Arun Sarin, the chief executive of Vodafone, has stunned the City by stepping down after five years at the helm of the world's largest mobile phone company. Source: Telegraph Business | 27 May 2008 | 11:30 am
Mexico gives its poorest citizens a monthly cash payment to help them cope with rising food prices. Source: BBC News | Business | World Edition | 27 May 2008 | 11:03 am
The mortgage market remains subdued despite a slight recovery in April, the major banks say. Source: BBC News | Business | World Edition | 27 May 2008 | 11:01 am
Icelandic investment group Baugur scraps its takeover approach for menswear firm Moss Bros. Source: BBC News | Business | World Edition | 27 May 2008 | 10:58 am
Asian markets ended mostly higher Tuesday, as investors snapped up beaten-down shares, with Toyota Motor Corp. among gainers in Tokyo, while Samsung Electronics led shares in Seoul to their first gain in seven sessions.
Most analysts thought that write-offs of auction-rate securities at public companies would cost shareholders. That turned out to be right. The paper was taken on board by companies that believed that it was a liquid as cash but paid slightly better interest rates. When the market in the instruments dried up due to the credit crisis, auction-rate securities could not be sold. Auditors looked at the entire mess and told companies to decrease the value of the instruments which were on their balance sheets as "cash equivalents". Those hits went straight to the P&L. Word was already out that some...
PARIS (Reuters) - Stock futures pointed to a mixed open on Wall Street on Tuesday as investors, rattled by record high oil prices last week, remained cautious ahead of key macroeconomic data.
The U.S. dollar was slightly higher against major counterparts Tuesday, with the euro losing some ground after a German consumer confidence barometer dipped.
Vodafone chief executive Arun Sarin is to step down from his post as the head of one of Britain's biggest companies. Source: BBC News | Business | World Edition | 27 May 2008 | 10:19 am
Mortgage approvals for home purchases in April were nearly 40 per cent lower
year-on-year, despite rising slightly from a record low in March, new
figures show. Source: Latest Business News from Times Online | 27 May 2008 | 10:19 am
Vodafone Group's CEO Arun Sarin is stepping down after five years, going out on a high note as the wireless giant generates a company-record profit of more than $13 billion for the most recent fiscal year.
Reuters - Stock futures pointed to a mixed open on
Wall Street on Tuesday as investors, rattled by record high oil
prices last week, remained cautious ahead of key macroeconomic
data.
Perhaps best that this is posted without comment. According to Reuters, "Companies with a board member who has ties to a winning political party enjoy a significant bounce in their share price following an election." In addition, the study by the Berlin-based European School of Management and Technology showed that "Seven days after the U.S. presidential election in 2000 companies in the benchmark Standard & Poor's 500 Index with board connections to the winning Republican party posted a nearly 3 percent increase in share price." And that election was stolen in Florida when no one could figure out what to...
The best mutual fund manager around - a.k.a. Ken Heebner of Capital Growth Management - looks restless. He is sitting in a conference room at Goldman Sachs's Boston office, listening to a young analyst pontificate about all the trends he thinks will sweep the markets in coming years. Oil demand outpacing supply. The rapid growth of agriculture. The increased sway of sovereign wealth funds. And on and on.
News is slow the morning after Memorial Day, but to keep people glued to their screens, Reuters reports that Microsoft (MSFT) may buy UK online classifieds company Yell. Steve Ballmer did say that the $46 billion he saved when Yahoo! (YHOO) turned down his bid would be spent elsewhere. Perhaps this is his start. Douglas A. McIntyre
Reuters - Arun Sarin, the chief executive who
safeguarded Vodafone's dominance among mobile operators
by expanding into emerging markets, announced his departure on
Tuesday, saying he had achieved all he had set out to do.
LONDON (Reuters) - Arun Sarin, the chief executive who safeguarded Vodafone's dominance among mobile operators by expanding into emerging markets, announced his departure on Tuesday, saying he had achieved all he had set out to do.
Alan Greenspan, Warren Buffett, and George Soros have made a cottage industry from commenting on the odds for and state of a recession. None of them needs money for his comments, so they must simply like the media attention. Recent comments from Buffett and Soros reflect their concerns that a downturn will be long and deep. Overnight, Alan Greenspan weighed in again, making comments to the FT. The former chairman of the Federal Reserve said: “I still believe there is a greater than 50 per cent probability of recession.” Since a recession may have begin at the first of the...
U.S. stock futures were mixed Tuesday after a three-day break, with data due for release that could show declining home prices and new-home sales while crude-oil futures strengthened once more.
PARIS (Reuters) - Societe Generale faces shareholders for the first time on Tuesday since rocking markets in January with the world's biggest rogue trading scandal, still uncertain whether the trader involved acted alone.
U.S. stocks looked set for a weak open Tuesday after the holiday weekend, as high oil prices and uncertainty about the economic outlook kept investors uneasy.
MySpace, Facebook, and YouTube are among the most visited websites in the world. Unfortunately, no one can figure out how to make money from them. According to comScore, Facebook, the smallest of the three, had 35.7 million unique visitors in the US last month. No matter their colossal size, these internet properties bring in very little revenue and probably make very little money. Facebook was given a valuation of $15 billion last year. That may no longer be more than a pipe dream. Rupert Murdoch at News Corp (NWS) says that MySpace is missing its revenue targets. Its sales are...
LG's chief executive said he was 'closing watching' the likely sale of GE's appliances division, raising speculation that the South Korean group could bid for the unit Source: FT.com - US homepage | 27 May 2008 | 9:41 am
Asia-Pacific equities gained on Tuesday, reversing Monday's sell-off, receiving a respite from bad news out of the US thanks to a national holiday.The Nikkei 225 gained 1.5 per cent to 13,893.31, while... Source: Infocious RSS raw feed - channel BNPaperBusiness | 27 May 2008 | 9:30 am
The head of HSBC (HBC) had an epiphany. Unlike most bankers who constantly advocate lower interest rates, the head of Europe's largest firm thinks rates must go higher. Michael Geoghegan, CEO of HSBC, told Reuters that "Inflation is a long-term problem because there is no long-term will to solve it." He sees the solution as moving rates back up at central banks. The issue may be that trying to slow the economies in the US or Europe will not push down inflation. One theory, a theory with some sane adherents, posits that rising demand in Asia and flat or falling...
Oil held steady above $133 a barrel Tuesday in Asia on worries about global petroleum supplies and the outlook for the dollar. Reports of an attack by militants on an oil pipeline in... Source: Infocious RSS raw feed - channel BNewsBusiness | 27 May 2008 | 9:14 am
Reuters - Shares in Belgian brewer InBev
, the world's second-biggest by volume, lost over
three percent on Tuesday after a newspaper reported it could
start takeover talks with rival Anheuser Busch on
Tuesday.
BRUSSELS (Reuters) - Shares in Belgian brewer InBev , the world's second-biggest by volume, lost over three percent on Tuesday after a newspaper reported it could start takeover talks with rival Anheuser Busch on Tuesday.
With Wolfgang Ziebart out of the way, analysts say a deal may be reached between German chipmaker Infineon Technologies and NXP Semiconductors, the microchip company mostly in the hands of Kohlberg Kravis Roberts.
PARIS/LONDON (Reuters) - Shares in Yell Group rose as much as 5.4 percent early on Tuesday as traders cited market talk of bid interest from Microsoft .
TAIPEI (Reuters) - Microsoft Corp expects global unit sales of its Windows Mobile software for cellphones to grow at least 50 percent per year in fiscal years 2008 and 2009 as demand for smartphones rises rapidly.
Arun Sarin today said he was stepping down as chief executive of Vodafone
after five years at the helm of the telecoms giant. Source: Latest Business News from Times Online | 27 May 2008 | 9:00 am
PARIS (Reuters) - Alcatel-Lucent , which posted a first-quarter net loss and warned on 2008 sales, will ask shareholders to vote on a proposal to tie its CEO's 6 million euro ($9.45 million) golden parachute to performance objectives, the Times newspaper reported on Tuesday.
The chief executive of HSBC has called on the Bank of England and the European
Central Bank to raise interest rates to combat the inflationary pressure
sweeping the Continent. Source: Latest Business News from Times Online | 27 May 2008 | 8:54 am
German luxury sportscar maker Porsche said on Tuesday it had filed a court petition to challenge the results of a Volkswagen general assembly that rejected proposed changes to its bylaws. Source: Infocious RSS raw feed - channel BNewsBusiness | 27 May 2008 | 8:53 am
The price of shares in Swiss banking giant UBS plunged by nearly eight percent on Tuesday as the company launched a second capital increase to raise more than 15 billion Swiss francs (nine... Source: Infocious RSS raw feed - channel BNewsBusiness | 27 May 2008 | 8:48 am
European equities fell on Tuesday as high oil prices continued to weigh on the outlook for growth, while downgrades hit the chemicals and paper sectors.The FTSE Eurofirst 300 was unchanged in mid morning... Source: Infocious RSS raw feed - channel BNPaperBusiness | 27 May 2008 | 8:46 am
London equities rose on Tuesday, helped by bid speculation in the brewing sector and recovering mining stocks. The FTSE 100 started the session 50 points higher at 6,136.8, a rise of 0.8 per cent. The... Source: Infocious RSS raw feed - channel BNPaperBusiness | 27 May 2008 | 8:45 am
The board of Sun Hung Kai Properties has replaced its chairman with his 79-year-old mother, ending an acrimonious, months-long struggle for control of Hong Kong's biggest property developer. In a statement... Source: Infocious RSS raw feed - channel BNPaperBusiness | 27 May 2008 | 8:36 am
German microprocessor maker Infineon on Monday named Peter Bauer the new chief executive and announced the departure of Wolfgang Ziebart, the incumbent, effective June 1.Mr Ziebart resigned "due to different... Source: Infocious RSS raw feed - channel BNPaperBusiness | 27 May 2008 | 8:18 am
Baugur, the Icelandic retailer, has withdrawn its interest in men's clothing chain Moss Bros after recent changes to the shareholder register made it unlikely that Baugur's 42p a share offer would be accepted... Source: Infocious RSS raw feed - channel BNPaperBusiness | 27 May 2008 | 8:15 am
Baugur, the Icelandic retailer, has withdrawn its interest in men's clothing chain Moss Bros after recent changes to the shareholder register made it unlikely that Baugur's 42p a share offer would be accepted. Source: Telegraph Business | 27 May 2008 | 8:15 am
HSINCHU, Taiwan (Reuters) - Top contract chip maker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) said on Tuesday it may raise prices for its higher-end chips as rising costs threaten to squeeze profits.
According to Reuters, small business sentivment is still shaky. Reuters writes that InBav may start Anheuher-Busch (BUD) takeover talks this week. Reuters writes that Asian central banks are propping up their currencies. Reuters writes that the CEO of HSBC (HBC) is calling for higher interest rates to fight inflation. Reuters writest that companies with board members connected to a winning US political party do well after an election. The Wall Street Journal writes that LG is looking at the GE (GE) appliance business. The Wall Street Journal writes that home sales are improving in some markets where foreclosures have deeply...
These days, six mil might not even buy a finger. Here's a look at some pop culture icons - what they went for back in the day, and how much they might cost now.
European shares advanced on Tuesday morning, lifted by strong gains from wireless giant Vodafone Group and chipmaker Infineon Technologies and an advance for the mining sector.
Arun Sarin on Tuesday confirmed he is to standing down as chief executive of Vodafone after five years of leading the world's largest mobile phone operator by revenue.Mr Sarin, 53, surprised many in the... Source: Infocious RSS raw feed - channel BNPaperBusiness | 27 May 2008 | 7:41 am
Arun Sarin is stepping down as chief executive of the world's largest mobile operator by revenues, to be succeeded by Vittorio Colao, his deputy and head of European operations Source: FT.com - US homepage | 27 May 2008 | 7:41 am
Rising prices have made Germans more pessimistic about the outlook for Europe's largest economy and less willing to spend money, a closely watched survey suggested on Tuesday. Source: Infocious RSS raw feed - channel BNewsBusiness | 27 May 2008 | 7:35 am
Icelandic investment group Baugur on Tuesday walked away from a possible 40m bid for Moss Bros citing "unacceptable" execution risk, sending shares in the UK suit retailer and formal wear hire company... Source: Infocious RSS raw feed - channel BNPaperBusiness | 27 May 2008 | 7:34 am
Markets in Asia were mostly higher. The Nikkei was up 1.5% to 13,893. Honda (HMC) was up 2.2% to 3300. KDDI was up 2.7% to 690000. The Hang Seng rose 1.2% to 24,409. CNOOC was up 4% to 15. PetroChina (PTR) was up 1.3% to 10.76. The Shanghai Composite rose .3% to 3,375. Data from Reuters Douglas A. McIntyre
Vodafone's annual profits before interest, taxes, depreciation and amortization climbed 10pc in the year to March to £13.2bn, topping the £13.1bn estimate of analysts surveyed by Bloomberg Source: Telegraph Business | 27 May 2008 | 7:30 am
Vodafone's annual profits before interest, taxes, depreciation and amortization climbed 10pc in the year to March to 13.2bn, topping the 13.1bn estimate of analysts surveyed by Bloomberg Source: Infocious RSS raw feed - channel BNPaperBusiness | 27 May 2008 | 7:30 am
Metronet, the failed Tube maintenance company, was taken over by Transport for
London (TfL), the Mayor of London's transport authority, today. Source: Latest Business News from Times Online | 27 May 2008 | 7:28 am
Baugur, the Icelandic investment group, has scrapped its £40 million plan to
buy Moss Bros three months after saying it was mooting a possible bid for
the menswear retailer. Source: Latest Business News from Times Online | 27 May 2008 | 7:16 am
NEW YORK (Reuters) - The majority of small business owners think the U.S. economy is getting worse, though sentiment showed some improvement in May from its recent lows, according to a survey released on Tuesday.
Legal action against YouTube by content giant Viacom, threatens internet freedom, says owner Google. Source: BBC News | Business | World Edition | 27 May 2008 | 7:06 am
Hong Kong's largest property firm Sun Hung Kai said Tuesday it had ousted Walter Kwok as its chairman, replacing him with his 79-year-old mother after a high-profile feud at the family-run... Source: Infocious RSS raw feed - channel BNewsBusiness | 27 May 2008 | 6:58 am
One of Britain’s biggest food producers has warned that the spiralling oil
price will soon push up the cost of everyday products such as pizzas and
biscuits. Source: Latest Business News from Times Online | 27 May 2008 | 6:48 am
Arun Sarin, the chief executive of Vodafone, has stunned the City by stepping down after five years at the helm of the world's largest mobile phone company. Source: Telegraph Business | 27 May 2008 | 6:20 am
Arun Sarin's rise to Vodafone chief was a surprise but his ability to fight his corner enabled him to take the telecoms giant into emerging markets. Jamie Dunkley reports. Source: Telegraph Business | 27 May 2008 | 6:20 am
China plans to create three telecom giants as it seeks to bring balance back to an industry where mobile operators have seen the fastest growth by far, the government and state press said... Source: Infocious RSS raw feed - channel BNewsBusiness | 27 May 2008 | 6:06 am
Malaysia will ban petrol stations on its borders with Thailand and Singapore from selling fuel to foreigners, in an attempt to contain the spiralling cost of subsidies, reports said on... Source: Infocious RSS raw feed - channel BNewsBusiness | 27 May 2008 | 6:02 am
Oil held steady near $133 a barrel Tuesday in Asia on worries about global petroleum supplies and the outlook for the U.S. dollar and economy. Reports of an attack by militants on an... Source: Infocious RSS raw feed - channel BNewsBusiness | 27 May 2008 | 5:49 am
LONDON (Reuters) - Belgian brewer InBev , the world's second-biggest by volume, could start talks with rival Anheuser Busch on a possible bid as early as Tuesday, Belgian business daily De Source: Infocious RSS raw feed - channel BNewsBusiness | 27 May 2008 | 5:34 am
Makers of Blackberry phones reject India's demands that it be allowed to spy on suspicious text messages. Source: BBC News | Business | World Edition | 27 May 2008 | 5:31 am
CHAPPAQUA, N.Y., May 27 /PRNewswire/ -- Egmont USA announced that Walter Dean Myers, winner of two Newbery Honors and five Coretta Scott King Awards, will have two books... Source: Infocious RSS raw feed - channel BNewsBusiness | 27 May 2008 | 5:30 am
The New Zealand dollar strengthened against all currencies today in a market thinned by holidays in the US and Europe.
Against the greenback it powered up to US79c by the close against its US78.64c close yesterday.
A Reserve... Source: New Zealand Herald - Business | 27 May 2008 | 5:27 am
Reuters - The majority of small business owners
think the U.S. economy is getting worse, though sentiment
showed some improvement in May from its recent lows, according
to a survey released on Tuesday.
Reuters - The majority of small business owners
think the U.S. economy is getting worse, though sentiment
showed some improvement in May from its recent lows, according
to a survey released on Tuesday.
LONDON (Reuters) - Former Federal Reserve chairman Alan Greenspan was quoted on Tuesday as saying the United States was still more likely than not to have a recession despite relative stabilization in the economy in recent weeks.
Nearly 4000 secured debenture investors in Lombard Finance and Investments (LF&I) are likely to receive less than half of their $111 million investment, and no interest, receivers said today.
However, another 540 subordinated and... Source: New Zealand Herald - Business | 27 May 2008 | 4:45 am
This Friday, the femme fatales at the heart of HBO’s hit series make their big screen debut. Don’t pretend you haven’t noticed.
There was the breathless 19-page spread—and cover—in Vogue magazine this month, and a series of stories in the New York Times. Reports of runaway advance-ticket sales on Fandango.com made the rounds. And data from the Hollywood Stock Exchange, a Cantor Fitzgerald-owned prediction market for box-office receipts, shows traders expect the movie to make $75 million over its first four weeks.
But all the glamour and glitter is causing some in the industry to wonder if the Sex and the City franchise—like a mid-40s single New Yorker—is past its prime.
“I think this is pretty much the end,” says David Poland, editor of industry blog MovieCityNews.com.
While interest in the movie is at fever pitch, Poland points out that the syndicated episodes aired on TBS since HBO ended the show have been a disappointment. Its first week on TBS, the show garnered 4 million viewers, but ratings quickly plunged. Soon, reruns of Family Guy and Everybody Loves Raymond were outperforming S.A.T.C., according to trade publication Media Life.
And while HBO declined to comment on DVD sales for the series, the complete collectors’ gift set now sells on Amazon.com for under $200, 34 percent off the list price of $300.
There’s also plenty of industry chatter speculating that the raunchy movie, despite the excitement of fans, will suffer from performance anxiety in theaters.
“If you believe the hype, it’s going to be bigger than the new Indy movie” released Thursday, says Jeff Bock, an analyst with Exhibitor Relations, a Los Angeles-based entertainment-research firm.
Indiana Jones and the Kingdom of the Crystal Skull, the latest flick in the Indiana Jones series, is expected to make in the vicinity of $100 million to $150 million in its first weekend at the box office, potentially breaking records. Bock sums up the chances of S.A.T.C. matching that: “Impossible.”
That hasn’t stopped executives at Warner Bros., the studio that absorbed New Line Cinema, which made the film, from saturating New York and L.A. with trailers and posters, and milking partnerships with brands like Mercedes-Benz and Skyy Vodka.
Part of the marketing frenzy, says Bock, is the recent flop of Speed Racer, another Warner film. Since that disappointment, the studio has ratcheted up the pace of the Sex campaign even more, burying the movie under an avalanche of S.A.T.C. ads. But for several reasons, Warner Bros. may be doing a walk of shame the morning after Sex.
For one thing, the film is rated R, chock-a-block with the explicit sex scenes that made the show a hit. That rating will limit the show to adults—and exclude a cadre of precocious female teens dying to spend their allowance on a ticket.
The movie’s run time, over two hours, reduces the number of daily showings a theater can have, which in turn reduces the profit opportunity.
The surprise-filled plotline may not lend itself to repeat viewing. And the movie’s target audience, metropolitan women and gay men, is still excruciatingly niche.
Surprisingly, S.A.T.C. may be profitable anyway. While its budget has been reported at between $50 million and $65 million, plus another $50 million for marketing, Bock says that overseas ticket sales are expected to push its total gross to more than $100 million. He adds that ancillary markets like DVD sales, pay-per-view fees, and TV rights for the film will also prove lucrative, and predicts that, if the film grosses even $60 million to $70 million domestically, there will be talk of a sequel.
Even if appetite for the story line doesn’t get old and tired, however, the characters will. In the movie, Carrie can’t manage to text message. Samantha celebrates her 50th birthday. But as long as the ladies remain cash cows, it seems they won’t be retiring anytime soon.
If you ran the airline with the nation’s worst on-time record and one of the worst lost-luggage rates, would you begin charging your customers for the privilege of checking a bag?
You probably wouldn’t, but it’s Gerard Arpey who runs American Airlines, the nation’s largest airline. So beginning next month, American and American Eagle, its wholly owned commuter carrier, will charge most passengers $15 to check a piece of luggage.
As that comic says, you can’t fix stupid. And this fee is going into the Airline Stupid Hall of Fame. Not only will it infuriate flyers—who are already annoyed with American’s lousy operating efficiency and its recent maintenance snafus—it’s likely to further erode American’s on-time and baggage-handling rates. And it probably won’t generate any additional cash for American.
It goes without saying that American needs the scratch. Its $328 million first-quarter loss was, uh, fueled by what the company says was a $665 million year-over-year increase in energy costs. As the price of oil skyrockets, Arpey is so desperate that he’s cutting American’s route network by more than 10 percent, grounding dozens of aging, fuel-guzzling aircraft, and laying off thousands of workers.
To Arpey, baggage must seem like an easy target for quick cash. Many European airlines charge for checked luggage and, in the increasingly à la carte world of U.S. aviation, baggage is the next logical candidate for unbundling. And American did have a moment of clarity: When Arpey announced the $15 first-bag fee at last week’s annual meeting of AMR, American’s parent company, he was careful to exempt full-fare customers (its most profitable segment), elite frequent fliers (its most loyal) and international passengers (who get a mulligan due to competitive and logistical factors). Arpey aimed the $15 fee directly at the travelers who pay the lowest fares and contribute the least to American’s bottom line.
But that’s where rational thinking ended. Arpey set the fee to kick in on tickets purchased beginning June 15, the start of the busy summer-travel season. That means travelers will have to adjust with just three weeks’ notice. American’s frontline staffers have no more of a cushion, since they were only informed of the move a few hours before Arpey publicly unveiled it.
And American seems to have imposed the fee without actually calculating how much revenue it could raise. When asked, Arpey couldn’t say how many checked bags will fall into the charge-to-check category and was vague about the revenue target.
Worse, the customers targeted with the fee are the ones most likely to try to duck the $15 addition by using larger carry-ons. That’s dangerous because these less-experienced fliers (think families and once-a-year vacationers) think any bag with wheels qualifies as a carry-on. It doesn’t. American’s website says the largest acceptable carry-on bag is no larger than 45 linear inches (length plus width plus height) and weighs no more than 40 pounds.
So be prepared for time-consuming arguments at the ticket counters and check-in kiosks. Unless it’s prepared to countenance ticket-counter madness, American will have to deploy additional staff to do the baggage triage. There goes some of that extra revenue Arpey was counting on.
Then there’s the stress that more carry-on bags will cause at security checkpoints. Fliers who would have normally checked their lotions-and-potions and other troublesome checkpoint items will now have them in their carry-ons. That’ll mean more time spent preparing for the screening process and clearing security.
Once these slowed-down, baggage-laden fliers reach their departure gate, they’ll run into dozens of other travelers who’ve also maxed out their carry-on allowance. With airlines running 80 percent full, that means a free-for-all for available carry-on space. American’s overworked flight attendants will have to police the planes, often going row by row to ensure that travelers have loaded bins effectively and used their under-seat space. That’s sure to delay flights—American ran an industry-trailing 62 percent on time in March—and delayed flights cost money. There goes more of Arpey’s $15-a-bag revenue stream.
But, wait, it gets worse. No matter how efficiently passengers and flight attendants arrange luggage, some passengers probably won’t have room to stow their gear. That means American’s gate agents will be required to gate-check the extras. That’s a time-consuming process. An agent must get a luggage tag, affix it to the bag, then hand it off to a baggage handler on the ramp, who must then stow it in the belly of the aircraft. More time lost.
How much time? No one really knows, but an international airline executive tells me that his flights have run an average of 15 minutes later since the carrier adopted a pay-for-bags system two years ago. “I don’t know how much is due to extra carry-on bags, but it’s a factor. It’s eating into the ancillary revenue we get from the baggage charges.”
Now the big fly in Arpey’s revenue ointment: The high cost of delayed and lost baggage created by too much carry-on luggage. Delayed flights mean missed connections and missed connections mean more of what the industry euphemistically calls mishandled bags. (American already mishandles 7.32 bags per 1,000 passengers; American Eagle’s rate is 13.08 per 1,000.)
My sources tell me it costs an airline about $60 in labor costs and trucking fees to return a late bag to a customer. That means each additional delayed bag American creates will wipe out the revenue of four checked bags. And woe to American if it loses more bags. Airlines are on the hook for as much as $3,000 in liability for lost luggage. Carriers rarely pay fliers that much, of course, but let’s say a lost bag eventually costs American $2,250 in cash payouts and administrative costs. At that rate, each additional bag that American loses will wipe out the revenue from 150 checked bags.
Like I said, you can’t fix stupid. You can only wait for Arpey to realize that charging $15 for a checked bag isn’t enough. Then he’ll raise to it $25, leading even more customers to try to fly only with carry-on bags, thus starting the cycle all over again.
Protesters and police clash in South Korea amid mounting public anger at the relaxation of a ban on US beef. Source: BBC News | Business | World Edition | 27 May 2008 | 3:40 am
Online advertising in the first quarter of the year grew 67.2 per cent from a year ago to new record $46 million, according to research published today.
IAB Insight said the advertising was up 17.91 per cent up on the previous... Source: New Zealand Herald - Business | 27 May 2008 | 3:26 am
Amphibious boat maker Sealegs has blamed new international accounting standards for its $1.7 million March year loss.
The loss reported today compared with $1.05m in 2007.
Managing director David McKee Wright said newly adopted... Source: New Zealand Herald - Business | 27 May 2008 | 2:30 am
Wizard Home Loans, one of New Zealand's largest non-bank home lenders has been put up for sale by its parent, GE Money.
GE Money says it is "considering strategic options" for Wizard, including a partnership, joint venture or... Source: New Zealand Herald - Business | 27 May 2008 | 2:00 am
Business confidence remains low in May, depressed by slowing economic growth and rising costs, the National Bank said today.
The National Bank's monthly Business Outlook showed a net 50 per cent of companies expected business conditions... Source: New Zealand Herald - Business | 27 May 2008 | 1:30 am
With hydro storage at its lowest for this time of year since the 1992 power crisis, the electricity industry has launched a website to make it easy for the public to check supply details.
Called Winterpower Watch, the website comes... Source: New Zealand Herald - Business | 27 May 2008 | 1:15 am
Dairy giant Fonterra, which controls nearly 40 per cent of international trade in milkpowders and other milk-based commodities, says more than 80 per cent of its big powder customers have signed up for internet trading.
Fonterra... Source: New Zealand Herald - Business | 27 May 2008 | 1:00 am
The New Zealand dollar may continue to be propped up by Japanese traders.
The yen carry trade has not only survived the past nine months of financial market mayhem, but the decade-old investment strategy looks set to stay for many... Source: New Zealand Herald - Business | 27 May 2008 | 1:00 am
Meat processing company PPCS today confirmed both its Oringi and Burnside plants will close with the loss of more than 600 jobs.
PPCS chief executive Keith Cooper said the decision was finalised after consultation with employees... Source: New Zealand Herald - Business | 27 May 2008 | 12:26 am
The world's largest investment banks will this week line up for a share of one of the year's biggest flotation mandates ahead of the €8bn (£6.37bn) stock market listing of Deutsche Bahn, Europe's biggest rail and logistics group. Source: Telegraph Business | 27 May 2008 | 12:01 am
Reliance Communications has opened talks to buy South African mobile operator MTN Group in a move that could create a $66bn (£33.35bn) emerging markets telecoms group. Source: Telegraph Business | 27 May 2008 | 12:01 am
The German telephone giant Deutsche Telekom is facing a criminal probe after staff carried out a systemic spying operation to track calls between top executives and journalists. Source: Telegraph Business | 27 May 2008 | 12:01 am
Prudential's rising star flounced out in frustration and returned via Scotland, he tells Richard Northedge reports how he got Prudential top job, via Asia and Scotland. Source: Telegraph Business | 27 May 2008 | 12:01 am
A new electronic device that enables mobile phone users to plug into digital
radio will rescue digital audio broadcasting, Channel 4 Radio believes. Source: Latest Business News from Times Online | 26 May 2008 | 11:20 pm
Canada's Supreme Court said it would let BCE quickly appeal against a ruling by a lower court that could scuttle the phone service provider's proposed $52bn takeover Source: FT.com - US homepage | 26 May 2008 | 11:02 pm
An ugly waste product of oil refining has been transformed into a golden
windfall for energy companies as demand for fertilisers drives the price of
sulphur to unprecedented levels. Source: Latest Business News from Times Online | 26 May 2008 | 11:00 pm
René Obermann, the chief executive of Deutsche Telekom, yesterday threatened
“serious consequences” for any of its executives involved in an
extraordinary surveillance operation aimed at plugging leaks from the
boardroom to business journalists. Source: Latest Business News from Times Online | 26 May 2008 | 11:00 pm
The US is still more likely than not to have a recession in spite of the relative stabilisation in the economy in recent weeks, Alan Greenspan has told the Financial Times Source: FT.com - US homepage | 26 May 2008 | 10:37 pm
In an eyewitness account, Andrew Jack reports on how help from individuals for the cyclone victims is in sharp contrast to the response from the military regime Source: FT.com - US homepage | 26 May 2008 | 10:36 pm
Foreign relief workers began filtering into Burma's devastated Irrawaddy delta as aid agencies tested the ruling military junta's contention that it would allow a big international effort to help 2.5m victims of cyclone Nargis Source: FT.com - US homepage | 26 May 2008 | 10:36 pm
The departure of US President George W. Bush will give a "very promising" outlook to international talks on global warming and the $64bn market in greenhouse gas emissions, said Yvo de Boer, the UN's top official on climate change Source: FT.com - US homepage | 26 May 2008 | 10:35 pm
Blackstone Group and Apollo Management, the private equity groups, are in talks to buy Chemtura, a manufacturer and marketer of speciality chemicals Source: FT.com - US homepage | 26 May 2008 | 10:34 pm
The owner of AP Møller-Maersk, the world's largest container shipping line, is to abandon two key strategies that have shaped the sprawling Danish group as it seeks to recover from a period of patchy profitability Source: FT.com - US homepage | 26 May 2008 | 10:34 pm
The Hong Kong stock exchange is considering extending trading hours for futures and options in a move that would boost cross-market activity with London and bring Hong Kong more into line with rival Asian bourses, according to the chairman of the region's main futures association Source: FT.com - US homepage | 26 May 2008 | 10:34 pm
Crude oil prices rise after militant attacks on a pipeline in Nigeria stoke fresh supply concerns. Source: BBC News | Business | World Edition | 26 May 2008 | 8:27 pm
As the race for younger audiences grows, networks are in a "rattle battle" for advertising dollars. Tess asks Dade Hayes about the baby entertainment boom. Source: Marketplace | 26 May 2008 | 8:06 pm
Talks continue on a new climate change treaty to replace the Kyoto Protocol, but as Sam Eaton explains, setting short-term goals still causes the most difficulty for politicians. Source: Marketplace | 26 May 2008 | 7:22 pm
United Steelworkers and UNITE say joining forces will help them deal with stronger multinational corporations. Stephen Beard takes a closer look at their plans. Source: Marketplace | 26 May 2008 | 7:11 pm
Tired of paying top dollar for cat furniture that offers nothing in the way of design? Andrew Phelps introduces us to Elizabeth Paige Smith's line of striking feline wares. Source: Marketplace | 26 May 2008 | 6:56 pm
Looking for a formula to aid your house hunting? Commentator and MIT professor Dan Ariely says science doesn't have much to offer us when it comes to finding the right home. Source: Marketplace | 26 May 2008 | 6:55 pm
The silver lining of falling housing prices: it's easier for people to afford a new home. The Lee family explains their transition from an apartment to first-time homeownership. Source: Marketplace | 26 May 2008 | 6:50 pm
With all its bleeding and huge losses, Wall St. should assume that the bad news is behind UBS (UBS). To repairs its balance sheet, the Swiss firm is making a 16 billion-franc rights offering. But, buried in the prospectus is some bad news. According to Bloomberg, the filing says UBS may have "losses on non-U.S. residential and commercial real-estate securities which ``could increase in the future.'' Several large US money center banks, particularly Citigroup (C) probably have related problems floating around on their balance sheets. The banking crisis is not over, not by a long shot. Douglas A. McIntyre
What if everybody in the world consumed like the average American family? Sean Cole went in search of that family and with TV as his guide, he didn't have to look too far. Source: Marketplace | 26 May 2008 | 6:25 pm
Deutsche Telekom denies bugging its phones, but says it did hire an investigator to examine phone records. Source: BBC News | Business | World Edition | 26 May 2008 | 9:55 am
Solar energy may be the wave of energy's future, but companies like Google (GOOG) and Chevron (CVX) may best start-ups in getting to the benefits. A number of large American companies with tremendous balance sheets are pouring money into solar energy based on the fact that it is becoming more competitive with oil. According to Bloomberg, "Costs for the technology will fall below coal as soon as 2020, the U.S. government estimates. JPMorgan Chase & Co. and Wells Fargo & Co. invested last year in the biggest solar plant built in a generation; Chevron and Google are funding research; and...
Reuters - Stock futures pointed to a mixed open on
Wall Street on Tuesday as investors, rattled by record high oil
prices last week, remained cautious ahead of key macroeconomic
data.
Reuters - Arun Sarin, the chief executive who
safeguarded Vodafone's dominance among mobile operators
by expanding into emerging markets, announced his departure on
Tuesday, saying he had achieved all he had set out to do.
Reuters - Shares in Belgian brewer InBev
, the world's second-biggest by volume, lost over
three percent on Tuesday after a newspaper reported it could
start takeover talks with rival Anheuser Busch on
Tuesday.
Reuters - Shares in Yell Group rose
as much as 5.4 percent early on Tuesday as traders cited market
talk of bid interest from Microsoft .
Reuters - The majority of small business owners
think the U.S. economy is getting worse, though sentiment
showed some improvement in May from its recent lows, according
to a survey released on Tuesday.