US job losses hit record in 2008

More US workers lost jobs last year than in any year since World War II, with employers axing 2.6 million jobs.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 1:56 pm

Korea's Ssangyong files for court receivership

Ssangyong Motor Co. files for court receivership to avoid liquidation and seek time to return to profitability, as the Korean auto maker’s top executives resign.

Source: MarketWatch.com - Top Stories | 9 Jan 2009 | 1:56 pm

KB Home reports quarterly loss

NEW YORK (Reuters) - Builder KB Home posted a quarterly loss on Friday, citing unprecedented pressures on the industry and the economy, and said conditions in 2009 would remain difficult or worsen.
Source: Reuters: Business News | 9 Jan 2009 | 1:54 pm

Economy loses 524,000 jobs in December

WASHINGTON (Reuters) - Employers slashed payrolls by 524,000 in December, driving the unemployment rate to its highest level in almost 16 years, a government report showed on Friday, suggesting that the year-long recession was deepening.
Source: Reuters: Business News | 9 Jan 2009 | 1:52 pm

Wall Street reacts to jobs report

Wall Street prepared Friday for a report expected to show another huge decline in jobs, with stocks headed for a lower open.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 1:51 pm

US sees biggest annual job loss since 1945

The US economy's loss of more than a half million jobs in the past month, revealed in official figures offered the starkest evidence yet of the depth of the financial crisis.
Source: Financial Times - US homepage | 9 Jan 2009 | 1:49 pm

Economic Report: Carnage continues with 524,000 jobs lost in December

The U.S. economy lost 524,000 jobs in December, closing out the worst year for job losses since World War II, the Labor Department says.

Source: MarketWatch.com - Top Stories | 9 Jan 2009 | 1:49 pm

Before the Bell: Merck, Chevron, Best Buy, jobs data in focus

Stock market futures edged higher after data showing that the U.S. economy lost 524,000 jobs in December was still better than the most pessimistic forecasts.

Source: MarketWatch.com - Top Stories | 9 Jan 2009 | 1:47 pm

Stocks turn higher on monthly jobs report (AP)

AP - Investors are showing relief following the government report that the economy lost fewer jobs than feared last month.

Source: Yahoo! News: Stock Markets News | 9 Jan 2009 | 1:46 pm

7.2% Unemployment Will Only Get Worse From Here

Source: 24/7 Wall St. | 9 Jan 2009 | 1:46 pm

Stock futures turn higher after jobs data (Reuters)

Reuters - Stock index futures briefly turned higher on Friday following a government report that showed U.S. employers slashed payrolls in December but by less than expected.

Source: Yahoo! News: Business | 9 Jan 2009 | 1:46 pm

Stock futures turn higher after jobs data (Reuters)

Reuters - Stock index futures briefly turned higher on Friday following a government report that showed U.S. employers slashed payrolls in December but by less than expected.

Source: Yahoo! News: Stock Markets News | 9 Jan 2009 | 1:46 pm

Stock futures turn higher after jobs data

NEW YORK (Reuters) - Stock index futures briefly turned higher on Friday following a government report that showed U.S. employers slashed payrolls in December but by less than expected.
Source: Reuters: Business News | 9 Jan 2009 | 1:46 pm

Total 2008 job loss: 2.6 million

Yet another sobering government labor report released Friday showed the economy lost 524,000 jobs in December, bringing 2008's total job loss to 2.6 million.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 1:43 pm

Economy loses 524,000 jobs in December (Reuters)

Reuters - Employers slashed payrolls by 524,000 in December, driving the unemployment rate to its highest level in almost 16 years, a government report showed on Friday, suggesting that the year-long recession was deepening.

Source: Yahoo! News: Business | 9 Jan 2009 | 1:40 pm

Dollar edges higher after jobs data

The dollar edged higher against the euro on Friday after US jobs data came in better than some observers had feared.
Source: Financial Times - US homepage | 9 Jan 2009 | 1:40 pm

Best Buy narrows full-year profit forecast (Reuters)

Reuters - Best Buy Co , the top consumer electronics retailer, narrowed its full-year profit forecast on Friday after posting a 6.5 percent drop in December same-store sales during the worst U.S. holiday shopping season in nearly 40 years.
Source: Yahoo! News: Business | 9 Jan 2009 | 1:39 pm

Best Buy narrows full-year profit forecast

ATLANTA (Reuters) - Best Buy Co , the top consumer electronics retailer, narrowed its full-year profit forecast on Friday after posting a 6.5 percent drop in December same-store sales during the worst U.S. holiday shopping season in nearly 40 years.
Source: Reuters: Business News | 9 Jan 2009 | 1:39 pm

Best Buy narrows full-year profit forecast

ATLANTA (Reuters) - Best Buy Co , the top consumer electronics retailer, narrowed its full-year profit forecast on Friday after posting a 6.5 percent drop in December same-store sales...
Source: RSS feed - channel BNewsBusiness | 9 Jan 2009 | 1:39 pm

Russia, Ukraine inch closer to resolving gas deal

MADRID (MarketWatch) -- The CEO of Russia's state-controlled Gazprom said Friday his company would allow international monitors to keep track of pipeline shipments of natural gas leaving Russian territory and entering Ukraine.

Source: MarketWatch.com - Top Stories | 9 Jan 2009 | 1:37 pm

Indications: U.S. stock futures turn higher after jobs report

U.S. stock futures turn higher on Friday as a government report that 524,000 jobs were shed last month wasn’t quite as bad as the most pessimistic estimates that were in the market.

Source: MarketWatch.com - Top Stories | 9 Jan 2009 | 1:37 pm

The Horrible Jobs Report May Save The Economy

Source: 24/7 Wall St. | 9 Jan 2009 | 1:35 pm

Earnings Watch: Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.

Source: MarketWatch.com - Top Stories | 9 Jan 2009 | 1:31 pm

South Korean auto makers take credit crisis action

TOKYO/SEOUL (Reuters) - Two South Korean auto makers on Friday joined the industry line up of companies suffering in the global financial crisis, with Hyundai Motor Co slashing output and Ssangyong filing for bankruptcy protection.
Source: Reuters: Business News | 9 Jan 2009 | 1:25 pm

KB Home & Dr. Pangloss (KBH)

Source: 24/7 Wall St. | 9 Jan 2009 | 1:25 pm

Oil slips towards $41 before U.S. unemployment data

LONDON (Reuters) - Oil prices slipped toward $41 a barrel on Friday as economic gloom deepened ahead of data expected to show a big jump in U.S. unemployment.
Source: Reuters: Business News | 9 Jan 2009 | 1:23 pm

Panasonic bets boldly on flat screens

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 1:17 pm

Best Buy (BBY) Craters, Market Yawns

No one is his right mind is likely to be happy with the Best Buy (BBY) numbers for December. Same-store sales dropped 6.5%. Sales rose a modest 4% to $7.5 billion.

The figures were an example of just how bad the retail environment is.Best Buy is considered on of the best run chains in America.

BBY's US-based operations generated $5.9 billion in revenue for fiscal December, which was nearly unchanged compared with last year’s period.. Unlike Wal-Mart (WMT), Best Buy did well overseas. The company’s international segment increased its fiscal December revenue by 29 percent to $1.6 billion.

Even though the numbers were bad, the market must have expected worse. BBY shares were up a fraction to $29.90 in pre-market trading.

Douglas A. McIntyre

Source: 24/7 Wall St. | 9 Jan 2009 | 1:14 pm

KB Home misses expectations

(Reuters) - KB Home on Friday reported a fourth-quarter loss of $3.96 a share.
Source: RSS feed - channel BNewsBusiness | 9 Jan 2009 | 1:13 pm

Mortgage help gains momentum

There are many ways to spend $800 billion to revive the economy. In recent days, President-elect Barack Obama has ticked off many of them: invest in infrastructure projects, help states pay for Medicaid, cut taxes on the middle class, expand use of renewable energy.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 1:08 pm

Wall Street: The Bright Side of a Bad 2008 (BusinessWeek Online)

BusinessWeek Online - Last year was that rare wrinkle in history when everything that could go wrong did go wrong. Stocks and real estate imploded. Bank failures abounded. Fannie Mae, Freddie Mac, and AIG became wards of the state, while the Federal Reserve had to double its balance sheet in the course of a few weeks.
Source: Yahoo! News: Business | 9 Jan 2009 | 1:08 pm

Ford Shelby: What's new from Detroit

An industry in crisis rolls out its latest weapons as some of the industry's biggest names fight for survival.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 1:08 pm

The Fed's plan for business loans

The government's first step toward thawing the frozen market for small business loans will take effect next month, in a behind-the-scenes move to unlock the capital some banks rely on to finance their small business lending.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 1:06 pm

A kick start or permanent New Deal?

Two groups that don't always get along, organized business and organized labor, have something in common today. They like what they see in President-elect Obama's economic recovery package.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 12:59 pm

UBS closing U.S. clients' offshore accounts

ZURICH (Reuters) - Swiss wealth manager UBS AG is closing all the offshore accounts of its U.S. clients, the bank said on Friday, as it comes under pressure from U.S. tax authorities.
Source: Reuters: Business News | 9 Jan 2009 | 12:59 pm

Indian firms may disclose new losses: analyst

Investors should brace themselves for disclosures of losses by Indian firms as companies tally the damage of the financial meltdown under heightened scrutiny following revelations of the more than $1 billion fraud at Satyam Computer Services, according to analysts.

Source: MarketWatch.com - Top Stories | 9 Jan 2009 | 12:55 pm

EU monitors arrive in Kiev to help end gas cutoff

The EU says its officials have arrived in Kiev on a mission to help restore Russian natural gas supplies to Europe. A European Commission statement says the EU monitoring team will begin
Source: RSS feed - channel BNewsBusiness | 9 Jan 2009 | 12:54 pm

Citi backs anti-foreclosure plan

Citigroup reached an agreement with Democratic lawmakers Monday on legislation that would allow judges to reduce mortgage debt for individuals who have filed for bankruptcy.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 12:49 pm

Shares in fraud-hit Indian IT firm Satyam mauled (AFP)

AFP - Shares in fraud-hit Indian outsourcing giant Satyam Computers plunged again Friday, as investors dumped the stock and the markets regulator served a summons on the company's disgraced former chairman.

Source: Yahoo! News: Stock Markets News | 9 Jan 2009 | 12:48 pm

R. R. Donnelley cuts 2008 forecast, witholds future outlooks

R. R. Donnelley & Sons cut its 2008 earnings guidance on Friday because of the uncertainty in the global economy, and says it won’t provide any guidance for 2009.

Source: MarketWatch.com - Top Stories | 9 Jan 2009 | 12:41 pm

US STOCKS-Futures dip before payrolls; Chevron warns

NEW YORK, Jan 9 (Reuters) - U.S. stock index futures fell on Friday on investor unease ahead of government data expected to show that more than half a million jobs disappeared in December as recession...
Source: RSS feed - channel BNewsBusiness | 9 Jan 2009 | 12:39 pm

NYSE Euronext, LSE reveal mixed trading volumes

Exchange operators NYSE Euronext and the London Stock Exchange both provide updates on trading volumes Friday, revealing a sharp slowdown on the London market in December and lower activity in derivatives trading across Europe and the U.S.

Source: MarketWatch.com - Top Stories | 9 Jan 2009 | 12:33 pm

Material Sciences Announces Third Quarter Fiscal 2009 Results

- Third Quarter 2009 Net Sales Decreased as North American Automotive Market Experienced Record Declines - Quiet Steel(R) to be Prominent at North American International Auto Show
Source: RSS feed - channel BNewsBusiness | 9 Jan 2009 | 12:30 pm

Alliance Data Schedules Fourth-Quarter and Full-Year Earnings Conference Call for February 4, 2009

DALLAS, Jan. 9 /PRNewswire-FirstCall/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data,...
Source: RSS feed - channel BNewsBusiness | 9 Jan 2009 | 12:30 pm

FTSE 100 down 28.63 at 4,476.74

Share prices on the London Stock Exchange were lower at midday Friday. At midday, the FTSE 100-share index was down 28.63 points at 4,476.74.
Source: RSS feed - channel BNewsBusiness | 9 Jan 2009 | 12:28 pm

FTSE 100 down 28.63 at 4,476.74 (AP)

AP - Share prices on the London Stock Exchange were lower at midday Friday.
Source: Yahoo! News: Stock Markets News | 9 Jan 2009 | 12:28 pm

GM, Chrysler's federal loan deals bar strikes

Provisions of General Motors' and Chrysler's $17.4 billion in federal loans automatically places them in default if union workers go on strike. A General Motors Corp. filing this week...
Source: RSS feed - channel BNewsBusiness | 9 Jan 2009 | 12:27 pm

Top Pre-Market Analyst Upgrades (MDRX, BDX, ED, CRXL, CSX, RTN, SGR, SNN)

These are the early bird upgrades and positive analyst calls we have seen from Wall Street this Friday morning:

• Allscripts-Misys (NASDAQ: MDRX) Raised to Outperform at William Blair.
• Becton Dickinson (NYSE: BDX) Raised to Overweight at Morgan Stanley.
• Consolidated Edison (NYSE: ED) Raised to Buy at Citigroup.
• Crucell (NASDAQ: CRXL) Raised to Buy at RBS.
• CSX (NYSE: CSX) Raised to Buy at Deutsche Bank.
• Raytheon (NYSE: RTN) Raised to Buy at Goldman Sachs.
• Shaw Group (NYSE: SGR) Cut to Hold at Citigroup.
• Smith & Nephew (NYSE: SNN) Raised to Neutral at JPMorgan.

Jon C. Ogg
January 9, 2009

Source: 24/7 Wall St. | 9 Jan 2009 | 12:23 pm

UK manufacturing declines sharply

UK manufacturing output falls at its fastest pace since 1981 in November, underlining the weak state of the economy.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 12:21 pm

Indian shares rattled by scandal

India's main share index falls to a one-month low on fears that an accounting scandal may prompt foreign investors to withdraw funds.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 12:18 pm

Dollar mostly lower ahead of U.S. payrolls data

The U.S. dollar is mixed against major currencies ahead of the U.S. December nonfarm payrolls report.

Source: MarketWatch.com - Top Stories | 9 Jan 2009 | 12:18 pm

Top Pre-Market Analyst Downgrades (ALU, BRLI, GPS, GD, PCK, PSO, PAS, PTR, PKX, RTP, COL, WXS)

Source: 24/7 Wall St. | 9 Jan 2009 | 12:17 pm

Dollar drops ahead of US job figures

The dollar fell against the euro and yen on Friday as the market readied for key US jobs data, traders said. In late morning trading here, the European single currency rose to 1.3720...
Source: RSS feed - channel BNewsBusiness | 9 Jan 2009 | 12:12 pm

BMW sales down but Mini sales up

Consumer unease causes BMW group sales to fall 4.3% in 2008, despite rising sales from its Mini and Rolls-Royce marques.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 12:09 pm

Democrats attack Obama on economy

US President-elect Barack Obama's economic stimulus plan runs into opposition from within his own party.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 12:03 pm

The case for doing nothing

Congress will soon debate what kind of economic stimulus package should be passed, but some economists are increasingly wondering whether it's a good idea to approve any stimulus at all.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 12:02 pm

Author Solutions Acquires Self Publisher Xlibris

Self-Publishing Powerhouse Strengthens Industry Leadership; ASI's Library Now Includes Nearly 100,000 Titles from more than 70,000 Authors BLOOMINGTON, Ind.,...
Source: RSS feed - channel BNewsBusiness | 9 Jan 2009 | 12:00 pm

Why Madoff Doesn't Matter

A rough count would show that something like a quarter of the business coverage at most financial websites and in the financial sections of newspapers is devoted to the Bernie Madoff matter. The old man did walk off with what is said to be $50 billion of other people's money. It is endlessly fascinating to figure out how it was done and why it went undetected for so long.

It would be difficult to find something more pleasurable that excoriating the public officials who did not catch on to Madoff's activities even though a number of people questioned his methods long ago.

Looked at beside the overall problems in the economy here and overseas, the Madoff scandal will be nothing more than a footnote as time passes. Obviously, hundreds of people lost everything. Scores of institutions, including worthy charities, were shut down. In the meantime, the mad genius has been sending jewelry to relatives and hiding money in Swiss bank accounts.

The obsession with Madoff may be due to the fact that people want something to distract them from the daily horror of economic news. If they glance beyond the headlines about firms in Chapter 11 and job cuts and move to the juicy stories about how a single man was able to dupe both the government and sophisticated investors, the readers may have a few minutes of fun reading about the details of the scandal.

But, the Madoff news is growing old already. Little more can be said. At some point officials may find some of his money or his accomplices. It may come out that another billionaire who invested with him lost everything.

When Madoff was first caught, there was still some glimmer of optimism that a recession would be relatively mild and would end at mid-year. Housing would recover around that time. The unemployment rate might stay below 7%. The government stimulus package and TARP might do their work quickly.

None of those hopes are realistic anymore. They disappeared in a matter of weeks. The fight to keep the US out of the first period of economic depression in over eight decades has moved to the center of the stage.

Madoff does not matter. He never did.

Douglas A. McIntyre

Source: 24/7 Wall St. | 9 Jan 2009 | 11:55 am

Deal in sight to end to gas crisis

Gazprom, Russia's state-controlled gas monopoly said a deal to monitor gas exports via Ukraine would be signed on Friday, allowing for the resumption of supplies to Europe cut off by Moscow's price row with Kiev
Source: Financial Times - US homepage | 9 Jan 2009 | 11:51 am

Panasonic restructures as crisis bites

TOKYO (Reuters) - Japanese electronics maker Panasonic Corp will cut its investment in two new flat-screen TV plants by about $1.5 billion and exit unprofitable businesses as the global economic slump slices into its profits.
Source: Reuters: Business News | 9 Jan 2009 | 11:48 am

European shares extend losses (AFP)

AFP - Europe's main stock markets on Friday extended recent losses as traders reacted to more negative economic news from around the globe while awaiting key US jobs data.

Source: Yahoo! News: Stock Markets News | 9 Jan 2009 | 11:47 am

World markets brace for US jobs news (AP)

AP - World stock markets fell modestly Friday as investors braced themselves for the U.S. jobs report for December, which many fear could be one of the worst ever.

Source: Yahoo! News: Stock Markets News | 9 Jan 2009 | 11:44 am

Aldi moves into holiday market

Cut-price supermarket Aldi begins to offer holidays, during the travel industry's busiest week of the year.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 11:44 am

Gas expected to start flowing in Europe

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 11:38 am

Posted Without Comment: Microsoft (MSFT) Wants Yahoo! (YHOO) Deal

According to the FT, "Steve Ballmer, Microsoft’s chief executive officer, has increased the pressure on Yahoo to hand over control of its search business to his software company."

And: "The best time for a search pact between the companies was during the current management transition at both companies, Mr Ballmer said."

“We now have someone in place running our online business, and Yahoo’s out looking for a CEO."

Douglas A. McIntyre

Source: 24/7 Wall St. | 9 Jan 2009 | 11:32 am

Manufacturing falls at fastest rate since 1981

Manufacturing output in the UK fell by a worse-than-expected 2.9 per cent in November, showing its sharpest decline in nearly 30 years, according to official figures published this morning.
Source: Latest Business News from Times Online | 9 Jan 2009 | 11:30 am

Keeping The UAW Off The Picket Lines

In the game of chess over how Detroit can be saved, one of the moves has been to try to keep the UAW from striking. A strike could end any chance that GM (GM) and Chrysler could restructure before their government loans run out around the end of March.

From the UAW's standpoint, the chance it might strike is its only real leverage in a process which aims to cut thousands of its member's jobs and take away a number of benefits.

The government has set up a system to keep the UAW in a corner.

According to the AP, "Newspaper reports say General Motors Corp. and Chrysler LLC would be in default of their multi-billion dollar federal bailouts if their workers go on strike and could be forced into bankruptcy."

The possibility of default creates a Mexican stand-off which probably will not prevent a walk-out. The UAW has a great deal to lose by giving in to demands that should bear much of the cost of "saving" Detroit. It has little to lose by leaving the bargaining table if it is pushed too hard.

The government's threat of shoving GM and Chrysler into bankruptcy over a labor stoppage is empty. The economy is now so troubled that the new Administration and Congress cannot risk a serial failure of US auto firms which by some estimates could leave more than one million people out of work. Even the $750 billion stimulus package could not fill that hole. The destruction of the American car companies is one of the only discrete events that could push the economy into a "depression", a period when unemployment pushes above 12% or 13%.

GM and Chrysler are up against the fact that creditors, suppliers, and labor believe that the companies have been put into the "too large to fail" category along with large banks. That belief is almost certainly true because the economy has gotten so much worse since the firms went to Congress to beg for relief. The burden of the problem has shifted from the car companies themselves to the government which will do almost anything to fund saving jobs while it works on creating new ones.

Douglas A. McIntyre

Source: 24/7 Wall St. | 9 Jan 2009 | 11:25 am

Israel and Palestinian militants ignore UN

The Israeli military and Palestinian militants are ignoring a UN security council resolution calling for an end to two weeks of fighting in the Gaza Strip which have killed more than 700 people
Source: Financial Times - US homepage | 9 Jan 2009 | 11:20 am

Northern Rock finance chief exits with £900,000

Northern Rock's chief financial officer, Ann Godbehere, is set to leave the state-owned bank in February after earning nearly £1 million for 12 month's work.
Source: Latest Business News from Times Online | 9 Jan 2009 | 11:17 am

Spanish industrial output plunges

Production in Spanish factories fell by 15.1% in November, the biggest fall on record, as the downturn gathers pace.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 11:07 am

Obama's Allies On Stimulus Package Turn Against Him

It did not take long for the Congressional attacks on the Obama stimulus package to begin. That should have been expected from the Republicans, but the more spirited disagreement with administration plans is coming from within the president-elect's own party.

Obama has said that time is of the essence if the economy is to be saved. And, time is exactly the tool that he will not be getting.

According to The New York Times, Obama is getting pressure from his own party "Senate Democrats complained that major components of his plan were not bold enough and urged more focus on creating jobs and rebuilding the nation’s energy infrastructure rather than cutting taxes."

The consensus among economists, with Noble Prize winner Paul Krugman out in front, is that the process of saving the economy must begin within a few weeks or the chance to arrest a sickening drop in employment will have been lost. A look at retail sales, consumer confidence, and layoffs in December would support that position. Early data on the economy for January shows that the pace at which things is getting worse is accelerating.

It is possible that members of Congress, many of whom rarely read or take the time to educate themselves on most urgent matters, have not looked back at the last two big recession. Those hit the economy in 1972 and 1981. In both cases GDP contracted for about a year and unemployment came close to touching 10%. While figures will probably show the the jobless rate was 7% at the end of 2008, the number may already be close to 8%. Looking at the number of retailers that are likely to fail in the first half of this year, the chance that Detroit may still cut tens of thousand of jobs, and the systematic pruning of costs which has begun at most big companies, there will be an avalanche of people losing work by the end of the first quarter .

There are a several economic indicators that are promoted as being the keys to looking at how the economy is doing. Only two really matter--jobs and housing prices. A citizen without a job takes money out of the system in assistance. He has no chance of being a net consumer of goods and services. He become a boat anchor. Housing was the major source of credit for more than half a decade. It is now the major cause for insolvency among the people who have little money to cover mortgages and cannot see the value of their houses ever becoming worth more than their home loans.

Some analysts are already saying that any stimulus package will come too late. Gravity has already pulled down too large a portion of the financial and credit systems. If that is true, businesses and consumers cannot be saved until deflation brings down prices so low that goods and services are nearly free. At that point, people start consuming again because almost everything as been devalued to a level where it is too good to be true.

Perhaps the best way to look at it is that, no matter who holds up a stimulus package, by the end of February time has run out.

Douglas A. McIntyre

Source: 24/7 Wall St. | 9 Jan 2009 | 11:01 am

HK stock index falls ahead of US job report (AP)

AP - Hong Kong shares fell Friday ahead of a U.S. jobs report expected to show further weakening in the world's largest economy.
Source: Yahoo! News: Stock Markets News | 9 Jan 2009 | 10:50 am

JD Sports and Jessops sales rise

JD Sports and Jessops offer a glimmer of hope from the High Street, saying sales were up on last year.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 10:47 am

S Korea cuts rates as woes deepen

South Korea cuts interest rates to a record low of 2.5%, as carmaker Ssangyong applies for bankruptcy protection.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 10:43 am

UBS closing U.S. clients' offshore accounts (Reuters)

Reuters - Swiss wealth manager UBS AG is closing all the offshore accounts of its U.S. clients, the bank said on Friday, as it comes under pressure from U.S. tax authorities.
Source: Yahoo! News: Business | 9 Jan 2009 | 10:42 am

Madoff 'had cheques ready to go'

Bernard Madoff had $173m in cheques in his office desk, ready to send out at the time of his arrest, US prosecutors say.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 9:57 am

Citi reaches deal with lawmakers on home loans (AP)

AP - Democratic lawmakers have reached a deal with Citigroup Inc. on a plan to let bankruptcy judges alter home loans in an effort to prevent foreclosures and urged other lenders to follow suit.
Source: Yahoo! News: Business | 9 Jan 2009 | 9:52 am

Eidos braces for bank talks amid sales fall

Shares in Eidos plunged 25 per cent this morning as the computer games developer warned it may have to enter discussions with lenders about its bank covenants after it was forced to revise full-year profits and sales forecasts.
Source: Latest Business News from Times Online | 9 Jan 2009 | 9:50 am

JD Sports to beat forecasts on bumper Christmas

JD Sports Fashion, the sportswear and footwear retailer, said this morning that it would post better than expected annual profits after a strong Christmas at its fashion focused stores.
Source: Latest Business News from Times Online | 9 Jan 2009 | 8:57 am

Bovis axes 60% of staff and scraps dividend

Bovis Homes today announced that it was cutting an extra 200 jobs and will scrap its final dividend to cope with a steep downturn in the UK housing market.
Source: Latest Business News from Times Online | 9 Jan 2009 | 8:52 am

Icahn says bankruptcy reform could help banks

(Reuters) - Activist investor Carl Icahn called for changes in federal bankruptcy laws which he argues are thwarting the private investment which is more appropriate than public funds for reviving the banking system.
Source: Reuters: Business News | 9 Jan 2009 | 8:34 am

Price policy sends John Lewis sales up 27.4%

John Lewis, the department store chain, brought some seasonal cheer to the beleaguered high street today after revealing a 27.4 per cent surge in weekly sales, driven by its policy of matching the same prices on goods as its rivals.
Source: Latest Business News from Times Online | 9 Jan 2009 | 8:12 am

Ruling removes billing headache from emergency room visits

Patients can't be billed when their HMOs fail to pay, the California Supreme Court says. Doctors say they're being squeezed. ...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 8:00 am

All-digital TV? Please stand by

Millions lack the necessary gear and risk blank screens when the switch occurs. Obama seeks a postponement. The...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 8:00 am

Controversy boils at idled refinery

Some say Shell Oil is trying to use its leverage to put the plant it sold to Big West in 2005 out of business. ...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 8:00 am

Citigroup supports measure giving courts big say on mortgage reductions

The lender agrees to support letting bankruptcy judges lower the principal owed on 'underwater' loans. For the...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 8:00 am

Finding a new job becomes harder as layoffs mount

The number of laid-off workers who are continuing to draw unemployment checks jumped more than expected to 4.6 million at the end of December and is likely to keep climbing this year -- fresh evidence...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 8:00 am

Stocks end mostly higher after Democratic senators, Citigroup reach mortgage deal

The Dow drops 27 points to 8,742, while broader indexes climb after lawmakers and the New York-based bank agree on a plan to let bankruptcy judges alter home loans to help prevent more foreclosures. ...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 8:00 am

Lead testing law won't apply to thrift stores

Federal regulators say secondhand stores won't be required to test children's merchandise for lead. After a barrage...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 8:00 am

New video-on-demand service may hinge on Supreme Court ruling

Networks and studios oppose Cablevision's plan to offer rebroadcasts of programs without commercials and without a fee paid to producers. ...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 8:00 am

Retailers say 2008 was the worst holiday season in decades

Sales fell 2.2% during November and December compared with the same period in 2007. Analysts say the pain is far from over. ...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 8:00 am

December retail chart

Many major retailers fare poorly in a year-over-year comparison. The holiday season officially became the worst...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 8:00 am

Lehman deal on private equity close: source

NEW YORK (Reuters) - Lehman Brothers Holdings Inc has reached an agreement in principle to sell its merchant banking business, made up of two private equity funds, to management of the funds, a source familiar with the situation said on Thursday.
Source: Reuters: Business News | 9 Jan 2009 | 7:55 am

NZ stocks: Quiet day as Michael Hill figures disappoint

Sales figures from jeweller Michael Hill International (MHI) were the main news on a flat day for the New Zealand sharemarket. The MHI figures published today show Australian same store sales up 1.2 per cent to A$113.7m ($137.7m)...
Source: New Zealand Herald - Business | 9 Jan 2009 | 6:23 am

Satyam fights for survival as shares plunge

Shares in Satyam Computer Services, the group at the centre of India's worst scandal in more than a decade, plunged as much as 71 per cent on worries the country's fourth largest outsourcing group might be heading towards insolvency
Source: Financial Times - US homepage | 9 Jan 2009 | 5:53 am

Currency: Dollar slips against greenback

The New Zealand dollar slipped against the greenback during the day, giving up some of its overnight gains as the United States currency inched up against the euro. After slipping below US58.20c last night, the kiwi topped US59.65c...
Source: New Zealand Herald - Business | 9 Jan 2009 | 5:18 am

Slippery Soaps

Later this month Brad Carlton, a onetime pool boy who married the boss's daughter to become chief executive of a major cosmetics company, will apparently take a bullet and die for a cause.

That cause will not be the woman of his dreams (his former sister-in-law and the estranged wife of his sworn enemy), but daytime soap operas.

For all but one of the last 24 years Carlton—a onetime Navy Seal and a secret Nazi hunter—has been a character on The Young & The Restless, the daytime ratings champ for the last two decades.

But Carlton, played by Don Diamont, and three other prominent characters on the CBS show have been axed as part of the severe retrenchment seizing daytime soaps—one of TV's oldest formats, its quintessential advertising vehicle and the birthplace of product placement.

The financial crisis is hurting daytime soaps more than other shows, and may well doom them. Not so long ago, there were 16 soaps. Today, there are eight—with more cancellations seemingly imminent in the face of TiVo, D.V.R.'s, decreased market share, declining ratings, and the loss of financially pressed auto dealers as local advertisers.

"I see this moment as the turning point for soaps," a top CBS executive told me. "No format has been hit harder than daytime serials."

The executive says that within the next two months the network plans to dramatically slash the licensing fees it pays to the independent production companies that make its soaps. NBC recently did the same to the fees paid for its lone entry, Days of Our Lives—which have recently run about $1.8 million a week.

Two longtime (and expensive) Days cast members (Deidre Hall and Drake Hogestyn) have been dumped in order to keep the show on NBC for another 18 months. To trim costs, NBC wants producers to reduce actor salaries by as much as 40 percent.

In September 2007, NBC moved another soap, Passions, to DirecTV before shutting down the program altogether. Insiders at Days, a daytime staple since 1965, say they won't be surprised if the sands in their show's hourglass run out, too.

A similar fate awaits CBS' Guiding Light, which debuted on radio in 1937 before becoming the longest-running drama in TV history. "That show isn't even treading water," says a network exec. "It's sunk below the waves."

An even more ominous sign for the industry: for the first time, the Daytime Emmies—designed specifically to promote daytime soaps—won't even be broadcast. Major networks deemed the fees too excessive for a show that draws abysmal ratings. Even the cable channel Soapnet isn't airing it.

 It used to be that the networks needed the daytime profits to finance the more expensively produced (and unprofitable) prime-time programs. By blending message and melodrama—ads were cunningly buried in the plot—"sudsers" became the perfect subliminal salesmen.

The soap format peaked at the 1981 wedding of Luke and Laura on General Hospital, with an estimated 30 million viewers tuning in. The show's popularity inspired a Top 30 song called General Hospi-tale. ("I just can't cope / Without my soap") and the movies Tootsie and Soap Dish.

In recent years, market leader Y&R has seen its audience shrink precipitously, to an average of 5 million total viewers in 2008. In the old days, soaps were generational—your grandmother got your mother hooked, and she, in turn, got you hooked.

Today the median age of viewers is rising, but older viewers are dying off (literally) and are not being replaced by younger ones. (The median age for Y&R is nearly 60.) If interested, younger viewers can watch soaps in less time on the official network websites and, commercial-free, on YouTube.

"There are as many theories about lost viewership as there are cheating spouses in daytime serials," says the blogger Toni Pimentel, who added that her Y&R spoiler Web site (young-restless.com) averages two million hits a month.

"Most obviously, more women work outside the home—or are otherwise occupied," Pimentel says. "And for those who are at home, and in front of a TV, there are more viewing options—hundreds of cable and 'speciality' channels—and don't forget the increasing popularity of talk shows."

The ratings of ABC's The View rose 16 percent in 2008. More than 4 million viewers now watch the gabfest, a comparative bargain.

When the cuts come, producers of the three CBS soaps turning a "marginal" profit may have little choice but to drastically chop production costs, lop off beloved characters, and renegotiate the salaries of those who are left.

Unfortunately for the networks, viewers say they tune in to see the old standbys. Unfortunately for advertisers, network-commissioned surveys have found that a large segment of the soap audience is poor, middle-aged African-American women. "That's definitely not the demo sponsors are targeting," says a network exec.

The world will continue to turn, but soaps may not be slippery enough to escape the current crunch.Related Links
News-division Layoffs at NBC, CBS
Staying the Course
Summertime Slump



Source: Portfolio.com: Top 5 | 9 Jan 2009 | 5:00 am

Lehman deal on private equity close: source (Reuters)

Reuters - Lehman Brothers Holdings Inc has reached an agreement in principle to sell its merchant banking business, made up of two private equity funds, to management of the funds, a source familiar with the situation said on Thursday.

Source: Yahoo! News: Business | 9 Jan 2009 | 3:24 am

Slump hits Michael Hill jeweller

Michael Hill International is warning that its first half trading result will be materially below last year's record interim result of $19.5 million. The latest result, excluding restructure tax benefits, was affected by lower...
Source: New Zealand Herald - Business | 9 Jan 2009 | 2:35 am

Biotech still waiting to be paid

A $2 million payment to biotechnology company Genesis Research and Development Corp for its BioJoule shares has been delayed for a second time. The sale of BioJoule, which is developing and commercialising technology to grow and...
Source: New Zealand Herald - Business | 9 Jan 2009 | 2:00 am

Chevron warning on fourth quarter earnings

Chevron, the second biggest US oil company, warned that the $50 per barrel drop in crude oil prices in the first two months of the fourth quarter have set the stage for 'significantly lower' quarterly earnings
Source: Financial Times - US homepage | 9 Jan 2009 | 1:27 am

Merrill's investment banking chief quits

Greg Fleming, the head of investment banking at Merrill Lynch, is leaving scarcely a week after it was acquired by Bank of America
Source: Financial Times - US homepage | 9 Jan 2009 | 1:12 am

Citi exposed to $1.4bn loss over LyondellBasell

Citigroup is to suffer a $1.4bn loss on its loans to LyondellBasell, the chemical group that placed dozens of its subsidiaries under bankruptcy protection this week after failing to restructure $26bn in debt
Source: Financial Times - US homepage | 9 Jan 2009 | 12:46 am

In Brief - Thursday

Cytec Industries (CYT), a specialty chemicals maker, slashed its '08 EPS outlook to $3.45-$3.50, below views of $3.74. It plans to cut 600 jobs,...

Source: Investor's Business Daily: BUSINESS | 9 Jan 2009 | 12:27 am

Nasdaq Market Maker Thrives On Volatility, Sees Profits Soaring

Investors may be wary of the stock market right now, but Knight Capital Group is all in.

Source: Investor's Business Daily: BUSINESS | 9 Jan 2009 | 12:27 am

Investors Awaiting Bargain-Basement Commercial Property

Peter Lewis spends a good part of his day monitoring the level of distress in commercial real estate.

Source: Investor's Business Daily: BUSINESS | 9 Jan 2009 | 12:27 am

Trends & Innovations - Thursday

Web use rising for calls, videos

Source: Investor's Business Daily: BUSINESS | 9 Jan 2009 | 12:27 am

After The Close - Thursday

COACH (COH), a luxury bag maker, cut its Q2 EPS outlook to 67 cents, below views for 74 cents. Sales fell 2% to $960 mil. Same-store sales fell...

Source: Investor's Business Daily: BUSINESS | 9 Jan 2009 | 12:27 am

Business Briefs - Thursday

Apollo grows on weak economy. The for-profit education provider and operator of the Univ. of Phoenix rose 9% in late trading after it said Q1 EPS...

Source: Investor's Business Daily: BUSINESS | 9 Jan 2009 | 12:27 am

PwC in spotlight over missing billion at Satyam, 'India's Enron'

Angry Indian investors are demanding to know how PricewaterhouseCoopers (PwC), the auditor, missed a systematic £1 billion fraud at Satyam, the IT outsourcing group, for as long as seven years, while Merrill Lynch, the US bank, became aware of the deception in ten days.
Source: Latest Business News from Times Online | 9 Jan 2009 | 12:00 am

Nissan cuts 1,200 jobs as Gordon Brown tries to soothe fears for motor industry

Workers at Nissan's Sunderland factory took the biggest blow yet in the car industry crisis yesterday when 1,200 jobs were cut.
Source: Latest Business News from Times Online | 9 Jan 2009 | 12:00 am

Virgin challenges BA by cutting business fares

Business-class air fares are set to fall by as much as 40 per cent from Friday as Virgin Atlantic launches a price war.
Source: Latest Business News from Times Online | 9 Jan 2009 | 12:00 am

Interest rate cut 'will starve banks of cash', as savers are deterred

The lowest interest rate in the history of the Bank of England will deter savers from depositing money and further undermine troubled banks, it was claimed yesterday.
Source: Latest Business News from Times Online | 9 Jan 2009 | 12:00 am

Microsoft turns up heat on Yahoo

Steve Ballmer, Microsoft's chief executive officer, has increased the pressure on Yahoo to hand over control of its search business to his software company
Source: Financial Times - US homepage | 8 Jan 2009 | 11:32 pm

Madoff ordered £100m transfer from London office

Bernard Madoff ordered his UK company to transfer about $150m to his US firm just weeks before he allegedly confessed to running a $50bn fraud scheme, two former employees of Madoff Securities International said
Source: Financial Times - US homepage | 8 Jan 2009 | 11:32 pm

Boeing losing business, facing delays

Aircraft maker Boeing said today its commercial aeroplane orders fell in 2008 to less than half of the prior year's orders due to the global economic slowdown. Boeing said it had 662 commercial aeroplane orders last year, down...
Source: New Zealand Herald - Business | 8 Jan 2009 | 11:30 pm

Hear: Are Central Bankers To Blame?

Today on Planet Money:

-- Economist Russ Roberts doesn't support president-elect Barack Obama's fiscal stimulus package. He talks about what it was like having the president-elect pitch the plan on his home turf, George Mason University.

-- Stanford professor John Taylor of the Taylor Rule thinks the government made some major mistakes in dealing with the current financial crisis. And he isn't shy about talking about them.

Bonus: Read Professor Taylor's analysis of what the government got wrong.

Download the podcast; or subscribe. Intro music: Young Jeezy's "Put On." Find us: Twitter/ Facebook/ Flickr.

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Source: NPR Blogs: Planet Money | 8 Jan 2009 | 11:27 pm

Stores' dismal December means prices should fall (AP)

AP - Dismal sales figures for the holiday shopping season are probably a sign of worse to come for merchants in 2009 — not only more sharp discounts and cheaper groceries but probably fewer stores.

Source: Yahoo! News: Business | 8 Jan 2009 | 11:27 pm

UBS Securities' O'Sullivan Says Vacant Home Inventory Slowing

Source: Bloomberg - All Podcasts | 8 Jan 2009 | 11:08 pm

Nasdaq CEO sees market role in financial crisis (AP)

AP - The markets can help the nation emerge from the current financial crisis by providing transparency for secretive investments that helped fuel the disaster, but the government needs to put better rules in place to make that happen, the head of the Nasdaq stock market said Thursday.
Source: Yahoo! News: Stock Markets News | 8 Jan 2009 | 11:04 pm

Nasdaq CEO sees market role in financial crisis (AP)

AP - The markets can help the nation emerge from the current financial crisis by providing transparency for secretive investments that helped fuel the disaster, but the government needs to put better rules in place to make that happen, the head of the Nasdaq stock market said Thursday.
Source: Yahoo! News: Business | 8 Jan 2009 | 11:04 pm

Nasdaq Market Maker Thrives On Volatility, Sees Profits Soaring (Investor's Business Daily)

Investor's Business Daily - Investors may be wary of the stock market right now, but Knight Capital Group is all in.
Source: Yahoo! News: Stock Markets News | 8 Jan 2009 | 11:04 pm

Dinallo Says U.S. Government Made `Right Call' On AIG Bailout

Source: Bloomberg - All Podcasts | 8 Jan 2009 | 11:01 pm

Merrill Lynch's Blanch Sees Commodities Stable by Q3 of 2009

Source: Bloomberg - All Podcasts | 8 Jan 2009 | 10:54 pm

NZ stocks: Early fall on sharemarket

The New Zealand sharemarket edged down in early trade after the Dow Jones industrial index recorded a modest fall overnight, although the other two major United States indices rose. In this country the most heavily traded stock,...
Source: New Zealand Herald - Business | 8 Jan 2009 | 10:50 pm

Jeffrey Saut Likes ETFs for Investing in Preferred Stocks

Source: Bloomberg - All Podcasts | 8 Jan 2009 | 10:49 pm

Obama Speech: Stimulus Does Not Motivate

President-elect Barack Obama’s speech today covered his outlook for the economy and new economic stimulus plan. From Brian Knowlton, New York Times:

President-elect Barack Obama on Thursday urged Congress to act quickly to pass sweeping economic stimulus measures, including a tax cut and an infusion of as much as $800 billion, or face the likelihood that “this recession could linger for years.”

He said he aimed to double the production of alternative energy within three years, a seemingly ambitious target; computerize all medical records in the country within five years, a move he said could save lives, money and jobs; modernize 75 percent of federal buildings and improve energy efficiency in 2 million homes; upgrade classrooms, libraries and laboratories in thousands of schools, and expand broadband access to rural areas .

Mr. Obama blamed the current economic morass — in particularly stark terms — on “an era of profound irresponsibility that stretched from corporate boardrooms to the halls of power in Washington.”

While Mr. Obama did not question the American capacity to recover or its potential for “future greatness,” he cautioned that “it will take time, perhaps many years.”

Obama is delivering as promised, committing government resources towards a better energy economy, bridging the technological divide, and school upgrades. The hook is that these are all long-term upgrades. Doubtless, a more efficient healthcare system, a competitive sustainable economy, and better-educated kids will make the United States much more competitive. But these are long-term outcomes, for which the dialectic panders to Congress. What Obama needs to do now is play on his strength and address the people with specifics, beyond blanket optimism, beyond a few hopeful phrases here and there.

Right now, most people are worried about where their next paycheck will come from, whether they can continue to run their small businesses, and whether their remaining money is safe. I want to be reassured that the economic firefighters are on the job as well as the long-term cash infusions. Obama, in your next speech, please answer this:

-Paulson & Co. seem to have thrown billions of dollars into a big black hole. What is working in the Paulson plan?

-There’s an outbreak of violence going on right now, people with guns whose rage gets the better of them. What are you going to do about situations like the Pfizer shooting, the Oakland riots, the hundreds of other violent crimes that will take place this year? People fundamentally have trouble dealing with their stuff getting taken away. I want to see a social and economic leader.

-Why didn’t you repeal the Bush tax cuts?

-Do you have a contingency plan in place in case China decides to get rid of its US debt holdings, eg. treasuries? Do you have a way of convincing China not to do that?

Some are skeptical of Obama’s prognosis, saying that he is fear-mongering and avoiding key issues. I think that his grim outlook is realistic, but he needs to empower his flock more. Americans aren’t culturally prepared for lean times, as is evidenced by the propensity to vent through murder. If it’s not getting better for years, Obama, throw some motivation our way. It is sorely needed.

Source: Business Pundit | 8 Jan 2009 | 10:39 pm

UK cuts interest rate to 300-year low

The Bank of England last night cut its benchmark interest rate by half of a percentage point to try to bolster the deteriorating economy amid calls for more government action. Britain's central bank reduced the rate to 1.5 per...
Source: New Zealand Herald - Business | 8 Jan 2009 | 10:30 pm

Planet Money Puzzler

We wanted to lay out a strange puzzle for you on today's podcast, then answer it tomorrow. But we forgot to mention it. So here it is:

Where is all the U.S. currency?

According to the Federal Reserve the total amount of U.S. currency out there is about $900 billion. We're talking real currency, dollar bills, $100's, $20's etc.

That works out to about $3,000 per person. Ok now open your wallet, how much do you have? Not a lot, right? So where is all the cash?

Don't look it up on the internet, that's no fun. Just think about it. We'll have the answer on Morning Edition and a longer extended-dance-remix on the podcast for Friday.

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Source: NPR Blogs: Planet Money | 8 Jan 2009 | 10:25 pm

VIX Index of U.S. Stock Option Prices Retreats 1.9% to 42.56

Source: Bloomberg - All Podcasts | 8 Jan 2009 | 10:20 pm

Certainty the goal for investors in '09, says Marac

A leading finance company sees New Zealanders flocking to long-term fixed interest investments this year. "With so much uncertainty remaining in the market, longer term fixed interest investments provide a level of certainty around...
Source: New Zealand Herald - Business | 8 Jan 2009 | 10:00 pm

Who Has A Job? Who Doesn't?

I talked with All Things Considered's Melissa Block today about how hard it is to figure out how many people are employed or unemployed in the US.

This week --as happens every month-- we get a confusing stream of data.

Yesterday, the payroll company ADP gave its Employment Report, based on the actual paychecks going out for 400,000 of their clients. They recently revised their statistical methods, after years of folks mocking them for generally being pretty lousy at predicting what the overall national numbers would show. Let's hope so. This week, they're report said that nearly 700,000 people lost jobs last month.

Today, the Department of Labor let us know how many people filed new claims for unemployment benefits last week. It was bad, but nowhere near as bad as folks expected. Only 467,000 people filed new claims for unemployment. Sadly, these days that counts as relatively good news.

Tomorrow, the big numbers come out. The Bureau of Labor Statistics will give us a far more detailed and--according to most--more accurate picture of US employment. We'll learn how many people are getting paychecks and what the unemployment percentage is. The reports are quite accessible and fascinating to read. You can get a sense of how different occupations, regions, minority groups are doing in the economy.

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Source: NPR Blogs: Planet Money | 8 Jan 2009 | 9:39 pm

CEO of Indian outsourcing giant quits after scandal

NEW DELHI - The chairman of India's Satyam Computer Services quit yesterday after admitting the company's profits had been inflated for several years, sending shares of the software services provider plunging by more than 70 per cent. The...
Source: New Zealand Herald - Business | 8 Jan 2009 | 9:30 pm

In Search of $200 Mittens

According to prosecutors alleged ponzi schemer Bernard Madoff mailed jewelry and other expensive items to family members as Chanukah gifts, violating the terms of his bail agreement. As New York Times writer Alex Berenson describes it:

Sixteen watches, including diamond-encrusted timepieces from Tiffany and Cartier. Four diamond brooches. Two sets of cuff links. An emerald ring. These are a few of Bernard L. Madoff's favorite things.

It sounds like a bold move. But Madoff's lawyer argued that a lot of the items were no more than $25 cuff links and $200 mittens.

An online search came up empty -- Ebay has only one pair of mittens approaching that in value. And there are a few heavy duty mountaineering mittens worth almost that much.

So I had to work the phones in search of $200 mittens. My first call was to the glove counter at Bergdorf Goodman, seller of expensive soft accessories. Nothing. They have no mittens. Next call was to Hermes on Madison, right around the corner from Madoff's pad? Nope. Ok how about Barney's? Close but not $200. A search for "Prada Mittens" was frustrating when Google kept directing me to some girl's blog about her imaginary kittens Prada and Mittens. And a call to the Prada store reveled that they only sell gloves, no mittens.

Then my wife and luxury goods consultant, Robin, had a brainstorm. Why not try Bon Point, "the most expensive store ever."
It's sure not cheap to dress your 2-year-old like a French Canadian Fur Trapper circa 1730.

A call to Bon Point revealed --yes-- they do have $200 mittens, sort of. The sales consultant said they sell children's mittens for $125, which reflects a 50% off discount. So I think those can be considered $250 mittens. Maybe its not fair to affix the retail price on these mittens, because anyone can walk in off the street and buy them for less. Then again, the reason luxury goods shops have to offer such steep discounts is because the economy has tanked, and one small reason the economy has tanked is Bernard Madoff. So if there was ever someone who shouldn't get the benefit of the discounted mitten doubt, it's Bernie.

-- Mike Pesca

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Source: NPR Blogs: Planet Money | 8 Jan 2009 | 9:09 pm

SEC needs to merge with CFTC: Nasdaq CEO (Reuters)

Reuters - The chief executive of Nasdaq OMX pushed for a merger of U.S. securities and futures regulators, saying it was incomprehensible that they both monitored the same products.

Source: Yahoo! News: Stock Markets News | 8 Jan 2009 | 9:04 pm

$1 Billion Plaza Oak Room Renovation Has Standard `Hotel Food'

Source: Bloomberg - All Podcasts | 8 Jan 2009 | 8:03 pm

Back to basics on the luxury front

A luxury tourism promoter fears top end businesses will be hit harder this year after organisers decided to cancel a trade show designed to attract top-dollar tourists to New Zealand. Pure Luxury New Zealand was first held two...
Source: New Zealand Herald - Business | 8 Jan 2009 | 7:00 pm

Deflation Pricing Is Here

Economist Simon Johnson of Baseline Scenario passed along this ad, noting the title, "Deflation Special."

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Source: NPR Blogs: Planet Money | 8 Jan 2009 | 6:57 pm

Steve Ballmer Delivers Dull Keynote at International CES 2009

Dull, that is, both in form and in content, according to a couple of reports. This was Steve Ballmer’s first keynote at the International Consumer Electronics Show (CES), which takes place in Las Vegas today. However, Ballmer wasn’t on fire, and neither were Microsoft’s products.

This Wired report, as tweeted on Consumer Electronics Insider, highlights the main points of Ballmer’s preso:

–Windows 7 beta will be available for free download in a couple of days. The best part of Windows 7 is that is rescues users from the devil Vista, which eats up RAM, is incompatible with alomst everything–and everyone–else, and has more pop-ups than a porn site.

The report says that Microsoft listened to Vista critics. Windows 7 will be leaner, faster, and with less annoying pop-ups, it says.

–Another announcement had to do with Windows Live, used to access email, calendars, documents, etc. from anywhere on the Web. Windows Live is now out of Beta. The report says that Windows Live anticipates an OS-irrelevant future, and is designed in part to keep users out of Google’s applications–eg. Gmail.

–Microsoft also presented a flexible gaming display, which the Wired reporter thought was a fake. He did, however, laud the $8 billion Microsoft put into R&D last year.

In sum, the report says, Microsoft is playing catch-up. I agree. It went from market innovator to monopolist to pack runner. With an R&D budget that big, you’d think they could come up with something more innovative, instead of loosely following Google and Apple’s leads.

Source: Business Pundit | 8 Jan 2009 | 5:39 pm

Less product, same price

Have you noticed there's less peanut butter in your jar? Some packaged goods companies have been reducing the weight of certain products and selling them for the same price. Sean Cole asks: Is it deceptive?
Source: Marketplace | 8 Jan 2009 | 5:22 pm

Taking Stock: Get banks smaller

There are a lot of reasons why our economy is in a sorry state. Among them, the way we've done business and how banks have been structured. Kai Ryssdal speaks with management expert Charles Handy about how we got in this current economic mess.
Source: Marketplace | 8 Jan 2009 | 5:22 pm

The business of the BCS

The Oklahoma Sooners will face off against the Florida Gators in the final game of college football's Bowl Championship Series tonight. The BCS ranking system decides who makes the national championship, but has been controversial ever since its inception 10 years ago. Kai Ryssdal speaks with Diana Nyad about the business of the BCS.
Source: Marketplace | 8 Jan 2009 | 5:22 pm

Home Depot ends Olympic sponsorship

Home Depot is ending its sponsorship of the U.S. Olympic team, bringing to close a 16-year program that allowed athletes to work part-time at the construction retailer while enjoying full-time benefits and pay. Jeremy Hobson reports.
Source: Marketplace | 8 Jan 2009 | 5:22 pm

Dell's move a big blow to Ireland

Dell is planning to cut 1,900 manufacturing jobs in Ireland. That move could trigger even more job losses in the local supply chain. As Stephen Beard reports, Dell's move could be a big blow to Ireland's manufacturing industry.
Source: Marketplace | 8 Jan 2009 | 5:22 pm

Consumers expect to buy low

The 2008 holiday shopping season was one of the worst ever. Retailers offered a lot of sales, but it didn't get people to hit up the stores. As Stacey Vanek-Smith reports, all those markdowns have created an expectation from consumers and put retailers in a bad spot.
Source: Marketplace | 8 Jan 2009 | 5:22 pm

Obama urges action on stimulus

President-elect Obama urged Congress to act swiftly to approve his massive stimulus package, warning of the consequences that could happen if nothing is done. Though the details of the plan are a little murky, John Dimsdale reports it sounds pretty familiar.
Source: Marketplace | 8 Jan 2009 | 5:21 pm

Banking On The Falling Pound

Sean writes from Edinburgh:

I had €1.57 left over from trip to visit a mate of mine who was studying in Brescia, Northern Italy.

Had I changed it back as soon as I returned to Edinburgh I'd have £1.16, however I was too lazy. This has proven to be a fiscally prudent move, typical of my thrifty Scottish upbringing. Due to the falling pound it is now worth £1.73, meaning I'm nearly 50% up. Cause for celebration I'm sure you'll agree.

Coupled with falling house prices across the UK, this has led me to believe that by the end of 2009, my €1.57 should buy me a nice flat in the center of Edinburgh, and maybe some nice curtains.

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Source: NPR Blogs: Planet Money | 8 Jan 2009 | 5:09 pm

The Clock is Ticking

Hey Congress, act boldly and act now!

That pretty much sums up President-elect Barack Obama's speech Thursday on the need for a stimulus package to reverse the economy's downward spiral.

The speech, which was an unprecedented public policy effort for an elected president to make before his inauguration, was delivered at George Mason University in Virginia but its intended audience is sitting on Capitol Hill. Obama repeatedly spoke to members of Congress, imploring them to avoid their usual legislative process which can include weeks of debate and countless earmarks for pet projects.

Instead, Obama asks them to overcome partisanship and act immediately. While he acknowledges the pressure his plan will put on the budget deficit, which the Congressional Budget Office estimates will hit $1.2 trillion this year before this stimulus package, Obama emphasized the potentially greater costs of doing nothing.

"For every day we wait or point fingers or drag our feet, more Americans will lose their jobs. More families will lose their savings. More dreams will be deferred and denied. And our nation will sink deeper into a crisis that, at some point, we may not be able to reverse."

Today's speech was short on details and long on urgent rhetoric. The Obama transition team estimates that the stimulus package will cost at least $775 billion, but that figure could climb as high as $1.3 billion by some estimates. This will include tax cuts for working families and relief for states burdened by overstretched budgets. It will encompass public works projects as well as private sector growth in energy and health care sectors.

Obama estimates the plan will create or save three million jobs over the next few years.

The speech also included a shout-out to the many Wall Street firms that have received TARP money, suggesting the days of loose accountability for how the funds are spent are over.  Obama's package will include further efforts to save embattled banks from bankruptcy, "but only with maximum protections for taxpayers and a clear understanding that government support for any company is an extraordinary action that must come with significant restrictions on the firms that receive support."

 

 

Related Links
Finally, Drama! A Geithner vs. Bair Clash?
Obama's Real Economic Team
Obama's Economic Team



Source: Portfolio.com: Top 5 | 8 Jan 2009 | 5:00 pm

The Dog Ate My Job

Adam is going to be talking on All Things Considered tonight about how hard it is to measure something as seemingly simple as the unemployment rate.

You get a sense for things when you look at one of the surveys the labor department uses. Here's one of many questions it asks:

Q20B-1. What was the main reason you were absent from work LAST WEEK?
ABSRSN
On layoff (temporary or indefinite) .................... 0 (Skip to Q21)
Slack work/business conditions........................0 (Skip to Q21)
Waiting for new job to begin .............................0 (Skip to Q22)
Vacation/personal days....................................0
Own illness/injury/medical problems..................0
Child care problems.........................................0
Other family/personal obligation........................0 (Go to Q20B-1CK)
Maternity or paternity leave .............................0
Labor dispute .................................................0
Weather affected job.......................................0
School/training...............................................0
Civic/military duty...........................................0
Does not work in the business ........................0 (Skip to Q22)
ABSPC Other (Specify) ..................................0 (Go to Q20B-1CK)
[blind] Don't know............................................0 (Go to Q20B-1CK)
[blind] Refused ...............................................0 (Go to Q20B-1CK)

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Source: NPR Blogs: Planet Money | 8 Jan 2009 | 4:59 pm

Autonet Mobile Offers In-Car WiFi

Wi-Fi Planet covers Autonet’s new in-car Wi-Fi system:

The San Francisco-based Internet service provider Autonet Mobile serves a slightly different target market from the average ISP—cars. The company’s router creates a Wi-Fi hotspot in and around the vehicle in which it’s installed—and even in the face of a significant economic downturn, company CEO Sterling Pratz is optimistic about Autonet’s future.

From the beginning, Pratz says, Autonet’s aim has simply been to extend the home Internet experience to the car. “We really felt like the car was the last bastion of connectivity for the Internet,” he says. “And we also felt that once you put the Internet into the car, a whole new ecosystem of applications and services and products would form.”

And Pratz says the range of devices already being used on the system is impressive. “We’re seeing not just laptops and mini-PCs… we’re also seeing iPod touches streaming Internet radio into the front seat—mostly FlyCast and Pandora… and in the back seat, we’re seeing a lot of Facebook, a lot of social networking, Yahoo! Messenger, and a lot of Google Earth,” he says.

Clever invention. I especially like the idea of streaming Pandora into the car radio and using Google Earth for navigation.

What I don’t like is the idea of being connected all the time, everywhere, thus having no excuse not to reply to your online friends, coworkers, clients, etc. Can you imagine taking a beautiful drive up Big Sur and being pinged by your boss through your car radio?

Now the connectivity has made it into even the most remote areas, it’s time to delineate some boundaries around usage etiquette.

Source: Business Pundit | 8 Jan 2009 | 4:43 pm

SIPC's Harbeck Doubts Madoff Clients Put in $43 Billion

Source: Bloomberg - All Podcasts | 8 Jan 2009 | 4:36 pm

Perkins Says Sears Fourth-Quarter Earnings `Encouraging'

Source: Bloomberg - All Podcasts | 8 Jan 2009 | 4:34 pm

Bovino Says U.S. December Jobs Report Will Be `Disaster'

Source: Bloomberg - All Podcasts | 8 Jan 2009 | 4:31 pm

Andreas Nigg Says ECB Needs to `Catch Up' on Rate Cuts

Source: Bloomberg - All Podcasts | 8 Jan 2009 | 4:29 pm

German Cops Ticket Woman for Driving Dirty Car

From Ananova:

Police in Germany banned a woman driver’s car from the road - for being too untidy. The Vauxhall Astra was so full of junk, magazines, old clothes and even bits of furniture that they could barely see the driver at it roared down a motorway near Dusseldorf.

The driver - who has not been named by police - has been banned from taking the car on the road again until it has passed a tidiness test.

Police said the car was so full of junk the woman’s face was pressed up against the windscreen as she drove.

Do German cops have too much time on their hands? What a waste of taxpayer funds.

Source: Business Pundit | 8 Jan 2009 | 4:28 pm

Macy’s Store Closings: A Predictable Outcome

The Wall Street Journal reports on today’s announcement of Macy’s store closings throughout the country:

Macy’s this morning announced the closing of 11 stores, a move that came after a rough holiday season. Macy’s also said Thursday that same-store sales for December fell 4%, amid what it called “the most challenging economic environment in memory.

Here’s a list of the 11 Macy’s stores that are slated to close.

The closures represent a small proportion of Macy’s 860 total stores. Nevertheless, barring a miracle of credit or influx of mall-hungry tourists, the move probably preempts more closures.

Where will all the mall rats go now?

Source: Business Pundit | 8 Jan 2009 | 4:20 pm

What You're Reading

Joe sends this story about China cutting back on buying U.S. debt.

Thomas Beckett suggests 3 as an economic indicator, as in the number of U.S. states that suffered a crash in their electronic unemployment claims systems.

And Brent passes along this list from the Twitter feed The Media is Dying -- it's the top 10 messiest layoffs of 2008.

» E-Mail This     » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 8 Jan 2009 | 3:33 pm

Pavement Pounding Big in '09

Planning to look for a new job this year? You’re not alone.

Despite the economic downturn and predictions of slower hiring, 19 percent of workers say they plan to look for a new job in 2009.

The same percentage say they actually plan to leave their current position, according to a survey by CareerBuilder.com.

The 2009 Job Forecast, which was conducted between Nov. 12 and Dec. 1, also found that six out of 10 workers said the economy and the tightening job market are not causing them to hold off on plans to change jobs.

Why leave?

• Forty-nine percent reported better pay and/or career advancement opportunities were the primary reasons they plan to leave their current positions.
• Fourteen percent are looking for an environment where they feel more appreciated.
• Ten percent want to work for a company that is making a difference.
• Seven percent want to change careers entirely.
• And 3 percent say they are leaving their jobs because they want more flexibility or plan to go back to school.

Among other key findings:

• Twenty-five percent are dissatisfied or very dissatisfied with their pay. Thirty-five percent of workers did not receive a raise in 2008. Of those who did receive one, 25 percent were given an increase of 2 percent or less. Sixty-three percent of workers did not receive a bonus.
• Twenty-six percent of workers are dissatisfied or very dissatisfied with the career advancement opportunities provided by their current employers. Eighty percent did not ask for or receive a promotion in 2008, and 20 percent felt they were overlooked.
• Eighteen percent of workers are dissatisfied with work/life balance, and 54 percent report their workloads have increased over the last six months.
• Twenty-three percent of workers are dissatisfied or very dissatisfied with training and learning opportunities provided by their current employers.

"Although seven in 10 workers say they are satisfied with their jobs, some are always on the lookout for a greener pastures,” Rosemary Haefner, vice president of human resources at CareerBuilder.com, said. “In fact, 82 percent of workers said while they are not actively looking for a new position, they would be open to one if they came across the right opportunity."

The survey was conducted online among 3,259 hiring managers and human resource professionals and 8,038 U.S. employees.

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Source: Portfolio.com: Top 5 | 8 Jan 2009 | 3:30 pm