Opening Bell: 04.08.09

Government To Include Insurers In Bailout (WSJ)
You have to wonder how many of these companies will actually be willing to participate at this point, and what the incentive for the government to suddenly open its doors to the insurance companies is. Aside from those two points, this makes sense.

"The life-insurance industry is an important piece of the U.S. financial system. Millions of Americans have entrusted their families' financial safety to these companies, so keeping them on solid footing is crucial to maintaining confidence. If massive numbers of customers sought to redeem their policies, it could cause a cash crunch for some companies. And because insurers invest the premiums they receive from customers into bonds, real estate and other investments, they are major holders of securities. If they needed to sell off holdings to raise cash, it could cause markets to tumble."

Taiwanese Based Firm Sues Apple (NYT)
They're claiming apple infringed on two patents across several lines (including mac books and iPods) and they're seeking damages, though no one knows how much yet.

"Elan said it won a preliminary court injunction against U.S.-based rival Synaptics in a dispute over one of the patents mentioned in the Apple lawsuit, after a then-subsidiary unit filed suit in 2006. Synaptics counter-sued."

Attorney Possibly Next BAC CEO (WSJ)
"Mr. Lewis on Dec. 9 told Bank of America's 16 board members, including several former Fleet directors who are close to Mr. Moynihan, that the executive might leave the company. Instead, the next day he was promoted to general counsel, a job he held for 43 days before taking over Merrill."

Taleb Speaks Out: 10 Rules of Life (FT)
Discuss.

Down To $135B (Reuters)
So, given the Bailout bucks are down to $135B, there's a solid chance that the President is going to have to go back to Congress to seek further funds, which I don't see as "likely to happen" (I think the pink shirted ladies have thoroughly infiltrated Congress, and have every expectation that Maxine Waters will start showing up at her own hearings wearing the shirts and demanding the robbers return the money). Any thoughts? If the stress tests go south can the President pry enough capital from the hands of the Hill to keep the banks propped up?

Congressional Panel Suggests Firing Bank Heads, Liquidating Banks (Bloomberg)
I'm totally with them on this. Banks are so 1980's, what we need here and now is a way to distribute money such that it does the most good for the greatest number of people. That's what makes sense.

"A congressional panel overseeing the U.S. financial rescue suggested that getting rid of top executives and liquidating problem banks may be a better way to solve the economic crisis.

The Congressional Oversight Panel, in a report released yesterday, also said the Treasury may be relying on too rosy an economic scenario to guide its $700 billion bailout, and declared that the success of the program after six months is "mixed." Three of the group's members disagreed with at least some of the findings."

Source: Dealbreaker | 8 Apr 2009 | 12:55 pm

Turkey's industrial output plummets, economy slows

Turkey's industrial output plunged by a record 23.7 percent in February compared to activity 12 months ago, official data showed Wednesday, strengthening expectations that the once-booming...
Source: RSS feed - channel BNewsBusiness | 8 Apr 2009 | 12:26 pm

GM sales in China jump 24.6%

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 8 Apr 2009 | 12:24 pm

Family Dollar sees 3Q results above Wall Street (AP)

AP - Discount retailer Family Dollar Stores Inc. on Wednesday predicted fiscal third-quarter results above Wall Street expectations, helped by same-store sales growth.
Source: Yahoo! News: Business | 8 Apr 2009 | 12:18 pm

Earnings jitters set to hit stocks

U.S. stocks were poised to open mostly lower Wednesday after Alcoa kicked off the corporate reporting period on a glum note, and homebuilders Pulte and Centex announced a $3.1 billion merger.
Source: Business and financial news - CNNMoney.com | 8 Apr 2009 | 12:18 pm

Indications: U.S. stock futures mostly lower; insurers, builders rise

U.S. stock futures were mostly lower on Wednesday after Alcoa’s worse-than-forecast first quarter, though insurers rose on hopes for government assistance and builders advanced after an industry merger.

Source: MarketWatch.com - Top Stories | 8 Apr 2009 | 12:17 pm

LDK Lands Huge J-V with Q Cells (LDK)

LDK Solar Co., Ltd. (NYSE: LDK) is seeing some small gains this morning on word that the company has formed a joint venture with Q Cells SE.  The venture will focus on photovoltaic systems and market development in Europe and China.  The joint venture is already in discussions with potential buyers of the first turn-key [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 8 Apr 2009 | 12:16 pm

Pulte and Centex to merge in deal creating top U.S. home builder

Pulte Homes on Wednesday says it’s buying Centex in an all-stock deal that will create the largest U.S. home builder.

Source: MarketWatch.com - Top Stories | 8 Apr 2009 | 12:16 pm

World stock markets slide further (AFP)

AFP - Asian and European equities fell sharply again on Wednesday after overnight losses on Wall Street, where worries about the earnings season were underscored by a huge loss at US aluminium giant Alcoa.

Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 12:15 pm

Homebuilders in $3.1 billion merger

Pulte Homes has agreed to acquire Centex Corp. in a stock transaction worth $3.1 billion, including $1.8 billion of debt, the companies said Wednesday.
Source: Business and financial news - CNNMoney.com | 8 Apr 2009 | 12:14 pm

German car scrap scheme 'expands'

Germany triples the size of its car scrapping scheme, which pays cash to those who turn in older cars.
Source: BBC News | Business | World Edition | 8 Apr 2009 | 12:13 pm

As Alcoa's shares slip, analysts see signs of stronger company

Shares of Alcoa decline ahead of the opening bell as investors react to a wider-than-forecast loss for the first quarter, but Merrill Lynch analysts find reasons to be optimistic about the outlook for the blue-chip aluminum fabricator.

Source: MarketWatch.com - Top Stories | 8 Apr 2009 | 12:10 pm

German, French data show eurozone motors straining

German trade slumped again in February and France posted a steeper trade deficit, signs that Europe's export engine still faces strains though other data suggest crisis pressures might be...
Source: RSS feed - channel BNewsBusiness | 8 Apr 2009 | 12:09 pm

Settop box maker Pace shares jump as demand soars in stayathome Britain

Shares in the settop box maker rose more than 50pc after the company upgraded its profits forecast for the second time in five weeks.
Source: Telegraph Finance | 8 Apr 2009 | 12:07 pm

Job insecurity 'getting worse'

The global slowdown is increasing the number of insecure jobs, threatening many more with poverty, the OECD says.
Source: BBC News | Business | World Edition | 8 Apr 2009 | 12:06 pm

Tories call for smaller UK banks

A Tory government would work to ensure no banks become big enough to put the economy at risk, George Osborne says.
Source: BBC News | Business | World Edition | 8 Apr 2009 | 12:01 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 | 8 Apr 2009 | 12:01 pm

Pulte to buy rival Centex for $1.3 billion

NEW YORK (Reuters) - Pulte Homes, the fourth-largest U.S. homebuilder, said it would buy the third largest, Centex Corp, for $1.3 billion in stock as it looks to save costs and get through the housing downturn.
Source: Reuters: Business News | 8 Apr 2009 | 11:58 am

Pulte to buy rival Centex for $1.3 billion (Reuters)

Reuters - Pulte Homes , the fourth-largest U.S. homebuilder, said it would buy the third largest, Centex Corp , for $1.3 billion in stock as it looks to save costs and get through the housing downturn.
Source: Yahoo! News: Business | 8 Apr 2009 | 11:58 am

Stock futures fall on earnings worries (AP)

AP - Wall Street pointed to a lower open Wednesday, reflecting declines in overseas markets and a bigger-than-expected loss by Alcoa.

Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 11:57 am

Russia LUKOIL says no talks with PKN on Mazeikiu

MOSCOW, April 8 (Reuters) - Russian oil major LUKOIL denied on Wednesday it had resumed attempts to buy shares in Lithuanian refiner Mazeikiu from Poland's No.1 refiner PKN Orlen .
Source: RSS feed - channel BNewsBusiness | 8 Apr 2009 | 11:56 am

London Markets: Oil producers decline to drag London lower

London shares fall on Wednesday, with mineral extractors under pressure after aluminum producer Alcoa unofficially kicked off the first-quarter earnings season with a larger-than-expected loss.

Source: MarketWatch.com - Top Stories | 8 Apr 2009 | 11:54 am

Constellation Brands profit a penny shy

NEW YORK (Reuters) - Alcoholic drink maker Constellation Brands Inc reported adjusted quarterly profit that missed Wall Street estimates by a penny on Wednesday, hurt by disappointing demand in Europe and Australia during Christmas and New Year's.
Source: Reuters: Business News | 8 Apr 2009 | 11:53 am

German, Japanese data jolts investors (AFP)

AFP - German exports slumped and Japan prepared another stimulus package on Wednesday as the global crisis further undercuts the old economic order, jolting investors hoping for a return to business as usual.

Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 11:53 am

German, Japanese data jolts investors (AFP)

AFP - German exports slumped and Japan prepared another stimulus package on Wednesday as the global crisis further undercuts the old economic order, jolting investors hoping for a return to business as usual.

Source: Yahoo! News: Business | 8 Apr 2009 | 11:53 am

New Enterprise Forum Speaker to Discuss Barriers to Deals - and How to Avoid Them

Source: RSS feed - channel BNewsBusiness | 8 Apr 2009 | 11:53 am

Robert Peston

Would the Tories break up Britain's banks?
Source: BBC News | Business | World Edition | 8 Apr 2009 | 11:51 am

AIG aircraft unit seeks $5 billion Fed credit line: report

(Reuters) - American International Group Inc's aircraft leasing unit is in talks over a $5 billion credit line from the New York Federal Reserve that could be used to facilitate its sale, the Financial Times reported on its website late on Tuesday.
Source: Reuters: Business News | 8 Apr 2009 | 11:50 am

Nortel's North America foothold seen attracting Nokia

HELSINKI (Reuters) - Nokia Siemens Networks' (NSN) key attraction to Nortel Networks Corp is its quarter share of the North American telecom gear market, analysts said on Wednesday.
Source: Reuters: Business News | 8 Apr 2009 | 11:49 am

SEC is floating options to limit short sales (AP)

AP - Federal regulators are floating several options for reining in the practice of short-selling stocks, as investors, corporations and lawmakers clamor for restrictions on moves they say gutted vulnerable companies and worsened the market's downward spiral.
Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 11:48 am

UPDATE 1-Allergy Therapeutics signs Canada deal

* Signed with privately held Nycomed for older Pollinex R
Source: RSS feed - channel BNewsBusiness | 8 Apr 2009 | 11:46 am

Google CEO Eric Schmidt: Good Or Just Lucky? (GOOG)

Joe Weisenthal of The Business Insider In the eight years since Eric Schmidt got hired to run a hot private company called Google (GOOG) in 2001, the company has become one of the fastest growing and profitable companies the world has ever seen. This growth has propelled Eric from his prior status as a little-known CEO of [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 8 Apr 2009 | 11:46 am

Dollar drops back below 100 yen (AFP)

AFP - The dollar slipped back below the key 100 yen level on Wednesday as sharp falls on global stock markets restored some of the Japanese currency's safe haven appeal, dealers said.

Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 11:43 am

Financial Stocks: Reported U.S. aid lifts life insurance stocks

Shares of U.S. life insurers rallied on Wednesday morning after a published report said the Treasury Department has decided to extend bailout funds to several struggling companies in the sector.

Source: MarketWatch.com - Top Stories | 8 Apr 2009 | 11:43 am

Top Technology Analyst Calls (BBND, CSC, ELX, GRMN, QCOM, STX, WBSN, WDC)

We have seen several influential analyst upgrades, downgrades, and initiation calls in the technology sector from Wall Street early this Wednesday morning.  These are the key tech calls we have seen with about two hours until the open: BigBand Networks (NASDAQ: BBND) Cut to Underperform at Jefferies. Computer Sciences Corp. (NYSE: CSC) Started as Sell at Citigroup. Emulex [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 8 Apr 2009 | 11:41 am

Tech jobs - no longer recession proof

The tech industry, once one of the hottest sectors for job seekers, is falling victim to dried up spending as the recession takes its toll.
Source: Business and financial news - CNNMoney.com | 8 Apr 2009 | 11:40 am

Family Dollar profit jumps 33%; outlook beats Street view

Discounter Family Dollar Stores Inc. said Wednesday that its fiscal second-quarter profit rose 33%, aided by shoppers seeking bargains in the economic downturn.

Source: MarketWatch.com - Top Stories | 8 Apr 2009 | 11:38 am

UPDATE 1-Kenya's CMA suspends Kenol trading for day

* Acts after price plunges following FY results (Adds analyst)
Source: RSS feed - channel BNewsBusiness | 8 Apr 2009 | 11:37 am

Banks brace for derivatives 'big bang'

One corner of the wild and wooly world of derivatives is about to get a little tamer -- and not a moment too soon for those who fret over the rising cost of bailouts.
Source: Business and financial news - CNNMoney.com | 8 Apr 2009 | 11:36 am

Stock futures fall after Alcoa reports loss

NEW YORK (Reuters) - Stock index futures pointed to a lower open on Wednesday Dow component Alcoa kicked off the earnings season with its second consecutive quarterly loss and reignited concern about the global economy.
Source: Reuters: Business News | 8 Apr 2009 | 11:35 am

UPDATE 2-Roc Oil's Zhao Dong field on way to meet '09 plan

* Current gross production at 21,500 bopd from Zhao Dong
Source: RSS feed - channel BNewsBusiness | 8 Apr 2009 | 11:35 am

Treasury to extend TARP to life insurers: report

NEW YORK (Reuters) - The U.S. Treasury Department plans to extend the Troubled Asset Relief Program to certain life insurers, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.
Source: Reuters: Business News | 8 Apr 2009 | 11:35 am

Treasury to extend TARP to life insurers: report (Reuters)

Reuters - The U.S. Treasury Department plans to extend the Troubled Asset Relief Program to certain life insurers, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.
Source: Yahoo! News: Business | 8 Apr 2009 | 11:35 am

Europe Markets: Shares in Europe decline as oil majors drag

European shares fall on Wednesday morning, after the first-quarter earnings season got off to a poor start following a larger-than-expected loss from U.S. aluminum giant Alcoa.

Source: MarketWatch.com - Top Stories | 8 Apr 2009 | 11:33 am

Stock futures fall after Alcoa reports loss (Reuters)

Reuters - Stock index futures pointed to a lower open on Wednesday Dow component Alcoa kicked off the earnings season with its second consecutive quarterly loss and reignited concern about the global economy.

Source: Yahoo! News: Business | 8 Apr 2009 | 11:32 am

Stock futures fall after Alcoa reports loss (Reuters)

Reuters - Stock index futures pointed to a lower open on Wednesday Dow component Alcoa kicked off the earnings season with its second consecutive quarterly loss and reignited concern about the global economy.

Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 11:32 am

Disgraced founder of India's Satyam charged

India's federal investigator has filed charges of criminal conspiracy, cheating and forgery against the disgraced founder of Satyam Computer Services, B. Ramalinga Raju, and eight others...
Source: RSS feed - channel BNewsBusiness | 8 Apr 2009 | 11:31 am

Report: Treasury may extend TARP to life insurers

The U.S. Treasury Department plans to extend the Troubled Asset Relief Program to certain life insurers, according to a report by the Wall Street Journal. The announcement is expected...
Source: RSS feed - channel BNewsBusiness | 8 Apr 2009 | 11:31 am

Gul lashes out at critics over Nato stance

European criticism of Turkey's increasingly assertive foreign policy is dangerous and could hamper cooperation on some of the biggest threats to western security, Turkish president Abdullah Gul has warned
Source: Financial Times - US homepage | 8 Apr 2009 | 11:28 am

Iceland cuts interest rate by 1.5%

Iceland slashed its key interest rate by 1.5 points to 15.5 percent, the central bank said Wednesday, as the country recovers from the spectacular collapse of its banking sector seven...
Source: RSS feed - channel BNewsBusiness | 8 Apr 2009 | 11:28 am

Moody's downgrades Irish banks

Moody's Investors Service has downgraded its financialstrength rating on 12 Irish lenders citing rising losses on property loans.
Source: Telegraph Finance | 8 Apr 2009 | 11:23 am

Pensions crisis means we will all be retiring later

The economic crisis will force people to work longer.
Source: Telegraph Finance | 8 Apr 2009 | 11:23 am

UK 'will not recover until 2012'

The UK economy could decline for another year and take a further two years to recover, according respected economic forecasters.
Source: BBC News | Business | World Edition | 8 Apr 2009 | 11:20 am

Keep a '97 Cougar? 8 stories of car obsession

Source: Business and financial news - CNNMoney.com | 8 Apr 2009 | 11:16 am

Strong performance at JD Sports

High Street chain JD Sports reports a 9% profits rise for 2008 and says that 2009 has got off to a good start.
Source: BBC News | Business | World Edition | 8 Apr 2009 | 11:13 am

Currencies: Economic jitters, earnings worries lift dollar

A reinvigorated U.S. dollar climbs higher as investors embrace the greenback on worries about the global economy, financial turmoil and the outlook for corporate earnings.

Source: MarketWatch.com - Top Stories | 8 Apr 2009 | 11:03 am

Mortgage applications show 4.7% increase for last week: MBA

Mortgage applications rise a seasonally adjusted 4.7% last week compared with the week before, continuing the recent trend as more people test the homeownership market in the wake of Washington's efforts to stimulate activity in the housig market. The higher activity coincides with an upturn in interest rates charged on home loans, the Mortgage Bankers Association says.

Source: MarketWatch.com - Top Stories | 8 Apr 2009 | 11:01 am

Alcoa posts loss on aluminum slump (Reuters)

Reuters - Aluminum producer Alcoa Inc reported a second consecutive quarterly loss on Tuesday, as metal prices and the autos industry slumped and global demand fell in the economic downturn.
Source: Yahoo! News: Business | 8 Apr 2009 | 11:00 am

Alcoa posts loss on aluminum slump

NEW YORK (Reuters) - Aluminum producer Alcoa Inc reported a second consecutive quarterly loss on Tuesday, as metal prices and the autos industry slumped and global demand fell in the economic downturn.
Source: Reuters: Business News | 8 Apr 2009 | 11:00 am

One in 20 £1 coins is fake claims expert

The number of fake £1 coins in circulation is higher than previously thought an industry expert said today.
Source: Telegraph Finance | 8 Apr 2009 | 10:59 am

World markets track US lower amid earnings fears (AP)

AP - World stock markets dropped for a second straight day Wednesday, with Tokyo and Hong Kong tumbling about 3 percent after a dismal start to the U.S. earnings season dampened hopes that the worst of the economic slump is over.

Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 10:55 am

Early Bird Analyst Upgrades & Downgrades (AZ, CEO, DAI, BEN, GRMN, SE, TEF)

These are the early bird analyst calls from Wall Street that we have seen early this Wednesday morning with about 3 hours until the market opens: Allianz (NYSE: AZ) Cut to Neutral at JPMorgan. CNOOC (NYSE: CEO) Cut to Sell at UBS. Daimler (NYSE: DAI) Raised to Buy at Goldman Sachs. Franklin Resources (NYSE: BEN) Cut to Market Perform [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 8 Apr 2009 | 10:54 am

Oil sinks below $48 as U.S. supply swells

LONDON (Reuters) - More U.S. data showing swollen crude stocks pushed oil below $48 a barrel on Wednesday, and analysts said there was little sign demand would soon rise to soak up the excess.
Source: Reuters: Business News | 8 Apr 2009 | 10:45 am

Aon to cut pension contributions

The British arm of insurance broker Aon plans to cut its pension contributions, in the face of tough economic conditions.
Source: BBC News | Business | World Edition | 8 Apr 2009 | 10:39 am

Oil sinks ahead of US inventories data

Oil prices fell on Wednesday amid concerns about demand weakness in the US and Japan, but gold managed a modest rebound following recent losses.
Source: Financial Times - US homepage | 8 Apr 2009 | 10:37 am

Overdraft fees: A million consumers have claims frozen

Nearly a million consumers have had refund claims for unauthorised overdraft charges frozen since July 2007 according to the City regulator.
Source: Telegraph Finance | 8 Apr 2009 | 10:31 am

Shop prices soar as pound pushes up food costs

Shop prices rose during March as the weak pound continued to push up the cost of food, new figures showed today.
Source: Latest Business News from Times Online | 8 Apr 2009 | 10:26 am

Pulte-Centex Create Major Homebuilder Merger (PHM, CTX, XHB)

Pulte Homes, Inc. (NYSE: PHM) is acquiring Centex Corporation (NYSE: CTX) in a stock-for-stock transaction valued at $3.1 billion, including $1.8 billion of net debt.  The deal has been unanimously approved by both boards of directors.  This is a deal which came out of nowhere, at least as far as the speculation game would have [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 8 Apr 2009 | 10:16 am

Intel (INTC) Says Stimulus May Not Help When Chips Are Down (VMW)(AMD)(INTC)(MSFT)

The CEO of Intel (INTC) is not sure that the government stimulus package will do him or his industry any good. According to Reuters, the firm’s CEO Craig Barrett said stimulus packages being rolled out by governments around the globe would probably have an impact on demand over the next six to 18 months. But, Barrett [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 8 Apr 2009 | 10:15 am

Pernod Ricard sells Wild Turkey bourbon to Campari

French drinks group Pernod Ricard announced the sale of its Wild Turkey bourbon brand to Italy's Campari on Wednesday and plans for a rights issue for €1bn £900m to cut debt.
Source: Telegraph Finance | 8 Apr 2009 | 10:15 am

Hired! Working for Uncle Sam

For those concluding their service in the Armed Forces this year, facing a bleak job market can be a tough assignment.
Source: Business and financial news - CNNMoney.com | 8 Apr 2009 | 10:06 am

Asian stocks drop on profit fears

Asian stock markets fall as investors worry about a series of poor corporate results in Asia and the US.
Source: BBC News | Business | World Edition | 8 Apr 2009 | 10:02 am

Cosmetic Surgery As A Path To A New Job

A number of studies show that tall, good-looking people do better in life and in love. It makes some sense, even in the job markets. Who would not rather have an attractive salesman or clerk instead of an ugly or overweight one? The bias toward better-looking people is cruel, but it is a fact of life. As jobs [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 8 Apr 2009 | 10:00 am

Madoff baseball tickets to be sold on eBay

The trustee in charge of liquidating the assets of Bernard Madoff is planning to sell the jailed financier's New York Mets baseball season tickets on eBay, the internet auction site, to raise money for his victims.
Source: Latest Business News from Times Online | 8 Apr 2009 | 9:54 am

Campari takes a $575m shot at Wild Turkey$

Campari, the Italian drinks group, is to acquire Wild Turkey, the Kentucky straight bourbon whiskey, for $575 million ($£392 million) in the latest sign of its ambition to become a global player.
Source: Latest Business News from Times Online | 8 Apr 2009 | 9:47 am

The Bailout Expands To Life Insurance Firms, Money For The Deceased

There is no end to it, this process of bailing out financial institutions. Once the banks were stable, the rest of the sector was supposed to become more solid. That has not worked. Banks are not yet stable, and the life insurance industry is now stepping forward asking for relief from its plight to become [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 8 Apr 2009 | 9:46 am

All Irish banks have ratings cut

The Irish Republic has had debt ratings on all its banks cut by Moody's, a day after the country revealed its emergency budget.
Source: BBC News | Business | World Edition | 8 Apr 2009 | 9:39 am

Fed's Fisher says U.S. economy grim

TOKYO (Reuters) - The U.S. economy is grim, and the Federal Reserve is "duty bound to apply every tool" to clean up the financial system and clear a path for a return to sustainable growth, Richard Fisher, president of the Dallas Fed, said on Wednesday.
Source: Reuters: Business News | 8 Apr 2009 | 9:36 am

Oil prices drop before US energy report (AFP)

AFP - Oil prices fell on Wednesday, in line with weaker global stock markets, ahead of a US energy inventories report which could highlight weak demand in the depressed US economy, traders said.

Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 9:24 am

Fishy battle

EU moves to aid fish farms hit by foreign competition
Source: BBC News | Business | World Edition | 8 Apr 2009 | 9:22 am

Google’s (GOOG) Advice Won’t Save The New York Times Company (NYT)

Google’s (GOOG) CEO Eric Schmidt told the Newspaper Association of America that all was not lost for its industry. Newspapers  have a chances to create new forms of revenue, if only that will take them. At the heart of Schmidt’s proposal is the mimicking of the TV business. A large amount of television content is free [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 8 Apr 2009 | 9:22 am

Housing Takes Center Stage Again As Economy Looks For Signs

The forecasting cycle that drives the market is low on fodder since the earnings season is under way and the latest unemployment numbers are tucked neatly into the bed of economic prediction models. But, housing is an evergreen topic and a ready harbor for those who have no other numbers to obsess over. The Administration’s theory [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 8 Apr 2009 | 8:55 am

London shares continue to slide

Britain's leading shares fell 0.6pc early on Wednesday led lower by banks and commodity stocks on concerns over corporate earnings but defensive stocks like food and drug retailers and cigarette makers lent support.
Source: Telegraph Finance | 8 Apr 2009 | 8:37 am

How the financial crisis happened

For many people, the most shocking aspect of the financial crisis is that something of this scale could happen at all. Wasn't it just a couple of years ago that the rise of globalization - and the growing sophistication of financial markets - offered the promise of perpetually low inflation, cheap money, and fat returns?
Source: Business and financial news - CNNMoney.com | 8 Apr 2009 | 8:32 am

Apple holds its own vs. rivals

Source: Business and financial news - CNNMoney.com | 8 Apr 2009 | 8:27 am

Fed's Fisher says U.S. economy grim (Reuters)

Reuters - The U.S. economy is grim, and the Federal Reserve is "duty bound to apply every tool" to clean up the financial system and clear a path for a return to sustainable growth, Richard Fisher, president of the Dallas Fed, said on Wednesday.
Source: Yahoo! News: Business | 8 Apr 2009 | 8:26 am

Chrysler's new 'soft touch' Jeep

Under fire for poor quality, Chrysler is unveiling the first vehicle on which current owner, Cerberus Capital Management, has had a major design influence.
Source: Business and financial news - CNNMoney.com | 8 Apr 2009 | 8:13 am

Insurer Pearl seeks £500m and stock market listing

Insurance group Pearl said it plans to raise £500m from investors and float in London to fund a fresh acquisition drive.
Source: Telegraph Finance | 8 Apr 2009 | 7:46 am

Pernod launches €1bn rights issue

Pernod Ricard announced a €1bn rights issue and a $575m deal to sell its Wild Turkey bourbon brand to Campari
Source: Financial Times - US homepage | 8 Apr 2009 | 7:39 am

SEC to consider restricting short sellers

WASHINGTON (Reuters) - U.S. securities regulators meet on Wednesday to consider restrictions on short selling, a type of investing blamed by some lawmakers and executives for exacerbating the financial crisis and driving down share prices.
Source: Reuters: Business News | 8 Apr 2009 | 7:04 am

SEC to consider restricting short sellers (Reuters)

Reuters - U.S. securities regulators meet on Wednesday to consider restrictions on short selling, a type of investing blamed by some lawmakers and executives for exacerbating the financial crisis and driving down share prices.
Source: Yahoo! News: Stock Markets News | 8 Apr 2009 | 7:04 am

Stocks fall on profit-taking; Dow tumbles 186 points

The second straight retreat comes as Wall Street braces for a possibly gloomy string of earnings reports. Investors...
Source: RSS feed - channel BNPaperBusiness | 8 Apr 2009 | 7:00 am

Gang member accused of leading mortgage fraud scheme

A federal indictment says a 38-year-old man and 23 co-conspirators built a scam around the sale of 220 San Diego-area homes with mortgages worth more than $100 million. ...
Source: RSS feed - channel BNPaperBusiness | 8 Apr 2009 | 7:00 am

Apartment rents fall in Southern California

L.A. County rents sank almost 4% in 2008, and job losses continue to hurt demand as new construction inflates supply.

Apartment rents are falling across most of Southern California as unemployed tenants double up with friends or family and the affordability of foreclosed homes makes some renters into buyers, a new survey has found.

Source: L.A. Times - Business | 8 Apr 2009 | 7:00 am

Struggling Real Mex Restaurants taps industry veteran as new CEO

The owner of the El Torito family of restaurants hopes Richard E. Rivera can boost slumping sales and earnings at the 189-store company. ...
Source: RSS feed - channel BNPaperBusiness | 8 Apr 2009 | 7:00 am

Can't deliver a good defense for junk mail

The co-owner of a direct marketing firm in Los Angeles says the ailing economy is putting jobs in the industry at risk. There still has got to be a better way. ...
Source: RSS feed - channel BNPaperBusiness | 8 Apr 2009 | 7:00 am

Executive-pay overhaul gets backing from Goldman Sachs CEO

Lloyd Blankfein calls for a 'renewal of common sense.' Some analysts think he may be seeking to blunt an even tougher assault by Congress. ...
Source: RSS feed - channel BNPaperBusiness | 8 Apr 2009 | 7:00 am

Gang member accused of leading mortgage fraud scheme

A federal indictment says a 38-year-old man and 23 co-conspirators built a scam around the sale of 220 San Diego-area homes with mortgages worth more than $100 million.

Two dozen people have been charged with racketeering in connection with an allegedly fraudulent mortgage scheme run by a street gang member, according to an indictment unsealed Tuesday in federal court in San Diego.

Source: L.A. Times - Business | 8 Apr 2009 | 7:00 am

Google CEO advises newspapers to innovate

Eric Schmidt tells print media to to make reading online more appealing and offer not just the usual stories but whatever content people need. ...
Source: RSS feed - channel BNPaperBusiness | 8 Apr 2009 | 7:00 am

Hawaii, suffering tourism drop, appeals to Obama

Hotel occupancy rates in the winter are the lowest in at least five years. State officials urge the president to block any policies that would limit business travel. ...
Source: RSS feed - channel BNPaperBusiness | 8 Apr 2009 | 7:00 am

Alcoa reports another quarterly loss

The loss reflects the deterioration of aluminum-intensive industries, which have seen demand and prices fall. ...
Source: RSS feed - channel BNPaperBusiness | 8 Apr 2009 | 7:00 am

Google CEO advises newspapers to innovate

Eric Schmidt tells print media to to make reading online more appealing and offer not just the usual stories but whatever content people need.

Google Inc. Chief Executive Eric Schmidt delivered Tuesday's closing keynote at the Newspaper Assn. of America annual conference in San Diego, conjuring up visions of an open, interactive future for the audience of newspeople.

Source: L.A. Times - Business | 8 Apr 2009 | 7:00 am

Can't deliver a good defense for junk mail

The co-owner of a direct marketing firm in Los Angeles says the ailing economy is putting jobs in the industry at risk. There still has got to be a better way.

Marcy Clarke makes no apologies for being one of Southern California's leading junk mailers.

Source: L.A. Times - Business | 8 Apr 2009 | 7:00 am

California to use $415 million from stimulus to aid the unemployed

Gov. Arnold Schwarzenegger says the federal funds will upgrade job training and placement services at employment centers around the state. ...
Source: RSS feed - channel BNPaperBusiness | 8 Apr 2009 | 7:00 am

Apartment rents fall in Southern California

L.A. County rents sank almost 4% in 2008, and job losses continue to hurt demand as new construction inflates supply. ...
Source: RSS feed - channel BNPaperBusiness | 8 Apr 2009 | 7:00 am

California to use $415 million from stimulus to aid the unemployed

Gov. Arnold Schwarzenegger says the federal funds will upgrade job training and placement services at employment centers around the state.

California is moving quickly to pump $415 million in federal stimulus money into upgrading job training and placement services at employment centers around the state, Gov. Arnold Schwarzenegger announced Tuesday.

Source: L.A. Times - Business | 8 Apr 2009 | 7:00 am

Executive-pay overhaul gets backing from Goldman Sachs CEO

Lloyd Blankfein calls for a 'renewal of common sense.' Some analysts think he may be seeking to blunt an even tougher assault by Congress.

The campaign to clamp down on executive pay is getting an assist from an unusual source: the head of Wall Street's most powerful investment bank.

Source: L.A. Times - Business | 8 Apr 2009 | 7:00 am

Struggling Real Mex Restaurants taps industry veteran as new CEO

The owner of the El Torito family of restaurants hopes Richard E. Rivera can boost slumping sales and earnings at the 189-store company.

Struggling with a large debt load and customers who are tightening their spending in recession, the new owners of the El Torito family of restaurants Tuesday named a new chief executive to help turn the firm around.

Source: L.A. Times - Business | 8 Apr 2009 | 7:00 am

Hawaii, suffering tourism drop, appeals to Obama

Hotel occupancy rates in the winter are the lowest in at least five years. State officials urge the president to block any policies that would limit business travel.

Hawaii has suffered one of the worst winters for tourism in recent years and has appealed to the state's most famous native son -- President Obama -- to help turn its fortunes around.

Source: L.A. Times - Business | 8 Apr 2009 | 7:00 am

JD Sports beats gloom with 9% profit rise

JD Sports Fashion, the sportswear retailer, has shrugged off the high street malaise and reported a nine per cent rise in full year pre-tax profits to £38.2 million.
Source: Latest Business News from Times Online | 8 Apr 2009 | 6:48 am

Pearl to raise £500m as prelude to flotation

Pearl Group, the life assurer controlled by Hugh Osmond, is in talks to raise £500 million of equity as a precursor to a stock market listing tipped to value the business at about £2 billion.
Source: Latest Business News from Times Online | 8 Apr 2009 | 6:43 am

No nourishment in bangers and cash

Does this shower of a Government never learn?
Source: Telegraph Finance | 8 Apr 2009 | 6:37 am

British Land tenants given buy now pay 2013 offer

British Land has launched an Easter sale with a "buy now pay nothing until 2013 deal" on its Ropemaker office development in the City.
Source: Telegraph Finance | 8 Apr 2009 | 6:36 am

Airborne advertising rises to new heights

Bubble clouds and supersize skywriting carry the message.

On opening day at Anaheim's Angel Stadium, as baseball players stretched their hamstrings on the grass, an unassuming "A" with a halo took flight from behind the outfield wall.

Source: L.A. Times - Business | 8 Apr 2009 | 6:20 am

NZ stocks: Share market finishes down

New Zealand shares followed European and United States stocks down and the move was across the board. The benchmark NZSX-50 index closed 43.565 points, or 1.668 per cent, down at 2568.905, on top of yesterday's fall of nearly 21...
Source: New Zealand Herald - Business | 8 Apr 2009 | 6:00 am

Currency: NZ dollar slumps with equity markets

The New Zealand dollar was lower today after a tumble in the United States share market reduced investors' appetite for risk. By 5pm the kiwi was at US57.30c as it continued retreating from the three-month high around US59.75c...
Source: New Zealand Herald - Business | 8 Apr 2009 | 5:30 am

Hawkes Bay accountant pleads guilty to fraud

Former Central Hawke's Bay accountant Warren Pickett has pleaded guilty to fraud charges relating to the loss of $20 million. Pickett entered guilty pleas to all charges of fraud, false statements by a promoter and breaches of...
Source: New Zealand Herald - Business | 8 Apr 2009 | 4:11 am

Bears Still Roaming After Weak Earnings (Market Update)

News at a Glance

• Fisher Frowns: Fed official says economy "in stasis."
• Still Falling: Stocks look to open lower on earnings.
• Oil Slips Again: Crude down below $48 a barrel.
• Shorting Targeted: SEC weighs new restrictions.

The Lowdown

Wall Street was set to take another step backward Wednesday after earnings season got off to an ugly start.

Stocks looked to open lower, extending Tuesday's heavy losses, as traders frowned on disappointing quarterly results and two gloomy economic outlooks. Shortly before 7:30 a.m., Dow, Nasdaq and S&P 500 futures were trading below fair value.

Earnings from Alcoa (AA), the first Dow component to report, were unsettling. The aluminum producer posted its second consecutive quarterly loss, missing analysts' estimates for the period by five cents a share.

Of course, few economists predict a first-quarter recovery. Nouriel Roubini, a professor at New York University's Stern School of Business and chairman of economic research firm RGE Monitor, echoed his bearish forecast Monday at a press conference in Toronto. "There will be a light at the end of the tunnel somewhere down the line, later rather than sooner," he said, Reuters reported.

Separately, Dallas Federal Reserve President Richard Fisher said few power players were taking chances in the current climate. "The men and women who operate our businesses and create and sustain employment have assumed a defensive crouch," Fisher said Wednesday in prepared remarks. "The result is an American economy in statis."

In M&A, Pulte Homes (PHM) agreed to buy Centex (CTX) for $1.3 billion in a deal that will create the largest home builder in the country. Including debt, the deal is worth $3.1 billion.

In Washington, the Securities and Exchange Commission is considering new restrictions on short-selling stocks, the Associated Press reported. Officials plan to meet Wednesday to discuss options for curbing the practice, which critics say leaves targeted firms in ruin.

In energy, crude oil prices continued their decline ahead of the weekly crude inventories report. By 7:12 a.m., oil traded down $1.32 at $47.83 a barrel.

World markets were mostly lower. In Asia, Japan's Nikkei fell 2.7%, while Hong Kong's Hang Seng dipped 3.0%. In Europe, the major indexes of London, Frankfurt and Paris were lower in midday trading.

Corporate News

• Alcoa (AA) posted its second straight quarterly loss Monday as weak commodities prices and a decline in demand weighed on sales. Alcoa lost $497 million, or 61 cents a share, down sharply from a profit of $303 million, or 37 cents a share, in the year-ago period, the Dow component said. Excluding one-time items, Alcoa lost 60 cents a share, a nickel worse than analysts' estimates.
• AIG (AIG) aircraft leasing unit International Lease Finance Corp. (ILFC) is seeking a $5 billion credit line from the Federal Reserve Bank of New York to facilitate its sale, The Financial Times reported, citing anonymous sources. The credit line would come from the hefty sums already lent to AIG by the federal government.
• Intel (INTC) Chairman Craig Barrett said his firm is unsure when the chip market will come back, Reuters reported. However, he said that he expects the world's stimulus packages to begin to be effective over the next six to 18 months.

The Economy

• The February report on wholesale inventories, a measure of lag in demand relative to expectations, is scheduled to be released at 10 a.m. by the Commerce Department. In January, inventories slipped 0.7%. For February, economists expect a 0.6% decline.
• The crude inventories report for last week is scheduled to be released Wednesday at 10:30 a.m. by the Energy Department. In the prior week, inventories were above the upper limit of the average range for this point in the year.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 8 Apr 2009 | 4:00 am

Barron's: Six Top-Notch Bond Funds

THE VOLATILITY OF THE STOCK MARKET has caused many investors to stash their cash in certificates of deposit, money-market funds -- even under the mattress. There's a better alternative: bonds, some of which offer substantial value, and less agita than equity.

The word's getting out. For the first time in five years, a majority of money managers favor bonds over stocks, reports the quarterly Investment Manager Outlook Survey by Russell Investments. The poll was conducted between Feb. 26 and March 6, just prior to the latest equity rally.

Taxable and tax-exempt bond funds enjoyed net inflows of $36.6 billion last year, versus U.S. equity-fund outflows of $93 billion. Mortgage, investment-grade high-yield and municipal bonds got hammered last year -- regardless of quality -- as the credit markets seized up. But liquidity is improving. Bond prices appear to have stabilized; they're still cheap by historical standards. With the Federal Reserve likely to use all of its firepower to keep interest rates low, less-volatile bonds could well outperform equities this year.

Barron's has picked a half dozen top-notch mutual-fund bond specialists that investors should consider. Their managers share three characteristics: They're conservative, savvy and experienced. Here are their thoughts on where the best values are.

THE CO-MANAGERS of the $2.84 billion First Pacific Advisors' FPA New Income Fund avoided last year's train wreck by changing tracks in 2004 and "05, when they began to worry about mortgage delinquencies. As a result, the managers, Robert Rodriquez and Thomas Atteberry, got rid of Alt-A and subprime-mortgage-related securities. The fund (FPNIX) also exited high-yield bonds when the possible rewards no longer seemed to merit the risks. Both moves paid off. FPA had a gain of 4.3% last year, beating the typical intermediate-bond fund by 9 percentage points. The fund loaded up on triple-A-rated Fannie Mae, Freddie Mac, Ginnie Mae and Federal Home Loan Bank collateralized mortgage obligations, or CMOs, and pass-throughs (pools of mortgages whose cash flows are the monthly payments made by homeowners).

At the end of 2008, the fund had about 36% of its assets in cash, which it has since cut to about 25%, says Atteberry; "it's nice having cash available when someone has to sell" for redemptions. The fund, which has no sector limits or index benchmark, is up 1% year-to-date through April 1.

Right now, about 42% of his mortgages are older CMOs or pools. That's in part because loans written before 2002-'03 were still subject to tougher lending standards and because a five-year-old, 15-year mortgage with a balance of $100,000 or under has a much lower chance of being refinanced, which would leave the mortgage holder stuck with a lower yield.

Atteberry doesn't like Treasuries. "These are unsustainable [low] interest levels, with rates manipulated by the Fed's buying 30-year" debt, he says, referring to the Fed's plan to buy long-term Treasuries. Right now, outstanding Treasury bonds equal 60% of U.S. gross domestic product. By the end of 2010, they'll be 100%. That's about equal to the debt levels in such shaky economies as Italy, Greece and Sri Lanka.

The fund, which can't have more than 25% of its assets rated below double-A, does come with a couple of caveats. Although it has a low expense ratio of 0.61%, FPA has a front load of 3.50%. And Rodriquez, who's never had an annual loss since taking over the fund in 1984, will take a one-year sabbatical next January. However, Atteberry, who's been with FPA since 1997, is a bond veteran who's expected to keep to the same strategy. The two shared Morningstar's fixed-income manager-of-the-year award for 2008.

The Fidelity Government Income Fund returned an eye-popping 11% in 2008, helped by its holding of U.S. Treasuries, especially longer-dated bonds.

Bill Irving, taxable-bond-portfolio manager at Fidelity, concedes it's "very unlikely we'll be able to repeat that performance" this year. He expects the Fed, which plans to buy $300 billion in Treasuries and $1.25 trillion in mortgages, to keep interest rates in a tight range for the year. The $6.92 billion no-load fund was up 0.49% in 2009 through April 1.

Irving doesn't plan to take big chances. He aims to keep 80% of the fund (FGOVX) in government bonds, FDIC-insured debt, government-guaranteed Ginnie Mae CMOs and pass-throughs, and other agency debt. The fund won't buy riskier assets to chase incremental yield. The Government Income fund, which sports a very low 0.45% expense ratio, is designed to provide "steady income, and is a counterweight to the equity component of a diversified portfolio," says Irving. It certainly played that role convincingly in "08.

MUNICIPAL BONDS, generally considered safe bets that rarely default, got whacked last year as fears spread about state and local governments' ability to repay their debts. By autumn, a double-A-rated bond was yielding 6.80%, which was "insanely cheap," says Joe Deane, manager of Legg Mason Partners Managed Municipals Fund (SHMMX).

Deane didn't sidestep all the problems; his $3.9 billion fund lost 9.3% last year. He has, however, returned 3.62% a year on average over the past 10 years, and has already gained 6.97% this year. (Managed Municipals has a front load of 4.25% and an expense ratio of 0.66%.)

Prices got so low early in 2009 in part because hedge funds sold munis to raise cash for redemptions. "We weren't looking for liquidity," says Deane. "We were providing it." Then bargain hunters jumped in, helping to push yields on double-A tax-exempts back down to 5.30% in February.

Legg Mason was able to mitigate losses by buying a lot of pre-refunded munis last year -- refinanced municipal debt that uses its proceeds to buy Treasuries to be held in escrow, from which they pay interest and principal on the original issues.

After the brief rally, yields have begun to creep back up near 6%, a level Deane finds "very cheap." The portfolio manager, who's been with the fund since 1988, recently has been buying essential services' revenue bonds and general-obligation bonds from states and cities "that have the wherewithal and political will" to balance their budgets. Among them: New York City water bonds.

THE MORTGAGE-HEAVY TCW Total Return Bond Fund (TGLMX) posted a 1.1% gain last year. Tiny as it is, that's a remarkable return in light of all the problems in the mortgage-securities market. On an absolute basis, the fund's modest return still placed it ahead of 71% of its intermediate-term rivals, according to Morningstar.

"We have a strong risk-management philosophy," says TCW Chief Investment Officer Jeffrey Gundlach, who oversees the $2.93 billion fund (see related article, "How to Profit from Obamanomics"). The no-load, with an expense ratio of just 0.44%, has tacked on a 2.46% year-to-date return through April 1.

Gundlach has about half his fund in government-backed bonds like Ginnie Maes, Fannie Maes and Freddie Macs, yielding 4%. The other half is invested in nonguaranteed senior mortgage bonds, which carry more risk -- but also an average yield of 18%. "Incrementally, we're finding entry points for triple-A" mortgages because investor fear of delinquencies is very high. A bond originally rated triple-A with 1% to 2% delinquencies, considered "money-good," might fall from par to 90 cents on the dollar, yielding 7.5%. But a mortgage bond with 5% delinquencies drops to 60 cents on the dollar, in part because the credit agencies drop their rating at this trigger to single-B, which is noninvestment grade. Of course, one man's junk is another man's treasure, in Gundlach's view.

Gundlach, with 25 years of managing mortgages for TCW, also was shrewd in targeting the A-tranches of two-part mortgage-backed securities that pay out half of their principal to this A-portion before they start paying principal on the B-slice. The A tranches' losses have been much lower. This is a market where experience counts.

INVESTORS SEEKING a larger playground might consider the $10.4 billion Templeton Global Bond Fund. While the U.S. credit markets froze, this fund (TPINX) gained an impressive 6.3% last year, with investments in sovereign issues from France, Sweden, Korea and Russia, and with a heavy concentration on the credit ladder of single-A, triple-B and double-B-rated bonds.

"Last year is a prime example of the motivation for wanting global exposure," says Michael Hasenstab, portfolio manager. "People have a home-country bias in fixed income," he observes, but a well-run global fund has "lower total volatility." His fund has a five-year trailing-return record of a healthy 7.92%.

The fund consists of three baskets: interest-rate markets, currency markets and sovereign-credit markets -- meaning sovereign bonds not issued in the country's own currency. The fund has a front load of 4.25% and an expense ratio of 0.92%.

Right now, he's short the Singapore dollar because he believes it's vulnerable due to the local economy's heavy reliance on exports and finance. "It will have to devalue to compete," he says. He's also got a big position in the Mexican interest-rate market, where he expects more rate cuts.

BARRON'S FINAL BOND-FUND SELECTION is only for the adventurous. It's the T. Rowe Price High-Yield Fund (PRHYX), which dropped a stomach-churning 24.5% last year as the junk-bond market collapsed.

Be aware that corporate defaults are climbing -- and are expected to continue to rise as many credit-challenged companies are unable to refinance their high-yield debt when their bonds mature. This probably won't change until the economy shows signs of reviving. That said, portfolio manager Mark Vaselkiv has loaded up on cheap leveraged loans backed by assets that don't have to return to par to offer a nice return. That's reason enough to give a look.

"Rule No. 1: Don't blow yourself up!" says Vaselkiv, who has run the fund since 1996. The big drag on the market last year was securities issued by private-equity firms for leveraged buyouts. But Vaselkiv is conservative, and has a lot of higher-quality bonds, most rated single- or double-B, in his no-load fund, which has an expense ratio of 0.76%.

In the last big recession, 1991-'93, his annualized three-year total return was 22.3%.

Nearly 50% of the fund is in five sectors: health care, energy, wireless, utilities, and food and tobacco. He's got 10% in investment-grade bonds, and a similar amount in senior bank loans. Just 7% of his fund is invested in highly risky triple-C-rated junk. He also has some convertible bonds. "There's still an opportunity to make double-digit returns the next couple of years," says Vaselkiv. But tread carefully here.

The Bottom Line
With the Fed buying billions in Treasuries and mortgage securities, there will be steady downward pressure on rates. Signs of economic recovery will help other market segments.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 8 Apr 2009 | 4:00 am

Money Markets, Jobless Benefits, More (Ask SmartMoney)

Q. My brokerage money-market funds yield about 1 percent. Online money-market deposit accounts seem to pay higher rates. Should I move my cash?
—David Bixby, Delmar, N.Y.

Money-market funds and money-market deposit accounts may seem like identical twins, but they’re more like distant cousins. Money-market funds, typically offered through investment companies, are a conservative type of mutual fund that invests in highly liquid assets, like short-term CDs and Treasury bills. Currently, those investments don’t yield much: The average taxable money-market fund has a compound yield of just 0.4 percent, according to iMoneyNet.com.

Money-market deposit accounts, found at banks, earn interest and are insured by the Federal Deposit Insurance Corp. Banks looking to raise retail deposits often offer higher rates, says Greg McBride, senior financial analyst with Bankrate .com. Today’s most competitive banks have rates of 2.5 percent. (For a list, visit Bankrate.com.)

Bottom line? Neither account will make you rich, but higher yields plus FDIC protection give money-market accounts an advantage. Still, if you’re planning to make a quick jump back into the stock market, a money-market fund is significantly more nimble.

Q. My unemployment benefits will run out in five months. If I take a temp job for two months, can I reregister for unemployment after that ends?
—Jodi Vallance, Irvine, Calif.

President Obama’s stimulus plan contained incentives for states to expand benefits for part-time and temp workers, but ultimately, the rules are still governed by each state. And deciphering the details of unemployment benefits is practically a full-time job. But here goes: Duration is typically 26 weeks, but because of the recession, extensions have been granted. The 35 states with unemployment above 6 percent (including California) offer an additional 33 weeks. Other states offer up to 46 weeks.

So how does part-time or temp work fit into the mix? Part-time work reduces your benefit. In California, the first 25 percent of your part-time or temp pay is ignored, but the remaining amount is docked from your unemployment check. Full-time temp work would stop your unemployment benefits, although you can reopen the claim once the job is done. If your one-year period has passed, you can reapply for benefits, although the benefit amount will likely be different, since it’s based in part on your last five quarters of work, explains Rich Hobbie, executive director of the National Association of State Workforce Agencies, which oversees state unemployment programs.

So visit your state government’s Web site to keep abreast of any changes.

Q. I own about 30 stocks. My broker wants me to sell everything and buy about a dozen ETFs. I don’t really understand ETFs. Are they a good idea?
—Roger Nichols, Virginia Beach, Va.

Exchange-traded funds are a sort of stock/index mutual fund hybrid. Like a mutual fund, they’re baskets of securities, offering easy diversification. On the flip side, they trade as a unit like a stock, so they can be traded throughout the day (mutual funds are priced just once a day). Exchange-traded funds are praised for their low expense ratios, although shares are purchased through a broker, which means commissions.

Does switching make sense? You’ll certainly get more diversification through an ETF. You’ll also need to consider the tax consequences of selling 30 stocks. In other words, make sure that the move is right for you—not just your broker.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 8 Apr 2009 | 4:00 am

New vs. Used Cars: 6 Factors to Consider (Deal of the Day)

With auto makers and dealerships slashing prices and offering extremely generous incentives, buying a new car now could actually prove to be cheaper than buying a used one. Just be prepared to stomach the risks of bankruptcy-protection filings and swift depreciation.

Typically, used cars are a better value. Not only are they cheaper, but depreciation is less of a factor (someone else had to lose 10% to 20% of the car's value when they drove it out of the dealership lot). However, now a perfect storm of events in the industry have put monthly payments for some new vehicles on par with (or, in some cases, even less than) those of models from just a year or two ago, says Lincoln Merrihew, vice president of business solutions for TNS North America, an auto market research firm.

Consumer demand for used vehicles pushed prices higher at the same time desperate auto makers started offering four-figure cash incentives and 0% promotional financing for new vehicles. Sweetening the deal, dealerships also became more willing to let new car shoppers combine promotions and, in some cases, even haggle, says Merrihew.

But that doesn't mean buying a new car is always the most affordable option. Here are six factors to consider before you head to the car lot.

Financing

Even though lending remains tight, loans for new vehicles have become easier to secure recently, says Jeff Schuster, executive director of forecasting for J.D. Power & Associates. The vehicle’s current value is an absolute, and its eventual value is easier to gauge so there isn't too much guesswork involved for lenders. New car loans often come with cheaper rates. The average rate on a 36-month loan for a used car is 7.64%; for a new car, it’s 7.01%, according to Bankrate.com.

Land a promotional rate and buying a new car gets significantly cheaper. “You're not going to get 0% [financing] on a used car,” says Jack Nerad, executive editorial director for Kelley Blue Book. Lenders still require excellent credit, though. FICO (FIC), the company that calculates the credit score most lenders use, estimates you’ll need a score of at least 720.

Purchase price

Incentives on new cars are the best they've been in years, says Schuster. The 2009 BMW 335i sedan, for example, comes with $1,500 in cash incentives and $3,000 in dealer cash until May 31, according to auto pricing site Edmunds.com. That brings its purchase price from the $42,300 MSRP to $37,800. In comparison, used-car dealerships’ price tag on a 2008 model in excellent condition averages $39,915. You’d save $2,115. (Thanks to the stimulus package, you can also deduct sales tax paid on a new car valued at up to $49,500. For more details, click here.)

Yet the gap between used and new remains wide on many other models, especially popular ones. Even with $1,500 in dealer cash, the 2009 Nissan Altima would still cost $4,120 more than a 2007 model in excellent condition.

Depreciation

Of course, depreciation should always be factored into the equation. Consumers planning to keep a car for fewer than five years will likely get a better value buying a used car from a recent model year, which already has that initial depreciation built into the price. But if you plan on hanging onto the car for at least five years, it’s alright to go for that temptingly priced new car, says Merrihew. The price of a car that’s more than five model years old is largely determined by its condition, rather than the initial selling price.

Model year

Dealerships may be offering some truly tempting incentives on 2008 models, but you probably should steer clear for now. “There’s some false savings there,” cautions Nerad. “On paper, those cars are almost two years old.” Unless you’re planning to buy and hold the car for at least five years, a slightly pricier 2009 will hold its value much better, he says. If you must have that new, bargain-basement 2008 model, calculate the price of a used one in excellent condition at Kelley Blue Book's web site and use that to negotiate price with the dealer.

The brand's future

General Motors (GM) has already said that if it can’t sell its Saturn, Saab or Hummer brands soon it will have to shut them down. That could mean reduced resale values for anyone owning one of these cars. And should the auto maker file for bankruptcy protection, the values on its other brands are likely to drop, too -- at least until it emerges from its restructuring. (For more on the risks and rewards of buying an American car right now, click here.)

Layoff risk

Worried your job is at risk? You may find some comfort in auto makers’ layoff protection plans, says Schuster. These plans offer to alleviate some of the financial pain of car payments should you lose your job. Ford (F), for example, offers to cover payments on a new car for up to a year if you lose your job, while GM will let new car buyers return vehicles without penalty. Just be sure to read the fine print first. (For tips on layoff protection plans, click here.)

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 8 Apr 2009 | 4:00 am

Five year ban for Five Star directors

Directors of the failed Five Star Group of companies have been banned from corporate life for five years. Peter Barker, the deputy registrar of companies, said Marcus Arthur MacDonald, Nicholas George Kirk and Anthony Walpole Bowden...
Source: New Zealand Herald - Business | 8 Apr 2009 | 3:30 am

Shares falling, NZX down 1.7pc

Shares on the New Zealand stock exchange have taken a tumble today, with the market down 1.7 per cent. The benchmark NZX-50 is down 45 points to 2567. Top stock Telecom has fallen nearly 5 per cent, down 5 cents to $2.37, while...
Source: New Zealand Herald - Business | 8 Apr 2009 | 3:00 am

KFC still boosting Restaurant Brands profits

A strong result by KFC has boosted Restaurant Brands' group annual profits, excluding non-trading items, by 13 per cent to $11.7 million. But when $5m of non-trading items were included - primarily impairment charges against goodwill...
Source: New Zealand Herald - Business | 8 Apr 2009 | 1:30 am

Sweeping shakeup across SOEs

The new Government has made its mark on the boards of energy sector state-owned enterprises which it has targeted for underperformance. The changes across the SOE portfolio have been described as a cautious recalibration rather...
Source: New Zealand Herald - Business | 8 Apr 2009 | 1:00 am

Anti-counterfeit bill to allow NZ to join global treaties

An anti-counterfeiting bill that was before Parliament last night will enable New Zealand to join three international trade mark treaties, Commerce Minister Simon Power says. The Trade Marks (International Treaties and Enforcement)...
Source: New Zealand Herald - Business | 8 Apr 2009 | 12:30 am

Foam sword maker loses Crusaders court bid

The creator of a foam sword and toy trumpet whose designs were copied and sold as Canterbury Crusaders merchandise is not entitled to additional damages, the Supreme Court said today. The High Court previously awarded Julian Meates...
Source: New Zealand Herald - Business | 8 Apr 2009 | 12:14 am

Google boss tells papers to stick with ad revenue

SAN DIEGO - Google's chief executive has told newspaper publishers that they should continue to rely on advertising but seek new ways to reach readers. Without providing specific recipes, Eric Schmidt laid out a few possibilities,...
Source: New Zealand Herald - Business | 8 Apr 2009 | 12:00 am

Write-Offs: 04.07.09

$$$ A displaced banker guides tourists through the carnage [The Big Money]

$$$ PIMCO Manager On Becoming Fourth Branch Of Government: Who, Us? [TPM]

$$$ AIG's Bank Payments Probed By TARP Inspector General [Bloomberg]

$$$ Taking stock of AIG ads past. [Playboy]

$$$ A Night with the Bears [CNW Group]

Source: Dealbreaker | 7 Apr 2009 | 11:43 pm

It isn't very funny to lose your pot of money

This will cheer you up. I lost a big sum of money recently. It evaporated with Lehman Brothers. As it happens, I was hardly aware that I had anything deposited with this distinguished banking house (or hopelessly greedy incompetents, depending on the way you choose to look at them) until I telephoned the manager of my account at a hedge fund.
Source: Latest Business News from Times Online | 7 Apr 2009 | 11:00 pm

Need to know: JD Wetherspoon wins case... Porsche up... Gazprom deal

View video and Need to Know interactive heatmap
Source: Latest Business News from Times Online | 7 Apr 2009 | 11:00 pm

Growth outlook gloomy as factory output drops

The economy continued to shrink at a brutal pace in the first three months of this year, economists believe, after more grim news emerged from the manufacturing sector.
Source: Latest Business News from Times Online | 7 Apr 2009 | 11:00 pm

Defence industry must plan offensive moves

The US military-industrial complex is gearing up for war. Robert Gates, the US Secretary of Defence, parked his tanks on the industry's lawn when he unveiled the Pentagon's budget for 2010-11 on Monday.
Source: Latest Business News from Times Online | 7 Apr 2009 | 11:00 pm

Gold sold for scrap outstrips new purchases

For the first time in nearly 30 years, there are more people selling gold jewellery as scrap than buying new items. The high price of gold combined with the economic downturn has encouraged people to raise extra cash by selling everything from family heirlooms to tooth fillings.
Source: Latest Business News from Times Online | 7 Apr 2009 | 11:00 pm

AIG aircraft unit seeks $5bn Fed credit line

AIG's aircraft-leasing unit is in talks over a $5bn credit line from the Federal Reserve that could be used to facilitate its sale – an unusual move that would raise the stakes in the US government's bail-out of the stricken insurer
Source: Financial Times - US homepage | 7 Apr 2009 | 10:52 pm

U.S. oil prices slip more than $1 on API build (Reuters)

Reuters - U.S. crude oil futures fell more than $1 a barrel after Tuesday's settlement as the American Petroleum Institute reported a big build in crude supply.

Source: Yahoo! News: Stock Markets News | 7 Apr 2009 | 10:40 pm

Take green path, US business warned

Companies must not sink money into high-carbon infrastructure unless they are willing to lose their investments within a few years, the US lead negotiator on climate change has warned
Source: Financial Times - US homepage | 7 Apr 2009 | 10:33 pm

Blankfein attacks US job rules

New US laws preventing banks from hiring foreign employees are 'protectionist and self-defeating' and will starve the country of talent needed to rebound from the recession, Goldman Sachs chief has warned.
Source: Financial Times - US homepage | 7 Apr 2009 | 10:08 pm

Derivatives sector answers critics

The financial industry will overhaul how it writes contracts in the credit derivatives world to try to rebuff criticism that the sector could pose a systemic threat.
Source: Financial Times - US homepage | 7 Apr 2009 | 10:02 pm

Ross in race for disgraced Satyam

Billionaire investor Wilbur Ross is one of four bidders expected to contest an auction for the scandal-tainted outsourcing group
Source: Financial Times - US homepage | 7 Apr 2009 | 9:37 pm

Consumer borrowing dips more than expected in Feb. (AP)

AP - Consumer borrowing plunged more than expected in February as Americans cut back their use of credit cards by a record amount.

Source: Yahoo! News: Business | 7 Apr 2009 | 9:25 pm

Ladies Man About To Clean Up Big Time

The news that art prices have plunged 35 percent probably would've bothered a certain collector of pictures up north, if he had plans to sell, but like we've been told over and over and over again, these girls are on display for you to look at but not touch, fondle or buy. So all this really means is that our favorite Southern CT pimp is about to go on a tear, adding to his stable of biatches on tha cheap.

The Mei Moses index, set for release on Tuesday, shows art prices fell 35 per cent in the first quarter, having held up during earlier months of the financial crisis.

The overall index fell 4.8 per cent last year.

The decline accelerated as people who lost money in the financial crisis, including victims of the Madoff fraud, put up works for sale, often at a loss, several art world insiders said.

The selling has particularly hit works by postwar and contemporary artists, they said. The Wall Street elite had favoured such works during a seven-year boom in art prices. The best performing postwar artist, Andy Warhol, saw a decline in the value of his work. A Warhol portrait of Mick Jagger sold for $1.1m in the quarter. The seller bought it in 2006 for $1.5m.

Art prices fall 35% as collectors cash in [FT]

Source: Dealbreaker | 7 Apr 2009 | 9:05 pm

The Obama Portfolio

Modest declines. But, we're in it for the long-term. Right?

The Obama Portfolio (Since Inception): +15.50%

Earlier: The Obama Portfolio

Source: Dealbreaker | 7 Apr 2009 | 9:02 pm

Skeel Says U.S. Bankruptcy System Flexible, Effective

Source: Bloomberg - All Podcasts | 7 Apr 2009 | 8:47 pm

Baker Discusses Banks, Auto Bankruptcy, U.S. Foreign Policy

Source: Bloomberg - All Podcasts | 7 Apr 2009 | 8:38 pm

Altman Sees 13% Default Rate on Corporate Bonds in 2009

Source: Bloomberg - All Podcasts | 7 Apr 2009 | 8:34 pm

Too Much To Bear

Listen up, ladies: there's been a lot of whining lately about how much and how hard life is sucking right now, which we've played a part in indulging. Moving forward I want everyone to ZIP THE LIP because there's someone out there who's got it so much worse. Refer your asses to this.

Source: Dealbreaker | 7 Apr 2009 | 7:53 pm

US consumer credit shows surprise drop (AFP)

AFP - US consumer credit dropped by a more than expected 3.5 percent in February after posting an increase the preceding month, the Federal Reserve said Tuesday.

Source: Yahoo! News: Business | 7 Apr 2009 | 7:46 pm

Segway and GM launch Puma joint venture

The US carmaker and Segway have unveiled a tiny electric car designed to drive on its own and avoid collisions.
Source: Financial Times - US homepage | 7 Apr 2009 | 7:33 pm

Heico Rated New `Buy' at Ladenburg Thalmann

Source: Bloomberg - All Podcasts | 7 Apr 2009 | 7:19 pm

For Those Of You Who Read Lips, He *Might* Slip In A "Sweet Cheeks" At The End But Not Sure

Here's some footage from Blankfein's meeting with the Pink ladies earlier. Unfortunately the only part you can hear is him asking one of them, "How are you," with the audio track cutting out just prior the sweet nothings that got her to skedaddle.

Update: In this version from The Daily Beast, LB essentially says "Hi, how are ya? Good? Okay, how 'bout this? They've all seen it, I'll address it later, you move your asses now? Work for you?"

Source: Dealbreaker | 7 Apr 2009 | 7:14 pm

Personally, We Are Outraged That Recipients Of Public Money Would Be Unwittingly Supplying Nuclear Material To Iran, Aren't You?

By using aliases, LIMMT fooled U.S. banks into processing dozens of illegal transactions, Morgenthau said. "Our banks have high standards and sophisticated systems to stop these transactions, but this conduct was specifically designed to defeat their systems," he said.

Some of the U.S. banks involved were Bank of New York Mellon Corp., Bank of America Corp. and JPMorgan Chase & Co., Morgenthau said.

The U.S. Department of the Treasury's Office of Foreign Assets Control sanctioned LIMMT in 2006 for its role in the proliferation of weapons of mass destruction to Iran, Morgenthau said.

Chinese Firm Indicted for Misusing Banks, Aiding Iran [Bloomberg]

Source: Dealbreaker | 7 Apr 2009 | 7:12 pm

Do Banks Need The FDIC?

Our FDIC podcast last week got listener Nick Casey wondering:

Are any U.S. banks not FDIC insured?

Most U.S. banks are required to have FDIC insurance to be chartered. States, for the most part, make them get it.

Here's a longer answer from the FDIC's press guy David Barr:

Most states require FDIC insurance for their banks. It was more common back in the early- to mid-'80s to have non-FDIC insured banks. That changed when most of those private insurance funds or state-sponsored funds went bankrupt and left customers without access to their deposits for extremely long periods of time. States like OH, NC and MD come to mind as the more well-known cases of depositors of privately insured banks having the most trouble getting their money out of troubled banks.

The result is that today most, if not all, states require federal insurance. There may be some rare exceptions or grandfather provisions to that statement, but most, if not all, banks and S&Ls must be federally insured. States are the ones who decide whether or not to require FDIC insurance. Any federally or nationally chartered bank, or one belonging to the Federal Reserve System, must have FDIC insurance.

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

Source: NPR Blogs: Planet Money | 7 Apr 2009 | 7:06 pm

Planning to take a chip out of recession

Intel CEO Paul Otellini is an MBA at a company that had been founded and run by engineers. He talks with Kai Ryssdal about his 25 years in the computer chip business and the company's strategy for bouncing back from the slow economy.
Source: Marketplace | 7 Apr 2009 | 7:03 pm

Investment losses hit public sector pensions

The crisis facing pension plans for US state and municipal employees is deepening as investment losses deplete the resources of retirement funds for teachers, police officers, firefighters and other local government workers
Source: Financial Times - US homepage | 7 Apr 2009 | 6:59 pm

New Deal On Wall Street

A friend in New York sent this to me. It's from Beaver Street, right around the corner from the New York Stock Exchange. I'd be curious how much I could get for all my broken jewelery.

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

Source: NPR Blogs: Planet Money | 7 Apr 2009 | 6:58 pm

Presented By: Windows Internet Explorer 8 for MSN

		Windows® Internet Explorer 8 is faster, easier and safer than ever, and now you can get it with your favorite MSN ® features included – MSN Toolbar, MSN Homepage, Search and more. Download FREE today!
		http://ie8.msn.com

Source: Dealbreaker | 7 Apr 2009 | 6:58 pm

Seriously?

Not sure how we missed this, but if we're going to go there, let's go there. Who would be the tastiest? Cayne would obviously be hickory smoked, Fuld tough and gamey. Blankfein...thinking tender like a Cornish G-hen. But what about Dimon? Mack? Citi first years?

Source: Dealbreaker | 7 Apr 2009 | 6:58 pm

Totally Unfounded Rumor Of The Day: Bomb Left At Bank Of America Branch In Springdale, AR

The situation is fluid. More as we hear it.

Source: Dealbreaker | 7 Apr 2009 | 6:57 pm

Bernstein Says Obama's Plans Create or Save 3.5 Million Jobs

Source: Bloomberg - All Podcasts | 7 Apr 2009 | 6:32 pm

Hitting The Streets In Barcelona

Sarah writes from Morocco:

While I was on vacation in Barcelona, there were at least two or three protests that went by my hostel in the week that I was there. One dealt with the gentrification of the Barcelonea neighborhood, but the others were against the financial crisis. I had just started to take protests for granted when I saw naked women writhing under a fishing net! We were too late to get pictures of that, but we did get some of the demonstrators and their signs.

I'm studying abroad in Morocco this semester, where the concrete skeletons of abandoned hotels abound and bidonvilles (slums) are a common sight, so honestly I was really struck by how much money the developed world has -- clean, smooth sidewalks, reliable public transportation and infrastructure I used to take for granted. While the developed world is up in arms (rightfully so) over lost jobs and billions of dollars, the developing world is still struggling with basic services.

See more of Sarah's pictures in the Planet Money Flickr Pool.

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

Source: NPR Blogs: Planet Money | 7 Apr 2009 | 6:27 pm

Ruskin Says Japan's Economic Problems Are `Staggering'

Source: Bloomberg - All Podcasts | 7 Apr 2009 | 6:12 pm

Eisenbeis Says Fed Has Become Less Independent

Source: Bloomberg - All Podcasts | 7 Apr 2009 | 6:09 pm

The real reason you got laid off

The recession is providing a great cover for employers who have been looking to get rid of employees. Sally Herships reports on why some workers are getting the ax under the guise of a bad economy.
Source: Marketplace | 7 Apr 2009 | 5:39 pm

Letters: Auto unions and April Fools

Kai Ryssdal reviews listener reaction to an April Fool's Day story and commentaries about auto unions and President Obama's stimulus.
Source: Marketplace | 7 Apr 2009 | 5:39 pm

Broadband plan brings big changes

The Federal Communications Commission will soon dig into the National Broadband Plan to chart the future of high-speed Internet. What changes could it bring? Tamara Keith reports.
Source: Marketplace | 7 Apr 2009 | 5:39 pm

When shipping's down, lay that ship up

As demand for shipped goods falls, ships are left with no cargo. Kai Ryssdal speaks with Chris Sjodoff, vice president of a shipping services company, about how he takes care of his unused ships.
Source: Marketplace | 7 Apr 2009 | 5:39 pm

Kosher that's not just for food

As Passover begins, there is a movement in the Jewish community to expand the meaning of kosher beyond just food. Jennifer Collins reports.
Source: Marketplace | 7 Apr 2009 | 5:39 pm

Workers fight against defense cuts

The Department of Defense's budget is being trimmed, and many of the cuts are happening in the aviation field. But the people who help make planes are fighting back. Mitchell Hartman reports.
Source: Marketplace | 7 Apr 2009 | 5:38 pm

Split opinions on economy may be good

There is confusion about where we are in the business cycle. While there are signs the credit markets may be thawing, corporate CEOs are feeling gloomy. What do the mixed signals tell us? Amy Scott reports.
Source: Marketplace | 7 Apr 2009 | 5:38 pm

Uncommon Employment

Mel D. from Beverly, Mass. writes:

I was speaking with my nephew who lives in New Jersey and had just lost his job at an auto supply store. But he was very excited at a new job that "fell into his lap." He found a position as a terrorist -- at $19/hr.

It seems that Fort Dix is hiring folks to role play as terrorists for training purposes. Not only does it pay well (from his perspective), but it seems like he was having fun. He noted there was opportunity for advancement... (I guess you would know if things aren't working out if they assigned you to play the role of a suicide bomber....)

In December, five Muslim immigrants were found guilty of conspiring to kill U.S. soldiers in an attack on the New Jersey Army base. Read more here.

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

Source: NPR Blogs: Planet Money | 7 Apr 2009 | 5:26 pm

Quits Rate: Low & Steady

The so-called quits rate leveled out in February. The Bureau of Labor Statistics reports today that the same percentage of the workforce left a job in February voluntarily as did so in January. The quits rate covers everyone who gives up an ID card for reasons other than getting canned, or retiring, or dying.

If you've got a job these days, you're likely clinging to it, regardless of whether you like it. (See also: Planet Money pal Dan Pashman's recent "Should You Feel Guilty About Having a Job?.")

Job openings showed little change, as well. They're down 35 percent from peak, in August 2007. One bright spot: Hires in manufacturing edged up, from 115,000 in January to 140,000 in February.

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

Source: NPR Blogs: Planet Money | 7 Apr 2009 | 5:22 pm

CEOs see more layoffs; decline in spending, sales

NEW YORK -- An index tracking the outlook of chief executives of some of the country's biggest companies dropped to its lowest level since the survey began in 2002.

Source: L.A. Times - Business | 7 Apr 2009 | 4:03 pm

Finding An Escape In Romance?

There's definitely no shortage of bad news these days, and it seems many Americans are finding solace in something both escapist and inexpensive: love.

U.S. News and World Report cites romance novel publishers and condom makers in its top 10 list of "winners in the recession," citing the robust sales figures for each.

Harlequin -- the leading publisher of series romance -- says its year-over-year sales of titles like Naked Attraction and Mistletoe Cinderella grew at the end of 2008, even as total U.S. book sales declined.

The impulse to find haven in the dramatic story lines of romantic fiction does make sense. And perhaps that's partly why Harlequin's diverse line of novels, from medical romances (e.g. One Night With Her Boss) to historical love tales (e.g. The Wicked Baron) to NASCAR fantasies (e.g. Running on Empty and Victory Lane), is doing so well.

But if you've ever cracked the cover of one of these grocery-aisle paperbacks, you know the plots are not entirely free of emotional turmoil in the heroine's fictional "quest for true love."

And, as LA Times columnist Megham Daum points out, readers might be inclined toward this romantic tension -- toward suspenseful uncertainty -- because they relate to it.

Maybe these books are recession-proof not because they offer an alternative to uncertainty but because they reflect it back at us -- with a lot of sex thrown in (and a happy ending).

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

Source: NPR Blogs: Planet Money | 7 Apr 2009 | 3:55 pm

Kelly Says Stock Market Is Cheap Assuming Economic Improvement

Source: Bloomberg - All Podcasts | 7 Apr 2009 | 3:50 pm

Wanted: Forensic Accountants

Know how to audit a $700 billion bailout program for waste, fraud and abuse? Can you comb through huge balance sheets without falling asleep? Then the government wants you.

As we mentioned on the podcast, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) has been facing some hiring challenges. Neil Barofsky (the special inspector general) wants to hire 100-125 people. But so far the staff sits at 36.

Barofsky can't pay as much as the private sector, and he's got competition for the kind of auditors he needs from the various stimulus programs. There's also the usual government red tape.

President Obama is expected to sign legislation this week that will give SIGTARP additional hiring authority.

The measure also makes it so that SIGTARP "agents may carry a firearm." Hopefully that won't be necessary.

We'll have a piece on All Things Considered tonight Wednesday. By the way, SIGTARP, unlike a lot of government agencies, is trying to spell everything out in jargon-free English. Its first report to Congress is surprisingly readable, with handy little sidebars explaining terms like recapitalize, insolvency, liquidity.

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

Source: NPR Blogs: Planet Money | 7 Apr 2009 | 2:17 pm

Feeling Better Yet?

Some days I feel optimistic about the economy, and others I suffer a sinking sense that we're in for a very long haul. Today, at my breakfast table, I met both in one newspaper. From the New York Times, a pair of headlines:

-- Poll Finds New Optimism on Economy Since Inauguration, in which we learn that 20 percent of Americans surveyed think things are getting better -- up from 7 percent in January;

-- Economy Falling Years Behind Full Speed, in which we learn that in the last recession of this scale, 1981-82, the U.S. took seven years to regain all the ground lost.

It's the last part that sticks with me, I guess. We've been hearing it most directly from economist Howard Rosen, who says he's worried about what happens after the downturn levels out or reverses. Will we see a jobless recovery, as we did in after the 2001 recession? For Rosen, the sheer scale of unemployment -- and underemployment -- matters.

In a note to us Monday, Rosen took a look at the latest jobs report from the Bureau of Labor Statistics. He writes:

BLS reported that there were 140.9 million people employed and 13.2 million unemployed in March. They calculate that the size of the labor force is thus 154 million. BLS also reported that 81 million people were "not in the labor force." We do not know anything else about these people.

BLS reports that in agriculture, there are 1.2 million salaried workers and 875,000 self-employed workers.

In non-agriculture (manufacturing and services) BLS reports129.5 million salaried workers and 9.2 million self-employed.

We're up to 10 million self-employed.

As I have mentioned in the past, BLS reports that 9 million people are working part-time for "economic reasons." Another 18.8 million people work part-time by choice.

Finally, 7.7 million workers hold more than one job.

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

Source: NPR Blogs: Planet Money | 7 Apr 2009 | 2:14 pm

BNP Paribas's Stannard Sees Currencies Gaining Against Dollar

Source: Bloomberg - All Podcasts | 7 Apr 2009 | 1:35 pm

Middleton Says Rate of Deterioration in U.S. Has `Eased'

Source: Bloomberg - All Podcasts | 7 Apr 2009 | 1:31 pm