As Business Crashes, New York Times (NYT) Moves To Survival Mode

It would have been hard for The New York Times (NYT) to post numbers much worse than their sales for November.

Advertising revenues for the News Media Group, which includes the firm's newspapers. declined 21.8% to $141.2 million.

The websites attached to the newspapers had a revenue drop of 4% as modest growth in display advertising was offset by weakness in online recruitment and real estate advertising. The company's About.com online property advertising revenues decreased 3.5% as declines in display advertising were helped by growth in cost-per-click advertising.

The numbers make it likely that NYT will post an operating loss in the fourth quarter of the year. It faces debt payments of $400 million in 2009. It has been working on mortgaging the piece of its headquarters that the company owns, but in this real estate market, it is unclear what that will bring.

The last chance NYT has to survive as an independent company may be if it can sell About.com, its New England papers including The Boston Globe, and its regional newspaper group. The papers may no longer have any financial value.

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Dec 2008 | 2:00 pm

NewsWatch: Shares in Europe end lower in holiday-shortened session

Fortis shares slide, AstraZeneca shares also weaken in holiday-shortened session.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 2:00 pm

Economic Report: U.S. durable-goods orders off 1% last month on transportation

Orders for U.S.-made durable goods showed better-than-expected results during November, Commerce Department data indicate.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 2:00 pm

Consumer spending posts fifth monthly drop (Reuters)

Reuters - U.S. consumers cut spending for a fifth straight month during November and their incomes shrank, according to a government report on Wednesday that pointed to deepening recessionary pressures.

Source: Yahoo! News: Business | 24 Dec 2008 | 1:59 pm

Jobless claims surge to 26-year high (Reuters)

Reuters - The number of U.S. workers filing new claims for jobless benefits jumped by 30,000 to a 26-year peak last week, government data on Wednesday showed, as the country's year-long recession continued to chill the labor market.

Source: Yahoo! News: Business | 24 Dec 2008 | 1:58 pm

Reserve Management may face SEC charges over fund failure (Reuters)

Reuters - The New York investment manager credited with inventing the money market fund may face charges he violated federal securities laws in connection with the collapse of his $64 billion mutual fund this September, an event that sent the global credit crisis into overdrive.
Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 1:56 pm

Jobless claims surge to 26-year high

WASHINGTON (Reuters) - The number of U.S. workers filing new claims for jobless benefits jumped by 30,000 to a 26-year peak last week, government data on Wednesday showed, as the country's year-long recession continued to chill the labor market.
Source: Reuters: Business News | 24 Dec 2008 | 1:49 pm

Stock futures point to little changed opening (AP)

AP - Wall Street is headed for a flat opening following mixed reports on jobs and consumer spending.

Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 1:48 pm

Economic Report: U.S. consumers' spending down 0.6% in November, data show

With job losses mounting and the economic outlook remaining uncertain, consumers opt to spend less in November. Spending fell 0.6%, the Commerce Department reports, but inflation-adjusted spending rose 0.6% on the month.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 1:48 pm

Cramer Touts Suburban Propane (SPH) as a Play on the Cold Winter Weather

From Street Insider

On last night's Mad Money, Cramer recommended a stock which he called "a play on the cold winter weather", Suburban Propane (NYSE: SPH).

Cramer believes Suburban's story is a simple one, depending mainly on its margins. Cramer points out that while natural gas prices have fallen about 45% in the last few months, retail prices have only fallen by 12%, meaning that Suburban's margins have risen by 33

Source: 24/7 Wall St. | 24 Dec 2008 | 1:46 pm

Durable goods orders fall again in November

WASHINGTON (Reuters) - New orders for long-lasting manufactured goods fell 1 percent in November, a less severe drop than anticipated though it followed a steeply revised plunge in October orders, a government report on Wednesday showed.
Source: Reuters: Business News | 24 Dec 2008 | 1:45 pm

Durable goods orders fall again in November (Reuters)

Reuters - New orders for long-lasting manufactured goods fell 1 percent in November, a less severe drop than anticipated though it followed a steeply revised plunge in October orders, a government report on Wednesday showed.
Source: Yahoo! News: Business | 24 Dec 2008 | 1:45 pm

Consumer spending falls 5th straight month

In a troubling sign that consumers are retrenching this holiday season, consumer spending and orders for durable goods fell further in November, according to government reports released Wednesday.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 1:44 pm

Consumer spending posts fifth monthly drop

WASHINGTON (Reuters) - U.S. consumers cut spending for a fifth straight month during November and their incomes shrank, according to a government report on Wednesday that pointed to deepening recessionary pressures.
Source: Reuters: Business News | 24 Dec 2008 | 1:44 pm

Unemployment claims highest since '82

The number of Americans filing for first-time unemployment benefits rose to a new 26-year high last week, according to a government report released Wednesday.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 1:44 pm

Economic Numbers & Holiday Work Pains

Source: 24/7 Wall St. | 24 Dec 2008 | 1:42 pm

Durables Numbers Look Better Than Expected

Orders for U.S.-made durable goods fell 1% in November, the Commerce Department estimated Wednesday, as orders for transportation goods fell 7.4%. Economists surveyed by MarketWatch had expected an overall decline of 3%. Excluding transportation, orders rose 1.2%. Orders for core capital equipment - the kind of investments businesses make to expand or update their productive capacity - rose 4.7% in November, after a 6.6% decline in October.

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Dec 2008 | 1:41 pm

Europe Markets: Shares in Europe end lower in holiday-shortened session

Fortis shares slide, AstraZeneca shares also weaken in holiday-shortened session.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 1:41 pm

Jobless Claims Job Up: More Deep Recession Evidence

The U.S. labor market has gotten worse in the last month, with unemployment hitting the worst levels since 1982, the Labor Department said. First-time applications for state unemployment benefits jumped by 30,000 to a seasonally adjusted 586,000 in the week ending Dec. 20.The four-week average of new claims rose by 13,750 to 558,000, the highest since December 1982.

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Dec 2008 | 1:38 pm

Save energy, save the economy

It looks like America may be getting a whole lot more energy efficient as part of any new stimulus plan.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 1:35 pm

Economic Report: Unemployment lines longest in 26 years

The U.S. labor market continued to worsen in recent weeks, with the unemployment lines stretching to the longest in 26 years, the Labor Department reports.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 1:31 pm

A plague of iPhone flatulence

Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 1:24 pm

Stocks set to ease into holiday

Stocks were set for a flat start in Wednesday's holiday-shortened session ahead of key economic and oil inventory reports to be released later in the day.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 1:20 pm

Mortgage applications hit almost 5-year high: MBA (Reuters)

Reuters - Mortgage applications surged to the highest level in over five years in the latest week, as potential borrowers came out in droves to refinance as government interventions helped push interest rates down to record lows, data from an industry group showed on Wednesday.
Source: Yahoo! News: Business | 24 Dec 2008 | 1:18 pm

Treasurys bounce back after 3-day slip

After an unusual three-day slide, Treasurys bounced back Wednesday, resuming their nearly uninterrupted upward trend that has persisted since mid-September.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 1:17 pm

FTSE-100 down 31.39 at 4,216.59 (AP)

AP - Share prices on the London Stock Exchange were lower in a short pre-holiday session on Wednesday.
Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 1:16 pm

Oil price falls help drag FTSE down

Oil majors BP and Royal Dutch Shell dragged the FTSE-100 lower as further falls in crude oil prices overnight depressed the energy companies. BP gave up 8.75p to 496p while Royal Dutch Shell ‘B’, the version owned by most UK investors, fell 43p to 1653p.
Source: Latest Business News from Times Online | 24 Dec 2008 | 1:12 pm

No RIM Jobs For Ex-Motorola Workers? (RIMM, MOT)

Source: 24/7 Wall St. | 24 Dec 2008 | 1:11 pm

Indications: U.S. stock futures drift lower ahead of data

U.S. stock futures point to slight gains for shares on Wednesday ahead of more data on the economy in a holiday-shortened week.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 1:10 pm

Mortgage applications soar as rates fall

Near record low mortgage rates sent mortgage applications shooting higher last week, especially for refinances, according to an industry report.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 1:06 pm

YRC Worldwide Pursues Long-Term Solution to Improve Financial Condition

- Cancels Tender Offer and Evaluates Better Opportunities with its Banks - National Integration to be Complete by Early Spring 2009 OVERLAND PARK, Kan., Dec. 24...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Dec 2008 | 1:06 pm

London Markets: Shares in London end lower ahead of holiday

London’s top share index falls on Wednesday, a holiday-shortened session, with drugmaker AstraZeneca under pressure.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 1:05 pm

Interface's Private Exchange Offer for 10.375% Notes Due 2010 Expires and Terminates

ATLANTA, Dec. 24 /PRNewswire-FirstCall/ -- Interface, Inc. (Nasdaq: IFSIA), the world's largest manufacturer of modular carpet, announced today the expiration and...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Dec 2008 | 1:00 pm

David Ross affair to flush out share disclosures

A flood of company directors is expected to disclose that they have secretly mortgaged their shares in the coming weeks as two directors of Leeds Group, the fabric importer, today became the latest to admit to the practice.
Source: Latest Business News from Times Online | 24 Dec 2008 | 12:55 pm

Wall Street set to edge up in shortened session

(Reuters) - Wall Street is set to open slightly higher on Wednesday, with futures for the Dow Jones and S&P 500 up 0.1 percent at 4:40 a.m. EST. Futures for the Nasdaq were flat.
Source: Reuters: Business News | 24 Dec 2008 | 12:52 pm

Crossrail receives £150m festive boost

Crossrail, the proposed £16 billion rail link across London, received a Christmas boost this morning after Canary Wharf Group said it would contribute £150 million towards funding the scheme.
Source: Latest Business News from Times Online | 24 Dec 2008 | 12:49 pm

U.S. data expected to point to deepening recession

SINGAPORE/LONDON (Reuters) - Japan's government approved its biggest-ever budget on Wednesday to try to revive an economy hurt by the global financial crisis and U.S. data was expected to give further evidence of the worsening recession.
Source: Reuters: Business News | 24 Dec 2008 | 12:45 pm

Oil falls towards $37, tracking equities

LONDON (Reuters) - Oil fell toward $37 a barrel on Wednesday, tracking global equity losses and ahead of U.S. data expected to show an increase in crude stocks.
Source: Reuters: Business News | 24 Dec 2008 | 12:41 pm

Top Pre-Market Analyst Upgrades & Downgrades (LFC, NUE, PLD, SLF, CCJ, SSCC)

Source: 24/7 Wall St. | 24 Dec 2008 | 12:36 pm

UPDATE 1-India Satyam shares pullback on takeover talk

BANGALORE, Dec 24 (Reuters) - Shares in India's Satyam Computer Services pulled back from steep losses on Wednesday on market talk the outsourcer may see a takeover bid after its valuation plummeted on...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Dec 2008 | 12:28 pm

Zavvi placed into administration

Music, games and DVD retail chain Zavvi has gone into administration following the problems at Woolworths.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 12:21 pm

Oil prices slump to fresh four-year low in London

World oil prices tumbled on Wednesday to strike a four-year low point in London in volatile pre-Christmas trade as economic gloom weighed on the market, analysts said. On...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Dec 2008 | 12:18 pm

Russia, China warn of dire economic straits in 2009

Russia and China issued stark warnings on Wednesday about the impact of the crisis on their recently booming economies in 2009, with Moscow saying the downturn could spark unrest in the...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Dec 2008 | 12:17 pm

The top business stories of 2008

1. $50 billion at stake after Wall St broker Bernard Madoff is arrested over $‘world’s biggest swindle’ (December 13)
Source: Latest Business News from Times Online | 24 Dec 2008 | 12:16 pm

Insurers halt work on Turkish dam

Insurers halt their support for a dam project in Turkey amid concern about its environmental and cultural impact.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 12:13 pm

Mortgage Applications Are Way Up, But Are Loans?

According to MarketWatch, "With mortgage rates approaching record lows, the volume of applications filed for mortgages jumped a seasonally adjusted 48% last week compared with the previous week, according to the Mortgage Bankers Association's weekly survey."

"Applications for the week ended Dec. 19 ran 124.6% ahead of the mortgage activity seen during the same week last year."

Most of the increase is due to a large drop in rates which are moving toward 5% for 30-year fixed loans. It remains to see whether most of these applications will be granted in a tight market where banks will resist lending money which carries any significant risk.

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Dec 2008 | 12:11 pm

Oil falls back below $39 a barrel

More bad economic news from the US on Tuesday sends oil prices falling back below $39 a barrel.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 12:03 pm

Week-to-week mortgage applications skyrocket 48%: MBA

Mortgage applications leap higher as homeowners seeking to refinance and first-time buyers ready to take the plunge rush to lock in lower interest rates, Mortgage Bankers Association data show.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 12:00 pm

Zavvi files for bankruptcy protection (AP)

AP - Britain's economic downturn claimed another prominent retailer Wednesday as music, games and DVD retail chain Zavvi filed for a form of bankruptcy protection, blaming the collapse of the Woolworth Group's distribution arm.
Source: Yahoo! News: Business | 24 Dec 2008 | 11:58 am

British music retailer calls in administrators

British high street music retailer Zavvi has gone into administration, it said on Wednesday, putting more than 3,000 jobs at risk. Zavvi was formerly the Virgin Megastore...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Dec 2008 | 11:57 am

Stock futures point to little changed opening

Wall Street appeared headed for a flat opening Wednesday ahead of data on jobs and consumer spending that are expected to show more weakness. The Commerce Department is expected to...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Dec 2008 | 11:55 am

Christmas presents? Let me check my e-mails first

Children may have to wait just a little bit longer than usual before ripping open their Christmas presents tomorrow morning: a survey suggests that two-thirds of UK BlackBerry users are planning to check their e-mails before joining the rest of the family around the tree.
Source: Latest Business News from Times Online | 24 Dec 2008 | 11:52 am

Snubbing guests: Should you? Shouldn't you?

Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 11:52 am

SEC to charge execs at failed money market fund

Reserve Management Co., which is facing a slew of investor lawsuits after its money market fund fell below a key safety benchmark, said late Tuesday the Securities and Exchange Commission...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Dec 2008 | 11:48 am

SEC to charge execs at failed money market fund (AP)

AP - Reserve Management Co., which is facing a slew of investor lawsuits after its money market fund fell below a key safety benchmark, said late Tuesday the Securities and Exchange Commission plans to charge the company and its management with violations of securities laws.
Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 11:48 am

Thai True Move to launch 3G iPhone on Jan. 16

BANGKOK, Dec 24 (Reuters) - True Move PCL, Thailand's third largest mobile phone firm, said on Wednesday it planned to sell Apple Inc's 3G iPhone in Thailand from Jan. 16, a key driver which should boost...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Dec 2008 | 11:46 am

Movers & Shakers: Wednesday's biggest moving stocks

SAN FRANCISCO (MarketWatch) -- Among shares expected to see active trade in Wednesday's abbreviated trading session are those of AstraZeneca Plc., Micron Technology Inc., Starbucks Corp., and Toyota.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 11:46 am

Zavvi files for bankruptcy protection

Music, games and DVD retail chain Zavvi filed for a form of bankruptcy protection on Wednesday, blaming the collapse of the Woolworth Group's distribution arm. Ernst & Young...
Source: Infocious RSS raw feed - channel BNewsBusiness | 24 Dec 2008 | 11:45 am

Wal-Mart to settle wage suits

Wal-Mart agreed Tuesday to pay hundreds of millions of dollars to settle allegations that the company didn't pay workers for overtime or let them take breaks.
Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 11:42 am

Talkback: Have you recently purchased a home?

Source: Business and financial news - CNNMoney.com | 24 Dec 2008 | 11:37 am

House prices 'will fall further'

House prices will probably fall by another 10% in the coming year, predicts the Royal Institution of Chartered Surveyors.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 11:35 am

Markets slip after gloomy US economic data (AP)

AP - World stock markets slipped Wednesday in limited Christmas Eve trade after downbeat data about the U.S. economy and housing sector and more gloomy news about Britain's real estate slump.

Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 11:35 am

Alan Duncan, Shadow Business Secretary, gives up the day job

Alan Duncan, the Shadow Business Secretary, has resigned his position as non-executive director of a British environmental company, just a day after David Cameron, the Conservative party leader, shelved a plan to make his shadow cabinet quit their second jobs.
Source: Latest Business News from Times Online | 24 Dec 2008 | 11:15 am

Why Is GM (GM) Waiting Until Next Year To Clean Its Stable?

The executives in the automobile industry will go to any lengths to prove what boobs they are.

GM management has elected to wait until next year before it begins to negotiate cuts with its unions and creditors. Perhaps GM chief Rick Wagoner needs a vacation after all the stress.

According to Bloomberg, "meetings with debt holders and the United Auto Workers will wait until at least Jan. 5."

The odds are that GM will not get what it needs from suppliers, creditors, and its big union before the March 31 deadline set for it to have a completed restructuring plan. Now that all the parties have seen bailout money come into the car company's bank account, they may well assume that the new administration will not let The Big Three go under. Why make concessions now when they may not have to be made at all? Their worst case is that a bankruptcy court will give the UAW and debt holders a large haircut. In the meantime, refusing giving away what they already have is their best strategy.

The only party that will look bad by delaying negotiations is GM's management. The federal government will fairly ask why there was any delay in getting talks going. The time is short. Vacations don't count.

Even if nothing is likely to come from sitting down at the bargaining table, perceptions count. Angry Congressmen need a villain if they are going to help Detroit again. Management which was slow to work on solutions will be a perfect target.

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Dec 2008 | 11:15 am

L'Oreal heiress joins list of Madoff victims

Liliane Bettencourt, the world’s wealthiest woman and heiress to the L'Oreal empire, entrusted part of her $22.9 billion ($£15.5 billion) fortune to Bernard Madoff through the fund manager found dead in New York yesterday.
Source: Latest Business News from Times Online | 24 Dec 2008 | 11:06 am

Hong Kong stock index drop for 4th day (AP)

AP - Hong Kong stocks fell for a fourth straight session Wednesday as negative U.S. economic data dashed hopes for a year-end rally.
Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 11:04 am

Retailers Want Bailout, Too

Add to the list of the hundreds of companies and scores of industries that want part of the Obama bailout money the nation's largest retailers.

The National Retail Federation has proposed that there be tax-free periods for consumers to hit stores in March, July, and October.

According to a letter from the trade association, "NRF estimates that consumers could save nearly $20 billion. Based on the 112.4 million households in the United States, the figure would amount to almost $175 for the average family."

The proposal makes two assumptions that may not be valid and also undercuts the principle behind the new Obama stimulation plan. The next president is focused on investing as much as $850 billion in building the nation's infrastructure. That includes new broadband access, schools, roads, and medical technology. Tax rebate programs have never been a significant part of the plan.

The retail association also is dodging the issue of whether part of the problem in its industry is that there are too many stores. This leads to unnatural competition which may cause a level of discounting which hurts strong and weak operations alike. An artificial incentive to bring shoppers to retailers simply lengthens the time that operators which are too poorly financed to be viable stay in business and puts pressure on prices.

The other issue with a tax moratorium is that it limits what taxpayers can do with incentive which the government is giving them to enhance their financial positions. If a citizen wants to use that money to pay off his mortgage, he may be better off. It could keep homes out of foreclosure. It may also allow people who are behind on their credit cards to catch up. Sending people who are already leveraged into stores by offering tax incentives may actually be economically reckless.

The retail industry needs to be weeded out. Incentives to keep open stores which should fail makes a major economic problem worse.

Douglas A. McIntyre

Source: 24/7 Wall St. | 24 Dec 2008 | 10:56 am

Sanlu Group declared bankrupt after milk scandal

Chinese dairy producer Sanlu, one of the companies involved in the tainted infant formula scandal earlier this year, has been declared bankrupt by a Chinese court.

Source: MarketWatch.com - Top Stories | 24 Dec 2008 | 10:49 am

Guinea junta promises elections in two years

The military junta attempting a coup in Guinea promised to hold elections in December 2010, while the national assembly president appealed to the international community to prevent the coup from succeeding
Source: Financial Times - US homepage | 24 Dec 2008 | 10:37 am

Russia devalues the rouble again

Russia devalues the rouble for the third time in a week, to its lowest value against the US dollar since January 2006.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 10:37 am

Dollar slips on fears for US growth

The dollar sold off on Wednesday on fears that data due for release later in the US session will suggest that the world's biggest economy is heading into a prolonged recession
Source: Financial Times - US homepage | 24 Dec 2008 | 10:33 am

Reserve Management says may face SEC charges

(Reuters) - U.S. securities watchdogs intend to recommend New York-based Reserve Management Inc and a number of its executives be charged for violating securities laws, the company said on its website.
Source: Reuters: Business News | 24 Dec 2008 | 10:33 am

Women Still Lacking in Financial Literacy, Or Not…

A recent State Farm study that 74% of American women are anxious about their financial futures but only 15 percent have made major changes to their financial plans.

Is There Something Wrong With Us?

Aside from the dismaying number of women who are unwilling to take action to change their financial futures (which I imagine they have in common with men), the worst finding of the State Farm study is that when women seek financial guidance, they don’t go to the experts. Instead most turn to their spouses, parents or friends. Only 12% ask an insurance agent, and only 7% seek guidance from an accountant. It makes me wonder what all those single women are doing. They must have it all together, right?

And here’s my favorite statistic: 41% of women would rather go to the dentist than talk to their spouse about finances.

I am the money person in our family, so I can’t relate.

Or Is It the Survey?

Where does this kind of information come from in the first place? The State Farm study was conducted sing random digit dialing of listed and unlisted numbers.

Oh yeah, those are the things I always hang up on.

So maybe it’s not really a problem with financial literacy at all, maybe it’s just that all of us money smart women don’t answer telephone surveys. Maybe we’re SO good with money that we don’t want to waste our most precious commodity answering survey questions, or worse yet - wasting our money on new and improved the satellite TV service!

Image Credit: Betsssssy, Flickr

Source: Business Pundit | 24 Dec 2008 | 10:30 am

Fake Colgate recalled from shops

Sainsbury's and Boots recall thousands of tubes of fake Colgate toothpaste from their stores.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 10:19 am

Wall Street set to edge up in shortened session (Reuters)

Reuters - Wall Street is set to open slightly higher on Wednesday, with futures for the Dow Jones and S&P 500 up 0.1 percent at 4:40 a.m. EST. Futures for the Nasdaq were flat.

Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 10:07 am

Wall Street set to edge up in shortened session (Reuters)

Reuters - Wall Street is set to open slightly higher on Wednesday, with futures for the Dow Jones and S&P 500 up 0.1 percent at 4:40 a.m. EST. Futures for the Nasdaq were flat.

Source: Yahoo! News: Business | 24 Dec 2008 | 10:07 am

House prices set to slide 10% in 2009

House prices are set to fall 10 per cent in 2009, the Royal Institution of Chartered Surveyors (RICS) has warned.
Source: Latest Business News from Times Online | 24 Dec 2008 | 9:48 am

Regulators near deal for IndyMac: report

(Reuters) - U.S. banking regulators are close to a deal to dispose of failed IndyMac Bancorp Inc, the Wall Street Journal said, citing people familiar with the situation.
Source: Reuters: Business News | 24 Dec 2008 | 9:37 am

IMF approves bail-out for Latvia

The International Monetary Fund approves a rescue plan to stabilise the troubled economy of Latvia.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 9:34 am

China stocks fall; funding hopes buoy airlines (AP)

AP - Chinese stocks extended losses Wednesday, with heavyweight shares leading the decline amid worries over their earnings outlook.
Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 9:24 am

China stocks fall; funding hopes buoy airlines (AP)

AP - Chinese stocks extended losses Wednesday, with heavyweight shares leading the decline amid worries over their earnings outlook.
Source: Yahoo! News: Business | 24 Dec 2008 | 9:24 am

Robert Peston

Why 2009 will be all about the fortunes of our banks
Source: BBC News | Business | World Edition | 24 Dec 2008 | 9:14 am

Shops offer last-minute discounts

Retailers are hoping for a last-minute Christmas rush with a number of shops already starting their sales.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 9:12 am

SEC chief defends response to economic turmoil (Reuters)

Reuters - U.S. Securities and Exchange Commission chairman Christopher Cox, responding to heavy criticism, said in an interview published on Wednesday he takes pride in his response to the U.S. financial crisis.

Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 9:08 am

SEC chief defends response to economic turmoil

WASHINGTON (Reuters) - U.S. Securities and Exchange Commission chairman Christopher Cox, responding to heavy criticism, said in an interview published on Wednesday he takes pride in his response to the U.S. financial crisis.
Source: Reuters: Business News | 24 Dec 2008 | 9:08 am

SEC chief defends response to economic turmoil (Reuters)

Reuters - U.S. Securities and Exchange Commission chairman Christopher Cox, responding to heavy criticism, said in an interview published on Wednesday he takes pride in his response to the U.S. financial crisis.

Source: Yahoo! News: Business | 24 Dec 2008 | 9:08 am

Japan stocks fall on weak US data, Toyota woes (AP)

AP - Japanese stocks fell Wednesday, with investors turning glum after a fresh round of poor U.S. economic data, as well as more bad news from Toyota Motor Corp.
Source: Yahoo! News: Stock Markets News | 24 Dec 2008 | 8:53 am

Toyota sales plunge in November

Toyota reports a 21.8% fall in gloabl vehicle sales in November, its worst decline since it began tracking such data.
Source: BBC News | Business | World Edition | 24 Dec 2008 | 8:30 am

Suicide hotlines see rise in calls as economy tanks

Layoffs, foreclosures, cutbacks -- there are plenty of grim economic stats out there this holiday season. Here's perhaps the grimmest one of all: Calls to Los Angeles' busiest suicide hotline have soared...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Dec 2008 | 8:00 am

Madoff's alleged misdeeds spark feelings of betrayal, outrage in L.A.'s Jewish community

The scandal has hit many particularly hard because it connects to two deeply felt emotions: reverence for Jewish charity and anxiety about what the rest of the world thinks of Jews. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Dec 2008 | 8:00 am

Cuba promotes retail website aimed at exiles

MallHabana.com enables Cubans overseas to buy products as diverse as flowers and flat-screen TVs for delivery to relatives in Cuba. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Dec 2008 | 8:00 am

Hallmark Jumbo Snowman Snow Globe recalled for fire risk

The collectible, which sells for $100, has caused two small fires, the U.S. Consumer Product Safety Commission says. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Dec 2008 | 8:00 am

Retailers catch on to the buying power of immigrants

With sales wilting, big-box stores are starting to cater to shoppers whose primary language is not English. Delfino...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Dec 2008 | 8:00 am

Sale of IndyMac Bank appears imminent

The FDIC has been looking for a buyer for the Pasadena lender since the government declared it insolvent and seized it in July. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Dec 2008 | 8:00 am

Stocks hold gains despite sluggish housing data

NEW YORK -- Investors were relieved Tuesday after a government report on the economy met expectations and eased their concerns that the recession is deepening.
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Dec 2008 | 8:00 am

More in middle class using payday lenders

The short-term loan stores are proliferating in suburban areas as the economy worsens. Critics say they trap the working poor with steep interest rates; lenders say they provide a needed service. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Dec 2008 | 8:00 am

Dow falls for 5th straight session on grim data

Dow sheds 100 points as it declines for the fifth straight session. Oil prices also fall. Stocks retreated Tuesday...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Dec 2008 | 8:00 am

Zavvi goes under in more high st pain

CD and DVD retailer Zavvi went into administration this morning, putting another 3,400 jobs at risk as the crisis facing British retailers escalated today.
Source: Latest Business News from Times Online | 24 Dec 2008 | 7:52 am

Toxic melamine is suspected in seafood from China

Industry experts and businesspeople in China say that the industrial chemical has been routinely added to fish and animal feed to artificially boost protein readings. ...
Source: Infocious RSS raw feed - channel BNPaperBusiness | 24 Dec 2008 | 7:11 am

Finding the poetry in finance

Katy Lederer found inspiration for the poems in her latest book from an unusual source -- finance. Tess Vigeland speaks with the former hedge fund recruiter about her poetry.
Source: Marketplace | 24 Dec 2008 | 6:01 am

Google bonus is smartphone not cash

The internet search group began handing out the G1, the first handset to be powered by its Android mobile operating system, as a year-end present in a move to pare employee perks
Source: Financial Times - US homepage | 24 Dec 2008 | 2:02 am

Air NZ's new Boeing 787 suffers further delay

Air New Zealand is going to have to wait even longer for the first of its new, more fuel efficient, Boeing 787-9 planes. Boeing yesterday told Air NZ it now expected to deliver the first of the eight 787-9 aircraft on firm order...
Source: New Zealand Herald - Business | 24 Dec 2008 | 12:59 am

VIX Index of U.S. Stock Option Prices Advances 1% to 45.02

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 12:36 am

French investor in Madoff found dead

A French money manager who placed $1.4bn with Bernard Madoff is found dead in what New York police called an apparent suicide as the financial industry continues to reel from Mr Madoff's alleged $50bn fraud
Source: Financial Times - US homepage | 24 Dec 2008 | 12:33 am

Three A380 flights to Dubai each week

Emirates, the first airline to operate the Airbus A380 superjumbo through Auckland on scheduled services, will initially operate the giant double-decker aircraft three times a week. The Emirates A380, noted for features like its...
Source: New Zealand Herald - Business | 24 Dec 2008 | 12:30 am

Defense Contractor Supports Our Troops In Iraq And Afghanistan

Militaries still fight the battles. But most U.S. soldiers don't speak Pashtun, the dominant tongue in parts of Afghanistan. Most soldiers can't...

Source: Investor's Business Daily: BUSINESS | 24 Dec 2008 | 12:21 am

In Brief - Tuesday

Las Vegas Sands (LVS) is cutting 500 jobs at its Venetian Macao casino in China. It edged up 0.4% to 5.81.

Source: Investor's Business Daily: BUSINESS | 24 Dec 2008 | 12:21 am

Trends & Innovations - Tuesday

Rash cream seen in a new light

Source: Investor's Business Daily: BUSINESS | 24 Dec 2008 | 12:21 am

Business Briefs - Tuesday

AmEx, CIT tap Treasury money. Credit card giant American Express AXP and commercial financial firm CIT Group CIT won preliminary approval to...

Source: Investor's Business Daily: BUSINESS | 24 Dec 2008 | 12:21 am

Blackstone cuts its hedge funds

Blackstone is shrinking its hedge fund business as it becomes the latest private equity firm to look for ways to cut costs as a result of the market downturn
Source: Financial Times - US homepage | 24 Dec 2008 | 12:17 am

Barclays's Fuhr Says ETFs Offer `Back to Basics' Investing

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 12:07 am

Gamco's Gabelli Sees Reasons for 2009 Investor Optimism

Source: Bloomberg - All Podcasts | 24 Dec 2008 | 12:03 am

News Corp to underwrite €450 million rescue of Premiere

News Corporation, parent company of The Times, could end up in control of Premiere, the German pay-television operator, after it agreed to underwrite a €450 million (£426 million) rescue.
Source: Latest Business News from Times Online | 24 Dec 2008 | 12:00 am

Meyer Says Fed Has `Unlimited' Funds to Purchase Assets

Source: Bloomberg - All Podcasts | 23 Dec 2008 | 11:55 pm

Madoff Scheme’s Size ‘Almost Unfathomable,’ Author Zuckoff Says

Source: Bloomberg - All Podcasts | 23 Dec 2008 | 11:53 pm

CBA buys A$4b in Wizard loans

Commonwealth Bank of Australia says it will acquire up to A$4 billion of the loan book of Wizard Home Loans. The acquisition of "prime mortgages" was in conjunction with the purchase by Aussie Home Loans of the Wizard brand and...
Source: New Zealand Herald - Business | 23 Dec 2008 | 11:45 pm

Report reaffirms Obama's office in the clear

President-elect Barack Obama's aides had no inappropriate contact with Rod Blagojevich, the Illinois governor accused of trying to sell the Illinois Senate seat vacated by Mr Obama, according to an internal transition report
Source: Financial Times - US homepage | 23 Dec 2008 | 10:59 pm

Commission okays Fonterra's 'tactical' payments policy

The payment of higher prices to farmers being courted by rivals by Fonterra has got a thumbs up from the New Zealand competition regulator. Tactical pricing by Fonterra was a legitimate response to vigorous competition from new...
Source: New Zealand Herald - Business | 23 Dec 2008 | 10:45 pm

NZ stocks: Sharemarket edges down early

The New Zealand sharemarket edged down in early trading, despite a good start to Christmas Eve by several stocks. Hellaby Holdings was up 10c, or 8.3 per cent, early to 130, Mainfreight added 5c to 460, Nuplex added 7c to 295,...
Source: New Zealand Herald - Business | 23 Dec 2008 | 10:35 pm

Madoff investor found dead in office

The founder of an investment fund that lost millions with Bernard Madoff was today found dead at his Manhattan office after a possible suicide, authorities said. Authorities found the body of Rene-Thierry Magon de la Villehuchet...
Source: New Zealand Herald - Business | 23 Dec 2008 | 10:15 pm

Llewellyn Sees Worst Global Recession Since World War II

Source: Bloomberg - All Podcasts | 23 Dec 2008 | 10:11 pm

Fannie, Freddie agree to new appraisal guidelines (Reuters)

Reuters - Fannie Mae and Freddie Mac have agreed on a revised code of conduct that aims to improve the reliability of appraisals on mortgage loans purchased by the two home funding companies, their regulator said on Tuesday.

Source: Yahoo! News: Business | 23 Dec 2008 | 9:53 pm

Criminal charges for 9 finance firm chiefs

Nine directors of failed finance companies Bridgecorp and Nathans Finance face having to pay $500,000 each in compensation to investors if new court action is successful. They also face a maximum of five years in prison or fines...
Source: New Zealand Herald - Business | 23 Dec 2008 | 9:00 pm

Down The Tracks

Folks, there's no Planet Money podcast today. We'll be back with a fresh episode on Monday.

But we do have a Planet Money indicator for you: 10. That's the number of days until the Citigroup Center's annual holiday train-a-palooza in Manhattan shuts down for good. Citigroup is in the middle of a mammoth round of cost-cutting. Depending on which employees you're talking about, the train show was worth at least a couple of salaries. Bloomberg does the numbers like this: a $45 billion government bailout and 52,000 layoffs planned at the bank, and a $240,000 savings by cutting the train show.

The exhibit has been a favorite of New York City schoolchildren, including mine. My family went to the show today, returning with the picture above and the video here. The audio's not great, but the announcer is saying, in part, that Citigroup's "situation has precluded" its sponsoring the exhibit next year.

Happy holidays. We'll catch you next week.

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Source: NPR Blogs: Planet Money | 23 Dec 2008 | 8:46 pm

BlackRock's Doll Says 2009 to Be `Year of Repair' for Stocks

Source: Bloomberg - All Podcasts | 23 Dec 2008 | 8:38 pm

Belgian Gov't Resigns

The great mess of 2008 claims another victim. From the Financial Times: Financial crisis fells Belgian government. First sentence:

The Belgian government on Monday night became the first national administration to fall as a direct result of events linked to the global financial crisis.

Prime Minister Yves Leterme's government coalition told King Albert ll it was resigning after accusations that his side tried to influence a court ruling against the dismantling of the Fortis financial services group. Leterme has denied any wrong doing.

"Everybody had said that he showed himself to be a true leader and a confident leader in dealing with the financial crisis," one commenter told Forbes. "He knew that and he tried to show people that he could manage a crisis. Maybe he tried too much, and tried to use too much influence, to prove it."

Leterme won the general election in the summer of 2007, then struggled to put together a coalition to actually govern. Now the king has asked former Premier Wilfried Martens to broker a deal for a new government.

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Source: NPR Blogs: Planet Money | 23 Dec 2008 | 8:36 pm

Sununu Says Auto Bailout Needs Better Defined Requirements

Source: Bloomberg - All Podcasts | 23 Dec 2008 | 8:31 pm

Iceland gives Christmas frosty reception

Some 2,500 people have applied for Christmas relief packages from charities as growing numbers lose their jobs in the wake of Iceland's banking collapse
Source: Financial Times - US homepage | 23 Dec 2008 | 8:14 pm

Oil continues to tumble: now below US$38

Oil prices tumbled below US$38 a barrel this morning (NZT) on fresh evidence of weakness in the US housing market and a shrinking gross domestic product that suggests the recession may be worsening. A report by the Commerce Department...
Source: New Zealand Herald - Business | 23 Dec 2008 | 8:10 pm

Cocoa hits 23-year high on supply fears

Speculative investors poured into the cocoa market amid concerns about dwindling supplies from Ivory Coast, the world's largest producer
Source: Financial Times - US homepage | 23 Dec 2008 | 8:06 pm

US economy likely to 'get worse before it gets better'

WASHINGTON - As the longest recession in a quarter century intensifies, analysts believe the small decline in US economic activity in the third quarter has worsened significantly in the current fourth quarter. The Commerce Department...
Source: New Zealand Herald - Business | 23 Dec 2008 | 8:00 pm

NZ halfway through downturn, say economists

The recession deepened in the three months to September, as demand evaporated in every major sector of the economy except the Government, and economists predict worse to come. Gross domestic product fell 0.4 per cent in the quarter,...
Source: New Zealand Herald - Business | 23 Dec 2008 | 8:00 pm

Weather Vs. The Economy?

An accidental rodeo.

The video above is from 2007, but you get the idea. Snow, especially in a city like Portland, Ore., can send the whole world sliding. It's maybe not so great for the economy, either.

Mitch writes:

Here in Portland, Oregon, all the shops downtown are closed. Every authority is saying not to drive unless absolutely necessary, and people are obeying. And things in the Northwest aren't nearly as bad as in the Midwest and Northeast. I don't know about other places, but last weekend was pretty bad here, too. Given that we only had four weekends between Thanksgiving and Christmas this year, how bad is it to have any of those weekends ruined by weather like this?

After the jump, an anecdotal answer from another listener in Portland, plus a links kit courtesy of Oregonian reporter Amy Hsuan.

First, the anecdotal. Ryan writes:

I have several friends who are small business owners in retail and services industries who were already feeling the economic crunch, and are now absolutely customerless in what is normally their biggest two weeks of the year. It will be interesting to how many layoffs and closures take place as a result of this citywide shutdown. Is it just me or does the weather get really nasty during times of economic strife? (Dust bowl drought etc..)

And now for the links from Amy Hsuan, who covers business. She says it seems as if many Portlanders have turned to shopping online, which suggests they're spending holiday money from home and might not go storming into stores if the weather finally breaks.

Sell tire chains? Great. Jewelry? Uh-uh/ Retailers keep going through snow and ice Weather outside is frightful -- especially for retailers

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Source: NPR Blogs: Planet Money | 23 Dec 2008 | 7:52 pm

Shopping In Denmark

Never mind the empty malls of California. Ben Hall sends these photos from Copenhagen's main shopping drag. He writes:

Even though the Danes are dealing with their own version of the crisis, they have a bank bailout plan, and housing is in decline, it looked like a lot of people were buying. Things are extremely expensive here, too.

He's got a point. Just today, Reuters reports, Denmark became the first European country to declare it's in a recession since the crisis began this fall. You wouldn't know it from the photo after the jump, where you can eye a $120 lampshade that you get to assemble at home.

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Source: NPR Blogs: Planet Money | 23 Dec 2008 | 7:42 pm

AIG moves closer to selling Filipino unit

The stricken US insurer has moved a step closer to selling its Philippine unit, believed to be worth up to $1bn, after releasing a detailed information memorandum to potential buyers
Source: Financial Times - US homepage | 23 Dec 2008 | 7:35 pm

News Corp seeks waiver on Premiere injection

The head of the German pay-TV channel said a waiver was 'critical' for the group's survival as it would not be able to raise €450m in equity and banks would cancel credit lines worth €525m
Source: Financial Times - US homepage | 23 Dec 2008 | 7:12 pm

What Mahindra Tractors Taught Me About Uncertainty

I generally ignore Google AdWords ads, but this one caught my eye:

Life of a Farm Blog - blog.mahindrausa.com - Follow the stories of a guy with 3 kids, a red tractor and 170 acres

Mahindra & Mahindra is an Indian automaker. At first, it baffled me that they would be using this guy’s blog to advertise themselves. They make Indian cars; he’s about as all-American as they come:

Joel Combs – 32 years old, live on and farm 170 acres in Pine Knot, Kentucky USA. Gateway to the Big South Fork NRRA. I have 3 children, ages 5, 7 and 9, and I work as a Machine Operator for Kingsford Charcoal in Burnside, KY. I’m a 5-year member of LIUNA local 576, and my hobbies include hunting, fishing, boating, cars, barbecuing, and most all things outdoors.

I suppose I assumed, naively, that domestic farm equipment was static, by default the domain of American and Japanese manufacturers. Linking back to Mahindra’s homepage, I found out that they not only sponsor NASCAR, but have a relationship with US farms going back to World War II.

Mahindra & Mahindra…was in 1945 was selected to assemble the famous Willys Jeep. In 1963, M&M formed a joint venture with International Harvester to manufacture tractors carrying the Mahindra nameplate for the Indian market. More recently, a joint venture between M&M and Ford Motor Company in 1995 created new opportunities for growth in the world vehicle market. A short time later, the European model of the Ford Escort began rolling off the Mahindra assembly lines.

The company has two assembly and distribution centers in the United States. My surprise about M&Ms US presence has roots in a college education that taught a now-primitive form of globalization. Business classes centered around American, European and Japanese companies as primary, and everyone else as peripheral. Over time, I formed an image of the US tractor industry as a classic, impenetrable one. Farmers would always use brands from the States, Europe, or Japan, period. It was a safe haven from change, solid, predictable.

M&M, which has historically been involved with the US and has been part of the Indian tractor industry’s wild recent growth, invaded my professor-approved paradigm. The tractor industry wasn’t the solid thing I had pictured it to be. Nobody ever taught us about M&M, or Indian tractors, or historical joint ventures with the same. I had to reconstruct my tractor safe haven after discovering Mr. Combs’ blog. The tractor industry suddenly went from predictable domestic fossil to a thorny land of new entrants and global players. I don’t necessarily believe the latter claim to be true, but that’s what triggered uncertainty in my mind.

The tractor industry wasn’t something I ever wanted to question. I wanted it to stay the same, to remain safe. I imagine this is how many people feel about American, or even Western, industry in general. Paradigm shifts are painful. They induce uncertainty. Nothing is impenetrable or immune. No business holds that sacred, predictable (admittedly ethnocentric) space that I thought the tractor industry occupied. Industries evade their old, seemingly solid definitions. Even the artifices of daily life–the grocery store, the gas station, the restaurant–are beholden to skyrocketing prices, and thus uncertain.

What business feels safe anymore? Predictable?

Source: Business Pundit | 23 Dec 2008 | 6:16 pm

An Alternate Auto Bailout

Keith writes:

Instead of giving the auto companies money, why not just say everyone who buys a US car within some period of time, you will be able write the car off your taxes over the next 3 years. This would cause demand.

Your thoughts welcome in the comments, please. Mine: A tax break might stimulate demand, but there are other big problems -- starting with a lack of consumer credit and continuing with the rise in unemployment. If you don't have work, you don't usually buy a new car, tax break or no.

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Source: NPR Blogs: Planet Money | 23 Dec 2008 | 6:07 pm

Letters: Auto industry and philanthropy

Listeners respond to the auto industry news that has dominated the headlines recently and also weigh in on philanthropy trends.
Source: Marketplace | 23 Dec 2008 | 6:01 pm

New York couple has different worries

Sarah and Brian Epstein are in good financial shape. For that, they're grateful. But as Sally Herships reports, having money in this financial climate doesn't mean the Epsteins don't have worries of their own.
Source: Marketplace | 23 Dec 2008 | 6:01 pm

Legal aid funding on the decline

Lowering interest rates is supposed to help boost the economy. But it's also jeopardizing funding for legal aid groups that provide free services to the poor. Jeff Tyler reports on how this is affecting the growing number of people who seek legal aid help.
Source: Marketplace | 23 Dec 2008 | 6:00 pm

Oh, Christmas Tree

Andrew writes from central Wisconsin:

I have worked over my college winter break for three years at the same Christmas tree farm, and this is the first year that I have been told that the owner simple doesnt have enough business for her to hire me. I worked for a couple weeks making wreaths, but after the wreath sales peaked in early December, there werent enough trees being sold to justify having my brother and me work.

In addition to realizing that I am now part of the underemployed, I noticed something else that was different this year from others. We couldnt sell any trees over 8 feet from our lot! We sell both pre-cut and cut-your-own trees, and virtually everyone buying a tree from the lot was looking for a 6-7 foot tree. This caused us to have to cut the bottoms off of some 8-10 foot trees in order to sell them. Because we charge by the foot, this was sacrificing value in order to liquidate stock, perhaps an interesting parallel to selling assets at a loss in the broader economy. Happy holidays, and keep buying tall trees if you can afford to!

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Source: NPR Blogs: Planet Money | 23 Dec 2008 | 6:00 pm

What if the Big 3 declared bankruptcy?

Christmas came early for the Big 3 when the White House announced it would bail out the troubled automakers. But how would bankruptcy compare to the government rescue? Tess Vigeland speaks with bankruptcy expert Douglas Baird.
Source: Marketplace | 23 Dec 2008 | 5:59 pm

Colombia wants share of Starbucks

Starbucks hasn't had it so easy lately. The coffee giant recently announced it's closing 600 stores and its stock prices are down. Now, coffee growers from Colombia are after the espresso king. Dan Grech reports.
Source: Marketplace | 23 Dec 2008 | 5:58 pm

Portland retailers stuck in the cold

It's been a dismal holiday season for retailers. Consumer spending is down, and the bad weather isn't helping matters. Mitchell Hartman reports on how business owners in Portland are coping with a chilly holiday shopping season.
Source: Marketplace | 23 Dec 2008 | 5:57 pm

Company Makes Money

This wouldn't be big news in ordinary times, but let's go ahead and count it in now. Thanks to Twitter listener @samfw for forwarding this:

Red Hat Advances After Profit Forecast Tops Estimates

Red Hat, which sells Linux software, has announced it will make a profit that amounts to 19 or 20 cents a share. That's a couple of cents more than analysts expected. Why the happy returns? Linux is open source, meaning it uses code that people create and then turn loose for others to use. That makes it relatively cheap.

"A down economic time is relatively good for our business," CEO James Whitehurst told Bloomberg.

Bonus, from @aimeesblog: Really, really angry people in Iceland

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Source: NPR Blogs: Planet Money | 23 Dec 2008 | 5:29 pm

Quote Of The Day

While I'm in the mood for hometown news, here's a bit from the Memphis Commercial Appeal. The paper has been following news that a nearby Toyota plant, to be built outside Tupelo, Miss., is now on ice indefinitely. The quote:

"You can't ask a company to build cars they can't sell," said Randy Kelley of Pontotoc, executive director of the Three Rivers Planning and Development District.

(Thanks, @memphisnews.)

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Source: NPR Blogs: Planet Money | 23 Dec 2008 | 4:51 pm

Rabobank's Stretch Says Dollar to `Gain Traction' Again in 2009

Source: Bloomberg - All Podcasts | 23 Dec 2008 | 4:44 pm

Hometown Wins. Who Loses?

Several men in my family spent at least part of their working lives making tires in what was then the Penn Tire plant, in Tupelo, Miss. My father credits a summer spent pushing cartloads of hot tires for his decision to go to college.

That same plant now employs 1,200 people and is owned by a different company, Cooper Tire. This month, the Tupelo plant escaped with its life. Thanks to a decision from headquarters in Findlay, Ohio, its 1,200 workers will not have to spend the holidays looking into unemployment benefits.

Whatever ancestral impulse I have to cheer at the saving of a $100 million local payroll is tempered by the news from another Cooper Tire plant, in Albany, Ga.

In October, company officials told workers Cooper's four plants that a major cut was coming. The Albany Herald reports that union workers in Findlay voted to take a pay cut. In Texarkana, Ark., the union ditched its current contract for that froze salaries and made other concessions. Officials in Ohio, Arkansas and Mississippi opened their coffers for incentives to get Cooper to stay. In Mississippi, officials offered $30 million in perks. Georgia offered $32 million -- and still lost.

If you want to see a whole town cry, check out the Albany Herald's homepage.

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Source: NPR Blogs: Planet Money | 23 Dec 2008 | 4:37 pm

Holiday Gift: New Numbers

Fresh data this morning. Oh, boy. Plus general news:

Sales of new and existing homes plummet in November/ Recession slows migration to U.S./ World economies limp to Christmas/ Foreign automakers in U.S. cut back/ Toyota freezes new plant construction in Tupelo, Miss.

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Source: NPR Blogs: Planet Money | 23 Dec 2008 | 4:03 pm

SocGen's Hilliard Discusses Foreclosures, New Home Sales

Source: Bloomberg - All Podcasts | 23 Dec 2008 | 3:50 pm

Homes Sick

The slumping housing market cannot find a floor: It is now burrowing into a previously unknown subbasement.

Economic data show how sick the market is. Sales of existing homes tumbled 8.6 percent in November, to an annual rate of 4.5 million homes, according to the National Association of Realtors. It was a steeper fall than expected and the sharpest decline on record.

The median sales price of a home fell 13.2 percent over the last 12 months, to $181,300. That is the biggest price decline since the trade group began collecting data in 1968.

Sales of new homes sank 2.9 percent in November, to an annual rate of 407,000, the Commerce Department said. It was also a weaker report than expected. The median price of a new home fell 11.5 percent, to $220,400 in November.

Foreclosures are swelling a glut of homes on the market. Despite new lows in mortgage interest rates, the weak economy and fears about the job market are limiting any buying. The N.A.R. report says that there is now 11.2 months' worth of homes on the market.

The oversupply and the slide in prices means that we have a long way to go before the market adjusts. Falling prices mean that millions more homes will be worth less than the value of the mortgages on them. These homeowners will have to decide whether to continue, in essence, throwing money away to keep to their contract. Others will have lost their jobs and can no longer afford their mortgages. Even more houses will come on the market as result.

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Source: Portfolio.com: Top 5 | 23 Dec 2008 | 2:30 pm