Gazprom to cut gas production amid recession

Gazprom, the Russian state-owned energy group, could reduce natural gas output by up to 18 per cent this year due to falling demand from recession-hit countries.


Source: Latest Business News from Times Online | 22 May 2009 | 1:40 pm

A New Call For Brocade To Hit New Highs (BRCD)

Brocade Communications Systems, Inc. (NASDAQ: BRCD) is the beneficiary of a research call this morning from Broadpoint AmTech.  Many research calls are not very aggressive and many are very reactive on the surface.  That is the nature of many analyst estimates, and Wall Street analyst have to take criticism every time they are wrong.  But [...]

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

Source: 24/7 Wall Street | 22 May 2009 | 1:28 pm

Bankruptcy not certain in GM restructuring: source (Reuters)

Reuters - A bankruptcy filing is not certain in the General Motors restructuring case and reports that the Obama administration will steer the automaker into bankruptcy as early as next week are premature, a source familiar with the situation said on Friday.

Source: Yahoo! News: Business | 22 May 2009 | 1:26 pm

Oprah's Skypefest backlash

Oprah Winfrey's tastemaking power is legendary. A spot on her book club list is the Holy Grail for authors, who are all but guaranteed a bestseller. Under her tutelage, the likes of Dr. Phil, Tyra Banks and Rachael Ray have shot to stardom. A few comments on her show can make or break a product.
Source: Business and financial news - CNNMoney.com | 22 May 2009 | 1:19 pm

Suntech Deep Discount Offering, Not As Bad As It Sounds (STP)

Suntech Power Holdings Co. Ltd. (NYSE:STP) has priced its follow-on offering of 20 million ADSs at $12.50/ADS. The underwriters have an over-allotment option on an additional 3 million ADSs. The company plans to spend the money, $250 million less costs, however it likes. Suntech noted that it “intends” to use the money for capital expenditures, working [...]

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

Source: 24/7 Wall Street | 22 May 2009 | 1:18 pm

Metals Stocks: Gold rises as dollar weakens

Gold futures rise for a fourth-straight session, approaching the $960-an-ounce mark.

Source: MarketWatch.com - Top Stories | 22 May 2009 | 1:15 pm

4 homes with curb appeal

Source: Business and financial news - CNNMoney.com | 22 May 2009 | 1:14 pm

Stores that may not make it to recovery

The pace of store bankruptcies will pick up -- even if consumer spending rebounds -- in the next 12 months, industry experts say.
Source: Business and financial news - CNNMoney.com | 22 May 2009 | 1:13 pm

BP appoints new global crude trading head

LONDON, May 22 (Reuters) - BP has appointed Henrik Wareborn as global head of crude oil trading, a source familiar with the matter said on Friday.
Source: RSS feed - channel BNewsBusiness | 22 May 2009 | 1:05 pm

This Week’s Weird Jobs

In a difficult market, it pays to have a variety of skills. But, as this week’s weird jobs prove, some skills simply do not mesh. For example, a drill sergeant would not make a good Director of First Impressions, or psycho social rehab worker…

1. San Diego: odd jobs in La Jolla

Senior is looking for a teenager, student or other to help with various household tasks like Loading and Unloading the car..Must live in La Jolla . Must be dog friendly.

* Compensation: $5 min per job or $15 per hour whichever is less

I’m not a miser, I swear. I’m just a senior who hasn’t adjusted for inflation.

2. San Diego: Director of First Impressions

Searching for a professional, motivated, personable, energetic and organized individual for “Director of First Impressions” at our health and wellness center. The individual should have at least 1 year experience working as a receptionist.

SKILLS:
Outgoing, pleasant personality
Must be detail oriented with dynamic personality
Excellent communication skills (written and verbal)
Team player who can work both independently and interdependently

This job posting instantly turned a run-of-the-mill receptionist into a director. Now that is good spin.

3. San Diego: Sign Spinners Needed

Seeking Enthusiastic, Friendly, Energetic Sign Spinners. Must be willing to have fun and smile while working!
Our Locations are open 7 Days a week Flexible hours can be available.

* Compensation: $ 8.00 Per Hour Paid Daily

Must be willing to smile while working…but none of your colleagues do, so what we’re really asking for are strong wrists and the ability to look like a tool.

4. Las Vegas: Drill Sgt.

Prior Service Soldiers needed to fill Reserve Drill Sgt positions in Las Vegas, NV.

We will select winning applicants on the basis of their ability to scare our pants off.

5. Las Vegas: Psycho Social Rehabilitation Worker Needed

Staff will primarily focus on rehabilitative mental health services that target the specific behaviors of our clientele, which may include: behavioral management and counseling; conflict and anger management; interpersonal skills development; interventions with schools and social service systems.

May not have been arrested, charged, or convicted of a crime within the last 5 years

Must be adept at stalking, crank calling, and slashing tires.

Happy Friday!

Source: Business Pundit | 22 May 2009 | 1:05 pm

China's industrial production to accelerate

China’s industrial-production growth is likely to accelerate in coming quarters, according to a Chinese government report released this week.

Source: MarketWatch.com - Top Stories | 22 May 2009 | 1:05 pm

eBay not liable for L'Oreal fakes sold in UK

Ebay won another important legal victory this morning when the High Court ruled the internet auction group is not legally accountable for the sale of counterfeit L’Oreal cosmetics on its UK website.


Source: Latest Business News from Times Online | 22 May 2009 | 1:02 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 | 22 May 2009 | 1:01 pm

Stock futures point higher after pullback Thursday

Stocks are pointing to modest gains Friday after a slide in the previous session and ahead of a long holiday weekend. Stock futures rose ahead of what was expected to be a quiet trading...
Source: RSS feed - channel BNewsBusiness | 22 May 2009 | 12:57 pm

Stock futures point higher after pullback Thursday (AP)

AP - Stocks are pointing to modest gains Friday after a slide in the previous session and ahead of a long holiday weekend.

Source: Yahoo! News: Stock Markets News | 22 May 2009 | 12:57 pm

Opening Bell: 05.22.09

William Richards is off today. OB brought to you by anal_yst.

Ezra Merkin Quits Synagogue Post (NYT)
And just after being nominated chairman. Might've had to do with losing a bunch of members a truckload of money.

The Road To Bankruptcy (The Atlantic)
"At the end of his book's harrowing account of mortgage mistakes and credit card crises, NYT reporter Edmund Andrews writes: "While our misadventure had certainly been more extreme than those of many other Americans, our situation was not all that unusual." And indeed the book reads like the story of an American Everyman, easily sucked in to the alluring world of easy credit as he struggled to blend a new family. The terrifying implication is that it could happen to you--to anyone who leads with their heart and not their head.

But en route to that moral, it turns out the story has been tidied up a little. Patty Barreiro, Andrews' wife, has declared bankruptcy twice. The second time was while they were married, a detail that didn't make it into either the book or the excerpt that ran in last Sunday's New York Times Magazine."

Sears Holdings Swings to Q1 Profit (sec.gov)
"In this challenging economic environment we are pleased with the progress we have made in improving our gross margin rate, controlling inventories and further reducing our cost structure," said W. Bruce Johnson, Sears Holdings' interim chief executive officer and president. "Our efforts had a clear impact on our overall results as both net income attributable to Holdings' shareholders and Adjusted EBITDA increased significantly during the first quarter as compared to last year."

This is all well and good and surely cause for a huge pop in the stock, BUT (and forgive me for raining on Eddie's parade), the main driver of this quarter's profit was reduced advertising and payroll expenses. Yea, good luck repeating that every quarter until the economy "recovers." Lemme know how that works out for ya'.

PIMCO's Gross: US could lose AAA rating (Reuters, via FT)
O noes! Sayeth the (formerly) Moustachio'd one:

The United States will face a downgrade in "at least three to four years, if that, but the market will recognize the problems before the rating services -- just like it did today," Gross told Reuters.

I know its too much to hope that within 3-4 years time no reasonably sane investor will give a flying fuck what S&P/Moodys has to say, but its not like the fundamentals are a big secret here. US issues metric asston of debt, re-inflates asset bubbles...shit eventually hits fan. Of course, given the various precedents set by the Gov't over the past year or two, I think its obvious that if any rating agency were to even loosely consider a downgrade on US Sovereign ("Sovereign") debt, the PPT would be all over that shit like white on rice.

Related: United States - Earnings before interest taxes depreciation and amortization - Net income - Chief executive officer - Business
Source: Dealbreaker | 22 May 2009 | 12:54 pm

UPDATE 2-PBG seeks $64 mln for tie-ups as Polimex bid fails

* PBG in takeover talks with 3 peers after Polimex bid fails
Source: RSS feed - channel BNewsBusiness | 22 May 2009 | 12:54 pm

Retail earnings set to lift US stocks

Wall Street stocks were set to rise as positive earnings at two major retailers enticed bargain hunters to look beyond the year's biggest bank failure and come back into the market following three days of selling
Source: Financial Times - US homepage | 22 May 2009 | 12:52 pm

Yingli & LDK, Solar Earnings in the Shade (LDK, YGE, TAN)

LDK Solar Co. Ltd. (NYSE:LDK) makes multicrystalline wafers used to manufacture PV solar cells and Yingli Green Energy Holding Company Limited (NYSE:YGE) is an integrated maker of PV solar products. Both companies have reported large net losses for the first quarter of 2009, and shares of both look lower ahead of the open. LDK reported a [...]

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

Source: 24/7 Wall Street | 22 May 2009 | 12:49 pm

Moody's reassurance and Sears power stock futures (Reuters)

Reuters - Stocks headed for a higher open on Friday as reassuring comments from Moody's tempered fears about the credit rating outlook for the United States, while higher oil prices lifted energy shares like Exxon Mobil.

Source: Yahoo! News: Stock Markets News | 22 May 2009 | 12:48 pm

Moody's reassurance and Sears power stock futures (Reuters)

Reuters - Stocks headed for a higher open on Friday as reassuring comments from Moody's tempered fears about the credit rating outlook for the United States, while higher oil prices lifted energy shares like Exxon Mobil.

Source: Yahoo! News: Business | 22 May 2009 | 12:48 pm

Moody's reassurance and Sears power stock futures

NEW YORK (Reuters) - Stocks headed for a higher open on Friday as reassuring comments from Moody's tempered fears about the credit rating outlook for the United States, while higher oil prices lifted energy shares like Exxon Mobil.
Source: Reuters: Business News | 22 May 2009 | 12:48 pm

Before the Bell: Sears Holdings, Johnson & Johnson and GM in focus

U.S. stock futures advanced Friday heading into the long holiday weekend. Bond markets are due to close early.

Source: MarketWatch.com - Top Stories | 22 May 2009 | 12:40 pm

DryShips Market Cap Changes After ATM Offering Completed (DRYS)

DryShips Inc. (NASDAQ: DRYS) is seeing a surge of interest this morning after the company said it had completed its “ATM” financing of some $475 million in gross proceeds.  Merrill Lynch acted as sales agent in the offering.  This will have ramifications for traders on Friday and beyond, particularly on the market capitalization rate. The company [...]

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

Source: 24/7 Wall Street | 22 May 2009 | 12:38 pm

Another $7.5 billion bailout for GMAC

The Obama administration announced Thursday that it has invested $7.5 billion in GMAC, aiming to prop up the troubled lender and boost its ability to make loans to Chrysler dealers and customers.
Source: Business and financial news - CNNMoney.com | 22 May 2009 | 12:30 pm

BTIG Donates Over $3 Million to Children's Charities From 7th Commissions for Charity Day

NEW YORK, May 22 /PRNewswire/ -- BTIG LLC, an institutional broker dealer specializing in trading and related brokerage services, today announced that it will donate more than $3
Source: RSS feed - channel BNewsBusiness | 22 May 2009 | 12:30 pm

Met-Pro Corporation Announces First Quarter Financial Results

HARLEYSVILLE, Pa., May 22 /PRNewswire-FirstCall/ -- Raymond J. De Hont, Chairman and Chief Executive Officer of Met-Pro Corporation (NYSE: MPR), today announced the...
Source: RSS feed - channel BNewsBusiness | 22 May 2009 | 12:30 pm

Graphic Packaging Agrees to Sell Handschy Business to Sun Chemical

MARIETTA, Ga., May 22 /PRNewswire-FirstCall/ -- Graphic Packaging International, Inc., a subsidiary of Graphic Packaging Holding Company (NYSE: GPK), announced today that it has...
Source: RSS feed - channel BNewsBusiness | 22 May 2009 | 12:30 pm

Rotate Black, Inc. Appoints Board of Directors

PETOSKEY, Mich., May 22 /PRNewswire-FirstCall/ -- Rotate Black, Inc. (OTC Pink Sheets: ROBK), a premier development and management company of global resort and casino properties,
Source: RSS feed - channel BNewsBusiness | 22 May 2009 | 12:30 pm

Honda staff vote for 3% pay cut

Workers at Honda's Swindon plant vote in favour of taking a 3% pay cut for ten months in an attempt to safeguard 490 jobs.
Source: BBC News | Business | World Edition | 22 May 2009 | 12:29 pm

Mid-market beats mega-buyout shops for returns

LONDON, May 22 (Reuters) - Mid-market buyout shops top private equity fund performance over the medium term, as their larger counterparts struggle to sell on their portfolio companies and generate returns...
Source: RSS feed - channel BNewsBusiness | 22 May 2009 | 12:29 pm

How you can lose money in the building society

One of the lessons savers will have learned from the financial crisis is that they should be wary of lowrisk investments.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 May 2009 | 12:25 pm

Revisiting Sears, Salvation Is Near (SHLD)

Sears Holdings Corporation (NASDAQ: SHLD) is trading up sharply this morning after the retailer and part-time hedge fund managed to post positive earnings after the close on Thursday.  This is a stock we had called as a retail stock to double by the end of the recession just on March 11.  We now face a [...]

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

Source: 24/7 Wall Street | 22 May 2009 | 12:24 pm

European stocks recover ahead of expected US gains (AP)

AP - European stocks rose Friday, recovering from a sharp fall Thursday and shrugging off overnight losses in the U.S. and Asia as investors clung to hopes that the global recession is bottoming out and looked for bargains ahead of the weekend.

Source: Yahoo! News: Stock Markets News | 22 May 2009 | 12:22 pm

European stocks recover ahead of expected US gains

European stocks rose Friday, recovering from a sharp fall Thursday and shrugging off overnight losses in the U.S. and Asia as investors clung to hopes that the global recession is bottoming
Source: RSS feed - channel BNewsBusiness | 22 May 2009 | 12:21 pm

U.S. closes BankUnited, sells to private equity

WASHINGTON/NEW YORK (Reuters) - U.S. bank regulators seized troubled Florida lender BankUnited FSB and sold it to some of the most powerful private equity firms in the world.
Source: Reuters: Business News | 22 May 2009 | 12:20 pm

Oil at $60 keeps 'super spike' at bay

You've probably noticed it at the gas pump.
Source: Business and financial news - CNNMoney.com | 22 May 2009 | 12:18 pm

OECD sees chance of global recovery by year-end

MADRID (Reuters) - Contraction in world economic output appears to be slowing and a recovery could begin at the end of this year, Organization for Economic Development and Cooperation (OECD) chief Angel Gurria said on Friday.
Source: Reuters: Business News | 22 May 2009 | 12:18 pm

OPG/TransCanada Ontario Portlands natgas plant shut

NEW YORK, May 22 (Reuters) - Ontario Power Generation/TransCanada Corp's 550-megawatt Portlands natural gas-fired power plant in Ontario shut by early Friday, the Independent Electricity System Operator...
Source: RSS feed - channel BNewsBusiness | 22 May 2009 | 12:15 pm

Emirates airline profits down 72%

Emirates Airline, the largest airline in the Middle East, has reported a fall in profits of 72% for the 2008/09 fiscal year.
Source: BBC News | Business | World Edition | 22 May 2009 | 12:06 pm

'Building societies remain well capitalised'

There is no doubt also that there are a few building societies that made loans in the later boom years that they now wish they hadn't.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 May 2009 | 12:03 pm

Building societies 'had unsustainable margins'

The Financial Services Authority has criticised building societies for making "fundamental errors".
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 May 2009 | 12:01 pm

Treasury prices hover

Treasury prices were mixed Friday, recovering from a slamming in the previous session on unsteady investor confidence in the economic recovery.
Source: Business and financial news - CNNMoney.com | 22 May 2009 | 12:01 pm

Signs that IPOs are coming back

Two successful venture capital-backed initial public offerings in as many days have created a buzz that the IPO market is opening up.
Source: Business and financial news - CNNMoney.com | 22 May 2009 | 12:01 pm

Laid off trader? N.J. has a job: math teacher

Source: Business and financial news - CNNMoney.com | 22 May 2009 | 11:52 am

Grading the Detroit 3's prospects

GM, Ford and Chrysler have gone in drastically different directions. Will they make it? Fortune grades each on its performance and prospects.
Source: Business and financial news - CNNMoney.com | 22 May 2009 | 11:52 am

Analysts Fight Over Anglo American (AAUK)

Anglo American plc (NASDAQ: AAUK) is seeing exact opposite calls on the positives and negatives this morning.  We have seen the stock’s rating raised to the revered “Conviction Buy List” at Goldman Sachs based on rising EBITDA on rising prices and exposure to high-margin businesses and a note that shares have been overlooked.  However, the [...]

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

Source: 24/7 Wall Street | 22 May 2009 | 11:50 am

European stocks pick up after heavy losses (AFP)

AFP - European stock markets picked up on Friday after recent heavy losses, helped by a late recovery from early lows on Wall Street overnight, dealers said.

Source: Yahoo! News: Stock Markets News | 22 May 2009 | 11:49 am

British Airways reports loss as fares fall

British Airways on Friday reported a fiscal fourth-quarter loss as the U.K. airline said it focused on keeping traffic at the cost of diminishing fares.

Source: MarketWatch.com - Top Stories | 22 May 2009 | 11:46 am

Mecom rights issue to raise £141m to cut debt

Mecom, the newspaper publisher founded by David Montgomery, the former Mirror Group chief executive, this morning tapped shareholders for £141.5million.


Source: Latest Business News from Times Online | 22 May 2009 | 11:43 am

Top Analyst Upgrades & Downgrades (ATHN, ARUN, FAS, CVLT, DEO, NE, RDC, ZUMZ)

These are some of the top pre-market analyst calls from Wall Street we have seen early this Friday morning: Athenahealth (ATHN) Cut to Sell at UBS. Aruba Networks (ARUN) Raised to Buy at Jefferies; Raised to Overweight at JPMorgan. Chico’s FAS (FAS) Raised to Buy at SunTrust Robinson Humphrey. CommVault Systems (CVLT) Cut to Hold at KeyBanc. Diageo plc (DEO) [...]

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

Source: 24/7 Wall Street | 22 May 2009 | 11:40 am

Europe Markets: Miners, banks lead gains for Europe stocks

European shares shake off earlier weakness to trade higher as gains for mineral extractors and banks offset post-holiday weakness for Swiss stocks.

Source: MarketWatch.com - Top Stories | 22 May 2009 | 11:38 am

Indications: U.S. stock futures up before long weekend

U.S. stock futures rise on Friday ahead of the Memorial Day break, as bears may take advantage of what could be light volumes to close out negative bets.

Source: MarketWatch.com - Top Stories | 22 May 2009 | 11:38 am

High costs fuel record loss at BA

British Airways announces an annual pre-tax loss of £401m, after being hit by the weak pound and higher fuel costs.
Source: BBC News | Business | World Edition | 22 May 2009 | 11:37 am

Bank of Japan upgrades economic prospects

The Bank of Japan upgraded its assessment of the economy for the first time in three years, saying a rebound in global demand could mean the record contraction last quarter was the worst of the recession
Source: Financial Times - US homepage | 22 May 2009 | 11:36 am

Hummer FAIL

Source: Business Pundit | 22 May 2009 | 11:26 am

Asian 'superman' warns on shares

One of Asia's richest men, Li Ka-shing, warns of a stock market bubble in Hong Kong.
Source: BBC News | Business | World Edition | 22 May 2009 | 11:26 am

AIG CEO Liddy to step down

NEW YORK (Reuters) - American International Group Inc said on Thursday that Chief Executive Edward Liddy plans to step down, signaling the end to a short and tumultuous tenure running the government-rescued insurer.
Source: Reuters: Business News | 22 May 2009 | 11:25 am

Currencies: Euro approaches $1.40 on U.S. bond selling

The euro approaches $1.40 on Friday, with the shared currency approaching its highest levels since the opening days of 2009.

Source: MarketWatch.com - Top Stories | 22 May 2009 | 11:22 am

Household spend falls at fastest rate since 1980

Spending by British households fell at the fastest rate since 1980 in the first three months of the year, official figures showed today.


Source: Latest Business News from Times Online | 22 May 2009 | 11:16 am

Magna gets early nod in race for GM's Opel

BERLIN (Reuters) - The premier of Opel's home state of Hesse said on Friday that Magna had made the most attractive offer for the German carmaker, but the government in Berlin denied it had settled on a preferred suitor.
Source: Reuters: Business News | 22 May 2009 | 11:13 am

Stock rebound in the works

U.S. stocks were poised to advance at the start of Friday's open, although trading could be volatile amid anxiety about the economy.
Source: Business and financial news - CNNMoney.com | 22 May 2009 | 11:12 am

London Markets: Metals producers lift London in pre-holiday trade

U.K. stocks edge higher in light pre-holiday trade, recovering from the shock credit rating outlook cut from the prior session, as bullish calls on the mining sector drives metals stocks higher.

Source: MarketWatch.com - Top Stories | 22 May 2009 | 11:07 am

Car production down 55% in April

Car production fell 55.3% in April, according to the latest figures from the Society of Motor Manufacturers and Traders.
Source: BBC News | Business | World Edition | 22 May 2009 | 11:05 am

History tells us that March 2009 marked a buying opportunity

The pessimists say it's a suckers' rally" but does history agree?
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 May 2009 | 11:04 am

Commodities Corner: Major oil producers have a lot to think about

Some major oil producers have a knack for saying one thing and doing another these days, but the tables have turned and the crude market has them scratching their heads.

Source: MarketWatch.com - Top Stories | 22 May 2009 | 11:01 am

BA: a history in pictures

Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 May 2009 | 10:43 am

Beijing Auto signals Opel interest

China's Beijing Auto has expressed an interest in buying a stake in Opel together with the rest of GM's European operations, for which three other companies have already entered entered bids
Source: Financial Times - US homepage | 22 May 2009 | 10:42 am

New credit card limitations in US

US credit card companies will soon be bound by new restrictions on their ability to charge fees or raise interest rates on existing borrowings.
Source: BBC News | Business | World Edition | 22 May 2009 | 10:41 am

British Airways hit by record loss

UK flag carrier hit by decline in business travel and a soaring fuel bill and warns of a slow recovery.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 May 2009 | 10:24 am

Ex-radio chief snatches stations from rival

Phil Riley, the former chief executive of Chrysalis Radio, is poised to pull off a sensational coup by snatching eight radio stations from under the noses of Bauer, its rival.


Source: Latest Business News from Times Online | 22 May 2009 | 10:18 am

UK GDP: inventories fall at record pace

British companies ran down stocks at a record pace in the first quarter as the deepening recession led to a slump in investment and household spending.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 May 2009 | 10:18 am

Acer Is Next Threat To Hewlett-Packard (HPQ) And Dell (DELL)

Dell (DELL) and HP (HPQ) already face a PC market which has been weakened by falling consumer and business spending. They have been flanked at the high end of the market by pricey and popular Macs from Apple (AAPL). That has left them to focus on the large middle part of the market where price married [...]

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

Source: 24/7 Wall Street | 22 May 2009 | 10:17 am

OPEC set to keep output steady after oil price rise

LONDON/DUBAI (Reuters) - OPEC ministers are expected to make no change to oil supply when they meet in Vienna next week as higher prices ease their concerns about overflowing fuel inventories and the deepest fall in demand for years.
Source: Reuters: Business News | 22 May 2009 | 10:00 am

As Facebook Heads To 300 Million Users, News Corp’s (NWS) MySpace Faces Trouble

When Rupert Murdoch’s News Corp (NWS) bought MySpace for $580 million, Wall St. viewed it as a brilliant move. Murdoch got one of the fastest-growing properties on the Internet and it was on it way to becoming one of the largest. Murdoch has had trouble making money on MySpace. Its revenue last year was pegged at [...]

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

Source: 24/7 Wall Street | 22 May 2009 | 10:00 am

UK car production plunges by 55% in April

Just 68,258 cars were made in the UK last month, resulting in a fall of 55.3 per cent compared with April last year, according to the the Society of Motor Manufacturers and Traders (SMMT). Commercial vehicle production declined even further, dropping 65.2 per cent to just 7,655 vehicles.


Source: Latest Business News from Times Online | 22 May 2009 | 9:53 am

Car production falls as industry battles slumps

Production slumped last month as sales kept falling.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 May 2009 | 9:52 am

Biggest spending drop since 1980

Household spending in the UK dropped by 1.2% in the first three months of 2009, the biggest fall since 1980.
Source: BBC News | Business | World Edition | 22 May 2009 | 9:48 am

British Airways Sees No Recovery On The Horizon, Higher Fuel Costs

British Airways posted a deficit for its most recent fiscal year. The company lost $595 million. Part of that was because fuel costs rose 45% to more than $4 billion. Fuel costs may have been a culprit, but the major problem the airline faces is that it sees no signs of improvement in the economy. BA’s CEO [...]

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

Source: 24/7 Wall Street | 22 May 2009 | 9:37 am

Big headache

Why BA needs to fill its empty business class seats
Source: BBC News | Business | World Edition | 22 May 2009 | 9:35 am

Miners bounce on metals prices

The miners took the lead in a rebounding FTSE on stronger metals prices and optimistic broker notes, as the index gained back some of 3 per cent lost by yesterday's threat by Standard and Poor's to downgrade the UK's credit rating.


Source: Latest Business News from Times Online | 22 May 2009 | 9:30 am

Temasek defends BofA stake sale

Singapore state investor Temasek has defended the divestment of its stake in Bank of America at a loss, saying the risk-return environment has changed
Source: Financial Times - US homepage | 22 May 2009 | 9:13 am

Dollar hits '09 low on rating fears; stocks dip (Reuters)

Reuters - The dollar fell to a 2009 low on Friday as fears intensified that the United States could lose its triple-A rating, while renewed caution about the world economy and banks prompted Asian and European stocks to slip.

Source: Yahoo! News: Stock Markets News | 22 May 2009 | 8:16 am

BankUnited sold to private equity

Private equity firms have bought BankUnited, the 34th US bank to fail this year.
Source: BBC News | Business | World Edition | 22 May 2009 | 7:57 am

Sandy Crombie named as RBS senior director

Royal Bank of Scotland (RBS) today announced that Sir Sandy Crombie, the soon-to-depart chief executive of Standard Life, has been appointed as its senior independent director.


Source: Latest Business News from Times Online | 22 May 2009 | 7:49 am

Glaxo in potential $1.9 billion tax battle with IRS (Reuters)

Reuters - British-based drug company GlaxoSmithKline is battling the U.S. Internal Revenue Service over a potential $1.9 billion in back taxes, interest and penalties.
Source: Yahoo! News: Business | 22 May 2009 | 7:48 am

Glaxo in potential $1.9 billion tax battle with IRS

NEW YORK/LONDON (Reuters) - British-based drug company GlaxoSmithKline is battling the U.S. Internal Revenue Service over a potential $1.9 billion in back taxes, interest and penalties.
Source: Reuters: Business News | 22 May 2009 | 7:48 am

India's hopes

What business wants from the new government
Source: BBC News | Business | World Edition | 22 May 2009 | 7:43 am

KKR eyes role in U.S. stimulus package: report

(Reuters) - Kohlberg Kravis Roberts & Co may take advantage of the U.S. government's infrastructure stimulus plan but is not as keen on buying banks or their troubled assets, the private equity firm's co-founders Henry Kravis and George Roberts told the Financial Times.
Source: Reuters: Business News | 22 May 2009 | 7:26 am

BA makes record loss of £401m in 'toughest-ever year'

British Airways (BA) today reported a record loss of £401 million as high oil prices and falling passenger numbers took their toll on the flag carrier. The dramatic pre-tax loss for the year to March 31 follows a record £922 million profit last year.


Source: Latest Business News from Times Online | 22 May 2009 | 7:24 am

U.S. to work with GM ahead of June 1 deadline

WASHINGTON (Reuters) - The Obama administration has no plans to push General Motors Corp into bankruptcy next week and the outcome of the automaker's restructuring efforts may not be known until a June 1 deadline, a source familiar with the situation said early on Friday.
Source: Reuters: Business News | 22 May 2009 | 7:23 am

Interest rates rising to lure savers

More than half of us believe that government policy discourages saving because the Bank Rate is just 0.5pc.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 May 2009 | 7:11 am

Australian stocks: Market down over 1pc

PERTH - The Australian share market closed lower after negative leads from the US and European markets, with energy stocks losing ground but the gold sector making gains. The benchmark S&P/ASX200 index was down 52.3 points, or...
Source: New Zealand Herald - Business | 22 May 2009 | 7:09 am

Brixton in takeover talks

Brixton the Industrial property landlord said on Friday it was in takeover talks with a small number of potential suitors fuelling investor hopes a whiteknight may swoop to soothe its escalating debt problems.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 22 May 2009 | 7:09 am

Volvo XC60: A svelte safety machine that can push its weight around

The compact SUV includes the company's active collision prevention systems. The automaker's goal and U.S. fuel economy objectives will spur a radical redefinition of tech-aided safety.

Sweden is a beautiful, amazing country -- between 2 and 4 p.m. on July 2. Otherwise, it's dark, cold, wet and deeply forlorn, a place of Norse hardship-as-honor, like the landscape of some old Led Zeppelin song.

Source: L.A. Times - Business | 22 May 2009 | 7:00 am

'Terminator' vs. 'Museum' in battle of the box office

With two big films opening, Hollywood could reach record grosses for a Memorial Day weekend. Hollywood could be...
Source: RSS feed - channel BNPaperBusiness | 22 May 2009 | 7:00 am

Madoff figure Stanley Chais' request for funds is rebuffed

The former Beverly Hills money manager tells a bankruptcy judge that the Madoff case trustee has 'effectively frozen' his assets and that his medical condition may hurt his ability to stand trial. ...
Source: RSS feed - channel BNPaperBusiness | 22 May 2009 | 7:00 am

Worries over persistent job losses pound stocks

The Dow falls 129 points, or 1.5%, to 8,292, after the Labor Department reports that continuing claims for unemployment benefits set 16th straight weekly record.

Fear is creeping back into the stock market.

Source: L.A. Times - Business | 22 May 2009 | 7:00 am

McDonald's is exploring cage-free egg production

McDonald's is teaming with a supplier and others to study housing alternatives for hens. But the Humane Society said the study probably would delay any significant action.

Seeking to buy eggs produced in a more humane way, McDonald's Corp. said Thursday that it would undertake a large-scale study involving tens of thousands of hens.

Source: L.A. Times - Business | 22 May 2009 | 7:00 am

'Terminator' vs. 'Museum' in battle of the box office

With two big films opening, Hollywood could reach record grosses for a Memorial Day weekend.

Hollywood could be looking at its biggest Memorial Day weekend ever.

Source: L.A. Times - Business | 22 May 2009 | 7:00 am

Worries over persistent job losses pound stocks

The Dow falls 129 points, or 1.5%, to 8,292, after the Labor Department reports that continuing claims for unemployment benefits set 16th straight weekly record. ...
Source: RSS feed - channel BNPaperBusiness | 22 May 2009 | 7:00 am

Designer jeans seem recession-proof

Expensive denim is jumping off the racks, even as fashion sales fizzle in general. People say the pants are a relative bargain and affordable luxury.

For fashion blogger Jessica Morgan, finding the right jeans is almost a religious experience.

Source: L.A. Times - Business | 22 May 2009 | 7:00 am

McDonald's is exploring cage-free egg production

McDonald's is teaming with a supplier and others to study housing alternatives for hens. But the Humane Society said the study probably would delay any significant action. ...
Source: RSS feed - channel BNPaperBusiness | 22 May 2009 | 7:00 am

Warner Bros. makes bid for Midway Games

The movie studio offers $33 million for most of the bankrupt video game publisher's assets.

Marking one of the movie studios' most aggressive forays into a burgeoning entertainment business, Warner Bros. has submitted a $33-million bid for most of the assets of Midway Games Inc., the bankrupt video game publisher previously owned by Sumner Redstone.

Source: L.A. Times - Business | 22 May 2009 | 7:00 am

Warner Bros. makes bid for Midway Games

The movie studio offers $33 million for most of the bankrupt video game publisher's assets. Marking one of the...
Source: RSS feed - channel BNPaperBusiness | 22 May 2009 | 7:00 am

Gap profit falls 14% in first quarter

GAP

Source: L.A. Times - Business | 22 May 2009 | 7:00 am

Designer jeans seem recession-proof

Expensive denim is jumping off the racks, even as fashion sales fizzle in general. People say the pants are a relative bargain and affordable luxury. ...
Source: RSS feed - channel BNPaperBusiness | 22 May 2009 | 7:00 am

Madoff figure Stanley Chais' request for funds is rebuffed

The former Beverly Hills money manager tells a bankruptcy judge that the Madoff case trustee has 'effectively frozen' his assets and that his medical condition may hurt his ability to stand trial.

Stanley Chais, the former Beverly Hills money manager under investigation for his role in the Bernard L. Madoff scandal, has more than enough money to hire a lawyer for himself, said a trustee in a Madoff liquidation case.

Source: L.A. Times - Business | 22 May 2009 | 7:00 am

Mortgage rates likely to remain stable for rest of year, analysts say

Despite differences in weekly surveys, the lending industry's consensus is that rates won't change dramatically soon. ...
Source: RSS feed - channel BNPaperBusiness | 22 May 2009 | 7:00 am

California median home price falls slightly from March

The median home price in California declined 0.9% to $221,000 in April from $223,000 in March, MDA DataQuick said in a report released Thursday.
Source: RSS feed - channel BNPaperBusiness | 22 May 2009 | 7:00 am

Volvo XC60: A svelte safety machine that can push its weight around

The compact SUV includes the company's active collision prevention systems. The automaker's goal and U.S. fuel economy objectives will spur a radical redefinition of tech-aided safety. ...
Source: RSS feed - channel BNPaperBusiness | 22 May 2009 | 7:00 am

Gap profit falls 14% in first quarter

GAP
Source: RSS feed - channel BNPaperBusiness | 22 May 2009 | 7:00 am

NZ stocks: Shares fall back on light volume

The New Zealand sharemarket fell on light volume after a broad sell-off in United States stocks. Brokers said the negative international backdrop provided an opportunity for investors to take profits and others took to the sidelines. Contact...
Source: New Zealand Herald - Business | 22 May 2009 | 6:27 am

Singapore's Temasek defends costly Bank of America exit

SINGAPORE (Reuters) - Singapore's Temasek defended its money-losing exit from Bank of America , saying the U.S.-centric bank did not fit its investment criteria and the risk was perceived to be greater than the expected return.
Source: Reuters: Business News | 22 May 2009 | 6:13 am

Currency: Dollars rises against greenback

The New Zealand dollar rose today as the US dollar fell on worries about the US government's credit worthiness. By 5pm the NZ dollar was buying US61.48c, up from US60.85c at the same time yesterday, and up from US60.20c on Thursday...
Source: New Zealand Herald - Business | 22 May 2009 | 5:30 am

GM might still be headed toward Chapter 11

Despite a tentative pact with the United Auto Workers, Obama administration officials continue to signal that bankruptcy might be the best option.

General Motors Corp. cleared a major obstacle Thursday when it reached a tentative agreement with the United Auto Workers union to modify its labor contract, but Obama administration officials continued to signal that bankruptcy might be the best option.

Source: L.A. Times - Business | 22 May 2009 | 5:03 am

US 'to steer General Motors into bankruptcy next week'

The Obama Administration is preparing to steer General Motors into bankruptcy next week.


Source: Latest Business News from Times Online | 22 May 2009 | 5:02 am

Green-Thumb Gadgets

Your gardening tools and your smartphone have more in common than you may think.

Experts say that as the economy continues its slump, fewer consumers will be paying for outdoor maintenance; more will take summer “staycations” in their backyards; and some will even augment their vegetable beds to save a little on groceries. Sensing opportunity in the $36 billion lawn-and-garden industry, companies are pitching more high-tech products, like $70 “plant-examining glasses” that use NASA technology to identify damaged and diseased leaves. Some of the latest tools include environmental sensors that can recommend the right blooms for your soil, remind you to pull out the hose or relieve you of watering duties altogether. Others, like robotic lawn mowers, hail straight out of The Jetsons.

But earth and electronics can make for odd bedfellows. Some dirt-under-the-fingernail purists pooh-pooh digital proxies.

“This is not hands-on gardening,” says Bruce Butterfield of the National Gardening Association. And some of the more complex technologies can get pricey or require professional geek help. Still, horticulturists say technology can help solve common gardening problems. Here’s how:

Environmental Sensors

When Brenda Horrigan couldn’t keep her potted rosemary plant from wilting this winter, she tried more water and less sunlight. When that didn’t work, the Cape Cod–based copy editor got a second opinion—from a $60 device called the EasyBloom. After plunging the sensor into her pot to analyze soil moisture, air humidity and sunlight levels, she then wired it to her computer, where a software program ran a diagnostic and offered a remedy: Back off the H²O and provide more light. “It’s like going to the garden center and asking, ‘What does my plant need?’” says Horrigan.

If this seems a little sci-fi, there’s good reason: The sensor technology in Horrigan’s gadget was originally used in a 2007 mission to Mars. For $10 to $40, gardeners can find other probes to monitor a plant’s vitals, none of which require a rocket scientist. But one diagnostic tool for plants does call for hands-on tech skill. The $100 Botanicalls kit includes switches, resistors and capacitors that need assembly (soldering iron not included). It sends text alerts to a mobile phone whenever a plant feels parched: “Urgent! Water me!”

Watering Systems

Informative as these probes can be, they can’t quench a plant’s thirst—yet. That’s where lower-tech gizmos ($10 and up) like the Drip-it Squirrel and self-watering pots come in handy. Gardeners simply fill them with water and let so-called dual-action wicking or subirrigation systems slowly hydrate the soil. For $50 to $150, more sophisticated digital timers can connect to your home’s sprinkler system and water up to nine zones in a yard.

New high-end digital monitors go a step further—they communicate wirelessly with nearby weather stations or a box of sensors in the garden that measure temperature, solar radiation, wind speeds and humidity. Some models (like Vantage Pro2, $600) can be placed on a bedside table and set to ring an alarm when, say, it hits 34 degrees and you need to cover the tomatoes; others, like the Rain Bird ET Manager ($700), get hourly weather updates and water plants and grass only when necessary. Sure, the need for professional installation ups the cost, but “for someone who wants a weekend away, these are godsends,” says Douglas Green, author of Gardening Wisdom.

Robotic Lawn Mowers

Ron Hostetler takes pride in his lush, track-free lawn. And the 65-year-old from Canby, Ore., credits his robotic mower that regularly trims the top of his grass but never needs emptying. At exactly 7 a.m. five days a week, the 19-pound device rolls out from its charging station and navigates nearly a quarter-acre—avoiding a brick wall and stream and scaling hills as high as 12 feet. Whenever it runs into one of Hostetler’s maple trees, the mower’s bumper sensors push it in another direction.

Their names say it all: Auto-mower, LawnBott, RoboMow. These canine-sized mowers ($1,000 to $3,500) can be programmed to cut at specific times and are guided by electronic perimeter wires pegged to the ground that keep them from barreling into the neighbor’s barbecue. The latest models can climb steep hills, run up to four hours and cut lawns that are more than a full acre, while the new $3,000 solar-electric hybrid Automower claims to use only the energy of a single lightbulb. But eco cred aside, at least one firm has issued a voluntary recall of some older models due to a “laceration hazard.” Experts recommend models with tilt and touch sensors, which stop the blades in less than a second if, say, a dog or child gets too close. For his part, Hostetler prefers the view from afar. “I’ve drunk a lot of good booze sitting and watching it,” he says.

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 | 22 May 2009 | 4:00 am

5 Stocks Poised to Shine This Summer (On the Street)

Memorial Day weekend is the unofficial start of summer and traditionally the beginning of a quieter period for equities. But recent gains and increased optimism in a second-half recovery mean that just because school's out for summer, the stock market most certainly is not.

"The old adage 'Sell in May and Go Away' is a very dangerous proposition this year," says Brett D'Arcy, director of investment and research at CBIZ Financial Solutions (CBZ). "Given the recent trajectory of the market and the timing of the stimulus funds into the economy, I think the summer could turn out to be a very profitable time for investors."

True, there is something to the Sell-in-May saying: Plexus Asset Management crunched the average monthly total return of the S&P 500 from January 1950 to April 2009. Sure enough, only September and October produced lower results than June, July or August.

There are other caveats with seasonal investing, the most salient being that the market knows that summer comes every year. As such, expected gains in sales and earnings tend to get baked into share prices months in advance.

But that doesn't mean there aren't some solid summer stocks out there that could offer upside surprise by autumn, thanks to larger macro trends or company-specific strengths. From energy to lawn care to summer blockbusters, here, then, is a look at five stocks for summer.

Hansen Natural 

The maker of Monster energy drink has been one of the best-performing stocks of the last decade and now it looks set to have a monster summer, too. "They're taking market share in the one category in the beverage space that is actually still growing -- energy drinks," says Damian Witkowski, an analyst with Gabelli & Co., who rates shares at Buy. Hansen (HANS) is rolling out two new products -- Hammer X-Presso Monster and Monster Import -- just in time for the all-important summer beverage season. Moreover, the company is expanding in international markets and raw material costs are coming down, "which should be a nice tailwind for them over the next year," Witkowski says. Shares are trading at a deep discount to their own five-year average on a forward earnings basis, according to Thomson Reuters.

Diamond Offshore Drilling 

Don't look now but oil prices are roaring back ahead of the summer driving season. Just a few months ago black gold struggled to break past $40 a barrel. Now it's fetching $60, and this is only the beginning, says Robb Lutts, chief investment officer at Cabot Asset Management. "With the global downturn you had a huge abrupt stop in energy exploration and development," Lutts says. "We've got a big crunch coming when the economy recovers. That's why oil can't go below $50 and I think it's going to $70." Diamond Offshore Drilling (DO) is one of Lutts's top picks, partly because it’s a deep-water driller and that's where the oil is. Year over year, earnings per share are forecast to grow nearly 10% in 2009 to $10.33, according to Thomson Reuters.

TJX 

The operator of the T.J. Maxx and Marshall's off-price chain stores looks to be well-poised for the critical back-to-school shopping season, says Patrick McKeever, an analyst at MKM Partners, who rates shares at Buy. Indeed, lower-price chains like Wal-Mart (WMT) and T.J. Maxx have been gaining traffic at the expense of midpriced and specialty players such as Hot Topic (HOTT). And it’s not just that budget-conscious consumers are searching for brand names at deep discounts; TJX (TJX) has also developed tremendous efficiencies. "They're in the process of taking $150 million out of their cost structure," McKeever says. "And they've got such an efficient distribution system that they can buy inventory in some instances just two to three weeks out." Tight inventory control means that gross margin -- any retailer's Achilles' heel -- should remain resilient. "Unless the consumer environment just takes another tumble, they are well positioned," says McKeever. Analysts' average price target stands at $34.50, according to Thomson Reuters, implying upside of 22% in the next 12 months or so.

Scotts Miracle-Gro

The world's largest maker of lawn- and garden-care products has shown remarkable strength in its critical global consumer business. And although the seasonal planting season is already about halfway done, cash-strapped consumers are shifting to "do it yourself" lawn and garden care from "do it for me," notes Douglas Lane, an analyst at Jefferies who rates shares at Buy. More consumers are also planting vegetable gardens in these tough times, Lane says, and points out that better-than-expected results from Home Depot (HD) and Lowe's (LOW) -- big sellers of Scotts's (SMG) products -- bodes well. Shares are cheaper than the market and their own five-year average on a forward basis, according to Thomson Reuters.

Walt Disney 

For a higher stakes seasonal play, look no farther than entertainment giant Walt Disney (DIS). Better-than-expected results from theme parks and films could cause shares to pop. "You are not going to see the high-dollar trips away from home this summer," Brett D'Arcy of CBIZ says. "I could imagine a good year for theme parks and local attractions and I think it’s going to be a good movie season." Disney's theme-park business has been hurt by the economic downtown, but strong promotional efforts appear to have put the worst behind it. Meanwhile, the film slate could be boffo at the box office. "Up," Disney-owned Pixar's first 3D movie, kicks off the summer blockbuster season on May 29. Jerry Bruckheimer's "G-Force" (3D animated guinea pigs) comes out in late July. With a forward price/earnings multiple of 12, shares offer a 20% discount to the S&P 500.

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 | 22 May 2009 | 4:00 am

Cerner's Healthy Prospects

SHARES OF CERNER, A HEALTH-CARE INFORMATION-technology company, have jumped more than 50% since early March. A powerful driver has been the $787 billion federal stimulus package, which includes billions of dollars of incentives to encourage more widespread use of health-care IT -- electronic medical records in particular.

While Cerner's shares, now in the mid-50s, look a little pricey, trading at 22.8 times this year's consensus profit estimates of $2.41 a share, bulls argues that there's more upside as gaping holes in health-care information technology start to get filled nationally.

"I've been in health-care IT for 17 years, and it's the strongest tailwind I've seen," says Sean Wieland, a senior research analyst at Piper Jaffray, who last week revised his 12-month price target to 78, based on the potential impact of the stimulus package.

THE IMPETUS FOR THAT UPGRADE was the impact of the American Recovery and Reinvestment Act of 2009. Signed by President Barack Obama in February, the legislation includes $36 billion of incentives to encourage wider use of electronic medical records, and penalizes providers that don't make the effort. The goal is to make the sprawling U.S. health-care system more efficient, less costly -- and safer.

Spending on health care is projected to top $2.5 trillion this year, or 17.6% of gross domestic product, according to the Centers for Medicare and Medicaid Services. A 2005 Rand Corp. study concluded that "if most hospitals and doctors' offices adopted [health-care IT], the potential savings for both in-patient and out-patient care could average over $77 billion per year," largely due to shorter hospital stays.

That's where Cerner (CERN) comes in.

Many health-care providers have adopted clinical information technology slowly, due to its considerable expense and to resistance from doctors reluctant to abandon familiar paper records. Electronic billing systems are common. But in hospitals -- Cerner's bread-and-butter customers -- big IT gaps remain, notably for computerized clinical-order entry and electronic medical records.

The electronic records are essentially a repository of clinical data, documenting virtually every step of a patient's hospital stay, from test results to vital signs to radiology images. Computerized order entry lets a doctor or nurse request a test or prescription electronically. The aim: improving coordination among the parties that deliver health care, while minimizing mistakes.

Order entry and electronic records are "where the opportunity is greatest," says Corey Tobin, who covers specialty software for William Blair & Co.

Consider that, of the U.S. hospitals that responded to a recent survey, a mere 1.5% reported having "a comprehensive electronic-records system," according to the New England Journal of Medicine. Computerized order systems for medications had more penetration, but just 17%.

Cerner has a solid presence in electronic records and order entry. It generates about 15% of its $1.7 billion of revenue from selling licensed software, mostly developed in-house, for electronic medical-record and order- entry systems. It's a very profitable business.

Helping the company weather this recession has been an increase in recurring revenue from its professional-services operations (27% of revenue), which include installing IT and training hospital personnel to use it. There's also support and maintenance (28%), for which clients sign long-term contracts, and managed services (12%), which mainly encompass the growing "hosting" business operated via Cerner's Millennium IT system. Under its hosting arrangements, Cerner runs information-technology systems for clients remotely from its data centers in Kansas City. It's billed as a more cost-effective option for hospitals that don't want to have their own IT infrastructure.

CERNER HAD A DECENT FIRST QUARTER, although it was hurt by hospitals' slashing capital spending. On an adjusted basis, the company earned 52 cents a share on $392.3 million in revenue, up from 47 cents a year earlier. Revenue rose just 2%, and bookings, or new contracts, were sluggish at $333 million. There were also some encouraging signs: Adjusted operating margins rose; expenses stayed steady; operating cash flow was strong, at $98 million; and the balance sheet remained sound.

Hit by lower software sales, the revenue line for systems slid 14%, to just over $100 million. However, "the pipeline indicates that it's looking stronger as we go through '09," owing largely to the stimulus package, says Cerner's chief financial officer, Marc Naughton. The company estimates that its clients could receive some $8 billion of stimulus incentives, about half of which could flow to Cerner. Naughton calls this "a pretty good backstop."

While cautious investors may want to wait for a sell-off of 5% or 10% before buying the stock, Cerner should have a clean bill of health for the next several years.

The Bottom Line
Hospitals are slashing costs, but the coming switch to electronic records should boost Cerner shares. One analyst sees 40% upside over 12 months.

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 | 22 May 2009 | 4:00 am

10 Things Gas Stations Won't Tell You (10 Things)

1. “Good luck finding the best deal.”

When it comes to gas prices, most stations are branded—meaning the name of a major oil company hangs out front—and must buy gas from their proprietary company. They can’t shop around. With a lock on sales, the oil companies charge each station a different price depending on various factors, such as the station’s competition and its location. That means a station can pay as much as 46 cents a gallon more than one down the street, and that cost gets passed along to you.

Faced with such instability, Gainesville, Fla., resident Steven King plans ahead: “If I know I’m going out of town, I try not to buy gas so I can fill up after I leave.” King says he can save 10 cents a gallon by purchasing gas on the road. You’d be similarly wise to shop around—with prices constantly in motion, the cheapest gas may not be at the same station every time.

2. “I hate it when gas prices go up.”

Stations earn on average between 10 and 15 cents on a gallon of gas. Ironically, they earn the least when prices are highest. When fuel climbs, gas stations must shrink their profit margin to remain competitive, meaning they earn less per gallon than usual. But another big cost during tough times is something they can’t do anything about—credit card fees, which add up to about 2.5 percent of all purchases. When gas is at, say, $2 a gallon, the station pays credit card companies 5 cents a gallon; when gas hits $3, that fee becomes 7.5 cents—more than half the station’s entire average profit. “Those credit card fees are miserable for the gas station business,” says Mohsen Arabshahi, who owns five Southern California gas stations.

How do station owners make up for lost revenue? “Prices go up like a rocket and come down like a feather,” says Richard Gilbert, a professor of economics at UC Berkeley. For several weeks after wholesale prices drop, stations can earn as much as 20 cents a gallon before retail prices are lowered to reflect the change.

3. “My gas isn’t better for your car; it’s just more expensive.”

Oil companies spend lots of money explaining why their gas is better than the competition’s. Chevron’s gas, for example, is fortified with “Techron,” and Amoco Ultimate is supposed to save the planet along with your engine. But today more than ever, one gallon of gas is as good as the next.

True, additives help to clean your engine, but what the companies don’t tell you is that all gas has them. Since 1994 the government has required that detergents be added to all gasoline to help prevent fuel injectors from clogging. State and local regulators keep a close watch to make sure those standards are met; a 2005 study indicated that Florida inspectors checked 45,000 samples to ensure the state’s gas supply was up to snuff, and 99 percent of the time it was. “There’s little difference between brand-name gas and any other,” says AAA spokesperson Geoff Sundstrom.

What’s more, your local Chevron station may sell gas refined by Shell or Exxon Mobil. Suppliers share pipelines, so they all use the same fuel. And the difference between the most expensive brand-name gas and the lowliest gallon of no-brand fuel? Often just a quart of detergent added to an 8,000-gallon tanker truck.

4. “If you’re smart, you’ll put that debit card away . . .”

Your debit card might be a convenient way to pay for gas, but it’s a no-win proposition. When you swipe a debit card at the pump, the bank doesn’t know how much money you’ll be spending until you’ve finished pumping. So to make sure you have the funds to cover the purchase, some stations ask banks to automatically set aside some of your money: That amount can be $20 or more. That means even if you just topped off your tank for $10, you could be out $30, $50, even $100 until the station sends over its bulk transactions, which can take up to three days. If your funds are running low, you might end up bouncing a check in the meantime—even though you had the money in your account.

Unfortunately, paying inside with your debit card isn’t much of a solution either. Many banks charge their customers between 50 cents and $1 for the privilege of using their debit card in any PINbased transaction. The American Bankers Association estimates only 13 percent of consumers pay these fees, but critics say the practice is on the rise and consumers are often unaware of these charges.

5. “. . . and don’t even consider applying for our gas card.”

When it comes to gasoline credit cards, a little research goes a long way. The good deals are great, but the bad deals are really bad. Similar to store cards issued through retailers, gas cards are riddled with drawbacks, says Curtis Arnold, founder of CardRatings.com. APRs are high, starting above 20 percent; many don’t offer rebates on gas purchases; and they often lack standard protections such as fraud monitoring and zero liability for unauthorized transactions.

What about a Visa or MasterCard affiliated with a gasoline brand like Exxon or BP? They often offer lower interest rates and significant rebates, but limit your ability to shop around. In December 2005, a few months after gas hit $3 a gallon, Justin Andringa of Minneapolis considered a Shell MasterCard with a 15 percent rebate on gas purchases. But the rebate was temporary; he decided to stick with his Citi Dividend Platinum Select card, which gives him a 5 percent rebate on all gas purchases no matter where he buys it. “I’m a college student,” Andringa says. “I need to save money.” The deals on these cards are constantly changing. So visit CardRatings.com to find updated information.

6. “Looking for the cheapest gas in town? Try the Internet.”

You can’t actually buy gas online, but Web resources can help you find the cheapest fill-up in town. Among them, GasPriceWatch.com and GasWatch.info help people track pump prices. But the most comprehensive of the bunch is GasBuddy.com, which includes a network of 174 local sites, complete with maps and message boards that tally gas price by ZIP code. “People are frustrated by the variation in the price of gas,” says GasBuddy.com cofounder Jason Toews, and they’re using the Internet to take control.

It has worked wonders for Sue Foust. Every day, as she passes roughly 10 stations on her commute across Tucson, Ariz., Foust makes a mental note of their prices, then posts them on TucsonGasPrices.com, a local affiliate of GasBuddy.com. Then every four days or so, when she needs to fill up, she checks the prices others have posted in her area. It turned out the Shell station she used to frequent is one of the most expensive in the city. Now she fills up elsewhere. “I really do feel like I’m saving money,” she says.

7. “It’s a gallon when I say it’s a gallon.”

It’s hard to know if you’re getting all the gas you paid for at the pump. But in some places there’s a very good chance you’re not. The state or county weightsand- measures department usually checks pumps for accuracy, but in some areas it can be years between inspections. Arizona, for example, has only 18 staff members to check the state’s 2,300 stations.

That means stations there can expect a visit once every three to four years, according to Steve Meissner, an Arizona Department of Weights and Measures spokesperson. In 2005, 30 percent of the more than 2,000 complaints the department received were valid, and it levied $167,000 in fines. The good news is that it’s often easy to catch the most common problem: Older pumps in poor repair may begin charging you for gas before you’ve pumped it. Check the meter to make sure it registers $0.00 before you begin and doesn’t start charging you before the fuel is flowing.

8. “I might gouge you on a soda, but my coffee’s a real bargain.”

With margins on gas taking a hit—in 2006, fuel sales made up 71 percent of revenue but only 34 percent of gross margins—stations are increasingly looking to their convenience stores for income. Given that fact, you’d assume the average Kwik-E-Mart to be a terrible place to buy just about anything. But that’s only partially true.

Stock that usually sits on the shelf does tend to be vastly overpriced, so if you forgot ketchup on the way to a barbecue, you can bet you’ll pay a lot more for it at a gas station than you would at a supermarket, says David Bishop, director of convenience retailing for Willard Bishop Consulting. What about popular beverages? You’ll pay more for a 20-ounce soda at a gas station than you would for a two-liter bottle in a supermarket; water and energy drinks similarly tend to have high markups.

But there are bargains to be had: Some high-volume goods, such as cigarettes and beer, are often competitively priced at gas stations. And a cup of coffee goes for a fraction of what you’d pay at Starbucks.

9. “If you’re having car trouble, you’re in the wrong place.”

The days of the local gas station staffed with a skilled mechanic have all but come to an end. Station owners are swapping car lifts for beverage cases and car washes, anything that brings in a highvolume stream of income and traffic, says Dennis DeCota, executive director of the California Service Station and Automotive Repair Association. The more people who pull over for a soda, the greater the chance they’ll top off their tank and vice versa, the thinking goes. Few owners want the hassle of a business like car repair even if it earns the same amount of money as a convenience store.

In addition, repairing cars is increasingly expensive, and the ill will and potential liability from a fix-it job gone wrong are more of a headache than many owners are willing to risk. Today a service station can require $100,000 worth of diagnostic equipment—a significant investment. It’s a risky venture with little payoff, says Southern California station owner Arabshahi. In fact, Arabshahi removed the service station from one of his locations after he bought it. “I don’t have a service station because I am not a mechanic,” he says. “If he messes up a job, then it’s my name on there.”

10. “You don’t even need gas to run your car.”

Cars run on gasoline—but not all cars need gasoline to run. In fact, 6 million cars on the road today (mostly from U.S. manufacturers and built since 1998) are “flexible fuel” vehicles that can run on E85, a fuel that is 85 percent ethanol and only 15 percent gas. When Minneapolis resident John Schafer bought a car in late 2001, he chose a Chevy Tahoe because it’s a flexible-fuel car. Since then he’s filled up almost exclusively with E85. The big difference he’s noticed: Cars using E85 get about 15 percent fewer miles to the gallon. But it’s a drawback he’s willing to put up with. “I’m committed to the technology,” Schafer says. “With E85, it burns cleaner so it won’t pollute as much.”

While E85 generally costs less than regular gas, there is some concern that it may grow prohibitively expensive as demand outpaces supply: By 2006 ethanol was not just being used in E85—it also composed 15 percent of every gallon of gas sold. Supplies of ethanol are likely to grow thin, which could drive up the price of E85. And even die-hard Schafer says he won’t buy E85 if it starts to cost more than gasoline.

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 | 22 May 2009 | 4:00 am

Futures Point to Early Rebound (Market Update)

News at a Glance

• Rebound in the Wings: Stocks set to open higher.
• Greener Pastures: AIG CEO Edward Liddy to step down.
• Grounded: British Airways posts worst year ever.
• Hit the Gas: Fuel prices rise in run-up to summer.

The Lowdown

The market is poised for a rebound.

Stocks looked to open higher in the last session before the holiday weekend, as traders seized on buying opportunities the day after a selloff. Shortly before 7:30 a.m., Dow, Nasdaq and S&P 500 futures were trading above fair value.

Each of the major indexes lost more than 1.5% Thursday in a broad selloff triggered by an unexpectedly bearish jobless claims report and a decline in energy prices. The morning after, traders appeared set to capitalize on the aggressive selling.

On Thursday, the looming threat of weakened national credit also had left traders green. Standard & Poor's lowered its outlook for the U.K. and threatened to deprive the country of its triple-A credit rating unless it gets its house in order. Bill Gross, the co-chief investment officer of Pacific Investment Management (PIMCO) and manager of the Pimco Total Return Fund, said the U.K. is not alone. The U.S. is staring down the barrel of a lower credit rating. The downgrade could come in "at least three to four years, if that, but the market will recognize the problems before the rating services," Gross said, according to Reuters.

World markets were mixed Friday. In Asia, Japan's Nikkei finished down 0.4%, while Hong Kong's Hang Seng dropped 0.8%. In the U.K., the FTSE got a bounce, climbing 0.8% in afternoon trading.

Oil prices rebounded a bit as the nation enters the summer driving season. By 7:30 a.m., crude traded up 46 cents at $61.51 a barrel.

Gas prices have risen about 15% over the last three weeks, as traders anticipated the seasonal rise in demand.

Corporate News

• AIG (AIG) Chairman and Chief Executive Edward Liddy plans to step down from the company, the firm said. In a brief stint marked by public scorn and scrutiny, Liddy said he had few regrets. "I absolutely would do it again. I think I've done the job well," he said, according to Reuters. "I think we are in a much better position than we were, and I'm comfortable turning the reins over to the next person."
• BankUnited (BKUNA) has become the latest victim of the economic downturn. Regulatory officials took control of the Florida bank, which is the largest to collapse so far this year, The Wall Street Journal reported. The bank's demise will cost the Federal Deposit Insurance Corp. about $4.9 billion.
• British Airways (BAIRY) posted its worst fiscal year since the firm went private more than 20 years ago. The carrier swung to an annual loss of $595 million. The firm canceled bonuses for management, as well as its shareholder dividend.

The Economy

• There are no substantial economic reports scheduled to be released today.

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 | 22 May 2009 | 4:00 am

U.S. closes BankUnited, sells to private equity (Reuters)

Reuters - U.S. bank regulators seized troubled Florida lender BankUnited FSB and sold it to some of the most powerful private equity firms in the world.

Source: Yahoo! News: Business | 22 May 2009 | 2:51 am

Zespri holding firm in face of recession

Kiwifruit export marketer Zespri expects grower returns from green kiwifruit to hold steady for the 2009/10 year while gold fruit returns would "continue their upward trend". Grower-owned Zespri said today that indicative returns...
Source: New Zealand Herald - Business | 22 May 2009 | 1:00 am

Failure Is Expensive

Today federal regulators seized BankUnited in Florida. BankUnited was a thrift that was apparently critically undercapitalized. Its failure will cost the Federal Deposit Insurance fund an estimated $4.9 billion.

BankUnited was regulated by the Office of Thrift Supervision. It can now be added to the list of institutions that fell apart under OTS regulation, including Washington Mutual, Downey Savings and Loan and Countrywide.

BankUnited is the second most expensive failure of the crisis. The first? IndyMac, which cost more than $10 billion and was also, by the way, regulated by the Office of Thrift Supervision.

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

Source: NPR Blogs: Planet Money | 22 May 2009 | 12:34 am

AIG CEO Liddy to step down (Reuters)

Reuters - American International Group Inc said on Thursday that Chief Executive Edward Liddy plans to step down, signaling the end to a short and tumultuous tenure running the government-rescued insurer.

Source: Yahoo! News: Business | 22 May 2009 | 12:15 am

NZ stocks: Shares fall back early

The New Zealand sharemarket fell back in early trade after a broad sell-off in United States stocks. Contact Energy was down 9c early to 576 and TrustPower lost 10c to 770. A Commerce Commission report released yesterday found...
Source: New Zealand Herald - Business | 22 May 2009 | 12:00 am

Casual work provider reports good year

Many fulltime jobs may be under threat in the current recession, but the spin-off has been boom times for the casual employment sector. Casual labour firm Allied Work Force Group today reported a 13.6 per cent rise in full year...
Source: New Zealand Herald - Business | 22 May 2009 | 12:00 am

Private equity consortium wins BankUnited auction

A group including such major investors as Blackstone, Carlyle, Centerbridge and WLRoss won an auction for BankUnited after the Florida lender – worth nearly $13bn by assets – was closed by federal regulators in the biggest US bank failure of 2009
Source: Financial Times - US homepage | 21 May 2009 | 11:24 pm

Xero raises $5.8m in share purchase

Online accounting software company Xero raised $5.8 million in a share purchase plan that closed on Monday. The company said 70 per cent of shareholders opted to buy up to $5000 worth of shares at a purchase price of 90c. The...
Source: New Zealand Herald - Business | 21 May 2009 | 11:24 pm

Gap's 1st-qtr profit drops almost 14 percent (AP)

AP - Gap Inc. reported a first-quarter profit Thursday that narrowly beat Wall Street estimates as the clothing retailer benefited from cost-cutting and its Old Navy stores showed signs of improvement.

Source: Yahoo! News: Business | 21 May 2009 | 11:21 pm

IBD's Top 10 - Thursday (Investor's Business Daily)

Investor's Business Daily - 1 News that the U.K. may lose its top credit rating spread to U.S. markets. The Nasdaq slid 1.9%, the S&P 500 1.7%, the Dow and NYSE composite 1.5%. Volume fell. Despite a broad decline, relatively few leading stocks fell in strong volume. Steel, machinery, transportation and other industrial stocks fared worst.
Source: Yahoo! News: Stock Markets News | 21 May 2009 | 11:15 pm

Liddy to step down from AIG

Edward Liddy, the government-appointed chairman and chief executive of AIG, is to leave the stricken insurer after only eight months in a move that will allow the Obama administration to choose its own leaders for the troubled group
Source: Financial Times - US homepage | 21 May 2009 | 11:11 pm

US health reforms focus on cost control

Controlling costs is emerging as the Obama administration's top priority in health as it seeks a reform package that greatly expands coverage of the 47m uninsured Americans
Source: Financial Times - US homepage | 21 May 2009 | 11:05 pm

Power firms will not have to pay back $4bn - Brownlee

Power companies will not be expected to pay back $4.3 billion in overcharging, Energy Minister Gerry Brownlee said this morning. The Commerce Commission yesterday released its long-awaited report into the electricity market. It...
Source: New Zealand Herald - Business | 21 May 2009 | 11:00 pm

Write-Offs: 05.21.09

$$$ Sleep where Marissa Brown née Noel (daughter of Walter and Monica) hath slept. She and the husb have put their UES townhouse on the market for $12 million, though apparently they're willing to take "much" less. [Daily Intel]

$$$ Mild Skepticism: Credit Card Bill of Rights Edition [DJT]

$$$ Of course Google isn't buying a newspaper. [The Deal]

Related: Google - Newspaper - Credit card - Monica - search
Source: Dealbreaker | 21 May 2009 | 10:45 pm

TrustPower chief exec to step down

TrustPower chief executive Keith Tempest is planning to step down at the end of the year from the job he has held for the past eight years. Mr Tempest, who has worked at TrustPower for 23 years in total, intended to continue his...
Source: New Zealand Herald - Business | 21 May 2009 | 10:45 pm

Media : Hirschfeld leaves a large hole

Carol Hirschfeld's exit from Campbell Live for a new role at Maori Television means a tough talent search for TV3 news boss Mark Jennings. He will be looking for a new back-up presenter and executive producer for the maaaarvellous...
Source: New Zealand Herald - Business | 21 May 2009 | 10:45 pm

Citigroup looks to slash tech costs

Citigroup is ramping up efforts to slash its huge technology costs, with the bank's management believing it can save significantly more than $1bn in 2009 by integrating hundreds of systems that have been separate for years
Source: Financial Times - US homepage | 21 May 2009 | 10:09 pm

An Interview With Benjamin N. Dover, III

Muffie Benson-Perella (muffie AT muffmarkets.com) was an Associate in the Investment Banking Division of a "Bulge Bracket" bank. She holds a B.A. in French and Art from Vassar College and an M.B.A. from Harvard Business School. She concentrated in Contemporary French Poetry at prep school where she was awarded the exclusive premiership of the school's "French Club." Today, Ms. Benson-Perella is the Founder and Managing Director of "Muffie on Markets" (http://www.muffmarkets.com), a deep dive into capital markets, finance and investment strategy. She is also the Founder and Managing Director of Muff Cap, LLC., an invitation only, private investment vehicle for non-existent, prestigious and accredited investors only, employing an actively managed, long-short strategy.

Certainly history will write its own lists of heroes and villains with respect to the credit crisis. It is a sort of mandatory, cleansing practice that collates the pages of the current time of troubles. And, while many of history's verdicts may form less than a consensus, it seems clear that the verdict rendered for Benjamin N. Dover, III will be one of the rosier ones.

Mr. Dover's sometimes controversial, but always insightful observations writ large by the disclosure requirements of the SEC and FDIC public comment process have set the cutting edge for debate on everything from short-selling to the PPIP programs for the last several weeks. Here is a passage of his work:

Truth #1: Stock Market Crashes Are Caused By Stock Sales.

It should be painfully obvious by now that the market's decline since November 2007 was caused by stock selling. Not even pernicious speculators like George Soros would dispute this basic truth. Similarly, the market's steep fall after several large bank failures and the deepening of the economic crisis in September 2008 also was the result of stock selling. We can safely conclude, therefore, that had stock sales been banned in 2007 the stock market crash of 2008-2009 never would have happened. Logically, it follows that banning stock sales would also prevent future market crashes.

Agree or disagree, you simply cannot ignore his common sense approach to markets, finance and economics. But who is Benjamin N. Dover, III? Very little biographical information is available on the maverick finance expert, but I decided to find out. Accordingly, to lift the curtain on this modern finance mind I sat down with Benjamin N. Dover III at the Peninsula for his first public interview:

Muffie Benson-Perella: Benjamin Dover, is that British? Perhaps Irish?

B. Dover: I'm an American original. (Not be confused, of course, with Native American.) And I appreciate your calling me by my given name. For some odd reason, many people seem to find it amusing to use its abbreviation.

Related: George Soros - Business - Stock market - Investing - Stocks and Bonds
Source: Dealbreaker | 21 May 2009 | 9:46 pm

GM reaches healthcare deal with union

General Motors and the United Auto Workers union reached a deal that allows the embattled carmaker to contribute shares rather than cash to a new union-managed healthcare plan
Source: Financial Times - US homepage | 21 May 2009 | 9:35 pm

How the major stock indexes fared Thursday (AP)

AP - Another bad signal from the job market and concern over a possible downgrade of British government debt sent stocks sharply lower Thursday. The day's news added to recent anxiety that the market may have moved too high too quickly on early signs of recovery in the economy.
Source: Yahoo! News: Stock Markets News | 21 May 2009 | 9:29 pm

Sawyer Says 40% Fuel Economy Increases Costs $1,300 Per Car

Source: Bloomberg - All Podcasts | 21 May 2009 | 9:25 pm

Memo: Ed Liddy Getting The Hell Out Of AIG, Says Ed Liddy

As soon as replacements are found for the chair and CEO positions, which are being separated. Any takers?

Dear Colleagues,

I wanted to let you know that I have informed the Board of Directors of my intention to
step down from my roles as Chairman and Chief Executive Officer once the Board
successfully concludes a search for replacements for these roles.

While much work remains to be done at AIG, we can all be proud that much has already
been accomplished. With the financial assistance of the Federal Reserve Bank of New
York and the U.S. Department of the Treasury, we have made substantial progress in
stabilizing AIG, reducing the systemic risk that led the government to rescue the
company, protecting our policyholders and our businesses, and developing a plan to
repay American taxpayers.

Related:


Related: Fast Money - CNBC - Dylan Ratigan - Mental health - Kenneth Macke
Source: Dealbreaker | 21 May 2009 | 9:10 pm

Obama insists Guantánamo must close

President Barack Obama sought to overcome mounting congressional opposition to his plan to close the Guantánamo Bay detention camp as he said that the US might continue to detain indefinitely some suspected terrorists held there
Source: Financial Times - US homepage | 21 May 2009 | 8:39 pm

Cramer Wouldn't Take Our Call...

But he responded as part of his "Outrage of the Day" segment this week. (Video after the jump.)

I had called CNBC asking to interview Jim Cramer about this academic study that analyzed his stock picks on his show Mad Money.

The conclusion? Cramer got higher returns than the stock market indices, but only by taking on more risk.

The paper has been circulating for a while, but it's now getting published. Anyway, CNBC declined my interview requests. But then, like magic, Cramer starts talking about it on the show.

Cramer, fairly, argues that the show isn't really set up to be numerically picked apart as a portfolio. (He may say buy, but then doesn't necessarily come back and tell people when to sell.) Cramer then goes on to mention the study, and boasts in his self-deprecating way that it concludes he does beat the market.

Cramer says the show is about education. But he neglected to mention the part of the study that talks about how he got those higher returns by taking on more risk. So his success is really not so remarkable.

We've got a story for you about this on Morning Edition tomorrow.

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

Source: NPR Blogs: Planet Money | 21 May 2009 | 8:26 pm

J.M. Smucker Rated `Outperform' in New Coverage at RBC

Source: Bloomberg - All Podcasts | 21 May 2009 | 8:25 pm

Gimbel Says International Trade Will Slowly Make Gains

Source: Bloomberg - All Podcasts | 21 May 2009 | 8:09 pm

Swonk Sees U.S. Economy Still Losing Jobs, Close to a Bottom

Source: Bloomberg - All Podcasts | 21 May 2009 | 7:47 pm

Dwyer Says He's `Hard Pressed' to Buy U.S. Equities

Source: Bloomberg - All Podcasts | 21 May 2009 | 7:39 pm

We Need To Have A Chat: About Commenting On Dealbreaker

This is somewhat overdue, but our default is to avoid tough conversations, preferring instead to bury our feelings and live in denial. But the time has come. As you may or may not know, we love (most) Dealbreaker readers and are happy to have you here. And we want you to feel comfortable, and not like a guest in our house. We've invited you to not only take off your shoes and put your feet up on the table, but treat it like the ex-frat house you so deeply miss and spend nights weeping over. But-- there's always a but-- we draw the line when you start pissing on the walls or defecating in the stairwells, which a select few of you are under the misguided impression is appropriate. This isn't Merrill Lynch. Not only is it not okay but it makes us-- how to put this-- want to take a walk over to your places of business and wring your god damn necks or run you over (and over and over) with the Zamboni we have on loan or at the very least, yell "shut the fuck up, asshats." However, we're more evolved than that. So. Some ground rules will be laid out. They are not up for discussion or interpretation, and believe me when we tell you we will go prison warden crazy on the asses of those who fail to comply and/or dispatch Charlie Gasparino to take care of whatever needs taking care of. Don't make us go to an all-registration format. You won't like it, and SteveInStamford has already been snagged. Join us as we review (for those of you who don't like words, feel free to refer to the tag, and have a great day):

Related: Merrill Lynch - Bank of America - Travel and Tourism - Business - Allegedly Unethical Firms
Source: Dealbreaker | 21 May 2009 | 7:38 pm

Presented Without Comment: Sorry, Arnie

Treasury Secretary Timothy Geithner said the U.S.'s $700 billion financial rescue package can't be used to aid Lehman Brotherscities and states facing budget crises.

The law "does not appear to us to provide a viable way of responding to the issues that Lehman Brothers facesthat challenge," Geithner told a House Appropriations subcommittee in Washington today. Among the hurdles: Money from the Troubled Asset Relief Program is reserved for financial companies, he said.

The Treasury chief said he will work with Congress to help investment banksstates such as California that have been battered by the credit crunch and are struggling to arrange backing for municipal bonds and short-term debt.

Geithner Says TARP Can't Help U.S. States Solve Budget Crises [Bloomberg]

Related: Troubled Asset Relief Program - Timothy F. Geithner - Lehman Brothers - United States Secretary of the Treasury - United States
Source: Dealbreaker | 21 May 2009 | 7:22 pm

Presented By:

Source: Dealbreaker | 21 May 2009 | 7:22 pm

Jeff Harte Says Pessimism on U.S. Banks `Probably Overdone'

Source: Bloomberg - All Podcasts | 21 May 2009 | 7:19 pm

Three Dreier Sheets To The Wind

Even now Marc Dreier's assets are being fire-saled away. What an awful pity. Perhaps someone should have pointed out, however, that "Dreier's Escape" was sort of slow for a get-away craft.

Marc Dreier's Fire Sale at Sea [Cityfile]

Related: Marc Stuart Dreier - Business - Marc Dreier - Services - Securities fraud
Source: Dealbreaker | 21 May 2009 | 7:14 pm

Fink Says Japan Stimulus Plan Will Give Equities Some Boost

Source: Bloomberg - All Podcasts | 21 May 2009 | 7:08 pm

The SEC To The Rescue!

The SEC gets a bad rap. This is because they richly deserve it. For years they have concentrated on petty frauds at the expense of actually uncovering massive, systemically dangerous shenanigans, even when led directly to them. However, it would be rude to call them irredeemable. They do, after all, provide very entertaining copy on occasion:

The Securities and Exchange Commission has charged eight participants in a penny stock manipulation ring that allegedly pumped the market prices of at least four stocks and generated more than $6.2 million in illicit profits when they dumped shares on the market.

The SEC alleges that Pawel Dynkowski, who resided in Newark, Del., carried out the market manipulation schemes with others he met through a penny stock web site InvestorsHub.com, which is operated by Matthew Brown of Aliso Viejo, Calif.

We have to admit, we were somewhat bored reading these materials, until some details emerged. To wit:

The SEC alleges that Dynkowski personally saw to it that the manipulative trading was coordinated with misleading press releases from the company, and in some instances he wrote the press releases for Asia Global himself. According to the SEC's complaint, Dynkowski instructed Brown on Aug. 24, 2006, to have Asia Global issue a press release hyping the company's second quarter 2006 financial results and to "make it sound ENORMOUS." On September 1, Asia Global issued a press release claiming that its profits for July 2006 were 745 percent greater than its profits for July 2005.

Or perhaps:

Furthermore, according to the SEC's complaint, Asia Global issued a press release on Feb. 6, 2007, claiming that its subsidiary had just received a license to produce 104 episodes of "Who Wants to Be a Millionaire" in China.

We don't know about the rest of you, but we sleep better at night knowing the SEC people are on the wall somewhere. Locked and loaded.

SEC Charges Eight Participants in Penny Stock Manipulation Ring [SEC.gov]

Related: U.S. Securities and Exchange Commission - China - Business - Securities and Exchange Commission - Penny stock
Source: Dealbreaker | 21 May 2009 | 7:07 pm

Challenge: Recession Haiku

This is making the rounds among modern Greek PhDs at the University of Michigan (my poet friend says so). It's an interview of sorts with Stephen Ziliak, an economics professor who believes "an economics without poetry is an economics that is blind." What poet doesn't like to hear that? Ziliak is a big fan of haiku because it's an efficient form where economy of words is valued. He assigns haiku challenges for bonus points on exams and holds haiku workshops as part of a course on rhetoric in economics.

We're assigning you a challenge: Write a haiku for the recession and drop it in the comments. It's 17 syllables, in three lines, with a pattern of five syllables, seven syllables, and five more.

After the jump, the interview with Ziliak -- in haiku.

The Chronicle of Higher Education sat Ziliak down for an interview:

Q: Haiku might seem dumb

to bean counters and stuffed shirts --

Students disagree?

A: In this other world

wild orchids freely blossom --

haiku GDP.

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

Source: NPR Blogs: Planet Money | 21 May 2009 | 6:31 pm

7 Websites That Teach You Foreign Languages for Free

Scurrying to market yourself amidst stiff competition? Looking to gain new skills? Learning a new language will not only boost your resume, but will open you up to worlds of new contacts, prospects, and friends.

Luckily, the days of dragging yourself to night classes may be over. The Internet is full of free language resources whose multimedia features and social networking component make learning both fun and immersive. We scoured the Web for quality free sites, and came up with the seven websites below. Happy learning!

1. LiveMocha

LiveMocha offers free lessons in 11 languages. Through a personal homepage, you access free language courses and build a community of foreign friends. Native speakers in your LiveMocha community help correct your lessons and chat live with you. Interactive, multimedia lessons make learning fun.

---

2. Busuu.com

Busuu offers extensive courses for English, Spanish, German, and French students. The free version contains more than 150 image- and audio-based lessons. Their video chat application lets you connect with other students or native speakers online. You can gain access to more features, such as podcasts and PDF printouts, through a premium membership.

---

3. SharedTalk

This Rosetta Stone community language exchange site lets you find penpals using custom search criteria, then exchange emails with your penpal in your language of choice. You can also chat live in the “Chat House,” a chat room allowing public and private language exchanges with native speakers.

---

4. Word2Word

This portal links to learning resources for more than 100 languages. Some language resources are more extensive than others (for example, it’s easier to load up on Spanish lessons than Swahili). Word2Word works best for those who need survival courses or are looking for obscure languages.

---

5. BBC Languages

BBC Languages offers free audio and video courses, quizzes, games, phrases you can download to your mobile device, and a 12-week email course that earns you a BBC language certificate. They have lessons for fourteen different languages, and phrases for 36. An excellent resource for quick travel phrases.

---

6. FreeLanguage.org

Free Language is a portal that links to a wide variety of free language lessons, podcasts, video lessons, Wikibooks language pages, and other resources. You have to “do your homework,” so to speak, in order to put together a comprehensive learning system for yourself.

---

7. eLanguageSchool.net

eLanguageSchool offers basic resources, including words, phrases, and grammar, for ten languages. Resources, such as video with subtitles, vary by language. A good place to refresh your knowledge of a language, or start learning one. If you want immersion, however, look elsewhere.

Source: Business Pundit | 21 May 2009 | 6:16 pm

Less is more at the fast food drive-thru

Fast food joints adjusting to a down economy are finding many consumers want more than just value in their extra-value meals. Andrea Gardner explains.
Source: Marketplace | 21 May 2009 | 5:00 pm

More to piracy than 'maritime mugging'

Professor Peter Leeson talks with Kai Ryssdal about high-seas piracy, and what we can learn about Somali pirates from their 18th century forebearers.
Source: Marketplace | 21 May 2009 | 5:00 pm

Raise gas tax to get more efficient cars

The Obama administration is making fuel-efficiency regulations tougher. Commentator Paul Kedrosky says these reforms don't make much economic sense and offers an alternative to get more efficient cars built.
Source: Marketplace | 21 May 2009 | 4:59 pm

Indiana town builds hope on machinery

Muncie, Ind., was once a manufacturing hub, but the recession has taken nearly all of those jobs away. So the city is banking on a new piece of machinery to help get it somewhat back on track. Kai Ryssdal reports.
Source: Marketplace | 21 May 2009 | 4:59 pm

Commission to look at causes of crisis

A new commission will look at what caused America's financial crisis. Sen. Kent Conrad helped co-author the bill to create the commission and talks with Kai Ryssdal about what he expects to find.
Source: Marketplace | 21 May 2009 | 4:59 pm

'Sign' Of The Economy?

Mark Scott writes:

I spotted this is Philadelphia's Rittenhouse Square on my walk to work. There's nothing sadder than pale, hungry, uncaffeinated poets. Where's their bailout?

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

Source: NPR Blogs: Planet Money | 21 May 2009 | 4:59 pm

U.K. outlook downgraded, U.S. next?

Standard & Poor's has downgraded the UK's economic outlook from stable to negative. Could the U.S. be next? Stephen Beard reports.
Source: Marketplace | 21 May 2009 | 4:57 pm

Furloughs hit private sector

Soon many state and county offices will be temporarily closed as employees take unpaid leave. But it's not just local governments adopting furloughs to cut costs. Sam Eaton reports.
Source: Marketplace | 21 May 2009 | 4:57 pm

Why does GMAC need more money?

GMAC, the auto finance arm of General Motors, is set to collect billions in government aid. Why does it need more money and is this unfair to other automakers? Tamara Keith reports.
Source: Marketplace | 21 May 2009 | 4:57 pm

JPMorgan's Kelly Favors Technology Stocks Over Financials

Source: Bloomberg - All Podcasts | 21 May 2009 | 4:35 pm

Tchilinguirian Sees `Extreme' Weakness in U.S. Gasoline Demand

Source: Bloomberg - All Podcasts | 21 May 2009 | 4:16 pm

My Mortgage Lender Just Failed. Now What?

We got this from Ming Lee, who writes about noticing something strange on an envelope:

I received my monthly mortgage statement from Franklin Bank, and usually I don't look too closely at the address window. But this week when I looked it read: Federal Deposit Insurance Corporation Receiver for Franklin Bank.

Since I don't have any deposits with Franklin Bank, only my mortgage, the FDIC receivership doesn't impact me, does it?

Yes, it does impact you, but not necessarily in a bad or scary way.

You don't have to worry about a loan coming due as soon as an institution fails. The FDIC has adhere to the terms and conditions of the loans. That said, your loan will probably be sold off, either right away or soon.

When that happens you should receive a notice with information about where to send payments. Then you'll start seeing a completely new name in the address window.

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

Source: NPR Blogs: Planet Money | 21 May 2009 | 4:16 pm

Toyota Financial Offers $1,000 Rebate for Grads

Toyota Financial is offering a $1,000 rebate for college graduates purchasing a new RAV4, Camry, Matrix, Corolla, Yaris, Scion or Tacoma. Qualifying grads can also receive special no money down/no monthly payment financing, free roadside assistance for a year, and a security deposit waiver. Current grad students or people who have graduated from college during the last two years can qualify.

The Baltimore Sun’s Jay Hancock points out the one hitch in the Toyota Financial deal:

Show proof of present employment, or future employment with a start date within 120 days of your purchase contract date. TFS must deem your salary sufficient to cover living expenses and vehicle payments.

In this economy, that’s a deal-killer. I know several people graduating from college. I know only one who will have a job.

Also, why buy a new $16,000 car straight out of college and saddle yourself with payments when you can buy a used one for half the price?

Source: Business Pundit | 21 May 2009 | 3:38 pm

SocGen's Nixon Calls S&P U.K. Credit Outlook `Fair Reflection'

Source: Bloomberg - All Podcasts | 21 May 2009 | 3:31 pm

News From A World Of Hurt

The Wall Street Journal greeted us with a roundup of the world's shrinking economies. In the first quarter, the U.S. was falling at 6.3 percent, Germany at 14.4, Japan at 15.2, and Mexico at 21.5. With America's biggest trading partners in that kind of swoon, it's no wonder the recession just keeps dragging on.

Layoffs continue to pile up, if more slowly. The Department of Labor reports 631,000 new claims in the week ending May 16, down 12,000 from the revised figure the week before. That means some 6,662,000 are drawing unemployment benefits. Economist Ian Shepherdson of High Frequency Economics notes that last week's numbers were revised upward, which suggests that "the underlying pace of claims is not slowing as much as appeared to be the case a few weeks ago."

Whatever the numbers, there's a whole lot of hurt out there. Glenn writes:

I just listened to your most recent podcast, the one that provides a breakdown on the history of derivatives/risk transfer and tells the story of a woman who has to rent an apartment three hours away from her family just so she can hold on to her job a little bit longer (just until the eventual layoff). Like so many people now, I can identify with her situation, and I feel her pain.

This coming Monday (May 25) will be my six month anniversary of unemployment. Since that period, my life has become a cliche. I'm a jazz saxophonist/composer in New York with a master's degree from an Ivy League music school (New England Conservatory of Music), and I've got the student loan debt to prove it. Three years ago, after filling in as a college professor in Fairbanks, Alaska, I moved back to NYC (lived here twice before) in hopes of becoming a member of the community of musicians that I admire so much. And around that time, I made peace with the idea that I would have to work in an office in order to facilitate my music career goals. I know a lot of artistic people look down upon office work as a necessary evil, but compared to playing weddings and cruise ship gigs, sitting in an office and punching formulas into Excel is a breath of fresh air.

I got a job working for a Fund of Funds that is now collapsing. I can't state the name of the fund for compliance/confidentiality reasons, but I wish I could....I've been told that the company is liquidating all of their assets and most employees have all but been provided with an empty banker's box to pack their personal affects into. It's a shame, because these are good people, and even though I was laid off, it doesn't make me feel any better to know that my former coworkers are on their way to becoming jobless, as well.

. . ..

[W]ith no background in finance, there were many times when I was completely unaware of how to interpret or analyze the data I was provided with. I had no idea what a traunch was, or what it meant to rebalance quarterly, or anything like that. But you don't need to have your CFA certification in order to recognize that subsequent months of negative numbers spread globally throughout a company's investments is regarded as a bad thing. There were several times when I specifically voiced concern for the stability of my job to my supervisor, who repeatedly not only told me that my job was not in danger, but once added, "Look, even if you lost your job, you would get three or four month's salary as severance, so it would kind of be a good thing." On November 25, two days before Thanksgiving, I was called into a private meeting with the CEO and President of the company, where I sat at a $20,000 designer desk, surrounded by $2 million in artwork, being told that I was among the initial 10% workforce layoff that the company was forced to undertake in a desperate attempt to keep things going. My severance: one month's salary.

My severance package also included one month of outplacement services. These services were nothing more than instruction towards spinning my wheels without actually accomplishing anything. After the month was up, the agency offered to continue with me, and I told them to take a hike. I registered with sixteen job agencies, three or four of which have provided me with piecemeal work (a day here, a day there). At best, I make as much money temping as I do collecting unemployment.

I've interviewed anywhere and everywhere. In fact, I had four interviews just last week. Some of these interviews are with financial firms in denial ("Yes, everyone else is struggling, but we're innovative and strong enough to persevere . . . Well, it looks as if we're having massive 'reorganization' at all levels. Who saw that coming?"), but I'm not picky. I'll do anything for anyone for any amount of money. And while I'm capable of performing the tasks for every job I've interviewed for, I can't tell you the number of times that people have looked at the education portion of my resume (master's degree, jazz performance) and been told, "You don't want to work here. You would be bored."

But even the interviews that go well all end in a void. Most of these companies (particularly the financial ones) go through the process of narrowing down candidates, which takes weeks, only to hire no one. I honestly think the truth behind all of this is that these companies aren't doing as well as they think they are. After all, several of NYC's temp agencies have laid off workers at all levels. And when the people who are in charge of doling out jobs are themselves jobless, then what's left for the rest of us?

I'm 35. I can't move forward. I can't afford to take non-paying gigs with my own group (when I was employed, I payed the musicians in my band out of pocket). I'm single, but I can't date, because who in God's name wants to date an unemployed 35-year-old? I've registered for an online certificate program in accounting, but won't have anything to show for it until February. I've got a unversity in Boise, ID, looking to hire me for a one-year fill-in position, but I've worked too hard to have what I've built up. And one thing is for sure in New York: if you leave, there's always someone eager to take your place.

People tell me that I'm in good company. In fact, I have several close friends who are in the same boat with me. Sadly, this makes me feel worse, not better. Because if I knew that things were better for other people, then maybe I would have a chance too.

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

Source: NPR Blogs: Planet Money | 21 May 2009 | 2:30 pm

New jobless claims drop

WASHINGTON -- The number of newly laid-off workers requesting unemployment insurance dropped slightly last week after spiking due to auto layoffs, while continuing jobless claims inched closer to 7 million.

Source: L.A. Times - Business | 21 May 2009 | 1:40 pm