-point on Wednesday to stimulate economic growth. But, mindful of the risks of inflationary expectations building, monetary policymakers also hinted that it wanted to see the effects of its recent flurry of rate cuts begin to work through the economy before it acted again.
Still, the Fed is also worried about the chilling effects that the still-cold, if no longer frozen, credit markets are having on the overall economy.
Citing "persistent liquidity pressures in some term-funding markets," the Fed announced, just minutes before the jobs data, that it was increasing the size of its new auction facility that lends to banks at rates below the discount rate, to $150 billion from $100 billion.
The Fed is also expanding the size of swap agreements with the European Central Bank and the Swiss National Bank. More important, it is broadening the kinds of collateral it will accept from Wall Street banks in exchange for Treasury securities. The Fed will now accept triple-A-rated asset-backed securities, in addition to eligible mortgage-based securities and Fannie Mae and Freddie Mac paper.
In March, the central bank set up a new auction facility to make as much as $200 billion in Treasury securities available to Wall Street banks.
"The wider pool of collateral should promote improved financing conditions in a broader range of financial markets," the Fed said.
The stronger-than-expected jobs data and the Fed's expanded liquidity move are helping to drive U.S. stock-index futures and European markets higher.
Investools Inc. (NASDAQ: SWIM) is under serious fire this morning from traders. The company posted net income of $0.17 EPS, but First Call was at $0.21 EPS. This is on a record revenue with a gain of 39% to $91 million. A miss on earnings is one thing, but this disclosure is something different entirely: "The Company is cooperating with a non-public, informal inquiry by the SEC relating to representations by certain presenters in certain portions of their presentations at some of the Company's seminars. The Company has been cooperating with and intends to continue to cooperate with the SEC....
The Labor Department just released the April 2008 unemployment numbers. While these are negative, they aren't as bad as estimates. The unemployment rate came in at 5.0% versus estimates we had marked as as 5.2%. The change in non-farm payrolls came in at -20,000 versus and estimate we had of about -80,000. Average hourly earnings came in at +0.1%. There numbers aren't exactly good by any stretch. But quite often, "less bad" is good enough. Let's just hope that Elaine Chao's computers at the Labor Department are working and counting figures properly. Jon C. Ogg May 2, 2008
UK house prices saw an annual fall of 0.9% in April, says the UK's biggest mortgage lender. Source: BBC News | Business | World Edition | 2 May 2008 | 12:31 pm
Viacom Inc. (NYSE: VIA) posted earnings of $0.44 EPS on $3.12 Billion in revenues. First Call consensus estimates were $0.41 EPS and $2.97 Billion on revenues. This shows that revenues rose 14.7% year over year, and now the company is forecasting a three-year period from 2008 through 2010 where Viacom plans to deliver low double-digit annual growth in diluted earnings per share from continuing operations. This is based on 2007 adjusted diluted EPS of $2.36. Interestingly enough for 2008, if we take the low-double digit face value and say 11%, we'd get $2.62 EPS and if we take 13% then...
Jerry York, henchmen for Kirk Kerkorian, has told Automotive News that it is time for Ford (F) to dump Volvo and Mercury. The former car exec said that the No.2 car company should keep luxury operation Lincoln. York is probably right. Ford has enough problems, Maintaining four brands keeps design and production costs high. Last month, Mercury sales fell 26%. The brand only sold 8,872 cars for the period. Sales of it Grand Maquis were off 51%. Volvo sales were down 12% for the month Douglas A. McIntyre
These are ten of the analyst calls we see impacting shares this Friday morning: Allergan (NYSE: AGN) cut to Hold at Jefferies. ComScore (NASDAQ: SCOR) raised to Outperform at Oppenheimer. Dynamic Materials (NASDAQ: BOOM) cut to Neutral at JP Morgan. Embarq (NYSE: EQ) raised to buy at Deutsche Bank. Gap Inc. (NYSE: GPS) cut to Neutral at Banc of America. Hill-rom (NYSE: HRC) started as Outperform at Oppenheimer. Nordstrom (NYSE: JWN) raised to Outperform at Credit Suisse. Morningstar (NASDAQ: MORN) raised to Outperform at Keefe Bruyette Priceline.com (NASDAQ: PCLN) cut to Hold at Citigroup. RadioShack (NYSE: RSH) raised to Buy...
AFP - British house prices dropped 1.3 percent in April from March and also declined year-on-year for the first time in 12 years, the country's biggest provider of home loans, Halifax, said on Friday.
India's inflation rate accelerates to its highest since 2004 because of rising food and fuel costs. Source: BBC News | Business | World Edition | 2 May 2008 | 11:36 am
After three months of public posturing and selective leaks, a break in the standoff over Microsoft's offer for Yahoo may be near.
The New York Times’ DealBook and the Wall Street Journal’s web site says that Microsoft and Yahoo have stepped up talks in an effort to reach a friendly deal.
DealBook reports that Microsoft has increased its $31-per-share, stock and cash offer “by several dollars,” but cautions that the talks could still collapse. The terms under discussion could not be learned.
Shares of Yahoo, which had been higher most of the day, spiked up 11 percent following the reports.
Microsoft's chief executive, Steve Ballmer, told a town-hall meeting of Microsoft employees on Thursday that an announcement of what the company planned to do about Yahoo could come shortly. Microsoft, he said, according to several reports, was weighing three basic options: walking away, launching a hostile takeover, or sweetening the price to win a deal.
Matthew Karnitschnig, Kevin Delaney, and Robert Guth of the Wall Street Journalreported earlier oday that Microsoft is "leaning toward going hostile" with an announcement expected today. But the unidentified sources cited by the Journal also cautioned that the situation was fluid and could change.
The risk of going hostile is that it could prompt a flight of talent from Yahoo and would make any integration more difficult, turning Microsoft's prize into damaged goods.
Walking away would again raise questions about Microsoft's strategy for the internet, although many Microsoft employees apparently feel a Yahoo acquisition would be the wrong way to try to take on Google.
And paying more for Yahoo? Microsoft could easily afford to increase the bid to $35 per share, but Ballmer may not want to feel that he has been outmaneuvered by Yahoo's C.E.O., Jerry Yang.
"I know exactly what I think Yahoo is worth to me—exactly,'' Ballmer said in a meeting with employees, Bloomberg News reports. "I won't go a dime above, and I will go to what I think it's worth if that gets the deal done.''
The Journal says that Microsoft has indicated that it is willing to raise its offer to $33 per share, but that major Yahoo shareholders are looking for $35 to $37 per share.
Henry Blodget on Silicon Alley Insider sees some significance in the absence in the Journal article of any suggestion from its unnamed Microsoft sources that talk of a $35 to $37 price should be dismissed out of hand.
"Jerry's playing this brilliantly," Blodget says of Yang. "But if he turns up his nose at $35, and then Steve rages off and pulls the bid, Yahoo shareholders are going to storm the Sunnyvale campus with torches and pitchforks."
Oil prices rebound above $113 a barrel amid tension in Northern Iraq after three days of currency-induced falls. Source: BBC News | Business | World Edition | 2 May 2008 | 11:04 am
Paula Abdul's judging snafu on Tuesday night's American Idol has caused quite an uproar among Idol fans.
Abdul—often charmingly dippy on camera—critiqued a contestant on two songs when he had performed just one, befuddling fellow judges and quickly ballooning into scandal territory among viewers.
The questions over Idol's authenticity have invited comparisons to the quiz-show scandals of the 1950s, when it came to light that producers rigged the outcomes of popular television game shows. The genre was devastated.
Ratings for Fox's American Idol are at a five-year low, and it's treated as a foregone conclusion that concerns about the show's authenticity could do irreversible damage to the franchise.
But is it really true that viewers stop watching reality shows if they see them as fake?
There are two separate issues at play when it comes to the variety show's veracity: whether it's staged, and whether it's rigged.
Ever since Idol's first season, cynics have speculated about irregularities in vote counting (an issue debated and examined in the blogosphere with greater gusto, I think, than the 2000 election), but no foul play was ever found.
Paula's brain spasm doesn't raise uncertainty about whether the outcome is fixed by producers, it draws into question to what extent the contents of the program are spontaneous versus preplanned.
Idol attributes Abdul's mistake to the fact that judges sometimes watch dress rehearsals, suggesting that (gasp!) the judging doesn't halt when the cameras stop rolling.
When it comes to reality shows peeling back the veneer of unfettered live action to reveal directorial influence, viewers aren't nearly as turned off as their opinions on the subject would suggest.
Ever-mounting evidence that MTV's reality show The Hills is more scripted drama than documentary hasn't tarnished the show's appeal. On the contrary, when the show returned for the second half of its third season in March, it drew a series-record 4.7 million viewers.
Gordon Ramsay's cooking show on Fox, Hell's Kitchen, has been widely panned for a number of elements that seem staged and disingenuous, but that program also has been steadily climbing the ratings ranks: this spring the fourth season premiered to a series-high 12.6 million viewers.
Man vs. Wild, a Discovery Channel series in which host Bear Grylls supposedly survives unaided in the wilderness, made headlines in the middle of its second season when the adventurer's stunts turned out to be staged and aided by a large team. But the show is about to enter its fourth season, and according to Nielsen ratings data, it's still one of Discovery's most popular programs.
Brad Adgate, a senior vice president of research at Horizon Media, said he believes the damage to American Idol will likewise be minimal.
"I don't even know that this is a bad thing for American Idol, because it gives them some press," Adgate says. "The show kind of benefits from that a little bit."
Maybe ultimately the speculation, the blogging, and the complaining on the part of the audience has become in itself a piece of the reality viewing experience—gossip about what's real and fake is all just part of the entertainment.
Tom Weeks, senior vice president and director at Starcom Entertainment, thinks the viewing public is in the end far less concerned with veracity than pure and simple entertainment value.
AP - The economy showed off unexpected signs of resilience Friday as job losses slowed, the dollar gained a bit of muscle for a change and there were even indications that food prices may be easing. The unemployment rate dipped, though that may not last.
Reuters - Microsoft Corp and
Yahoo Inc are making last-minute efforts to seal a
deal before Microsoft takes its Yahoo bid hostile or abandons
it altogether, sources familiar with the matter said on Friday.
Reuters - Ford Motor Co will offer buyouts
to United Auto Workers union-represented hourly employees at
plants in Chicago and Louisville, Kentucky, to try to trim its
ranks, the company said on Friday.
Reuters - The Federal Reserve on Friday joined
other U.S. banking regulators in backing new limits on certain
billing practices by credit card companies.
Reuters - Stocks made modest gains on Friday
after jobs data that offered fresh evidence the economic
slowdown is not as severe as feared, but technology shares
faded on a surprise loss from Sun Microsystems Inc .
Reuters - Home goods retailer Linens 'n Things
has filed for Chapter 11 bankruptcy protection and plans to
close 120 underperforming stores, the company said on Friday.
AFP - British house prices dropped 1.3 percent in April from March and also declined year-on-year for the first time in 12 years, the country's biggest provider of home loans, Halifax, said on Friday.
