Saudi stocks lose 3% (AFP)

AFP - Saudi stocks fell three percent on Saturday as the slowing economy in the oil superpower and global economic stress continued to dampen investor sentiment.

Source: Yahoo! News: Stock Markets News | 10 Jan 2009 | 1:57 pm

Personal Finance Daily: The week's 10 best Personal Finance stories: Jan. 5-9

In case you missed them, here are the top 10 Personal Finance stories from MarketWatch for the week of Jan. 5-9:

Source: MarketWatch.com - Top Stories | 10 Jan 2009 | 1:01 pm

Ukraine 'making gas crisis worse'

Russian leader Vladimir Putin accuses Ukraine of "aggravating" their gas row despite intensive EU efforts to resolve it.
Source: BBC News | Business | World Edition | 10 Jan 2009 | 12:58 pm

UK slump 'is worst for 28 years'

The UK economy declined 1.5% in the last three months of 2008, its worst performance in 28 years, a study reports.
Source: BBC News | Business | World Edition | 10 Jan 2009 | 12:53 pm

UN call fails to halt Israel push in Gaza

Israel on Friday defied a UN Security Council resolution calling for an immediate end to its assault on the Gaza Strip, pushing ahead with its 14-day offensive
Source: Financial Times - US homepage | 10 Jan 2009 | 12:41 pm

Americans Growth To Like Old Cars

Imagine millions of Americans owning antique cars. A 1966 Ford Fairlane is worth almost $140,000. A 2001 Chrysler Prowler $40,000.

Consumers are keeping their vehicles much longer because they cannot afford to buy new ones. If they hold them much longer, they may become so ancient that they qualify to become collectibles. If people have lost the equity in their homes, perhaps they can get it back from the value of their vintage cars.

According to Bloomberg, "Used vehicles being traded in at dealerships averaged 6.3 years of age after the Wall Street meltdown in late 2008, about 6 months older than before the crisis, according to forecaster J.D. Power & Associates in Troy, Michigan."

Put another way, the car companies get into deeper trouble every day.

Douglas A. McIntyre

Source: 24/7 Wall St. | 10 Jan 2009 | 11:47 am

Auto Review: 2009 Honda Fit: Frugal fun with a model makeover

One of my favorite gas sippers got a complete makeover for 2009 and when the baking was done the Fit was fitter than ever.

Source: MarketWatch.com - Top Stories | 10 Jan 2009 | 11:01 am

EU bidding to resolve gas dispute

The head of an EU mediation team is to hold talks with Russia's Vladimir Putin to help reach a deal to resume gas supplies to Europe.
Source: BBC News | Business | World Edition | 10 Jan 2009 | 9:00 am

Warner Bros. to outsource jobs overseas

Scores of 'back-office' workers are expected to be laid off as jobs are sent to India and Poland as part of a cost-cutting move. ...
Source: RSS feed - channel BNPaperBusiness | 10 Jan 2009 | 8:00 am

Economists see longest recession since World War Two (Reuters)

Reuters - The U.S. recession will probably be the longest since World War Two and could worsen without heavy government spending, according to a closely-watched survey of economists released on Saturday.

Source: Yahoo! News: Business | 10 Jan 2009 | 5:35 am

Economists see longest recession since World War Two

WASHINGTON (Reuters) - The U.S. recession will probably be the longest since World War Two and could worsen without heavy government spending, according to a closely-watched survey of economists released on Saturday.
Source: Reuters: Business News | 10 Jan 2009 | 5:35 am

Market Snapshot: Market seeks to read earnings, economic tea leaves

Investors will get their first taste next week of what's expected to be a gruesome earnings season, with a double helping of sour 2009 outlooks and even more evidence of the depth of the recession.

Source: MarketWatch.com - Top Stories | 10 Jan 2009 | 5:01 am

Stocks to Watch: Stocks in focus for Monday

Among the companies whose shares are expected to see active trade in Monday's session are Alcoa, Micron Technology, Rambus and Citigroup.

Source: MarketWatch.com - Top Stories | 10 Jan 2009 | 5:01 am

Glaxo to curb U.S. TV ads- WSJ

NEW YORK, Jan 9 (Reuters) - GlaxoSmithKline plc Chief Executive Andrew Witty said Friday the drug company is cutting back on its U.S. television advertising as it tries to avoid the criticism aimed at...
Source: RSS feed - channel BNewsBusiness | 10 Jan 2009 | 4:39 am

Lloyds in $350m US settlement

Lloyds TSB will pay $350m to settle US investigations after admitting it enabled Iranian and Sudanese clients to access the US banking system in violation of US sanctions, prosecutors said on Friday. Lloyds...
Source: RSS feed - channel BNPaperBusiness | 10 Jan 2009 | 4:31 am

Lloyds in $350m US settlement

Lloyds TSB, the UK bank, will pay $350m to settle US investigations after admitting that it helped Iranian and Sudanese clients access the US banking system in violation of US sanctions, prosecutors said
Source: Financial Times - US homepage | 10 Jan 2009 | 4:31 am

Agency warns on automakers' pension funds: report

NEW YORK (Reuters) - An estimated 1.3 million car workers and retirees could see their pensions cut if one or more of the U.S. automakers collapse, the head of the government agency that protects Americans' pensions warned on Friday.
Source: Reuters: Business News | 10 Jan 2009 | 4:24 am

Agency warns on automakers' pension funds: report

NEW YORK (Reuters) - An estimated 1.3 million car workers and retirees could see their pensions cut if one or more of the U.S. automakers collapse, the head of the government agency that...
Source: RSS feed - channel BNewsBusiness | 10 Jan 2009 | 4:24 am

Agency warns on automakers' pension funds: report (Reuters)

Reuters - An estimated 1.3 million car workers and retirees could see their pensions cut if one or more of the U.S. automakers collapse, the head of the government agency that protects Americans' pensions warned on Friday.
Source: Yahoo! News: Business | 10 Jan 2009 | 4:24 am

Mesa Air Group Sets Time for Discussion of 4th Quarter Earnings and Annual Results

PHOENIX, Jan. 9 /PRNewswire-FirstCall/ -- Mesa Air Group, Inc. (Nasdaq: MESA) announced today that it will release financial and operating results for the fourth quarter ended...
Source: RSS feed - channel BNewsBusiness | 10 Jan 2009 | 4:03 am

Elan CEO says not in talks with Pfizer- Bloomberg

NEW YORK, Jan 9 (Reuters) - Elan Corp Plc Chief Executive Kelly Martin told Bloomberg Friday that the Irish drugmaker is not negotiating to sell itself to Pfizer Inc , or any other drug company, even...
Source: RSS feed - channel BNewsBusiness | 10 Jan 2009 | 3:09 am

Shanghai Disneyland closer to reality

Walt Disney Co. reports progress in its plans for a theme park in China, and local anticipation is building. Walt...
Source: RSS feed - channel BNPaperBusiness | 10 Jan 2009 | 2:54 am

Detroit hosts auto show against bleak backdrop

DETROIT (Reuters) - Automakers will introduce glossy cars and new hybrids at the Detroit Auto Show, but with General Motors Corp and Chrysler LLC still teetering on the edge of failure and industry sales expected to worsen, the lure of shiny new sheet metal may not be what it was in the past.
Source: Reuters: Business News | 10 Jan 2009 | 2:51 am

CES-Hollywood cuts back glitz at gadget show

LOS ANGELES/LAS VEGAS, Jan 9 (Reuters) - Hollywood is toning down the glitz at the annual Consumer Electronics Show as studios seek cheaper, more practical ways to sell movies and television programs.
Source: RSS feed - channel BNewsBusiness | 10 Jan 2009 | 2:50 am

Latin American Markets: Brazilian, Mexican markets down after bleak U.S. jobs report

Major Latin American markets finish mostly lower, tracking losses on Wall Street after the release of a bleak government report showing the U.S. labor market is in its worst shape since the 1940s.

Source: MarketWatch.com - Top Stories | 10 Jan 2009 | 2:19 am

Lloyds's to pay US fine of 350 mln dlrs in sanctions probe

British-based Lloyds TSB Bank agreed Friday to pay a 350 million dollar penalty to settle a probe that it illegally handled financial transfers for Iran and Sudan in violation of US...
Source: RSS feed - channel BNewsBusiness | 10 Jan 2009 | 2:04 am

On the Ball: Carson Speaks, NFL PLayoffs, College Football

Source: Bloomberg - All Podcasts | 10 Jan 2009 | 2:00 am

Madoff bail to be decided Monday

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 10 Jan 2009 | 1:53 am

Cisco CEO sees GDP resuming growth by second ha

LAS VEGAS (Reuters) - Cisco Systems Inc Chief Executive John Chambers said on Friday that U.S. gross domestic product may start to grow again in the second half of 2009 but that his...
Source: RSS feed - channel BNewsBusiness | 10 Jan 2009 | 1:53 am

Scorecard for the major stock market indexes (AP)

AP - A jump in unemployment sent stocks sharply lower Friday as investors feared that Americans won't soon deviate from their tightened budgets. The Labor Department's much-anticipated report showed employers cut 524,000 jobs in December, a smaller decline than the loss of 550,000 jobs economists forecast. But the unemployment rate jumped to a 16-year high of 7.2 percent — more than the 7 percent economists predicted — from 6.8 percent in November.

Source: Yahoo! News: Stock Markets News | 10 Jan 2009 | 1:41 am

Judge delays Madoff jail decision

NEW YORK - A judge has delayed a decision until Monday on whether Bernard Madoff should be sent to jail. Prosecutors claim Madoff has been trying to protect his assets from investors burned by a US$50 (NZ$84.5) billion fraud,...
Source: New Zealand Herald - Business | 10 Jan 2009 | 1:34 am

Citi, Morgan Stanley in brokerage talks; Rubin quits (Reuters)

Reuters - Citigroup Inc is in advanced talks to sell its Smith Barney brokerage unit to Morgan Stanley, a person familiar with the matter said on Friday, in a move that would further dismantle the financial supermarket that has been bailed out by the U.S. government.

Source: Yahoo! News: Business | 10 Jan 2009 | 1:27 am

Citi, Morgan Stanley in brokerage talks; Rubin quits

NEW YORK (Reuters) - Citigroup Inc is in advanced talks to sell its Smith Barney brokerage unit to Morgan Stanley, a person familiar with the matter said on Friday, in a move that would further dismantle the financial supermarket that has been bailed out by the U.S. government.
Source: Reuters: Business News | 10 Jan 2009 | 1:27 am

Satyam executives arrested

Indian police on Friday night arrested the former chairman and the chief executive of Satyam Computer Services, the outsourcing company at the centre of a $1bn fraud, as the affair triggered wider falls in share prices
Source: Financial Times - US homepage | 10 Jan 2009 | 1:27 am

Satyam executives arrested

Indian police on Friday night arrested the former chairman and the chief executive of Satyam Computer Services, the outsourcing company at the centre of a $1bn fraud, as the affair triggered wider falls...
Source: RSS feed - channel BNPaperBusiness | 10 Jan 2009 | 1:27 am

Indio Selected to Assist Federal Government in Developing Innovative Programs to Prevent and Mitigate Foreclosure Fallout

Deputy Director of Bureau of Justice Assistance Says Indio's Input Will be 'Instrumental' and 'Invaluable' to the Effort INDIO, Calif.,...
Source: RSS feed - channel BNewsBusiness | 10 Jan 2009 | 1:26 am

Big Three Automakers Shun Chapter 11 For Government Bailout

Source: Bloomberg - All Podcasts | 10 Jan 2009 | 1:24 am

Morton Klein Says Israel Waited Too Long to Attack Hamas

Source: Bloomberg - All Podcasts | 10 Jan 2009 | 1:12 am

Statement From The Cliffs Communities

TRAVELERS REST, S.C., Jan. 9 /PRNewswire/ -- The Cliffs Communities issued the following statement today in response to the Associated Press story claiming Jim Anthony,...
Source: RSS feed - channel BNewsBusiness | 10 Jan 2009 | 1:12 am

Weekend Edition: Fourth-quarter earnings 'disaster' sets 2009 up for mild recovery

For any company not tied to consumer must-haves like health care and groceries, earnings in the fourth quarter likely made the same swan dive as the broader economy.

Source: MarketWatch.com - Top Stories | 10 Jan 2009 | 1:11 am

Disgraced US pastor Haggard says better Christian

LOS ANGELES, Jan 9 (Reuters) - Ted Haggard, the powerful U.S. evangelist who fell from grace in 2006 amid a gay sex scandal, returned to the spotlight on Friday saying his faith was stronger but he wished...
Source: RSS feed - channel BNewsBusiness | 10 Jan 2009 | 1:09 am

Jobless rate at 16-year high as payrolls plunge

WASHINGTON (Reuters) - The unemployment rate surged to the highest in nearly 16 years last month as a deepening year-long recession forced companies to axe more than half a million jobs, government data showed on Friday.
Source: Reuters: Business News | 10 Jan 2009 | 1:04 am

Lloyds pays $350m to end US case

UK bank Lloyds TSB agrees to pay a $350m penalty to US authorities after admitting violating US sanctions.
Source: BBC News | Business | World Edition | 10 Jan 2009 | 1:01 am

Kiwi takes over finance empire

Pip McCrostie has lived outside New Zealand for more than 20 years but the Christchurch-born expatriate comes back each Christmas and still calls New Zealand home. She has been appointed the global head of the corporate finance...
Source: New Zealand Herald - Business | 10 Jan 2009 | 1:00 am

Budget Hero: Play Now

Budget Hero is American Public Media’s newest edu-game. Try playing it below, it’s quite enlightening.

Your Web browser software doesn’t support frames, but you can visit The Budget Hero at http://budgethero.publicradio.org/widget/widget.php?refid=apm.

Here are my results, which I’m not exactly bragging about:

How do your results stack up?

Source: Business Pundit | 10 Jan 2009 | 12:51 am

America loses 2.6 million jobs, most since WW2

WASHINGTON - A staggering 2.6 million jobs disappeared in 2008, the most since World War II, and the pain is only getting worse with 11 million Americans out of work and searching. Unemployment hit a 16-year high of 7.2 per...
Source: New Zealand Herald - Business | 10 Jan 2009 | 12:43 am

Rubin quits as Citi looks to sell brokerage

Robert Rubin said he would leave Citigroup after a controversial decade on its board as it emerged that the company was in talks to cede control of its Smith Barney brokerage unit to Morgan Stanley in return for about $2.5bn in cash
Source: Financial Times - US homepage | 10 Jan 2009 | 12:36 am

Rubin quits as Citi looks to sell brokerage

Robert Rubin on Friday said he would leave Citigroup after a controversial decade on its board as it emerged that the company was in talks to cede control of its Smith Barney brokerage unit to Morgan Stanley...
Source: RSS feed - channel BNPaperBusiness | 10 Jan 2009 | 12:36 am

In Brief - Friday

Walt Disney (DIS), the entertainment giant, plans to build a new theme park in Shanghai, China, in a joint venture with the government. It fell...

Source: Investor's Business Daily: BUSINESS | 10 Jan 2009 | 12:33 am

Trends & Innovations - Friday

Mobile video use small, growing

Source: Investor's Business Daily: BUSINESS | 10 Jan 2009 | 12:33 am

Business Briefs - Friday

Roche may raise Genentech bid. Genentech, a biotech giant, rose 2.3% to 86.34 after the Financial Times reported Swiss drug giant Roche is...

Source: Investor's Business Daily: BUSINESS | 10 Jan 2009 | 12:33 am

Top Medical Waste Disposal Firm Sees No Effect From Recession

The economy may be in the dumps. But medical waste management kingpin Stericycle is cleaning up.

Source: Investor's Business Daily: BUSINESS | 10 Jan 2009 | 12:33 am

Junkyard Dogs? Not Exactly

As new-car sales skid off track, auto-parts retailers and repair shops are picking up some of the pieces.

Source: Investor's Business Daily: BUSINESS | 10 Jan 2009 | 12:33 am

Fairfield Greenwich sued over $1 billion in Madoff-related fees

An investor sues Fairfield Greenwich Group to try to recoup more than $1 billion the investment firm collected for funneling client money into funds run by Bernard Madoff.

Source: MarketWatch.com - Top Stories | 10 Jan 2009 | 12:28 am

Taxing Times: With 500 tax changes in '08, time is now to start your tax chores

It’s not too early to get started on your taxes; at the least, you can start gathering any receipts and other records you’ll need. In fact, given the extreme complexity of the tax code, you should consider getting a move on it sooner rather than later.

Source: MarketWatch.com - Top Stories | 10 Jan 2009 | 12:16 am

Banks: We want our old bailout back

Two months after Treasury Secretary Henry Paulson pulled the plug on his plan to buy troubled mortgage assets, the financial industry is pushing the government to reconsider.
Source: Business and financial news - CNNMoney.com | 10 Jan 2009 | 12:04 am

'Bloodbath' of cuts to rates on Friends Provident investments

Friends Provident, the UK's sixth-largest life insurer, has kicked off the 2009 bonus season with “a bloodbath” by slashing rates on many of its 1.2 million with-profits policies. Other insurers are expected to follow suit, after a disastrous year for investment returns in 2008.
Source: Latest Business News from Times Online | 10 Jan 2009 | 12:00 am

Raju brothers charged with forgery in $1bn Satyam case$

B. Ramalinga Raju, the disgraced IT mogul behind India’s largest corporate fraud, was arrested yesterday on charges of cheating and forgery, according to an Andhra Pradesh state police chief.
Source: Latest Business News from Times Online | 10 Jan 2009 | 12:00 am

Regulator's U-turn spares David Ross censure over Carphone shares

The City’s chief regulator staged a dramatic policy U-turn yesterday and declared a two-week amnesty for hundreds of directors who have pledged their shares to back personal loans.
Source: Latest Business News from Times Online | 10 Jan 2009 | 12:00 am

Bernard Madoff faces questions over transfer of $150m from UK arm$

Stephen Raven, the head of Bernard Madoff’s British operation, has called on Mr Madoff to confirm that he did not embezzle $150 million ($£99 million) of the UK unit’s cash or, if he did, to own up and return the cheque.
Source: Latest Business News from Times Online | 10 Jan 2009 | 12:00 am

Two more Ponzi schemes uncovered

The US Government moved to clamp down on fraudulent Ponzi schemes in the wake of the $50 billion ($£33 billion) Bernard Madoff scandal, by charging two men for allegedly operating two similar schemes.
Source: Latest Business News from Times Online | 10 Jan 2009 | 12:00 am

Citigroup to sell broker unit as Robert Rubin bows out

Citigroup was in talks last night to sell a majority stake in Smith Barney, the brokerage firm, to Morgan Stanley in a deal that would create the world’s biggest wealth manager.
Source: Latest Business News from Times Online | 10 Jan 2009 | 12:00 am

John Lewis hails 'inspirational' sales effort in January sale

John Lewis Partnership led the charge yesterday on a brighter day for some retailers.
Source: Latest Business News from Times Online | 10 Jan 2009 | 12:00 am

Heathrow terminal faces blockade by activists posing as passengers

A mass protest against a third runway at Heathrow could cause hundreds of flights to be cancelled next week as demonstrators attempt to blockade Terminal 1.
Source: Latest Business News from Times Online | 10 Jan 2009 | 12:00 am

Wedgwood family fights to stop US takeover bid

The Wedgwood family is preparing a last-ditch scheme to stop the sale of the family business, founded in 1759, to an American fund.
Source: Latest Business News from Times Online | 10 Jan 2009 | 12:00 am

Taxman steps up investigations to fill £7bn shortfall at Treasury

Higher-rate taxpayers and those who are self-employed face a greater risk of a tax investigation, as the Revenue deploys tougher tactics to fill a £7 billion black hole in Treasury coffers.
Source: Latest Business News from Times Online | 10 Jan 2009 | 12:00 am

Get ready for more jobs pain ahead

There is no longer any doubt about the biggest problem facing the economy: the job market.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 11:57 pm

Stocks slide after rise in unemployment rate (AP)

AP - The first full week of 2009 didn't bring Wall Street any huge shocks, but it didn't bring much for investors be happy about, either.

Source: Yahoo! News: Stock Markets News | 9 Jan 2009 | 11:46 pm

Madoff-tarnished GMAC chairman resigns

GMAC chairman J. Ezra Merkin, who was under pressure to resign after getting caught up in the Madoff scandal, stepped down from the board Friday, according to a statement from the auto finance company.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 11:44 pm

After Hours: Citigroup, Morgan Stanley shares mixed in evening trades

Shares of Citigroup Inc. and Morgan Stanley lose ground in late trading following reports that the two companies are in talks about merging their brokerage units.

Source: MarketWatch.com - Top Stories | 9 Jan 2009 | 11:41 pm

Charges dropped against ex-Reagan budget director

NEW YORK -- Federal prosecutors dropped charges today against former Reagan budget director David Stockman, who was accused of overseeing a sweeping fraud at a troubled auto parts supplier that he led...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 11:33 pm

Wermuth firesale plea fails to move investors

A hedge fund that is chaired by Lord Skidelsky, the historian, and has former Irish taoiseach Garret FitzGerald on its board has failed in an attempt to convince investors to lock up holdings to avoid...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 11:29 pm

VIX Index of U.S. Stock Option Prices Advances 0.6% to 42.82

Source: Bloomberg - All Podcasts | 9 Jan 2009 | 11:29 pm

Stocks knocked by jobs report

Stocks slumped Friday afternoon after a government report showed another big monthly drop in payrolls, resulting in the biggest annual job loss since just after World War II.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 11:28 pm

Harry Clark Recommends ETFs for Emerging Markets

Source: Bloomberg - All Podcasts | 9 Jan 2009 | 11:27 pm

Ahead of the Curve: A stripped-down Detroit car show starts its engines

Now that the grim voyage of the Detroit Lions, the worst team in the history of the NFL, has mercifully come to an end, it's time to move on to the Motor City's next reason not to celebrate: The North American International Auto Show.

Source: MarketWatch.com - Top Stories | 9 Jan 2009 | 11:24 pm

Bankers discuss regulatory change

US and European banking chiefs are meeting in Basel for behind-the-scenes talks with central bankers and regulators to discuss the post-crisis regulatory framework
Source: Financial Times - US homepage | 9 Jan 2009 | 11:23 pm

US investor buys Sudanese warlord's land

A US businessman backed by former CIA and state department officials says he has secured a vast tract of fertile land in south Sudan from the family of a notorious warlord
Source: Financial Times - US homepage | 9 Jan 2009 | 11:18 pm

Tremont forced to halt redemptions

Tremont Capital Management, one of the main companies which funnelled investor money to Bernard Madoff, has been forced to halt redemptions in several of its funds as investors have rushed to pull money out
Source: Financial Times - US homepage | 9 Jan 2009 | 11:15 pm

Tremont forced to halt redemptions

Tremont Capital Management, one of the main companies which funnelled investor money to Bernard Madoff, has been forced to halt redemptions in several of its funds as investors have rushed to pull money...
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 11:15 pm

December Jobs, Earnings, Retail Reports; GM and UAW Talk Labor

Source: Bloomberg - All Podcasts | 9 Jan 2009 | 11:12 pm

GMAC's Merkin quits under Madoff cloud

NEW YORK (Reuters) - Ezra Merkin, one of the most prominent hedge fund managers embroiled in Bernard Madoff's alleged fraud scheme, will resign as chairman of GMAC LLC so the finance company will be eligible to receive U.S. taxpayer funds.
Source: Reuters: Business News | 9 Jan 2009 | 11:10 pm

Frank moves to tighten Tarp aid

A top US Democrat introduced legislation to tighten conditions on government aid for the financial sector and force the Treasury Department to do more to help homeowners avoid foreclosure
Source: Financial Times - US homepage | 9 Jan 2009 | 11:07 pm

MGM Mirage to take $1.2 billion writedown on Mandalay

NEW YORK (Reuters) - MGM Mirage said on Friday it would write down the value of the Mandalay Resort Group, the casino company it bought in 2005 for about $5 billion.
Source: Reuters: Business News | 9 Jan 2009 | 10:55 pm

Bank industry slams lawmaker-Citi mortgage deal

WASHINGTON/NEW YORK (Reuters) - A top bank industry group said on Friday that it opposes an agreement between Citigroup Inc and Democratic senators that would rewrite U.S. bankruptcy law to help troubled mortgage borrowers avoid foreclosure, saying it could make home loans more expensive.
Source: Reuters: Business News | 9 Jan 2009 | 10:20 pm

Bank industry slams lawmaker-Citi mortgage deal (Reuters)

Reuters - A top bank industry group said on Friday that it opposes an agreement between Citigroup Inc and Democratic senators that would rewrite U.S. bankruptcy law to help troubled mortgage borrowers avoid foreclosure, saying it could make home loans more expensive.

Source: Yahoo! News: Business | 9 Jan 2009 | 10:20 pm

Hear: Where Are The U.S. Dollars?

The unemployment numbers we've waiting for all week have come in, and my goodness. We're talking 7.2 percent, the highest since January 1993.

In other news, Adam Davidson wants to win the 2008 Weblog Award for Best Podcast. If you like us, please vote for us.

Today on Planet Money:

-- Tradition Asiel Securities trader Will Aston-Reese gives the view from his desk. (It's a little better!)

-- On Thursday, we presented a puzzler: Where is all the U.S. currency? Today economists Richard Porter and Ken Rogoff fire up an amazing answer.

-- Listener Sophia Suhu got laid off the night before she dialed in for an Economist House Call. Now she has a puzzler of her own: What's a person gotta do to get a low-wage job anymore?

Download the podcast; or subscribe. Intro music: Hole "Credit in the Straight World." Find us: Twitter/ Facebook/ Flickr.

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Source: NPR Blogs: Planet Money | 9 Jan 2009 | 10:19 pm

Wall Street falls on job woe, Citi (Reuters)

Reuters - Stocks fell on Friday after government data showed the labor market deteriorated further in December, raising investor concerns about the outlook for profits, spending and a deepening recession.

Source: Yahoo! News: Business | 9 Jan 2009 | 10:17 pm

Wall Street falls on job woe, Citi

NEW YORK (Reuters) - Stocks fell on Friday after government data showed the labor market deteriorated further in December, raising investor concerns about the outlook for profits, spending and a deepening recession.
Source: Reuters: Business News | 9 Jan 2009 | 10:17 pm

Wall Street falls on job woe, Citi (Reuters)

Reuters - Stocks fell on Friday after government data showed the labor market deteriorated further in December, raising investor concerns about the outlook for profits, spending and a deepening recession.

Source: Yahoo! News: Stock Markets News | 9 Jan 2009 | 10:17 pm

EU redoubles efforts to restore flow of gas

The European Union resumed efforts to secure the restoration of Russian gas shipments via Ukraine to the EU after hopes of an early settlement to the crisis faded, leaving millions of consumers facing a fifth day of shortages
Source: Financial Times - US homepage | 9 Jan 2009 | 10:13 pm

Jobless rate at 16-year high as payrolls plunge (Reuters)

Reuters - The unemployment rate surged to the highest in nearly 16 years last month as a deepening year-long recession forced companies to axe more than half a million jobs, government data showed on Friday.

Source: Yahoo! News: Business | 9 Jan 2009 | 10:13 pm

Boeing to cut 4,500 jobs as airline demand falls

PITTSBURGH -- Boeing Co., the world's second-largest airplane maker, plans to cut about 3% of its work force as a weakening global economy lowers demand for jetliners.
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 10:09 pm

What Is Seigniorage?

In today's podcast we try to answer the question: Where is all the U.S. currency?

In it we mention that the U.S. government profits from the fact that people all over the world love our green pieces of paper.

How does the government actually profit? Through something called seigniorage, which is as hard to explain as it is to spell.

In the old days, seigniorage was the revenue the government earned because it costs less than a dollar to print a dollar. Say it costs 2 cents to print a $1 dollar bill. Then, poof, the government has gained something like 98 cents when it prints that dollar and uses it to buy something. That's overly simple but it's a good starting place.

Today the Federal Reserve controls the money supply. And one of the ways it does this is by buying or selling treasury bills. If the Fed wants to increase the money supply, it buys some treasury bills (government bonds) from banks. So a treasury bill is taken out of circulation and replaced, basically, with dollars. Presto. More dollars in the world.

Here's the key part; more dollars in circulation, means more treasury bills at the Fed. And unlike dollars, the treasury bills earn interest. So the Fed profits. It's holding onto those treasury bills which pay off with interest. Basically when you hold onto U.S. cash, you're giving the Federal Reserve and interest free loan.

Check out the wikipedia entry.

And here's a good explainer on what it's like to be the institution that can basically create money out of thin air.

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Source: NPR Blogs: Planet Money | 9 Jan 2009 | 10:08 pm

A home theater in your pocket

Want to carry around your own personal movie theatre? Check out these 6 pico projectors, previewed at CES.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 10:07 pm

Wool gets a new spin as farmers battle low prices

You'd think it would be a no-brainer - in these times of heightened environmental awareness a sustainable, natural fibre like wool should be in hot demand. Calendar pictures of woolly lambs frolicking in lush paddocks are, after...
Source: New Zealand Herald - Business | 9 Jan 2009 | 10:00 pm

US job losses hit record in 2008

More US workers lost jobs in 2008 than in any year since World War II, with employers axing 2.6 million posts.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 9:59 pm

Illinois House votes for Blagojevich impeachment

llinois' House of Representatives voted overwhelmingly to impeach Rod Blagojevich, the state's governor accused of trying to sell President-elect Barack Obama's vacant US Senate seat
Source: Financial Times - US homepage | 9 Jan 2009 | 9:46 pm

Citigroup may merge Smith Barney with Morgan Stanley

Talks are in advanced stages, CNBC reports. A deal would create the nation's largest brokerage.
Source: RSS feed - channel BNPaperBusiness | 9 Jan 2009 | 9:38 pm

A stock to stomach tough times

The restaurant industry is struggling mightily as the economy slumps further into recession, food costs rise and consumers tighten their grips on their wallets.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 9:30 pm

Most Researched Cars of 2008

If Kelley Blue Book is any indication, Americans are getting serious about smaller cars. The company has announced the most-researched new cars of 2008 on their website, www.kbb.com.

Here are the cars we’re looking up:

1. Honda Civic
2. Honda Accord
3. Toyota Camry
4. Toyota Corolla
5. Nissan Altima
6. Honda CR-V
7. Toyota Prius
8. Toyota Highlander
9. Toyota RAV4
10. Mazda3
11. Toyota Yaris
12. Ford Escape
13. Honda Odyssey
14. Honda Pilot
15. Honda Fit
16. Ford Mustang
17. Chevrolet Malibu
18. Toyota Sienna
19. MINI Cooper
20. Volkswagen Jetta

Honda or Toyota anyone?

It’s no wonder our auto industry is in a mess - only three of the top twenty are American cars. Kelley Bluebook says Chevrolet’s redesigned Malibu has made the most ‘impressive leap’, jumping 55 places from last year’s rank at 72 to this year’s rank at 17, but we’ll need to do better than that.

While the Highlander and the Odyssey aren’t what I’d call small, they’re a considerable downsize from a Suburban or an Escalade, which a lot of kid-carting families have opted for in the past.

According to Jack R. Nerad of Kelley Blue Book the list reveals what’s on car buyers’ minds.

“Continued interest in Honda and Toyota, Chevrolet’s home-run Malibu redesign and an increase in visits to more fuel-efficient, economical vehicles is an accurate reflection of the marketplace in 2008.”

My husband jokes that the current low fuel prices are only going to endure until the last of the SUVs are sold off the lots. Maybe the gas prices in 2008 have finally convinced us that smaller is better. More fuel-efficient vehicles have certainly made this list. Subcompacts Honda Fit and Toyota Yaris are new to the list this year, and the Honda Civic, Toyota Corolla, Toyota Prius, Mazda3 and Ford Escape have moved up in rank.

What do you think? Have we finally turned the corner on this Big Car fixation?

Image Credit: David McKelvey, Flickr

Source: Business Pundit | 9 Jan 2009 | 9:27 pm

Tourists Lose Interest in Larry Craig’s Bathroom Stall

From CBS News:

Officials say the men’s room at the Minneapolis-St. Paul International Airport where U.S. Sen. Larry Craig, R-Idaho, was arrested in a sex sting has lost interest as a tourist stop.

Patrick Hogan, spokesman for the Metropolitan Airports Commission, says that the surge of publicity also brought an abrupt end to the type of activity in the restroom that had prompted lewd-conduct complaints. Hogan says one person offered to buy the restroom stall for $5,000, but that airport officials declined.

Now that’s an interesting concept–selling airport bathroom stalls to individuals. Why not? It sounds like a good way for airports to raise money and individuals to memorialize their favorite, err, places to hang out.

Source: Business Pundit | 9 Jan 2009 | 9:24 pm

Bob Rubin admits his regret

Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 9:24 pm

Don't expect $4 gas anytime soon

Gasoline prices have surged some 10% over the past week but don't expect the $4-a-gallon record highs of last summer anytime soon.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 9:22 pm

Hearst To Dump Seattle P-I

Source: 24/7 Wall St. | 9 Jan 2009 | 9:13 pm

Your financial resolutions for 2009

A new year means it's time for new years resolutions. How have you resolved to keep your finances in order this year? We present the financial goals and plans of some of our listeners.
Source: Marketplace Money | 9 Jan 2009 | 9:05 pm

Countdown to the digital transition

The road to the digital TV switchover has been long and not without a few potholes. As the February deadline approaches, host Tess Vigeland asks Popular Science's Sean Captain what you need to do to make sure you're ready.
Source: Marketplace Money | 9 Jan 2009 | 9:05 pm

Mandatory withdrawals eased for 2009

The rules surrounding mandatory withdrawals from retirement accounts have eased in 2009, but the change isn't without its fair share of confusion. Host Tess Vigeland asks tax adviser John Battaglia to break it down.
Source: Marketplace Money | 9 Jan 2009 | 9:05 pm

Day in the Work Life: Carpenter

On this week's "A Day in the Work Life," we go on the job with carpenter Olga Aguilar.
Source: Marketplace Money | 9 Jan 2009 | 9:05 pm

Getting Personal

This week, Tess Vigeland and economics editor Chris Farrell answer questions about retirement, investing in foreign currency, keeping economic fears in check, and the ethics of a windfall.
Source: Marketplace Money | 9 Jan 2009 | 9:05 pm

Application fees add to college costs

Forget tuition, room and board and books; you start paying for college the moment you mail in the application. Danielle Karson reports.
Source: Marketplace Money | 9 Jan 2009 | 9:05 pm

Student loans leave lasting pain

A student loan is one of the few sources of money that's still relatively easy to get. But that doesn't mean it'll be easy to pay it back. Susan Goodman reports.
Source: Marketplace Money | 9 Jan 2009 | 9:04 pm

Straight Story: The paradox of thrift

Should you save to strengthen your reserves or spend to help unfreeze the economy? Economics editor Chris Farrell sets the story straight on how to handle your money during tough times.
Source: Marketplace Money | 9 Jan 2009 | 9:04 pm

Fannie tries to cut renters some slack

When a landlord goes bust, the bank says bye-bye to their tenants. But a new Fannie Mae policy hopes to offer some relief to renters. Dan Grech reports.
Source: Marketplace Money | 9 Jan 2009 | 9:04 pm

Renters struggle to keep up

The struggle of homeowners in this tough economy has been in the news, but for millions of renters, a housing payment is a housing payment whether it's a mortgage or a rent check. Sally Herships reports.
Source: Marketplace Money | 9 Jan 2009 | 9:04 pm

Does the country need a big gas tax?

To save the planet and move away from imported fuel, some say a big energy tax is the best way to go.
Source: Business and financial news - CNNMoney.com | 9 Jan 2009 | 9:03 pm

First, They Stop The Coffee

A Twitter friend of mine sends this news clip. It's about her former employer in Ohio, which sent the workers an e-mail over New Year's saying that it was closing and everyone was out of a job. The reporter in this story questions whether the company, a publisher, gave employees the legally required notice.

After the jump, a series of messages she sent over Twitter.

Monday, Dec. 29: "(1) Found out while I was off my co. quit paying coffee service, so they quit delivering. Brought my own coffee to brew today."

Monday, Dec. 29: "(2) They'll take the coffee makers next, so several of us at work plan to chip in & buy our own pot. Just happy to have job @ this point."

Tuesday, Dec. 30: "Email to all staff: . . . All staff terminated. New buyer negotiating. May get called back to new owner."

Friday, Jan. 9: "I'm in unemployment lines in OH, not MI, but the Job Center in Dayton, OH, is packed. Plus system crashes. Today a threat emptied bldg."

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Source: NPR Blogs: Planet Money | 9 Jan 2009 | 8:58 pm

Madoff Deserves Jail for Violating Asset Freeze: Commentary

Source: Bloomberg - All Podcasts | 9 Jan 2009 | 8:17 pm

Rubin Out At Citi (C)

Source: 24/7 Wall St. | 9 Jan 2009 | 8:13 pm

Indian IT scandal boss arrested

The founder of scandal-hit Indian software company Satyam is arrested two days after he admitted falsifying the firm's accounts.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 8:10 pm

Boeing cuts 4,500 jobs

NEW YORK (Reuters) - Boeing Co became the latest U.S. industrial giant to cut jobs on Friday, shedding 4,500 workers from its commercial plane operations, or about 7 percent of the unit total, as it looks to trim costs in the face of a global recession.
Source: Reuters: Business News | 9 Jan 2009 | 8:09 pm

Part-Time Nation

Calculated Risk has a terrific look at America's rising number of part-time workers -- more than 8 million of them, according to the latest reports. The blog calls the increase "stunning." An accompanying chart makes clear why.

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Source: NPR Blogs: Planet Money | 9 Jan 2009 | 8:07 pm

Counter-Cycle Upgrades in YRC Worldwide (YRCW)

Source: 24/7 Wall St. | 9 Jan 2009 | 8:03 pm

Herrmann Sees Retail Jobs Down Over 125,000 in January

Source: Bloomberg - All Podcasts | 9 Jan 2009 | 7:52 pm

Ryding Says U.S. Jobs Data May Lead to Bigger Stimulus Plan

Source: Bloomberg - All Podcasts | 9 Jan 2009 | 7:22 pm

More Nukes in the Pipeline (CEG, PPL, EXC)

UniStar Nuclear Energy, a joint venture between Electricite de France (EDF) and Constellation Energy Group Inc. (NYSE:CEG), and PPL Corporation (NYSE:PPL), a UniStar partner, have passed the first regulatory review on the road to building four new nuclear power plants. The US Nuclear Regulatory Commission just added the fourth, a plant near Berwick, Pennsylvania, to its docket of combined license applications for new nukes.

The NRC now has docketed 26 new nuclear units at 17 different sites for review and approval. It can take up to four years for a project to receive NRC approval, and that's without any public clamor against nukes. The timeline can go way out if lawsuits start getting filed.

We noted some of the hurdles nuclear power providers must clear when Exelon Corporation (NYSE:EXC) announced its plans for a new nuke in September [http://www.247wallst.com/2008/09/going-nuclear-i.html]. So far, nukes are off nearly everyone's radar screen because there are just too many other serious problems to face. But there is no chance that this many new nuclear plants will stay a secret forever.

Paul Ausick
January 9, 2009

Source: 24/7 Wall St. | 9 Jan 2009 | 7:15 pm

Boeing Goes Boing Boing With Pink Slips (BA)

Source: 24/7 Wall St. | 9 Jan 2009 | 7:06 pm

Rig Counts Fall in December (BHI)

Baker Hughes Incorporated (NYSE:BHI) released its monthly rig count report this morning. Compared with November counts, drilling rigs in North America are off about 9%. Compared with December 2007, North American rigs are down by just 28, about 1%.

Rig counts internationally have grown since the end of 2007, but have been falling steadily since mid-2008. The pullback will put pressure on revenues at companies like Baker Hughes and other oil field services companies.

The recent jump in crude prices was due almost entirely to fear of supply disruption caused by the conflict between Israel and Hamas, as well as OPEC's announced production cuts. But the reality of the global economic slowdown, which has cut and will continue to cut demand for oil, has taken back virtually all the fear premium.

Lower rig counts lead to layoffs in the oil field services industry, and lower profits all around. None of this is likely to change until economic conditions improve.

Paul Ausick
January 9, 2009

Source: 24/7 Wall St. | 9 Jan 2009 | 7:05 pm

The lives of Wall Street's young guns

Every year young, ambitious business school graduates dreaming of wealth and power come to Wall Street. But with job losses mounting in the midst of the financial crisis, things have changed. Amy Scott reports on the world of Wall Street's upstarts.
Source: Marketplace | 9 Jan 2009 | 6:59 pm

A Big Writedown At Macy's (M)? A Question Of Who Is Next

It is beginning to dawn on Wall St. that jobs are not the only thing that retailers will be cutting. The value of their stores, inventories, and any past M&A deals may be on the line.

According to Bloomberg, "The second-largest U.S. department-store company may write down its goodwill by as much as $3 billion after-tax as early as this month, said Dan Poole, who researches stocks for National City Private Client Group." Part of the action would be due to the value of May Department Store assets. Macy's bought the chain three years ago.

Several large chains, including Rite Aid (RAD), have closed substantial transactions since 2004. Accountants will put pressure retailers to revalue their assets which have certainly been undermined by revenues which are down and will be down for some time.

Douglas A. McIntyre

Source: 24/7 Wall St. | 9 Jan 2009 | 6:57 pm

Electronics show slowed by recession

The Consumer Electronics Show kicked off this week, promising the latest in gadgets and technology. But in this recession, how is the technology industry responding? Bob Moon speaks with tech expert Kevin Pereira about what's happening at the show.
Source: Marketplace | 9 Jan 2009 | 6:57 pm

Weekly Wrap: Obama's stimulus

With President-elect Obama set to take office shortly, it's no surprise that his stimulus proposals dominated the headlines this week. Bob Moon speaks with Fortune Magazine's Leigh Gallagher and Felix Salmon from Portfolio.com about the tough road ahead for Obama.
Source: Marketplace | 9 Jan 2009 | 6:56 pm

Who really needs the stimulus?

President-elect Obama's stimulus package calls for billions to be spent on infrastructure projects. But commentator Angela Glover Blackwell says to make the most out of the money -- and build up overlooked communities -- it needs to be invested in the right projects.
Source: Marketplace | 9 Jan 2009 | 6:56 pm

Investment banks hoarding oil

Fifty million barrels of oil are just sitting around on supertankers. They're not getting unloaded because investors are waiting for the price of oil to go up. Mitchell Hartman explains.
Source: Marketplace | 9 Jan 2009 | 6:53 pm

Panel criticizes Treasury over TARP

A Congressional oversight panel released a report today that criticizes the Treasury Department's handling of TARP money. Nancy Marshall Genzer reports that Congress now feels it has to clamp down on the department with more oversight.
Source: Marketplace | 9 Jan 2009 | 6:53 pm

Rep. Frank wants new TARP restrictions

The Treasury Department is seeking to dip into the second half of the $700 billion TARP money. But since the first half wasn't administered so well, Congress wants to implement new rules before dispersing the rest of the funds. John Dimsdale reports.
Source: Marketplace | 9 Jan 2009 | 6:53 pm

More Layoffs Coming in the Oil Patch (CVX, SLB, XOM, COP, BP)

Source: 24/7 Wall St. | 9 Jan 2009 | 6:52 pm

German finance minister calls for lower base income tax rate (AFP)

AFP - German Finance Minister Peer Steinbrueck is mulling a cut in the base income tax rate to 12 percent from 15 percent to help pull Europe's biggest economy out of a deep recession, a spokesman said Friday.

Source: Yahoo! News: Business | 9 Jan 2009 | 6:50 pm

Adam Posen Favors Stimulus Plan Equaling 4% of GDP

Source: Bloomberg - All Podcasts | 9 Jan 2009 | 6:42 pm

Lennar: Yet Another Shady Scheme Surfaces

Tired of Ponzi schemes yet? Well, here’s a scheme, albeit less Ponzi than simply preposterous. It has to do with the second-largest homebuilder in the United States, Lennar Corp. According to Rueters:

Shares of Lennar Corp (LEN.N), the second-largest U.S. homebuilder, plummeted on Friday after a letter questioning a late 1990s transaction involving the company surfaced on the Internet.

The letter to the U.S. Securities and Exchange Commission, the FBI and Internal Revenue Service from California pastor Barry Minkow, who served time in jail for stock fraud, concerns a joint venture between Lennar and a private developer to build a high-end housing project and golf course in California.

Here’s Minkow’s Fraud Discovery Institute’s rather dramatic summary of what happened with “Lenn-ron”:

In sum: This report…connects the dots of the public record and other documents to prove that Lennar Corporation has a pattern of behavior over a sustained period of time of knowingly and willfully abusing the legal system to gain an unfair advantage over the less capitalized, smaller entities.

The story:

NYSE-listed Lennar Corporation embarked on a joint venture–called HCC Ventures–with a private developer to build an elite housing/golf course project in Rancho Santa Fe, CA, home of innumerable doctors, lawyers, and, formerly, Roy Croc’s widow.

The deal was simple: The predecessor to Briarwood Capital, LLC would contribute the value of his claims which were at the time of the contribution in excess of 50 million dollars and also included claims to the property itself—some 540 acres–while the big public company would, among other things, manage the development on a daily basis. As part of the agreement between the two parties, Lennar assisted in the acquisition of the land for the development of the project.

Both parties signed an operating agreement in August 1997.

…at the closing of this transaction, the smaller developer agreed to contribute the value of his claim and claims to the property itself to the newly formed venture, HCC Investors. In June of 1999 the claims were realized at a sum total of 37.5 million and subsequently wired to the HCC bank accounts per both parties understanding as a capital contribution. And then the unthinkable happened.

Within hours of receiving those funds by wire on June 25, 1999, the big public company…wired out the entire sum by sending out two separate wires…to another one of the public company’s wholly owned subsidiaries, which had nothing whatsoever to do with the project.

What happened next was that over a period of approximately of 5 years, Lennar refused, despite obligations to do so in the operating agreement and numerous written requests, to provide accounting for the wired funds of June 25th, 1999 and the revenue of at the time in excess of 400 million dollars. Accounting was only obtained by court order. And it revealed what happened to the 37.5 million dollars.

The small developer filed suit about the secret wire. Lennar countered that a verbal agreement had been made allowing for the $37.5 million to be wired to “an unaffiliated entity,” even though the operating agreement banned verbal agreements.

Shady. Makes you wonder who’s next.

Source: Business Pundit | 9 Jan 2009 | 6:38 pm

Best Buy narrows full-year profit forecast (Reuters)

Reuters - Best Buy Co , the top specialty retailer of consumer electronics, narrowed its full-year profit forecast on Friday after reporting weak December sales, sending its shares down more than 5 percent.
Source: Yahoo! News: Business | 9 Jan 2009 | 6:25 pm

Home Depot Takes Ball, Goes Home. But What's The Score?

(NOTE: THIS POST HAS AN UPDATE, AFTER THE JUMP.)

Mike Pesca sends this:

Home Depot has withdrawn as a U.S. Olympic sponsor, and as part of a program that employed Olympic hopefuls with full-time benefits and wages for part-time work. So you'll no longer see commercials like the one above.

Over the years, Home Depot has employed hundreds of athletes who have collectively won many medals. Just how many? Well, Home Depot has never been known for its exacting accounting standards, and and no one can seem to agree as to the scope of the program:

Pesca continues:

Wall Street Journal: In the 16 years, that Home Depot has sponsored the U.S. and Puerto Rico Olympic and Paralympic teams, it has employed 600 athletes who have won 145 medals.

KSL 5 Utah: Since the program started in 1992, 570 Olympic and Paralympic athletes signed up. Home Depot workers earned 194 medals, 88 of them gold.

FROM Home Depot's own website: To date, more than 300 The Home Depot athlete-associates have competed in the Olympic and Paralympic Games, earning a total of 194 medals, including 88 gold, 62 silver and 44 bronze.

Another part of Home Depot's own website: The athletes have earned a total of 212 medals including 95 gold, 68 silver and 49 bronze.

Seattle Times: Home Depot says it employed 660 athletes, 300 of whom made Olympic and Paralympic teams, resulting in 150 medals -- 95 of them gold.

Home Depot still offers part-time jobs to the athletes in its employ, just not part-time jobs with flexible work hours and full benefits. You know, a future heptathlete can don an Orange Apron like anyone else. Home Depot, after all, can't just go throwing cash around.

UPDATE: Pesca talked to William Chipps, senior editor at the IEG Sponsorship Report, about Home Depot's decision. Chipps says he thinks that even though Home Depot is no longer an Olympic sponsor, it could still have remained in the Olympics Job Opportunities Program. Pesca has calls out, and we'll try to have more on this for the Monday podcast.

UPDATE on the UPDATE: One of Pesca's calls got returned. Home Depot spokesperson Jean Niemi says a company does have to an Olympic sponsor to take part in the jobs program.

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Source: NPR Blogs: Planet Money | 9 Jan 2009 | 5:58 pm

FTSE 100 down 56.83 at 4,448.54. (AP)

AP - Share prices on the London Stock Exchange were lower Friday.
Source: Yahoo! News: Stock Markets News | 9 Jan 2009 | 5:10 pm

World stocks drop as US jobless rate hits 7.2 pct (AP)

AP - Stock markets dropped Friday as investors fretted over the outlook for the U.S. economy after an unexpectedly large increase in the unemployment rate and confirmation that more jobs were lost in 2008 than in any year since World War Two.

Source: Yahoo! News: Stock Markets News | 9 Jan 2009 | 5:03 pm

Iceland buys 51 Woolworths stores

Frozen food retailer Iceland buys 51 former Woolworths stores, and says it plans to create 2,500 new jobs.
Source: BBC News | Business | World Edition | 9 Jan 2009 | 5:01 pm

NPR Joins Stimulus Line

Our own network has joined with other public broadcasting outfits in asking President-elect Barack Obama to include nonprofit public-service media in the stimulus package, Current reports.

NPR and its fellow broadcasters reportedly seek $550 million. Their ideas for using the money include staffing for new Native American stations and building crisis-response teams around the nation.

UPDATE: NPR spokesperson Anna Christopher says the request is now in the form of a general proposal letter. It doesn't get into the nitty-gritty, she says, so it doesn't mention Planet Money specifically. We'll try to keep you posted.

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Source: NPR Blogs: Planet Money | 9 Jan 2009 | 4:39 pm

Brian Gaynor: Strategies to cope with the carnage

The dreadful performance of the world's sharemarkets last year clearly demonstrates the importance of having flexible and diversified investment portfolios. Individuals who adopted these prudent strategies, a number of which are...
Source: New Zealand Herald - Business | 9 Jan 2009 | 4:00 pm

Selling a love affair with wool overseas

"Oh my go-oood," groans designer Miranda Brown, when asked why she likes wool so much. "It's got life in it, it's a protein fibre, it's animal." Brown works largely in wool and uses the Japanese shibori dye method to create...
Source: New Zealand Herald - Business | 9 Jan 2009 | 4:00 pm

Liam Dann: Year so far - brief break from storm

With the holiday heatwave proving a distraction from the global financial crisis, here's a quick catch-up on what's been going on. The year in review: 2009. It hasn't been too bad. Stockmarkets have rallied and then slumped but...
Source: New Zealand Herald - Business | 9 Jan 2009 | 4:00 pm

Govt steps in on stock-tracking row

The Government has stepped into a stoush over a new electronic tracking system for animals, promising farmers it will not finally commit until after a business study. The National Animal Identification and Tracing (Nait) system...
Source: New Zealand Herald - Business | 9 Jan 2009 | 4:00 pm

Holiday Hangover

When even Wal-Mart Stores Inc. falls short of expectations, the depth of the consumer slowdown can no longer be denied.

Such was the case in December, a month in which same-store sales came in for retailers just as advertised, a dispiriting coda for the toughest holiday season in more than a generation. While every sector tracked by WWD declined, department stores were hit particularly hard, and high-end stores such as Neiman Marcus and Saks hardest of all.

And although revenue results and month-end inventory levels were in some cases a bit better than anticipated, these sources of solace came at the expense of margins, auguring ominously for fourth-quarter and year-end earnings that will be reported beginning next month.

The one surprise was that Wall Street took the retail beatings relatively in stride, with the Standard & Poor’s Retail Index rising for the day even as the Dow Jones Industrial Average fell.

Wal-Mart, until now one of the few beneficiaries of consumers’ recent aversion to shopping and acquisition in general, not only fell short of comparable-store sales expectations, posting a 1.7 percent advance in its U.S. stores, excluding fuel, versus analysts’ estimates of a 2.8 percent pickup. But also, concern about the performance of its Sam’s Club stores and international operations, coupled with the recent settlement of 63 class action wage and hour lawsuits, led it to reduce its fourth-quarter earnings guidance for continuing operations to a range of 91 cents to 94 cents a share, down from its earlier projection of $1.03 to $1.07.

Apparel and jewelry were cited as particular soft spots for the world’s largest retailer.

Lowered earnings guidance went hand-in-hand with cuts in store counts and jobs for many stores. Macy’s Inc., which recorded a 4 percent dip in comps, said it would close 11 underperforming department stores. Discounter Stein Mart Inc., with December comps down 8.5 percent, said it would eliminate over 200 jobs and reduce salaries of remaining managers by 5 percent. New York & Company Inc., which doesn’t report monthly comps, said it would eliminate between 40 and 50 of its 600 stores.

Terry Lundgren, chairman, president and chief executive officer of Macy’s, said, “With our business coming in at minus four, we would never feel good about negative results, but it looks like we are taking market share from our competitors. It’s obviously a very challenging time. We expect it to be challenging going forward. But we have done a terrific job of getting inventories in line with lower than expected sales,” 7.5 percent lower than last year at this time. The company is also forecasting over $1 billion in cash on its balance sheet at the end of the year, versus $583 million at the end of fiscal 2008.

“We’ve had too much supply, too much inventory, too many stores,” Lundgren continued. “We are very focused on getting supply and demand back in line again.…We will get our inventories down very tight and in fact it will be the opposite of what we had in the last six months. We’ve all been scrambling to reduce orders. We will get to the point where we will be scrambling to increase orders. Inventories will be lean and that’s a good way to make money, a good way to raise margins, and a good way to improve sell-throughs.”

Regarding markdowns, Lundgren said prices will continue to be sharp. “Consumers will benefit, but I think retailers like ourselves will do a better job of planning for it now as opposed to just reacting,” he said.

Last year, he noted, customer demand fell off faster than anybody anticipated, leaving stores stuck with overinventories. “That’s going to change in the first half in 2009. Inventories are much more in line, so there’s less of a need to mark the inventory down, just to get them down.” Markdowns will become “more strategic, rather than rampant to reduce inventories. There will be less of a panic and more of an orderly process.”

Lundgren described the 11 store closures as part of a “regular pruning process.” He noted that last year eight units were closed. About half of the closings are in older malls and not far from newer malls where there are also Macy’s stores, which should gain some business from the closings.

 The 11 Macy’s stores to be closed range in size from a 3,000-square-foot shop in the Mauna Lani Bay Hotel in Hawaii to the 210,000-square-foot unit in the Bellevue Center in Nashville. Two stores in Colorado and Pennsylvania and single units in California, Florida, Indiana, Minnesota and Missouri are also affected. A total of 960 jobs will be lost. Macy’s expects costs for the closures to total $65 million, about $12 million of that sum in cash, and the majority of these to be accounted for during the current fourth quarter. 

But the closings added to the concern about escalating job losses. In a statement endorsing both a new stimulus plan from Washington and Congressional approval of the Employee Free Choice Act, Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union, commented, “In the wake of the worst holiday shopping season since the Great Depression, Macy’s Inc.’s decision to close 11 stores — at a cost of almost 1,000 workers’ jobs — is only a harbinger of what’s to come. But now it’s no secret that what’s happening in the retail industry is far different from the cyclical downturn retailers have seen in the past. Against the backdrop of the collapsing housing and credit markets, even unprecedented holiday discounts failed to revive what were already sagging sales. In 2008, roughly 148,000 stores closed their doors before the holiday shopping season even began. In November alone, 91,300 retail jobs were lost.”

Across-the-board promotions that began as early as October couldn’t save Christmas for most retailers this year, as consumers pinched pennies and curtailed holiday shopping in the face of frightening financial and job data.

“Even with all the discounting, retailers didn’t see that pop because everyone was doing it,” said Stephen Hoch, Wharton School marketing professor and director of the Baker Retailing Initiative, explaining why even mass merchants like Wal-Mart were seeing a comp slowdown. “The discounting all canceled itself out.”

The mantra for today’s retailer is “gotta cut, gotta cut, gotta make sure I don’t hit a main artery,” said Hoch, who added that the companies emerging from the current economic slowdown will do so with their brands intact, even if their scope is smaller. This will entail closer management of promotional activity, which was “widespread” during the holiday, he said.

With discounts deeper and time to shop for the holidays running out, December did represent a slight improvement over November’s dismal results, said Frank Badillo, senior economist at TNS Retail Forward. “It’s encouraging that most retailers saw some improvement in their numbers compared with November,” he said. “These results provide signs that retail weakness may be bottoming out.”

That provided little consolation for better stores. Neiman Marcus Inc. had the worst results of all the retailers tracked by WWD, with comps down 27.5 percent during the month. Saks Inc. and Nordstrom Inc. declined 19.8 and 10.6, respectively.

“We are disappointed in our results and making every attempt to improve sales,” said Burt Tansky, C.E.O. of Neiman Marcus. “It was the most difficult Christmas season we have been through.” However, “Our inventories are coming down and moving closer to demand and new spring deliveries have been arriving for the past six weeks.”

At Saks, Stephen I. Sadove, chairman and C.E.O., commented, “It’s a difficult environment and the luxury consumer is holding back on their spending.” He also noted that comparisons are difficult, too, considering that, a year ago, Saks posted double-digit growth. “The consumer is reflecting how they feel about net worth, the stock market, purchasing and holding back.”

On the positive side, he said Saks cleared out a lot of excess inventory and that people responded to more aggressive promotions: “Spring product is on the floor. We are well positioned. We have far less clearance on the floor than a year ago.”

While clearly not happy with the selling environment, Sadove did point out, “We feel very good where we are, relative to the capacity we have on our revolver [credit facility], the expense actions that we are taking and our ability to weather the storm.”

Saks has a $500 million revolving credit facility that’s only been modestly tapped and has a New York flagship that’s unencumbered. There are no short-term maturities of senior debt.
 Still, it’s been a sobering end of the year for anyone dependent on upscale consumption.

“The consumer is trading down, away from luxury,” said Matthew Katz, managing director at Alix Partners L.L.C. “The top tier had further to fall because they had such high gains in previous years.”

Carla Casella, managing director of high yield research at J.P. Morgan, agreed, pointing to Neiman’s “miss” as “driven by slightly less promotional activity.” She added the retailer is “less of a holiday destination than its lower-end peers,” but said its liquidity is “solid” and expects the company to build on its cash during the quarter.

 On Wall Street on Thursday, luxe names were hit the hardest among broadline retailers, with Saks’ stock down 5.2 percent to $4.19 and Nordstrom Inc. off 2.4 percent to $14.53. Gainers in the broadline realm included Dillard’s Inc., up 4.5 percent to $4.86; Kohl’s Corp., 4.2 percent to $39.33, and Target Corp., 1.4 percent to $37.52.

Investors were taken by surprise by both Wal-Mart’s profit warning and a more positive outlook from Sears Holdings Corp., calling for adjusted fourth-quarter earnings of $300 million to $380 million. Wal-Mart’s stock sank 7.5 percent to 51.38, while Sears’ was up 23.3 percent to 49.98.

Overall, the Standard & Poor’s Retail Index rose 0.8 percent, or 2.42 points, to 295.21, as the Dow Jones Industrial Average retreated 0.3 percent, or 27.24 points, to 8,742.46.
The strongest performer among the department stores was Kohl’s, which posted a 1.4 percent same-store sales dip, a by-product of last-minute pre-Christmas shopping and purchases made after the holiday, according to Kevin Mansell, president and ceo. Stage Stores Inc. said it had a 4.9 percent dip in comps, better than the 7.1 percent decline in December 2007, while its larger regional rival Dillard’s reported a 5 percent dip versus a flat December last year. The Bon-Ton Stores Inc. improved upon its 11.3 percent comp drop last year, putting up a 5.8 percent decline for the month.

Mall-based Buckle Inc., Aéropostale Inc., Hot Topic Inc. and American Apparel Inc. were the sole gainers among the apparel specialty stores, posting comp increases of 13.5, 12, 4.3 and 3 percent, respectively.

Even companies that don’t report comps on a monthly basis chimed in with downward revisions and words of caution.

J. Crew Group lowered fourth-quarter guidance to a range of a loss of between 24 cents and 29 cents a share from its earlier expectations of a profit of between 5 cents and 10 cents.

“I’m not going to say we’re not disappointed,” said Millard “Mickey” Drexler, chairman and C.E.O. of J. Crew Group. “This has been an incredibly tough time for us, for retail and in general for most businesses in America. As difficult and challenging as business is, we have to keep this all in perspective. Business turned really difficult starting in the fall, and I don’t think anyone can say when it will get less so. We are shopkeepers who have to make certain we have, day-in and day-out, the right goods in the stores, online and in the catalogues, and that we are taking care of every single customer in the best way possible. We’re not sure when things will turn around. But I feel very good about our positioning in the marketplace when it in fact does turn.”

Late Thursday, Coach Inc. lowered its second-quarter earnings expectations to 67 cents a year, 10 cents below its previous guidance of 77 cents and 2 cents below its year-ago EPS.

Zale Corp. said that its comps dropped 13 percent in November and 22 percent in December.

Urban Outfitters Inc. reported that its corporate same-store sales were down 1 percent for the November-December period, with Urban’s 3 percent increase offset by declines of 6 percent at Anthropologie and 13 percent at Free People.

“While we are never happy to report negative comps, we believe our brands performed well given the extreme marketplace conditions,’’ said ceo Glen Senk. “The highly promotional selling environment forced us to take higher markdowns versus the comparable period last year, but we finished the holiday season with clean and lean inventories which are well-positioned for the spring selling season.”

American Eagle Outfitters Inc. posted a 17 percent decline, while rival Abercrombie & Fitch Co. posted a 24 percent dive in comps.

“Abercrombie’s management needs to be a bit more reactive in this environment,” said D.A. Davidson & Co. retail analyst Crystal Kallik. “We are in uncharted waters here.”

Kallik said the teen retailer’s inventory was up a “pretty significant amount,” a situation she deemed “dangerous.” Even though Abercrombie cleared out merchandise during the holiday season with promotions, the company is receiving new deliveries and has even begun marking up some new items, she noted.

Kallik said retailers that haven’t been able to clear through their merchandise in December are going to have a difficult time clearing it in the months ahead. She pointed to the numerous markdowns by West Coast-inspired Pacific Sunwear of California Inc., which posted a 10 percent drop in comps on Thursday and now expects to report a fourth-quarter loss of 38 to 43 cents a diluted share, including an estimated gain of about 10 cents a share from the sale of its Anaheim distribution center. The company said 19 cents of the loss was attributable to “markdown reserves.”

Gap Inc. registered a 14 percent comp decline, while Gap North America, Banana Republic, Old Navy and its international stores reported declines of 12, 15, 16 and 5 percent, respectively. However, unlike its cohorts, the retailer has been benefiting from leaner inventories and cost-cutting initiatives, said Barclay’s Capital retail analyst Jeff Black.

“Gap is just caught in place that top-line growth is going to matter more,” he said, explaining that, with already lean inventory, the focus is on revenue.

Missy apparel retailers Destination Maternity Corp (formerly Mothers Work Inc.), Caché Inc. and Cato Inc. reported comp declines of 6.9, 19 and 2 percent, respectively. Chico’s FAS Inc. finished December with a 12.4 percent comp contraction and also with a new ceo, former Tommy Hilfiger ceo David Dyer.

Among the specialty stores whose shares lost ground Thursday were J. Crew, down 9.2 percent to $10.61; Pacific Sunwear, 7.9 percent to $1.63; Zale, 7.6 percent to $3.75; Bebe Stores Inc., 6.8 percent to $6.18; Limited Brands Inc., 6.5 percent to $10, and Gap, 4.7 percent to $12.92. Those on the upswing included New York & Co., 11.7 percent to $2.49; Urban Outfitters, 10.4 percent to $15.46; The Men’s Wearhouse Inc., 5.8 percent to $14.16, and Charlotte Russe Holding Corp., 5.1 percent to $6.56.

As has been the case through the current recession, mass merchants and off-pricers performed best last month. BJ’s Wholesale Club Inc. excelled with a 5.9 percent surge in comps, versus a 3 percent increase a year ago, while Costco Wholesale Corp.’s comps slid 4 percent. Both Ross Stores Inc. and The TJX Cos. Inc. recorded flat comps, and Target Corp. said its same-store sales fell 4.1 percent.

“I think what we saw today gave us no insight,” said Black, commenting on when financials will improve for retailers. “Hopefully, the sky will be blue again. But I think the cat’s out of the bag on the fourth quarter.”

Related Links
Shopping Takes a Holiday
Retail's Class Divide
Consumers Balk; Retailers Slump



Source: Portfolio.com: Top 5 | 9 Jan 2009 | 4:00 pm

Jeweller warns of tarnished half year

Tough retailing conditions have forced jewellery retailer Michael Hill International to dampen expectations for its half-year results. It warned yesterday that the trading result for the six months ended December 31 would be "materially...
Source: New Zealand Herald - Business | 9 Jan 2009 | 4:00 pm

Investors eyed for more cash

Genesis Research and Development may ask investors for money to fund the business as the sale of a subsidiary stalls and cash reserves run low. The NZX-listed biotech company said Pure Power Global had been unable to make the final...
Source: New Zealand Herald - Business | 9 Jan 2009 | 4:00 pm

Nordstrom Gets New Largest Shareholder (JWN)

Source: 24/7 Wall St. | 9 Jan 2009 | 3:59 pm

What Got Me This Morning

Sean K. sent us a story from a Grand Rapids, Michigan, paper about the terrible lines in the unemployment office. The story is great, but what really struck me was the picture.

(Anybody out there dealing with long lines? We'd love to hear from you.)

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Source: NPR Blogs: Planet Money | 9 Jan 2009 | 3:58 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 | 3:20 pm

Hello, 1993

A new report on unemployment tops the news today. The jobless rate has hit 7.2 percent, the highest since January 1993. Looking for a bright spot? Better squint.

"[T]he only possible glimmer of light is that the maximum rate of fall of payrolls is hopefully not far off," writes Ian Shepherdson of High Frequency Economics.

First person to see the bottom, holler out, OK? Meanwhile, Treasury Secretary nominee Timothy F. Geithner is planning an overhaul of the $700 billion bailout. (Bonus: Obama Cites Grim Economy at Start, as Predecessors Have.)

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Source: NPR Blogs: Planet Money | 9 Jan 2009 | 2:06 pm

Tricky sums

Explaining the maths behind the credit crunch
Source: BBC News | Business | World Edition | 9 Jan 2009 | 12:49 pm