Blacks Leisure struggles with surfware

Blacks Leisure has sunk into the red as its surfwear business continues to struggle and the outdoor goods retailer admitted that its request for a longer-term banking facility from Lloyds Banking Group was a "big ask".


Source: Latest Business News from Times Online | 29 May 2009 | 1:14 pm

Opening Bell: 05.29.09

Dutch Introduce Driver's License For Banking (CNBC)
"Getting a proper business education at a good school and finding a job in the banking industry was already hard enough -- but now, in the Netherlands, you'll have to pass a government test to keep it.

The Dutch finance ministry confirmed Thursday that it intends to implement a banking test within the next year that would be a requirement for serving on a board in the sector."

Banks Balk At Push To Reign In Derivatives (WSJ)
"A group of banks and money managers will next week present a plan designed to help fend off some rules proposed by the Obama administration, which wants to reform trading practices in the market for over-the-counter derivatives.

The banks are treading a fine line. They are being careful not to publicly oppose any rules and know that more regulation is inevitable. But at the same time they are seeking to stymie legislation that could seriously hurt their ability to generate fees. The banks plan to release a letter to the Federal Reserve Bank of New York and other U.S. and overseas regulators in coming days, according to people familiar with the matter."

Iacocca Losing Pension, Car In Chrysler Bankruptcy (Reuters)
"Lee Iacocca, the car executive credited with saving Chrysler from bankruptcy in the 1980s, is to lose a big chunk of his pension and a guaranteed life-long company car due to the U.S. automaker's bankruptcy filing two decades later.

Chrysler CEO Robert Nardelli told a U.S. bankruptcy court on Thursday that Iacocca's pension would be among the obligations Chrysler will no longer have to pay if it gets bankruptcy court approval to sell itself to a "New Chrysler" to be owned by its union, the U.S. and Canadian governments and Fiat SpA."

Fiat Pulls Out Of Opel Talks (FT)
"The Italian carmaker said that it remained interested in a potential merger, but its sudden withdrawal throws another wrench into the talks on spinning off the Detroit company's European business ahead of a US bankruptcy filing expected next Monday."

Euro-Zone Inflation Rate Falls To Zero (NYT)
"The annual inflation rate for the euro area was unchanged over the year to May, compared to a 0.6 percent gain in April, the European Union statistics agency said Friday in a preliminary report.

A breakdown of the data is not yet available, but analysts said the drop was largely attributable to lower energy and food price inflation, while core inflation, which excludes those volatile prices, probably also fell noticeably.

The annual rate of zero percent in May was below analyst expectations of a rise of 0.3 percent, and was the lowest level of inflation since Eurostat started producing comparable data in 1996."

Related: Federal Reserve Bank of New York - US - Lee Iacocca - United States - European Union
Source: Dealbreaker | 29 May 2009 | 1:10 pm

US economy shrinks at slower pace

The US economy shrank at a slower pace than had previously been estimated by official figures.
Source: BBC News | Business | World Edition | 29 May 2009 | 12:52 pm

Economy's decline not as steep in revision

The U.S. economy shrank at an annual pace of 5.7% in the first quarter, a less severe drop than initially reported, the government said Friday.
Source: Business and financial news - CNNMoney.com | 29 May 2009 | 12:46 pm

Stock futures hold gains after GDP data (AP)

AP - The stock market is still set for a higher open after the government said the overall economy shrank in the first quarter at a slower pace than it initially estimated.

Source: Yahoo! News: Stock Markets News | 29 May 2009 | 12:44 pm

Q1 GDP, When Less-Bad Is Just Less-Bad

This morning came the Q1-2009 revision to the nation’s Gross Domestic Product from the Commerce Department, and the recession is still going.  The original figure of -6.1% GDP was revised to a lower -5.7%.  This sounds better on the surface until you compare it to the Dow Jones estimates showing an expectation for a reading [...]

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Source: 24/7 Wall Street | 29 May 2009 | 12:41 pm

Stock futures hold gains after GDP data (Reuters)

Reuters - Stock index futures held gains after data showed the U.S. economy contracted slightly less than initially estimated in the first quarter and corporate profits rebounded.

Source: Yahoo! News: Business | 29 May 2009 | 12:41 pm

Stock futures hold gains after GDP data (Reuters)

Reuters - Stock index futures held gains after data showed the U.S. economy contracted slightly less than initially estimated in the first quarter and corporate profits rebounded.

Source: Yahoo! News: Stock Markets News | 29 May 2009 | 12:41 pm

Stocks ready to build on gains

U.S. stocks were set to rise at Friday's open, as momentum from the previous session's rally held up and oil prices rose.
Source: Business and financial news - CNNMoney.com | 29 May 2009 | 12:41 pm

Congrats! You've graduated. Now what?

With unemployment heading toward double digits, budgets so tight they squeak, and the economic outlook about as clear as mud, three words describe hiring managers these days: picky, picky, picky. Just 54% of employers plan to bring on at least a few new grads this spring, down from 76% two years ago, according to Monster.com's newest entry-level hiring survey, and the competition for management-track jobs is more ferocious than it's been in almost a decade. (See "Four Strategies for the Class of 2009," Ask Annie, April 15, 2009.)
Source: Business and financial news - CNNMoney.com | 29 May 2009 | 12:38 pm

R.H. Donnelley files for bankruptcy

NEW YORK (MarketWatch) -- R.H. Donnelley Corp., the country's third largest print and online Yellow Pages publisher, said Friday it has filed for bankruptcy after years of growth through leveraged buyouts.

Source: MarketWatch.com - Top Stories | 29 May 2009 | 12:37 pm

U.S. GDP falls 5.7 percent in first-quarter

WASHINGTON (Reuters) - The U.S. economy contracted slightly less than initially estimated in the first quarter, while corporate profits rebounded, according to a Commerce Department report on Friday that hinted that the recession was moderating.
Source: Reuters: Business News | 29 May 2009 | 12:36 pm

U.S. GDP falls 5.7 percent in first-quarter (Reuters)

Reuters - The U.S. economy contracted slightly less than initially estimated in the first quarter, while corporate profits rebounded, according to a Commerce Department report on Friday that hinted that the recession was moderating.

Source: Yahoo! News: Business | 29 May 2009 | 12:33 pm

Uniform Indicators Show No Employment Recovery (CTAS)

Many investors use companies such as Cintas Corp. (NASDAQ: CTAS) as a bogey of the economy, particularly for the employment sector.  There is a simple reason here: it provides corporate identity uniforms and provide related business services.  It is a direct tell on what is going on in the employment sector at major services and [...]

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Source: 24/7 Wall Street | 29 May 2009 | 12:31 pm

Economic Report: U.S. GDP revised to 5.7% decline in first quarter

The U.S. economy contracts violently again in the first quarter, falling at a revised 5.7% annual rate after sinking 6.3% in the fourth quarter, the Commerce Department reports.

Source: MarketWatch.com - Top Stories | 29 May 2009 | 12:30 pm

Tiffany's 1Q profit tumbles, but meets view (AP)

AP - Jewelry retailer Tiffany & Co. said Friday that its first-quarter profit plunged 62 percent on a steeper-than-expected drop in sales as consumers continued to pull back on spending.

Source: Yahoo! News: Business | 29 May 2009 | 12:29 pm

Stock futures point higher ahead of key U.S. data

NEW YORK (Reuters) - Stock index futures pointed to a higher open on Wall Street on Friday ahead of another round of key economic data, putting the S&P 500 on pace for its third straight monthly gain, its longest streak since late 2007.
Source: Reuters: Business News | 29 May 2009 | 12:28 pm

Iacocca losing pension, car in Chrysler bankruptcy

NEW YORK (Reuters) - Lee Iacocca, the car executive credited with saving Chrysler from bankruptcy in the 1980s, is to lose a big chunk of his pension and a guaranteed life-long company car due to the U.S. automaker's bankruptcy filing two decades later.
Source: Reuters: Business News | 29 May 2009 | 12:27 pm

Currencies: Fresh signs of 'green shoots' send dollar lower

The dollar is back playing defense, losing ground across a broad front as investors weigh fresh economic data from India and Japan suggesting the worst of the global recession is over.

Source: MarketWatch.com - Top Stories | 29 May 2009 | 12:22 pm

PPI: controversial insurance is taken off the market

Banks and other lenders will stop selling controversial singlepremium payment protection insurance PPI alongside loans from today.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 May 2009 | 12:18 pm

Fiat will not attend Opel talks

Italy's Fiat pulls out of talks on the future of Opel in Berlin, saying the German government has been "unreasonable".
Source: BBC News | Business | World Edition | 29 May 2009 | 12:16 pm

Tensions rise as Germany races for Opel deal

BERLIN/MILAN (Reuters) - Germany raced to overcome a transatlantic spat and growing tensions among Opel bidders to clinch a deal for the German carmaker on Friday, as parent General Motors hurtled toward bankruptcy.
Source: Reuters: Business News | 29 May 2009 | 12:14 pm

Shell reports unit upset at Deer Park refinery

For refinery outages in the new Reuters Oil Fundamentals Database see http://bond.views.session.rservices.com/CE/ or go to <OFD/INFO>.
Source: RSS feed - channel BNewsBusiness | 29 May 2009 | 12:10 pm

Asia: Weathering the Economic Crisis (BusinessWeek Online)

BusinessWeek Online - Cebu, Philippines - Painful economic slowdowns are nothing new to Southeast Asia. The region went through its own gut-wrenching financial crisis more than a decade ago in what now seems like a dress rehearsal for today's turmoil. Companies defaulted, banks collapsed, stock markets tanked, and economies shrank at double-digit rates as foreign investment slowed to a trickle. But Southeast Asia dutifully swallowed the bitter pill of austerity, devaluing currencies and working off debt while banks restructured and companies patched up balance sheets.
Source: Yahoo! News: Stock Markets News | 29 May 2009 | 12:08 pm

Euro zone inflation zero in year to May

The 16 countries that use the euro saw consumer prices unchanged in the year to May, official figures showed Friday, stoking expectations that the European Central Bank will soon take steps
Source: RSS feed - channel BNewsBusiness | 29 May 2009 | 12:06 pm

Recession, dollar take shine off Tiffany's profit

Tiffany's first-quarter profit falls 62% as the global recession and fallout from the meltdown in financial markets dent demand for the luxury jewelry retailer’s upscale accessories and as a stronger dollar serves to erode overseas sales.

Source: MarketWatch.com - Top Stories | 29 May 2009 | 12:05 pm

Tiffany's 1Q profit tumbles, but meets view

Jewelry retailer Tiffany & Co. said Friday that its first-quarter profit plunged 62 percent on a steeper-than-expected drop in sales as consumers continued to pull back on spending. ...
Source: RSS feed - channel BNewsBusiness | 29 May 2009 | 12:00 pm

Anglo Irish gets aid from Dublin

The Irish government announces it will inject 4bn euros into Anglo Irish Bank after the lender reported big half yearly losses.
Source: BBC News | Business | World Edition | 29 May 2009 | 12:00 pm

BRIEF-Aker Solutions wins $135 mln StatoilHydro job

OSLO, May 29 (Reuters) - Norway's Aker Solutions said on Friday:
Source: RSS feed - channel BNewsBusiness | 29 May 2009 | 12:00 pm

Impac Announces Commencement of Offer to Purchase and Consent Solicitation for All Outstanding Preferred Stock

IRVINE, Calif., May 29 /PRNewswire-FirstCall/ -- Impac Mortgage Holdings, Inc. (Pink Sheets: IMPM), or the "Company," a Maryland corporation, announced today that it is
Source: RSS feed - channel BNewsBusiness | 29 May 2009 | 12:00 pm

American Woodmark Corporation Announces Cash Dividend

WINCHESTER, Va., May 29 /PRNewswire-FirstCall/ -- American Woodmark Corporation (Nasdaq: AMWD) today announced a quarterly cash dividend of $0.09 per share to be paid on June 30,
Source: RSS feed - channel BNewsBusiness | 29 May 2009 | 12:00 pm

Dollar hits 5-month low as higher-yielding assets sought

LONDON (Reuters) - The dollar hit five-month lows against a basket of currencies on Friday and the yen also dropped as investors sought higher-yielding and riskier assets, believing the worst of the global recession may have passed.
Source: Reuters: Business News | 29 May 2009 | 11:56 am

Foreign Exchange News: A Sterling Rise on Properties Abroad

LONDON, May 29 /PRNewswire/ -- - 34% Return on Properties Bought in Europe in Sterling Terms in the Last Two Years - Number of Transactions...
Source: RSS feed - channel BNewsBusiness | 29 May 2009 | 11:51 am

11-Year-Olds Who Manage Money Better Than Congress? Elementary School Students Graduate With Budgeting Experience

ORLANDO, Fla., May 29 /PRNewswire/ -- After attending grades K - 12, most of us graduate still knowing little about how to manage money. Worse yet, huge numbers of college students...
Source: RSS feed - channel BNewsBusiness | 29 May 2009 | 11:50 am

Cruel necessity

A child's income is vital for families in Bangladesh
Source: BBC News | Business | World Edition | 29 May 2009 | 11:49 am

Fiat pulls out of Opel talks

The Italian carmaker pulled out of German government-led talks on the future of Opel, saying that a request for emergency funding to help keep the GM-owned carmaker afloat would expose it to 'extravagant risks'
Source: Financial Times - US homepage | 29 May 2009 | 11:47 am

Dollar sinks to multimonth lows on Asian data

The dollar fell steeply to multimonth lows Friday as strong economic reports from Japan and India sparked hope in a global economic recovery. Equities in Europe and Asia turned higher,...
Source: RSS feed - channel BNewsBusiness | 29 May 2009 | 11:47 am

Cnooc signs contract to develop Iranian gas field

China National Offshore Oil Corp. has signed an agreement with Iran’s state-run National Iranian Oil Corp to develop the nation’s North Pars gas project, according to reports.

Source: MarketWatch.com - Top Stories | 29 May 2009 | 11:47 am

Tiffany profit just misses view; keeps outlook

NEW YORK (Reuters) - Tiffany & Co posted a lower-than-expected quarterly profit on Friday as shoppers avoided jewelry, but the upscale retailer kept its full-year forecast, citing a smaller sales decline so far in May.
Source: Reuters: Business News | 29 May 2009 | 11:44 am

Why the Military Shouldn’t Go Green

Source: Business Pundit | 29 May 2009 | 11:43 am

Indications: U.S. stocks pointing higher with data, GM in view

U.S. stock futures trade higher on Friday on the last trading day of the month.

Source: MarketWatch.com - Top Stories | 29 May 2009 | 11:43 am

Top Analyst Downgrades (BKC, JNJ, LVLT, NETL)

These are the few top pre-market analyst downgrades or cautious research calls from Wall Street firms this Friday morning with about two hours until the market opens: Burger King (BKC) Cut to Hold at Citigroup. Johnson & Johnson (JNJ) Started as Neutral at Piper Jaffray. Level 3 Communications (LVLT) Cut to Sell at UBS. NetLogic (NETL) Started as Neutral [...]

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Source: 24/7 Wall Street | 29 May 2009 | 11:39 am

UPDATE 1-Nippon Oil sees June crude refining down 4 pct y/y

* May crude runs seen at 3.86 million kl, down 6 pct y/y
Source: RSS feed - channel BNewsBusiness | 29 May 2009 | 11:37 am

Top Analyst Upgrades (CBS, LH, LXK, MS, ODP, PII, DGX, TLAB, WINN)

These are the few top pre-market analyst upgrades and positive research notes from Wall Street firms early this Friday morning with about two hours until the market opens: CBS (CBS) Raised to Buy at UBS. Laboratory Corp. (LH) Started as Outperform at RBC. Lexmark (LXK) Raised to EqualWeight at Barclays. Morgan Stanley (MS) Raised to Outperform at KBW. Office Depot [...]

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Source: 24/7 Wall Street | 29 May 2009 | 11:35 am

London Markets: Retailers, house builders move higher in London

U.K. shares move higher in the last session of the week.

Source: MarketWatch.com - Top Stories | 29 May 2009 | 11:32 am

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 | 29 May 2009 | 11:31 am

OPEC Sec Gen says oil price rally may persist

VIENNA (Reuters) - OPEC Secretary-General Abdullah al-Badri said on Friday he saw oil prices at $70 to $75 a barrel by the end of the year, making him the latest official from the group to predict the current rally will persist.
Source: Reuters: Business News | 29 May 2009 | 11:27 am

GM's Saab given more time to restructure

STOCKHOLM (Reuters) - A local Swedish court on Friday granted General Motors' loss-making unit Saab a further extension to its protection from creditors, giving it more time to restructure.
Source: Reuters: Business News | 29 May 2009 | 11:25 am

Delphi may sell assets to emerge from Chap 11: report

(Reuters) - Auto parts supplier Delphi Corp may soon emerge from bankruptcy with the Obama administration's autos industry taskforce pushing for a sale of its assets, possibly to another parts supplier or an investment firm, the New York Times said, citing people briefed on the matter.
Source: Reuters: Business News | 29 May 2009 | 11:24 am

Sterling surges as investors seize on global green shoots

The pound is in demand as investors focus on better economic news from around the world.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 May 2009 | 11:21 am

Europe Markets: Shares in Europe up for fourth session in five

European shares move up for the fourth session in five on Friday.

Source: MarketWatch.com - Top Stories | 29 May 2009 | 11:21 am

Abu Dhabi fund bids for Chartered Semi: report

Abu Dhabi fund bids for majority stake in Chartered Semi.

Source: MarketWatch.com - Top Stories | 29 May 2009 | 11:08 am

Big drop in global server sales

Worldwide server sales fell 24.5% in the first quarter of 2009, according to market research firm IDC.
Source: BBC News | Business | World Edition | 29 May 2009 | 11:06 am

It's alive! Microsoft unveils Bing search engine

Microsoft Corp. on Thursday offered Internet users a first glimpse at Bing, its fresh attempt to gain ground in the online search market.
Source: Business and financial news - CNNMoney.com | 29 May 2009 | 11:05 am

Sterling hits new high for year

The pound enjoyed its strongest gains against the dollar since last November as it benefited from buoyant equities and positive housing data.


Source: Latest Business News from Times Online | 29 May 2009 | 11:03 am

Oil-price surge boosts stock markets (AFP)

AFP - Europe's main stock markets rallied Friday, mirroring gains elsewhere, as soaring oil prices lifted the heavyweight energy sector and traders awaited key first-quarter US economic growth data.

Source: Yahoo! News: Stock Markets News | 29 May 2009 | 10:54 am

Elliot Morley on the brink of becoming 13th MP victim over expenses

Elliot Morley, the former environment minister, is likely to become the 13th MP to stand down over the expenses scandal after he confirmed today he would face a meeting of local party members.
Source: Latest Business News from Times Online | 29 May 2009 | 10:37 am

OPEC Sec Gen says oil price rally may persist (Reuters)

Reuters - OPEC Secretary-General Abdullah al-Badri said on Friday he saw oil prices at $70 to $75 a barrel by the end of the year, making him the latest official from the group to predict the current rally will persist.

Source: Yahoo! News: Stock Markets News | 29 May 2009 | 10:37 am

Falling PC sales sink Dell's profits

Dell Inc. reported Thursday that its first-quarter sales and earnings tumbled, driven down by weak PC sales - the company's main bread and butter.
Source: Business and financial news - CNNMoney.com | 29 May 2009 | 10:37 am

Oil prices hit six-month high

Oil prices are heading for their biggest monthly gain in more than 10 years, following Opec's upbeat comments about oil demand in Asia at its meeting this week
Source: Financial Times - US homepage | 29 May 2009 | 10:35 am

MPs' expenses: 'The taxman doesn't like collusion - what will he make of MPs' identical explanations?'

Comment: MPs should beware of singing from the same hymn sheet on expenses - the taxman may suspect collusion
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 May 2009 | 10:31 am

World stocks near 2009 high, oil climbs (Reuters)

Reuters - World stocks closed in on a new high for the year and the dollar sank toward a five-month low against major currencies on Friday on hopes that the global economy has seen the worst days of its downturn.

Source: Yahoo! News: Business | 29 May 2009 | 10:25 am

World stocks near 2009 high, oil climbs (Reuters)

Reuters - World stocks closed in on a new high for the year and the dollar sank toward a five-month low against major currencies on Friday on hopes that the global economy has seen the worst days of its downturn.

Source: Yahoo! News: Stock Markets News | 29 May 2009 | 10:25 am

Eurozone inflation at record low

Prices in the eurozone stopped rising in May, with the official inflation rate 0.0%, fuelling fears of impending deflation.
Source: BBC News | Business | World Edition | 29 May 2009 | 10:12 am

Dell (DELL) News Not Good For Intel (INTC), AMD (AMD), And Microsoft (MSFT)

It may be worth noting in passing that the comments of Dell’s (DELL) CFO during the company’s earnings call are bad news for any supplier of PC components and software. Brian Gladden said “Demand is still not improving.” If his assessment is right, sales of Microsoft’s (MSFT) Vista could be hurt and the launch of Windows [...]

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Source: 24/7 Wall Street | 29 May 2009 | 10:11 am

Fight for Target's future cost $21 million

It was cold inside the new freezers on display in Target's half-built store in Waukesha, Wis., the site of the mega-retailer's 2009 annual meeting. But it was even colder in the meeting itself for investor Bill Ackman of Pershing Square Capital Management, as his multimillion-dollar, highly public quest to unseat four of the company's board members ended up in a deep freeze.
Source: Business and financial news - CNNMoney.com | 29 May 2009 | 10:11 am

Tensions rise as Germany races for Opel deal (Reuters)

Reuters - Germany raced to overcome a transatlantic spat and growing tensions among Opel bidders to clinch a deal for the German carmaker on Friday, as parent General Motors hurtled toward bankruptcy.

Source: Yahoo! News: Business | 29 May 2009 | 10:10 am

How to haggle with a contractor

In this extreme buyer's market, you can talk down the price of everything from flat-screen televisions to summer rentals. When it comes to home improvement, though, haggling is as risky as ever. Even if contractors are more willing to lower their prices nowadays, they're still liable to get angry and to cut corners on the job.
Source: Business and financial news - CNNMoney.com | 29 May 2009 | 10:06 am

A Powerful Rise In Oil, Even By 2008 Standards

Oil will post its largest one-month rise since 1999 in May. That does not seem possible given that it rocketed up to $147 in the middle of last year. The news is a sign that crude prices are on a march that may not end this month. According to Bloomberg, much of the fuel for the increase [...]

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Source: 24/7 Wall Street | 29 May 2009 | 10:02 am

American dream slipping away

There was a time, not very long ago, when getting a job on the production line at a big automaker meant an instant ticket to the American dream, even for someone with little formal education. Not anymore.
Source: Business and financial news - CNNMoney.com | 29 May 2009 | 9:59 am

Fiat pulls out of Opel talks over funding

Fiat has pulled out of talks with the German Government about Opel, blaming “unreasonable” funding demands, but emphasised that it was not withdrawing its bid for General Motors' European unit, which owns Opel and Vauxhall.


Source: Latest Business News from Times Online | 29 May 2009 | 9:56 am

Japan: Unemployment Still The Rub

Unemployment in Japan moved up to 5% in April. That may not seem like much to Americans, but in the world’s second largest economy it is like a 10% figure would be in the US. Factory production was up 5.2% in April. That increase, over March, was the largest jump in 56 years. Nonetheless, production is [...]

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Source: 24/7 Wall Street | 29 May 2009 | 9:51 am

National Grid challenges £30m fine from Ofgem

National Grid, the energy networks operator, is to take its fight against a £30 million fine from Ofgem, the industry regulator, to the Court of Appeal, the company said today.
Source: Latest Business News from Times Online | 29 May 2009 | 9:51 am

Verizon (VZ) Makes A Play To Be King Of All Wireless

Verizon Wireless (VZ)(VOD) plans to flank the AT&T (T) Apple (AAPL) iPhone marketing plan by any means available. It will launch versions of the Palm (PALM) Pre, which has to be a blow to Sprint (C), in six months. In addition, it will be selling the RIM’s (RIMM) Blackberry Storm, and a new Google (GOOG) [...]

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Source: 24/7 Wall Street | 29 May 2009 | 9:39 am

World stocks gain amid upbeat Japan, India reports (AP)

AP - Asian stocks climbed Friday as Japanese industrial production jumped at its fastest pace in 56 years and India's economic slowdown eased, reassuring many investors about a global recovery. European stocks opened higher.

Source: Yahoo! News: Stock Markets News | 29 May 2009 | 9:19 am

Japan's industrial output jumps

Japan's factory output jumps at its fastest rate in more than 50 years, but higher unemployment dampens hopes of recovery.
Source: BBC News | Business | World Edition | 29 May 2009 | 9:19 am

What About Ford (F)?

Chrysler is well on its way through the Chapter 11 process. The media has pointed out that even if everything goes as planned Chrysler has a line of vehicles that desperately needs a face lift. The company will also have to deal with the time difference between where the workers are in Detroit and where [...]

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Source: 24/7 Wall Street | 29 May 2009 | 8:50 am

Bewkes finally sets AOL free

It was Jeff Bewkes who famously spoke up in an internal management meeting in 2002 and burst the bubble on AOL's friendly 2001 takeover of Time Warner, which was supposed to create a digital media juggernaut. "This is bull----", said Bewkes, who ran the conglomerate's HBO division, interrupting Steve Case, the Internet entrepreneur who had become chairman of what was then called AOL Time Warner. "The only problem in this construct is AOL."
Source: Business and financial news - CNNMoney.com | 29 May 2009 | 8:45 am

The Minimum, Minimum Wage

It is un-American to pay workers a pauper’s wage, and it is un-American to mandate that a company must pay an employee more than his work is worth. The debate about the minimum wage may be much more complex than the concept of work value and government intervention in private enterprise compensation, but those are [...]

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Source: 24/7 Wall Street | 29 May 2009 | 8:41 am

Scrappage scheme sells 35,000 new cars in a month

More than 35,000 new cars have been ordered through the UK’s scrappage scheme since its launch in April, government figures showed today.


Source: Latest Business News from Times Online | 29 May 2009 | 8:36 am

Severn Trent annual profits fall

Rising bad debt among customers and firms using less water in the recession push Severn Trent's annual profits down 6%.
Source: BBC News | Business | World Edition | 29 May 2009 | 8:35 am

'New Chrysler' nearly a done deal

Source: Business and financial news - CNNMoney.com | 29 May 2009 | 8:29 am

Fiat refuses to attend emergency GM talks as transatlantic funding row deepens

Fate of Vauxhall and Opel in the balance as transatlantic funding row deepens.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 May 2009 | 8:23 am

Rise reported in UK house prices

House prices rose by 1.2% in May offering evidence of activity in the housing market, according to figures from the Nationwide.
Source: BBC News | Business | World Edition | 29 May 2009 | 8:01 am

House prices rise by 1.2%, says Nationwide

House prices staged a tentative recovery in May as the cost of the average British home unexpectedly rose by 1.2 per cent, in its strongest monthly gain for 19 months, according to figures from the Nationwide Building Society.


Source: Latest Business News from Times Online | 29 May 2009 | 7:58 am

Delphi may sell assets to emerge from Chap 11: report (Reuters)

Reuters - Auto parts supplier Delphi Corp may soon emerge from bankruptcy with the Obama administration's autos industry taskforce pushing for a sale of its assets, possibly to another parts supplier or an investment firm, the New York Times said, citing people briefed on the matter.

Source: Yahoo! News: Business | 29 May 2009 | 7:28 am

Irish economy 'is not all gloom'

Irish Prime Minister Brian Cowen says people can begin to have confidence about the future of the country's economy.
Source: BBC News | Business | World Edition | 29 May 2009 | 7:20 am

NZ stocks: Market stages post-Budget rally

The New Zealand sharemarket started well and kept on improving today. The benchmark NZSX-50 index closed up 42.197 points, or 1.55 per cent, at 2764.174, having risen 19.85 points in early trading. Turnover was worth $128 million....
Source: New Zealand Herald - Business | 29 May 2009 | 7:02 am

Tesla Motors recalls 345 Roadster sports cars

Electric-car maker Tesla blames a possible suspension problem on bolts that were improperly installed on the rear chassis 'of a small percentage' of Roadsters by British automaker Lotus. ...
Source: RSS feed - channel BNPaperBusiness | 29 May 2009 | 7:00 am

Mazda6: Lowborn car sure cleans up nicely

The Grand Touring package gives it the luxury of a Lexus without the snotty attitude. I was born into desperate...
Source: RSS feed - channel BNPaperBusiness | 29 May 2009 | 7:00 am

Stocks jump on relief over U.S. government debt auction

Major indexes rise more than 1% as the yield on the 10-year Treasury note retreats to 3.67%. Interest rates called...
Source: RSS feed - channel BNPaperBusiness | 29 May 2009 | 7:00 am

General Motors may follow Chrysler's path to quick exit from bankruptcy

A new offer would give GM bondholders as much as 25% of the company, provided they don't contest the automaker's expected Chapter 11 filing.

By offering a sweetened deal Thursday to holders of $27 billion of its bonds, General Motors Corp. and the Obama administration are trying to follow Chrysler's path to a quick exit from bankruptcy.

Source: L.A. Times - Business | 29 May 2009 | 7:00 am

Blue Shield wins ruling over rescinded health insurance

Plaintiffs Steve and Cindy Hailey stipulate that they lied in their application for coverage and that the application was clear.

A judge ruled Thursday in mid-trial that Blue Shield of California had acted properly in canceling the health insurance policy of a former Cypress resident after he was seriously injured in a car accident.

Source: L.A. Times - Business | 29 May 2009 | 7:00 am

Mazda6: Lowborn car sure cleans up nicely

The Grand Touring package gives it the luxury of a Lexus without the snotty attitude.

I was born into desperate peonage in eastern North Carolina, and then things went downhill. My parents assembled our house out of twigs, leaves and dryer lint.

Source: L.A. Times - Business | 29 May 2009 | 7:00 am

Blue Shield wins ruling over rescinded health insurance

Plaintiffs Steve and Cindy Hailey stipulate that they lied in their application for coverage and that the application was clear. ...
Source: RSS feed - channel BNPaperBusiness | 29 May 2009 | 7:00 am

Time Warner's rocky marriage to AOL is coming to an end

By ending its alliance with the Internet company, the media conglomerate can now focus on its movie, TV and publishing units. The move is applauded by industry analysts.

Citing irreconcilable differences, Time Warner Inc. said it was legally separating from its much younger spouse, America Online. The marriage, which was announced to great fanfare in January 2000, had been on the rocks practically from Day One -- doomed from the get-go by lofty expectations of a new power couple that could dominate the media landscape for generations to come.

Source: L.A. Times - Business | 29 May 2009 | 7:00 am

General Motors may follow Chrysler's path to quick exit from bankruptcy

A new offer would give GM bondholders as much as 25% of the company, provided they don't contest the automaker's expected Chapter 11 filing. ...
Source: RSS feed - channel BNPaperBusiness | 29 May 2009 | 7:00 am

Madoff victims ask California lawmakers for tax relief

Investors, many of them elderly, want state law changed so they can get back the taxes they paid on income they thought they had earned off their Madoff investments but never received.

Calabasas resident Richard Shapiro never made it to his college graduation. Instead, he went to work and spent decades in the commercial real estate industry.

Source: L.A. Times - Business | 29 May 2009 | 7:00 am

10 brokers hit with SEC fraud lawsuit

Federal regulators accuse the brokers of duping retirees into investing in complex, high-risk mortgage-backed securities. About 750 victims collectively lost more than $36 million.

Alleging that 10 brokers made millions of dollars at the expense of retirees, federal regulators accused them Thursday of misrepresenting complex and illiquid mortgage investments as safe and suitable for conservative investors.

Source: L.A. Times - Business | 29 May 2009 | 7:00 am

Dairy farmers in desperate straits

Falling prices are forcing many to sell their cows for meat. Some are threatening to dump milk into sewers. Two have committed suicide. In California, the No. 1 dairy state, the pain is felt keenly.

The California Milk Advisory Board continues to ply its "Happy Cows" advertising campaign, but there are few happy dairy farmers right now.

Source: L.A. Times - Business | 29 May 2009 | 7:00 am

A solar plant that's worth its salt

The mineral is a key part of a Santa Monica firm's proposed alternative energy project in the desert. The technology was proved workable in a pilot project near Barstow in the 1990s.

Just past Barstow on Interstate 15, Las Vegas-bound travelers can eye a tower resembling a lighthouse rising out of the desert encircled by more than 1,800 mirrors the size of billboards.

Source: L.A. Times - Business | 29 May 2009 | 7:00 am

Dairy farmers in desperate straits

Falling prices are forcing many to sell their cows for meat. Some are threatening to dump milk into sewers. Two have committed suicide. In California, the No. 1 dairy state, the pain is felt keenly. ...
Source: RSS feed - channel BNPaperBusiness | 29 May 2009 | 7:00 am

Time Warner's rocky marriage to AOL is coming to an end

By ending its alliance with the Internet company, the media conglomerate can now focus on its movie, TV and publishing units. The move is applauded by industry analysts. ...
Source: RSS feed - channel BNPaperBusiness | 29 May 2009 | 7:00 am

Microsoft unveils Bing, its new search engine

In a sniff at rivals, Microsoft says its search results arrive in a more logical user-friendly format, 'instead of spitting them out in order of popularity.' The new engine will launch Wednesday. ...
Source: RSS feed - channel BNPaperBusiness | 29 May 2009 | 7:00 am

Home foreclosures hit record in first quarter

California, Florida, Nevada and Arizona account for about 46% of the foreclosure starts in the country, the Mortgage Bankers Assn. reports. ...
Source: RSS feed - channel BNPaperBusiness | 29 May 2009 | 7:00 am

10 brokers hit with SEC fraud lawsuit

Federal regulators accuse the brokers of duping retirees into investing in complex, high-risk mortgage-backed securities. About 750 victims collectively lost more than $36 million. ...
Source: RSS feed - channel BNPaperBusiness | 29 May 2009 | 7:00 am

Car scrappage scheme leads to 35000 new sales

More than 35000 new cars have been ordered through the UK's scrappage scheme since it started a month ago it was announced on Friday .
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 May 2009 | 6:48 am

UK house prices rise in May

Prices gain 1.2pc but experts say it's too early to call the bottom of the market.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 May 2009 | 6:37 am

Government bonds enter the danger zone

With risk appetites returning investors are no longer herding to the safety of government paper at just the moment when a torrent of new issuance is hitting the market to fund ballooning deficits.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 May 2009 | 6:01 am

Banks lobby regulators on derivatives rules: report (Reuters)

Reuters - A group of banks and money managers plan to release a letter to the Federal Reserve Bank of New York and other U.S. and overseas regulators to help fend off some rules proposed by the Obama administration that seek to control trading in the derivatives market, the Wall Street Journal reported.
Source: Yahoo! News: Business | 29 May 2009 | 5:52 am

Banks lobby regulators on derivatives rules: report

(Reuters) - A group of banks and money managers plan to release a letter to the Federal Reserve Bank of New York and other U.S. and overseas regulators to help fend off some rules proposed by the Obama administration that seek to control trading in the derivatives market, the Wall Street Journal reported.
Source: Reuters: Business News | 29 May 2009 | 5:52 am

Mark Cuban sues SEC over insider trading documents (AP)

AP - Mark Cuban sued the Securities and Exchange Commission on Thursday for access to documents detailing the insider trading case against the Dallas Mavericks owner.

Source: Yahoo! News: Stock Markets News | 29 May 2009 | 5:26 am

Currency: S & P's rating upgrade boosts dollar

The New Zealand dollar rose to a seven-month high in an ongoing positive reaction to Standard & Poor's decision to upgrade the outlook on New Zealand's credit rating to stable. The move was helped by weakness in the US dollar on...
Source: New Zealand Herald - Business | 29 May 2009 | 5:24 am

Air NZ reducing routes, slashing up to 80 jobs

Air New Zealand is reducing capacity by a further 3 per cent, and is signalling 80 job losses. It is also reiterating a call for more government funding of tourism promotion to help it protect its position in international markets. The...
Source: New Zealand Herald - Business | 29 May 2009 | 4:00 am

10 Things Theme Parks Won't Tell You (10 Things)

1. “Nobody needs to pay full price.”

You’re waiting in line to get into Sesame Place. Your kids are chomping at the bit to rub shoulders with Elmo, and you’ve resigned yourself to paying $44.50 per person for admission to the Langhorne, Pa., theme park. Before you flip the big bird to Miss Piggy, go through your wallet and pull out every credit card and organizational membership ID you can find. Chances are that at least one of them will cut the cost of entry.

Discounts flourish at theme parks because admissions account for only part of their revenue. “[A] big thing is having people in the park who are eating pizza, drinking Coke, buying T-shirts and souvenirs,” says Tim O’Brien, vice president of publishing and communications for Ripley Entertainment and author of Ripley’s Believe It or Not! Amusement Park Oddities & Trivia. At Six Flags Great America in Gurnee, Ill., for instance, American Automobile Association membership gets you a few bucks off admission every day except Wednesday—when the discount is three times that amount. In addition, local gas stations often promote park coupons on the back of their receipts. “If you pay full price, you haven’t done your homework,” says O’Brien.

2. “You’ll spend half your day standing in line.”

Show up at your theme park of choice after 11 a.m. and you might not even get into the parking lot, according to Bob Sehlinger, coauthor of The Unofficial Guide to Walt Disney World 2008. And if you do get in, chances are the park will be too crowded for you to enjoy the most popular rides. “If you go during a busy time of year, get your butt out of bed and be one of the first people in the park,” says Sehlinger. “Otherwise, you will be pissing away your investment by standing in lines all day.”

Want to stay one step ahead of the crowds? You’d better have a plan. That begins with understanding when the place is the least packed—and it’s probably not when you think. At Disney World during the summer, for example, weekend crowds tend to be relatively sparse, since most families drive to Florida, using the weekends for travel rather than touring.

As for the rides themselves, Sehlinger suggests “having an itinerary that will allow you to crisscross the park and knock off the five most popular rides before it gets packed.”

3. “It doesn’t pay to sleep with us.”

While families who stay at theme-park hotels enjoy special advantages—at Disney World, for example, guests gain early admission to a different park each morning—they often pay a steep premium for on-premise lodging. Although nightly rates at Disney World start at under $100 for a double, those rooms get snapped up quickly; the next-cheapest accommodations start at around $150 and go up to more than $1,000.

Aren’t there other hotels nearby? The Disney reservation clerk we spoke with conceded there were, but she painted a picture of hour-long waits to get into the Disney parking lot and hinted that you might find yourself staying in carjack territory. Not necessarily—simply stick with the widely known chains within several miles of the park. For example, AAA gave us the names of a Comfort Inn and a Ramada Inn situated just two and six miles, respectively, from Disney World’s main gate. Their discounted rates included a buffet breakfast and were about $20 lower than Disney’s cheapest rate. Factor in the money you’ll save by eating dinner outside the park, and you’ll likely find the benefits of staying off-site outweigh the drawbacks.

4. “It’s a class-conscious world, after all.”

Theme parks like to present themselves as utopian Valhallas where the CEO waits in line for his ice-cream cone with everyone else. But elitism permeates this seemingly classless society, and you can get “celebrity” treatment—you just have to be willing to buy your way in.

Many parks have VIP packages that give you all sorts of perks, from preferred access to special seats. For example, Steven Weil, a retailer from Fair Lawn, N.J., forked over extra money so that he, his wife, and two of their kids could enjoy the privilege of strolling on Universal’s red carpet. “There was a woman leading us around,” Weil says. “We were a small group of about 10 people, and she took us through back doors, through side doors, to the head of every line.” Weil says that the hostess even babysat their kids while he and his wife went to Planet Hollywood. The only drawback: the reaction of other patrons. “We got a lot of dirty looks,” Weil says. “But we didn’t care. We didn’t have to wait in line; it was well worth the money.”

5. “Our ride operators are barely old enough to drive.”

Even the most benign ride can turn dangerous when an inexperienced person is operating it. At many parks, especially seasonal ones, ride operators tend to be young summer workers, but there are no federal laws requiring amusement-ride operators to undergo any kind of training program. Some states, including California and Minnesota, have introduced state laws regulating safety and training. Still, “There is no internal consistency from park to park in terms of how they instruct their employees,” says Adam Glick, an attorney based in Elizabeth, N.J., who has handled numerous amusement-park injury cases. “The workers tend to be college students on vacation. Most of the ride operators are concerned about flirting with the opposite sex.” And even if they’re not, disasters can and do occur.

6. “We’ve got a screw loose—literally.”

Undertrained operators aren’t the only danger amusement parks face. Lurking beneath the glossy, candy-colored ride exteriors may be shoddily maintained gearshifts and missing seat bolts, which can turn a roller coaster ride deadly. And while amusement parks crow about an impressive-sounding .00057 percent industry accident rate, Glick, for one, insists that the number is misleading. “The actual reporting of an accident is made by the park itself,” the attorney says. “Every incentive is for the park to underreport accidents—the more you report, the more you get fined and the more trouble you get into.”

Surely, a low-accident statistic does nothing to salve the wounds of the customers who’ve been injured due to poorly maintained rides.

You should give rides a careful onceover, says Ted Moss, an engineering safety consultant who has inspected amusement attractions. “However, as with any mechanical object, you cannot look at the ride and tell when it was last oiled or when the tires were changed,” he warns. “If the place in general is poorly maintained, if things aren’t painted properly, or if you see the workers sitting around chatting instead of paying attention to their job, those are signs that the park is not stressing safety or care of the rides.” For more information on amusement park safety, go to www.saferparks.org.

7. “When it comes to regulations, we get a free ride.”

All amusement parks are not inspected equally. Some states—Montana, North Dakota, South Dakota, Alabama, and Kansas—do not regulate rides at all. Some others, like Mississippi and Washington, D.C., regulate traveling carnivals but not permanent ones. Among the safest states are Florida and Pennsylvania, both of which employ full-time inspectors who do nothing but evaluate amusement rides for safety. Elsewhere, you may have a guy checking out the Pressure Drop when he’s got time off from inspecting elevators.

In some cases, unfortunately, greater legislative attention comes only on the heels of tragedy. In California, for example, legislation to regulate theme parks was introduced after a 1997 disaster at Waterworld USA in Concord, where a waterslide collapsed, killing one high school student and injuring 32 others after they attempted to climb on together. (California now has permanent themepark regulations.) “We believe that rides at theme parks are fairly high-risk,” says Valerie Brown, former state assembly member who proposed the bill on park regulation. “They’re turbulent, doing things against gravity, testing engineering feats.”

8. “Our waterslide isn’t exactly a kiddie ride.”

Surely water parks are safer than amusement rides such as roller coasters and other fast-moving machines? Not necessarily. Craig Sklodowski was 22 years old when he followed a line of patrons headfirst down a waterslide at an aqua park in New Jersey. When the six-foot-two, 225-pound Sklodowski hit the end of the slide, he says, he landed in about 3 feet of water. “I either hit the bottom of the pool with my head, or else the force of hitting the water snapped back my neck,” says Sklodowski, who is now a quadriplegic. He settled with the park for $4 million. “I think the speed that they design these rides at doesn’t take into account that people come in a variety of different shapes and sizes,” Sklodowski says. “That mistake has turned my life around 180 degrees.” (The park declined to comment.)

Waterslides turn riders into human projectiles hurtling through slicked tubes at speeds as high as 25 miles per hour, requiring levels of physical competence that are simply unnecessary for riding even the scariest roller coaster. While the physical challenge is clearly part of the fun, it also ratchets up the level of risk. These rides “require strength, physical agility, and control,” says Anne McHugh, the attorney who represented Sklodowski. “Yet there is the attitude that it’s all safe. They sell this as amusement, entertainment, and fun. There’s an illusion that it’s safe for a five-year-old, a pregnant lady, and an 85-year-old man.” How to know when a slide is too much for you or your kids? The majority of water parks have restrictions and recommendations posted at the rides themselves, says a World Waterpark Association spokesperson. You can also look for guidance in a park’s brochure or on its website.

9. “Welcome to the Tragic Kingdom.”

It’s easy to assume that every theme park is a safe haven where your biggest worry is an upset stomach from too much caramel corn. In reality, a park is only as safe as the people who go there. “The largest problem you see in theme parks is unsupervised adolescents,” says Captain Joe Vargas, a member of the police department in Anaheim, Calif., Disneyland’s hometown. “Parents drop them off, and they run around the park.” Vargas says these kids can get into all kinds of trouble—anything from shoplifting to being loud, boisterous, and obscene. In some cases, there’s even the threat of violence.

The problem is at its worst during the summer months. In a July 2007 incident, six teenagers were arrested for attacking a 19-year-old boy outside the Six Flags Over Georgia amusement park. The victim suffered from head injuries and was eventually released from intensive care. (A Six Flags spokesperson confirmed the incident but declined to comment.)

How to protect yourself? Forget about the park’s image, and do a bit of research before venturing there. Check sites like Theme Park Insider (www.themeparkinsider.com) for the lowdown on parks across the country, or speak with friends who’ve already visited.

10. “Don’t stand too close to Mickey.”

It’s a hot summer day in Florida, and those cute Disney World characters that your kids are dying to pose with are likewise dying—to get out of those hot costumes. Inside the huge heads of these getups, temperatures can reach as high as 130 degrees in the sun. And while the outside of a costume looks pristine and magical, inside the wearer may well be suffering in his own sweat—or worse. “During summertime it gets busy, it’s hot, and a number of people told me they pass out,” says Jane Kuenz, coauthor of Inside the Mouse: Work and Play at Disney World. “Or else they throw up from the heat. Then they pass out.”

That’s one of the reasons why costumed employees are supposed to be out and among the patrons for only 20 minutes at a time. But during busy summer days, shifts can sometimes run twice as long. “If they become sick, there’s not a whole lot that anybody can do,” Kuenz says. “And they won’t ever take their heads off, because that is automatic dismissal, so they ham it up and pretend that Minnie Mouse is on her knees for some dramatic reason”—rather than because she is doubled over from cramps and nausea. “I’m not aware of that happening,” says a Disney World spokesperson. “We have a very tightly run program designed to look out for the welfare of the employee.”

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 | 29 May 2009 | 4:00 am

Rally Set to Continue as Energy Rises (Market Update)

News at a Glance

• GDP Revision Coming: Q1 likely to see upward revision.
• Still Crusing: Futures point to more gains.
• Spring Cleaning: GM readying for Chptr. 11.
• Badah-Bing: MSFT debuts new search engine.

The Lowdown

The rally is set to roll on.

Stocks looked to open higher Friday, as traders aimed to close out the week with back-to-back gains. Shortly before 7:30 a.m., Dow, Nasdaq and S&P 500 futures were trading above fair value.

Contributing to the market enthusiasm has been a run-up in commodities prices. Energy, in particular, has helped lift the market.

Crude oil futures continued their steady rise. By 7:10 a.m., crude traded up $1.12 at $66.20 a barrel.

Of course, much of the market enthusiasm hinges on the release of upcoming data, including revisions to the first-quarter GDP and to the May reading of the Consumer Sentiment index.

The auto industry remains in the throes of revolution. General Motors (GM) inched closer to bankruptcy, while Chrysler moved closer toward emerging from it.

World markets were broadly higher. In Asia, Japan's Nikkei picked up 0.8%, while Hong Kong's Hang Seng climbed 1.6%. In Europe, the benchmark indexes of London, Paris and Frankfurt each stood up more than 1.0% in afternoon trading.

Corporate News

• Dell (DELL) posted a 61% drop in first-quarter net income, the firm said. Dell earned $290 million, or 15 cents a share, down sharply from $784 million, or 38 cents a share, in the year-ago period. Excluding one-time items, the firm earned 24 cents a share, a penny better than analysts' estimates. Sales dropped 23% in the quarter, suggesting that weakness in demand remains persistant.
• Delphi is in negotiations over a potential asset sale that could help the firm emerge from bankruptcy, The New York Times reported, citing anonymous sources. Delphi, the troubled auto parts supplier that his been operating in bankruptcy since 2005, is being pushed by the Obama administration to sell off some of its non-core assets to aid the firm in pulling out of the red.
• Microsoft (MSFT) unveiled its new search engine, a web-based application called, "Bing" that promises more specific results than Google, far and away the most dominant player in the space. Bing is Microsoft's latest salvo in the war on Google. The search engine replaces Live Search and its predecessor MSN Search.

The Economy

• The preliminary reading of the first-quarter gross domestic product is scheduled to be released at 8:30 a.m. by the Commerce Departmnet. The advanced reading suggested the Q1 GDP contracted at an annual rate of 6.1%. Economists expect the Q1 number to be revised up a bit to a 5.5% annual rate of contraction.
• The May reading of the Chicago Purchasing Managers' Index for regional business activity is scheduled to be released at 9:45 a.m. by the Chicago branch of the National Association of Purchasing Management. The Chicago PMI stood at a reading of 40.1 in April. Economists predict the index will have risen to a May reading of 42.0. A reading below 50 indicates activity is contracting.
• The revised May reading of the Consumer Sentiment Index is scheduled to be released at 9:55 a.m. by Reuters and the University of Michigan. The index stood at a preliminary reading of 67.9 earlier this month. Economists expect a slight upward revision to a reading of 68.0.

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 | 29 May 2009 | 4:00 am

Computerized Models of Investor Behavior

FEW MAY SEE A CONNECTION BETWEEN WAGNER'S RING cycle and investing, but to Roy Niederhoffer the parallel is clear.

In Richard Wagner's epic of four operas, repeating themes foretell musical passages that follow, explains Niederhoffer, an accomplished classical musician and founder of R.G. Niederhoffer Capital Management, a New York-based commodity-trading advisor (CTA). Similarly, he says, changes in stock, currency and commodity prices often lead to predictable short-term investor responses.

Applying this thinking to a high-frequency trading strategy across 55 financial and commodity markets in developed economies has produced remarkable results. Niederhoffer's Diversified Trading Program, which ranked ninth in Barron's recent survey of the top 100 hedge funds ("Acing a Stress Test," May 11), returned 34.58% in the year ended March, topping the BarclayHedge Fund Index by more than 52 percentage points, and the Standard & Poor's 500 by more than 70 percentage points.

The program, with $480 million in assets as of April 30, also blew past most of the competition in the past five years, with annualized returns of 13.7%. That compares with an average gain of 2.51% for the hedge-fund industry, and an annualized decline of 4.76% in the S&P. Since inception in 1993, Niederhoffer's strategy has realized annualized returns of nearly 12 percent, more than twice the market average. (BarclayHedge data doesn't go back that far.)

Niederhoffer, 43, built such a record by studying short-term trading patterns, tracking 10 to 1,000 trades every hour of the day. Indeed, 160 computer screens adorn his Midtown Manhattan command center, not including the Bloomberg over the men's room urinal. Niederhoffer has sought to capitalize on the predictability of these responsive patterns his analysis uncovered by executing trading programs that target quick gains. His Diversified Program makes thousands of trades a year, ranging in duration from several hours to a week, and occasionally longer. Being right just a little more than half the time is all he needs to generate large profits, Niederhoffer says.

When stocks sold off after Lehman Brothers' and American International Group's (AIG) collapse, for instance, Niederhoffer's models strongly suggested a short-term market rebound was likely. In both cases, they were right.

NIEDERHOFFER'S ANALYSIS ignores company fundamentals and macroeconomic trends, which shouldn't surprise in view of his background. A Harvard graduate like his older brother Victor, a Wall Street legend who made and lost several fortunes, Roy Niederhoffer studied computational neuroscience, or how the brain processes information and makes decisions.

As he explains it, short-term investor behavior derives from several basic tendencies hard-wired into the human mind: Investors overemphasize recent experience when making decisions; people hate to lose more than they love to win; investors become more predictable as markets become more volatile; and when they are emotional, investors tend to be herd-like in behavior. That last tendency leads to selling when stocks are near a bottom, and buying when rallies are overextended.

Not only has Niederhoffer produced consistently impressive returns, but he has done so in a way that is important to sophisticated investors: His returns correlate negatively to market and hedge-fund industry benchmarks. Last year, the Diversified Trading Program had a correlation of negative 0.68 to the S&P 500, and negative 0.74 to the Hedge Fund Research Global Hedge Fund Index.

Niederhoffer established his asset-management firm in 1993, investing in major financial and commodity markets based on a handful of contrarian trading rules, seeking to profit from overextended price moves.

After two years of poor performance -- 1995 and 1999 -- in which stocks soared but the Diversified Trading Program slumped -- he realized he needed to broaden his then purely contrarian focus substantially. "Especially at the peak of the Internet-based bubble in 1999, when the market was up by a third and we were off by nearly 20%, we found all our hulls were breached," he says. "To prevent sinking, we needed greater diversification."

So Niederhoffer introduced a series of investment strategies -- or families, as he calls them -- that balance contrarian positions with momentum plays of various duration and conviction. He also added new trading rules, developing 60 in all, that undergird his strategies and relate to the predictive nature of recent market performance.

Unusual for a CTA, Niederhoffer likewise added individual stocks to the portfolio, choosing from a universe of the 800 most liquid stocks in the U.S. and Europe. "Each morning we apply a screen that identifies the stocks with the greatest recent liquidity, and those are the stocks we trade [for entry] that day," he says, noting the firm will likely be adding Asian equities in the near future.

The new rules and new shares led to dramatic improvement in the Diversified Trading Program's performance. From inception through 1999, annualized returns were basically flat. From 1999 through March 2009, however, the Program's annualized gain exceeded 17% with less actual risk.

NIEDERHOFFER WROTE the original computer code to test and run his trading rules. He designed the Diversified Program to search for and trade on uncorrelated market positions, and to increase its emphasis on short-term momentum to counter positions that are losing money. (He declines to provide specific examples of how this works.)

The program is calibrated to reduce leverage and risk when value at risk -- the amount the program could lose in any one period -- exceeds certain thresholds. The firm's risk-management committee can step in to reduce risk at anytime, sometimes through buying options to protect larger positions.

The program will apply additional defensive measures when a monthly drawdown, or decline from a peak, exceeds 8%. Collectively, such features help to limit average daily volatility to 1% and annual volatility to 16%.

In March, these measures limited the loss Niederhoffer incurred when he boosted his net long position on U.S. Treasuries to 30% from 5%, after the Federal Reserve announced it was purchasing Treasury bonds to pump capital into the economy.

The Fed's apparent commitment to "quantitative easing" sent 10-year Treasury rates plummeting to 2.5% from 3.0% in a single session as prices rose sharply. But the rally didn't hold, and rates rose back to 2.64% by the closing on Friday.

The firm's model triggered a Sell, limiting the loss to 1%. It could have been worse: Treasuries subsequently slid by another 1.25 percentage points.

MOST OF THE TIME, Niederhoffer's bets are in the black. In just a few days last July, as commodity prices were in free fall, oil-futures prices collapsed to $136 a barrel from $145. At the time, the Diversified Trading Program was 15% net short oil and gas futures, which were moving in tandem. Niederhoffer's screens signaled the selloff was excessive, and the program moved to 15% net long exposure. Within 48 hours, oil had rebounded to $140 a barrel, at which point the program moved to a Sell, netting it a 2% gain on the investment.

On Sept. 18, the government announced a temporary ban on short selling of financial stocks. That sent the market up nearly 12%, as short sellers were forced to cover their positions. Soon after, however, Niederhoffer's contrarian models flashed an indication that the market was extremely overbought, and set up a 60% net short play in S&P 500 futures. By Sept. 22, stocks had sold off, and Niederhoffer exited his short position with a 4% gain.

The program also works with currencies. After falling against the dollar for most of January, the euro started to rally in the last week of the month, rising to $1.32 from $1.29. The firm's screens said this was only a temporary reversal in the dollar's rally, so the program went 25% net long the dollar. In two days, the euro had fallen back to $1.30 and the position was sold, netting Niederhoffer nearly 1%.

This year has been rougher for Niederhoffer. His program was down 1.9% through April -- a fact that underscores the difference between Niederhoffer's strategy and those of many other investors. With the stock market lifting off in March, an equity-trend follower could have ridden stocks higher. An ultra-high-frequency trading strategy typically profits, however, when price movements are constantly reversing course.

Having missed out on one of the great rallies -- stocks have risen 30% from their March lows -- doesn't concern Niederhoffer, however. To the contrary, he likens it to a 100-year flood. "You can't design a program around this very rare event, and you certainly don't readjust your strategy to it," he says.

Given the challenges still plaguing the global economy, he expects the current rally to run out of steam, and markets to turn more volatile. And that would be just fine for Roy Niederhoffer.

--------------------------------------------------------------------------------

ERIC UHLFELDER, the author of Investing in the New Europe, is based in New York.

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 | 29 May 2009 | 4:00 am

Are Gas-Buying Clubs a Good Deal?

With the summer driving season in full swing and oil prices on the rise, locking in low gasoline prices through a buying club sure sounds like a wise investment. But making the right bet on the direction of fuel prices is hard enough for airlines and professional commodities traders, let alone the average driver.

The gas-buying club pitch is straightforward: Prepurchase fuel at today’s prices and then redeem it for a profit in the months ahead when -- presumably -- gas prices have gone up. Clubs open to consumers include MoreGallons.com, Petrofix and First Fuel Banks, among others.

The problem, of course, is that there's no guarantee that you will buy low and sell high. "It amounts to trading in gasoline futures," explains James Brock, a professor of economics at Miami University in Oxford, Ohio. "It’s a hard game to play and come out ahead in."

Although crude oil futures and gasoline prices both hit 2009 highs this week, the average going rate for a gallon of regular unleaded stands at $2.45 nationwide, according to AAA. True, that’s up 40 cents from last month, but still a full $1.49, or 38%, cheaper than last year. And although a barrel of crude fetches around $65 today, that's a far cry from the nearly $150 it claimed in July 2008.

Many oil watchers right now say they don't expect dramatic, upward price movements in the near future. "We’re not going back to the [$4-a-gallon] price levels of last summer anytime soon," says Brad Samples, a commodities analyst with Summit Energy, a Louisville, Ky., consulting firm. That limits any potential upside profit even if you bet right -- as well as caps any potential savings. (Read our story about fuel co-ops here.)

Still, with so many forces at work in the market's pricing of oil -- most notably the growing expectation of a second-half recovery -- it's difficult to predict. (See our story, "Is Oil Spent or About to Geyser?")

Here’s how these programs work. Details vary from club to club, but generally you prepurchase fuel by the gallon, locking in the current market price plus a fee of, say, six to 10 cents a gallon. (Contracts can range from just a few months to several years.) When you buy fuel at the pump, the program usually reimburses you for whatever premium you paid, depleting credits from your account. For example, at First Fuel Banks, a club based in St. Cloud, Minn., members currently pay $2.68 per gallon to lock in prices for an unlimited time, and then use a special debit card at the company’s gas stations. There’s also a $1 lifetime membership fee.

Further complicating matters is that any possible savings vary from program to program. So if you must trade in gas futures, do your basic due diligence. It's imperative that consumers crunch the numbers, asses their driving habits, check the fees, and make sure they're dealing with a reputable program in order to have a chance at coming out ahead. Here are some keys to consider.

Forecast fuel prices

The biggest caveat is that no one has a crystal ball. Consumers who took advantage of Chrysler’s 2008 "Let’s Refuel America" program, which capped prices at $2.99 a gallon for three years, are losing out on that investment this year. Just because gasoline prices are going up now doesn’t mean that the trend will continue, says Brock. Indeed, the Energy Information Administration expects prices to average $2.21 per gallon through September -- but just $2.12 for all of 2009. Consumers who buy in at too high a price face a dilemma: They can either overpay for gas now or let their accounts sit idle, accruing maintenance fees, while waiting for prices to rise.

Compare potential savings

Companies offering fixed-price fuel programs have to make a profit somehow, says Samples. That could include membership fees, profit built into the per-gallon rate and service surcharges -- or some combination of the three. The longer the lock-in period, the higher the price per gallon. Factor that in to calculate how much per gallon you’re really saving compared with current prices.

Assess driving habits

Locking in a fuel price rarely makes sense for consumers who don’t drive frequently, says Naveen Agarwal, CEO of Pricelock, which administrates fuel-price protection programs. (Pricelock developed the Chrysler program.) Bigger prepurchases (like buying in bulk) usually equate to bigger savings. The fewer gallons you prepurchase, the less likely it is that those savings will offset your program's fees.

Check program reputations

“There can be substantial risk with a company that’s popped out of the woodwork,” says Samples. “If they declare bankruptcy, you’re at the back of the line to get your money back.” Check for complaints with the Better Business Bureau -- and read the contract carefully to find out your rights. If the program goes kaput, so too can your cash.

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 | 29 May 2009 | 4:00 am

Monsanto's CEO on Growing in a Recession

It almost sounds like science fiction: Amid the furious discounting among retailers, one firm has been able to raise prices as much as 25 percent on some products. Its stock has managed to climb this year, despite a volatile market. What’s more, the company has supporters claiming it can cure world hunger and critics accusing it of endangering the global food supply and environment.

Controversial but profitable, the firm is Monsanto (MON), and its CEO through all this has been Hugh Grant, a plainspoken 51-year-old who was raised in a coal and steel town in central Scotland. Grant started with the firm in 1981 and took over the top office in 2003, when Monsanto was facing some fierce and well-publicized U.S. and European protests against its genetically modified crops. He took on critics by explaining that biotech crops were heavily regulated, focused the company on crops more for animal feed than the grocery store and proceeded to devote even more resources to seed development. Monsanto spends $2.6 million a day (more than 8 percent of its $11.4 billion in revenue) primarily on seed research.

Monsanto started as a chemical firm, and its Roundup herbicide still brings in about 30 percent of its profits. But today’s research is focused on how breeding and genetic engineering could develop corn, cotton and soybean seeds that yield more bountiful and nutritious crops and protect against bugs and weeds. Indeed, Monsanto’s sprawling campus in St. Louis is filled with lab-coat-clad researchers monitoring an array of test tubes, not to mention the robots (yes, robots) busy chipping off minuscule pieces of seeds to identify genetic markers. The spending has paid off: Monsanto generated $2 billion in profit last year, more than twice its take from the year before.

Grant’s current goal—doubling crop yields by 2030 while using a third less water and energy—has analysts skeptical. That means Monsanto’s crop yields need to increase 5 percent a year; historically, they have grown 1 percent in developed countries. “That’s probably not achievable” under any circumstances, says Maarten Chrispeels, director of the Center for Molecular Agriculture at the University of California, San Diego. Even if it is achievable, Bill Freese, science policy analyst at the Center for Food Safety, is among those calling for more testing. He says the technology is still new and can cause unintended effects in plants, like increasing natural toxins or creating new ones that have yet to be fully studied. Monsanto is also facing broader economic headwinds, lowering its earnings outlook for fiscal 2009 in part due to a faster than expected slowdown for its roundup herbicide. With commodity prices down sharply and a price war brewing, analysts question if Monsanto can keep growth on track.

Grant’s modern office is cluttered with mementos honoring Norman Borlaug, the Nobel Prize–winning scientist heralded for his work on feeding the world’s hungry. Inspiring? Presumptuous? We weren’t sure either—read on for your own assessment.

SmartMoney: Monsanto has had phenomenal growth in recent years, but can you keep it up through the recession?

Hugh Grant: I’m very optimistic. By 2012 we think we can expand profits 2.25 times our 2007 base by doubling crop yields and the continued increase in demand.

But won’t demand fall given the global downturn?

It continues to rise, but noise around it fluctuates. Poultry production in India has risen to the point it’s exporting it. Recession notwithstanding, the Chinese are eating more wheat and less rice. That romantic first date now is more likely an Italian meal than Chinese.

But Chinese workers are getting laid off as growth slows. Are they still going out for Italian on their second date?

Time will tell, but I think yes. We talk about China as one country, but you have to dissect it. It’s urban China, not rural China. And within urban China, there is an emergence of fast food and the westernization of diets. It might slow down, but I don’t think we are going backward. When dietary habits shift, it’s hard to change back.

Rivals like DuPont are deeply discounting their seeds to take market share. How do you compete?

Farmers are literally harvesting profits on every square foot. So the conversation around the kitchen table is less about cost of seed and more about its performance.

Prices for glyphosate, your popular Roundup herbicide, are falling after a steady run-up in recent years. Doesn’t that cut into profitability?

When we made our 2012 profit target, we anticipated that business decreasing. But our seeds-and-traits business will continue to grow through that period. Our growth comes from continuing to deliver for farmers. The equation is that simple. When we launch a drought-tolerant seed that drinks less water and yields more corn, the grower will be happy to pay for that.

You’ve said biotech crops are a way to ease the growing demand for food. Do you see global food demand reaching crisis proportions?

Grain stocks are sitting at 20- to 25-year lows in part because of a drought in Australia, global warming and changing diets. Demand for ethanol is also part of it. We will need twice as much food—as much produced in the past 10,000 years—over the next 30 to 40. There are arguments on the slope of the curve, not the trend.

You can’t talk about the food crisis without talking about Africa.

I was in Malawi a couple of years ago, and a 70-year-old grandmother, raising four grandsons, was eager to show me her corn. She was benefiting from “new” technology—technology that farmers in the U.S. used in the 1940s. African farmers are just using old tools, things that would be familiar if you stepped out of the Bible. It’s going to take time. But if there is a way to get technology down to this local level, you make a big difference. And it’s the germ of a future business.

Some scientists are skeptical about Monsanto’s 2030 targets of doubling yield while using a third less water and fertilizer. Isn’t that a bit ambitious?

Ambitious is good. I’d be worried if you’d said it’s humdrum. This is not a moon shot. In December our researchers around the world spent a week laying out milestones. Our product cycle is seven to 10 years, so everything we do is long term. But the key is describing, step by step, the milestones.

What do you say to those concerned about the safety of biotech crops?

You have to look at what’s happened historically: Over the past 13 years, more than 2 billion acres in 25 countries have been growing these crops. There’s been more scientific evaluation of biotech crops than any other food technology. Each country has an independent regulatory agency grinding through the data. We supply the data, but the regulators evaluate it—and they’ve vouched for the safety.

Some crop scientists complain they can’t perform the comprehensive research on biotech seeds that they can with conventional seeds.

We’re sharing lots of data. We donated all of our biotech and know-how for white corn to Mexico and sub-Saharan Africa. In the next decade, for companies driving yields as significantly as we are, that becomes a prerequisite. If you are involved in something as basic as food production, the argument “you can’t afford this; you have to wait” is not acceptable.

Are you worried about piracy?

It’s in the places you would expect. We have some copying of our technology in India but still have a great business there. If you farm an acre, you want the best possible yield, and people who are copying are generally behind.

Is Monsanto recession-proof?

Food is one of the last things to suffer in a recession. Plus, we’re in good financial shape with a spotless balance sheet. The cash we generate means we don’t have to compromise our pipeline. And the pipeline is at the heart of what we do.

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 | 29 May 2009 | 4:00 am

House builds at record low, but signs the slump may be over

The trend for the number of new approved housing units, excluding apartments, hit its lowest level on record in April, but there are signs the decline is easing. Releasing the data today, Statistics New Zealand (SNZ) said the trend...
Source: New Zealand Herald - Business | 29 May 2009 | 3:30 am

Japan's industrial output jumps in April

TOKYO - Japan's industrial production jumped at the fastest pace in 56 years in April, with predictions for further gains in May and June -- convincing signs that manufacturers are recovering from the country's steepest recession...
Source: New Zealand Herald - Business | 29 May 2009 | 3:00 am

Blinder Sees Rising Inflationary Expectations in Bond Market

Source: Bloomberg - All Podcasts | 29 May 2009 | 2:42 am

Times' Andrews Sees Profound Shift in Spending Behavior

Source: Bloomberg - All Podcasts | 29 May 2009 | 2:40 am

Gates plays down N Korean posturing

Robert Gates, US defence secretary, said North Korea was not making extraordinary military moves despite its belligerent rhetoric following international condemnation of its recent nuclear test
Source: Financial Times - US homepage | 29 May 2009 | 2:15 am

Viewpoint: Cash in now on goodwill

For a long time business has had a poor reputation. Even before the recession took hold many assumed most businesses were, by and large, self-serving profit-driven institutions that created a wave of negative social and environmental impact in their mercenary wake. It was hard to get any message making an alternate case through. And the role of the financial sector in creating the collapse only served to make things worse. A new nadir for business.


Source: Latest Business News from Times Online | 29 May 2009 | 12:00 am

Investors slap down wigmaker Aderans's directors

Shareholder activism in Japan, which has wounded more portfolios than it has fattened, experienced a rare triumph as the management of the world's most advanced wigmaker bent to the will of investors.


Source: Latest Business News from Times Online | 29 May 2009 | 12:00 am

Mike Ashley sells off JJB stake as future secured

Mike Ashley's Sports Direct offloaded its controversial stake in JJB Sports, its embattled rival.
Source: Latest Business News from Times Online | 29 May 2009 | 12:00 am

Stock Funds Swung To Inflow In April (Investor's Business Daily)

Investor's Business Daily - Investors poured $12.33 billion into stock funds in April, the biggest inflow and only the second month of positive flow since last May. And signs pointed to further inflow this month.
Source: Yahoo! News: Stock Markets News | 28 May 2009 | 11:54 pm

The Dow Jones industrials' moves since Lehman fall (AP)

AP - How far the Dow Jones industrial average has fallen or advanced each trading day since Lehman Brothers Holdings Inc. filed for Chapter 11 bankruptcy protection on Sept. 15. Since Lehman's fall, which touched off a paralysis of the credit markets and deepened the recession, the stock market has gone through an extended period of volatility that subsided during December but that has returned in 2009. The numbers are the closing levels for the Dow:
Source: Yahoo! News: Stock Markets News | 28 May 2009 | 11:32 pm

Brian Fallow: A dark-grey debt buster, with limitations

It may not be a black Budget but it is definitely a grey one. It meets the first test of not doing any harm, in that it averts a credit rating downgrade. Even if we had not had to worry about the rating agencies, the case for...
Source: New Zealand Herald - Business | 28 May 2009 | 11:30 pm

Israel defies US demand on settlements

The disagreement between the allies deepened when Barack Obama stressed the American call for a freeze on all settlements in occupied territory, as the Jewish state brushed away such demands
Source: Financial Times - US homepage | 28 May 2009 | 11:28 pm

Proposal for US bank regulation draws flak

Senior lawmakers weighed into the turf war on regulation, expressing scepticism over an idea for a single banking watchdog but supporting a careful overhaul of the discredited ­system
Source: Financial Times - US homepage | 28 May 2009 | 11:14 pm

Wall St: US stocks up as oil appetite grows

NEW YORK - US Investors are finding fresh reasons to bet on an economic rebound. Stocks jumped on US markets overnight as gains in commodities like oil signaled that traders expect a strengthening economy will demand more energy. Ample...
Source: New Zealand Herald - Business | 28 May 2009 | 11:00 pm

Brazil to open up vast offshore fields

International oil companies will be invited to bid for concessions in Brazil's enormous "pre-salt" oil fields as early as next year, Edson Lobão, mines and energy minister, has told the Financial Times
Source: Financial Times - US homepage | 28 May 2009 | 10:55 pm

New debt fears over commercial property

Concerns among credit investors that ratings downgrades might thwart US government efforts to revive the markets that help fund office blocks, shopping centres and other commercial real estate
Source: Financial Times - US homepage | 28 May 2009 | 10:39 pm

Laid off LWR workers still to see redundancy money

Laid off workers at textile manufacturer Lane Walker Rudkin (LWR) are yet to see any redundancy money, two weeks after losing their jobs, says the National Distribution Union (NDU). The first payments to union members since then...
Source: New Zealand Herald - Business | 28 May 2009 | 10:30 pm

Benchmark's Moran Says Google, Yahoo Could Buy AOL

Source: Bloomberg - All Podcasts | 28 May 2009 | 10:28 pm

Borrowers with good credit fuel foreclosures in 1Q (AP)

AP - The mortgage crisis is spreading and hitting new heights: Borrowers with good credit now make up the largest share of foreclosures as job losses and pay cuts exact their toll.

Source: Yahoo! News: Business | 28 May 2009 | 10:16 pm

Write-Offs: 05.28.09

$$$ Why GM Can't Be Saved [Deal Journal]

$$$ Bing Aims To Take On Google [WSJ]

$$$ Man Issues Fee Warning After Assets Drop [FINalternatives]

$$$ Even Bloomberg Openly Ridiculing Tim Geithner Now [ZH]

Related: Google - Wall Street Journal - Bloomberg LP - Search - Search Engines
Source: Dealbreaker | 28 May 2009 | 10:15 pm

URS Cut to `Neutral' at Goldman Sachs

Source: Bloomberg - All Podcasts | 28 May 2009 | 10:06 pm

Terra Firma injects more cash into EMI

The £28m in funds signals that results for the six months to March 31 failed to live up to conditions in the £2.6bn in loans Citigroup extended to finance the £4bn EMI takeover in 2007
Source: Financial Times - US homepage | 28 May 2009 | 10:05 pm

Presented By: Continental Airlines Newest Jet Fleet

		Continental Airlines is proud to fly the newest jet fleet among U.S. based global airlines. Book your flight today.
		continental.com

Source: Dealbreaker | 28 May 2009 | 9:48 pm

Jeff Macke Will Be Back

Sooner, rather than later, it seems! The Fast Money contributor apparently wrote on Minyanville just now that he'll be back in action Monday, in post entitled "People Say I'm Crazy..." (which we can't see, lacking a login, so those who can should get in touch). The "crazy" is presumably a reference to this appearance on the Kudlow report last week:

The Mackster's been MIA since then, with Steve Grasso taking his seat on the show. It's unclear if this means his contract with the network, which is said to be up in June, has been renewed or if this is more of a send-off type situation. We hope it's the former, as none of you can deny the above performance is just the sort of thing that place needs more of.

Update: Here's what J-Mack wrote. Apparently the meltdown coincided with a vacation he's had planned for a while.

Greetings from New York, where I'm taking a long-planned staycation, which morphed into a trip to Charlotte to address a ministry group on how to best help congregations deal with the financial crisis.

Related: Fast Money - Minyanville - CNBC - Kenneth Macke - Crazy
Source: Dealbreaker | 28 May 2009 | 9:48 pm

CNBC: Eric Dinallo Outtie July 3

The Superintendent of Insurance for New York State (and frequent Squawk Box guest!) will resign in July, at which time he'll become a visiting professor at Stern, and possibly mull over running for Attorney General. (Glowing) press release from the Governor, via NYDN:

"Since January, 2007, when he was appointed as Superintendent of the New York State Insurance Department, Eric Dinallo has been a stalwart advocate for New Yorkers, a trusted advisor to me and my Administration and a committed public servant," Paterson said in a press release.

"In recent months, Superintendent Dinallo and I worked closely together with the United States Treasury Department, the Federal Reserve Bank of New York and others in the rescue of financial services giant AIG."

"Under Superintendent Dinallo's leadership, the Department effectuated the largest regulatory settlement in the U.S., played an integral part in the reform of the workers' compensation system and facilitated more than $15 billion in new capital for the bond insurance industry."

"Eric has earned the reputation as a national leader in the insurance industry and I want to thank him for all he has done at the Department to promote a competitive marketplace while also effectively protecting New York's consumers."

"Eric is no stranger to New York University. In 1990, he earned his law degree from NYU where he served as Law Review and Essay Editor. Though New York is losing a valuable and passionate public servant who has served our State in numerous capacities for more than a decade, the students of NYU are gaining a professor with a unique perspective and a reservoir of knowledge from which to learn."

"On behalf of all New Yorkers, I wish Eric great success in his new role and beyond."

Related: Squawk Box - CNBC - United States - Eric R. Dinallo - New York
Source: Dealbreaker | 28 May 2009 | 9:17 pm

David Einhorn Is Optimistic The Obama Administration Can Fix This Thing, Provided It Changes Everything It's Doing

Sure, the Greenlight founder is disappointed with Obama and Co, which he believes is "following the same path as the Bush administration," as it attempts to bring us back to the heady days of 2006 ("by propping up asset prices and reflating the popped credit bubble, subsidizing bank creditors and shareholders, and delaying needed bank recapitalizations, while hoping for an economic recovery"). But! Einhorn is confident Bush II is smart enough to wake up and do the right thing. Here are his closing remarks from the Ira Sohn conference. Have to say, we are loving this passive aggressive side. Notice how throws the campaign's favorite word back at them?

"I am optimistic because even though I believe that Secretary Geithner is leading us down the wrong path, President Obama has demonstrated an ability to change his mind in other areas. To me, this reflects the work of an intelligent pragmatist acting upon fresh understanding. I am optimistic that President Obama is capable of making similar reassessments of the economic rescue plan, and changing direction there as well."

David Einhorn Strikes Again [Daily Intel]

Related: Barack Obama - David Einhorn - United States - Presidential - Politics
Source: Dealbreaker | 28 May 2009 | 8:52 pm

Microsoft and Google face off over innovation

Microsoft and Google took direct aim at each other's core businesses as they showed off ambitious new services that represent some of their biggest internet development efforts
Source: Financial Times - US homepage | 28 May 2009 | 8:41 pm

Telecom pins hopes on mobile and broadband

Telecom says it will balance flagging call revenues with an aggressive grab at market share in the broadband, mobile and IT services markets. At an investor update yesterday chief executive Paul Reynolds outlined the company's...
Source: New Zealand Herald - Business | 28 May 2009 | 8:30 pm

U.S. v. U.K. Cagematch Continues

Just in case you had not yet gotten your fill of the Cross Pond Classic, another event is introduced: The 400 meter stress-test hurdles. GO!

Analysts Olivia Frieser and Andrea Cicone concede the test is a "real one", in so far as the parameters - 12 per cent unemployment, 50 per cent fall in house prices and a six per cent decline in GDP from peak to trough - are reasonably demanding:

The assumptions seem severe enough to us and therefore the stress test seems real...

However, they note:

...if we were picky, we would say that they remain static tests, and that these assumptions are merely in line with the base case of our admittedly bearish economists.

The US and the UK stress tests have two very different objectives [FT Alphaville]

Related: United States - Gross domestic product - Unemployment - Business - US
Source: Dealbreaker | 28 May 2009 | 8:16 pm

You Can Take Your Bull's Eye And Shove It!

Target Corp.'s shareholders have re-elected the company's slate of directors, rejecting a hedge fund's alternate slate, according to preliminary vote totals.

The head of Pershing Square Capital Management has argued that the struggling retailer needed new perspective, especially in the areas of retail and real estate so it can better compete with rival Wal-Mart Stores Inc.

Shareholders rejected those arguments at Target's shareholder meeting outside Milwaukee on Thursday. Shareholders also sided with the company in approving a measure that sets the board's size at 12 members.

Target shareholders reject Ackman board slate [AP]

Update: Margaret Brennan: "Reportedly Ackmann himself is very disappointed with the results; he in fact choked up during his presentation today."

Related: Wal-Mart - Retail - Target Corporation - William Ackman - Hedge fund
Source: Dealbreaker | 28 May 2009 | 8:03 pm

Telco foes lure clients with freebies as 3G battle begins

Free phones and million-dollar give-aways are the weapons as the big two mobile networks go head to head in the war for 3G customers. Telecom's 3G XT Network goes live today after being delayed two weeks by Vodafone's demanding...
Source: New Zealand Herald - Business | 28 May 2009 | 8:00 pm

FSA doomsday package includes a free massage for stressed banks

Armageddon comes with a sun lounger and a rum cocktail at the Financial Services Authority apparently. The City watchdog's stress tests for Britain's lenders are so far from the nightmare scenario expected that some wags labelled them a "relax test".
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 28 May 2009 | 7:41 pm

Our Favorite Recession Haiku

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Having trouble with the slideshow? Try this one.

Last week, we issued our Recession Haiku challenge, and you responded with vigor -- on the blog, on Twitter, on Facebook (x2), over e-mail. At this rate, we'll get to our millionth Recession Haiku by the time the economy turns around.

We gathered a dozen of our favorites for the gallery above. My personal honorable mention is after the jump.

A virtual ribbon for Trey Bien, who wrote:

Granny rolls over
On her mattress
Filled with twenties.

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

Source: NPR Blogs: Planet Money | 28 May 2009 | 7:38 pm

Carlyle To Suck It (Natashas To Saturate Available Credit)

The Vuitton, Versace, Gucci, and Dior bags will have to wait, or slip into a slipping revolver, we suspect, as Carlyle group finally admits it got tagged. Takes a lot for a private equity firm to admit to such things without lots of excuses about being on the left side of the "J curve." We're thinking short-luxury-goods just became an (even more) interesting trade.

"After several years of unprecedented growth, product innovation, geographic expansion, capital deployment and investment gains, our world changed dramatically," the Washington-based firm said in its annual report on its Web site today. "2008 was a humbling experience for us."

Carlyle Says Returns to Shrink After 'Humbling' Year for Firm [Bloomberg]

Related: Carlyle Group - Business - Private equity firm - Gucci - Versace
Source: Dealbreaker | 28 May 2009 | 7:30 pm

Fears for ITN as pension deficit grows

There are concerns over the future of news broadcaster ITN after the group's annual report revealed a pension shortfall of £39.9m in 2008.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 28 May 2009 | 7:30 pm

Transatlantic clash threatens Vauxhall rescue deal

The fate of GM's European marques was threatening to develop into a major transatlantic dispute after the US blocked access to key finance.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 28 May 2009 | 7:20 pm

Recovery not as easy as U, V, W

If a government bond crisis is avoided, my best prognosis for the global economy is a stagnant line, writes Gillian Tett
Source: Financial Times - US homepage | 28 May 2009 | 7:09 pm

The Pad That Lies Built Up For Grabs

Are you into impersonating executives? Inventing hundreds of millions of dollars out of thin air? Staging fictional conference calls? Have we got the place for you! Curbed reports that Marc Dreier's One Beacon Court condo will be up for grabs this July. You'll get: 3,000 square feet, four bedrooms, five baths, a 750 square foot terrace and the sense that you're in the presence of greatness.

Related: Curbed - Marc Stuart Dreier - Recreation - Climbing - Indoor
Source: Dealbreaker | 28 May 2009 | 6:55 pm

Cole Says Restructured GM Could Fully Repay Bailout Money

Source: Bloomberg - All Podcasts | 28 May 2009 | 6:46 pm

Global banker enjoys risk of doing good

The financial crisis has shone a light on the seamier side of banking. But not all bankers are bad. Marketplace's Sean Cole spent time with one who sees his work as helping the world.
Source: Marketplace | 28 May 2009 | 6:41 pm

Mortgage rates rise, remain below 5 pct (AP)

AP - Rates on 30-year home loans rose this week and were poised to go higher as investors demanded higher rates for long-term government debt, which is closely tied to mortgage rates.
Source: Yahoo! News: Business | 28 May 2009 | 6:00 pm

Matrix's Katz Sees U.S. Stocks Rising 40% to 60%

Source: Bloomberg - All Podcasts | 28 May 2009 | 5:36 pm

Investment bankers: CIA wants you

The CIA is recruiting investment bankers and other Wall Street types. If they can pass a few hurdles, the financial whizzes will work on tracking economic threats to national security. Steve Henn reports.
Source: Marketplace | 28 May 2009 | 5:30 pm

Loss may swish away Kobe-LeBron ads

If the Cleveland Cavaliers are bounced out of the NBA playoffs, Nike and Glaceau VitaminWater are out of luck. The brands have been hyping a Kobe Bryant-LeBron James match-up. Joel Rose reports on why advertisers love a good rivalry.
Source: Marketplace | 28 May 2009 | 5:30 pm

Celeb tweets help push Anvil to success

Claude Brodesser Akner, L.A. bureau chief for Advertising Age, talks with Kai Ryssdal about how heavy metal band Anvil managed to rock its way to the top through a documentary and support from a cable channel, celebrities and Twitter.
Source: Marketplace | 28 May 2009 | 5:30 pm

This Just In: Wall St. People Really DO Make Too Much Money

I had a fascinating lunch and interview with economist Ariell Reshef. The interview will be on the podcast next week, but I thought some folks might enjoy reading his paper (feel free to skip the Greek-letter math formulas) that, he says, shows actual mathematical evidence that Wall Street folks really do make too much money.

OK, OK, I know that most of you don't need any proof. You're already convinced.

But Reshef is an academic. He can't just say he's convinced. He has to show the proof.

So, how does he do it?

At the core of economic thinking is the idea that in a functioning market, prices generally land at the most efficient equilibrium. Put more simply: things are worth whatever the market says they are worth. This goes for Wall Street bonuses as much as it does for apples or SUVs.

Using this argument, an economist might say that Wall Street folks are paid exactly what our economy deems they are worth.

Reshef says that's nonsense and that people who believe that are "nuts."

I'll try to summarize the core of the argument:

- Reshef says that the market price is accurate only when there is a truly functioning market. Prices are generally not at the right (or, in economics language, "equilibrium") point if there's a monopoly (just think of your local cable company) or if there isn't enough information about the thing being sold (think of used cars--the seller knows a lot more than the buyer, so the price probably doesn't reflect the real value).

- He says finance is not a monopoly, but it's close. It's very hard for new firms to compete with a handful of big banks.

- Information definitely doesn't flow all that freely out of finance. Frankly, nobody understands many of the products they sell.

- Put that all together, and, Reshef argues, you get a badly functioning market with prices far from their natural, equilibrium point.

- Reshef says things got a lot worse with increasing deregulation in the 1980s and 1990s, which allowed the existing banks to grab more market share and create increasingly complicated products.

- All of this created a situation where Wall Street professionals were able to take increasingly large commissions for themselves.

- Just think of there were only five massive companies in the US that sold the vast majority of used cars and if most people who bought a used car were not able to actually inspect or understand the quality of the thing. Seems pretty likely that used car prices would go way up and used car salesmen would make a lot more money, doesn't it?

- When someone is able to make more money than they would in a truly free market, economists call it a "rent." Obviously, they are using rent differently than we do with apartments and the like. It's the extra amount of money that someone gets not because they've earned it but because they've found some way of excluding others from competing with them.

- Reshef says the rent finance folks earn is big and getting bigger every year.

- Many Wall Street folks and some economists would take issue with Reshef. They'd say that finance became more complicated not because of evil money-grubbing, but because the world became more complicated, more intertwined. Computers and the internet allowed finance to move much more quickly and to spread to far more corners of the economy and the globe. They'd say, sure, the last two years sucked, but we've had 25 years of great growth in the US and in many parts of the financially-integrated world after 1980. They'd argue that finance folks get paid more because they bring more value to the world, they have to be smarter, quicker, more creative. They don't get some unfair rent, they are earning their dough.

- Reshef says, effectively, sure, that's all true. Finance folks might truly earn more than they did in the 1950s when Wall Street was a comparatively sleepy, low-tech business. But, even so, they earn WAY more than can be explained by increased skill and value.

What do you think?

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Source: NPR Blogs: Planet Money | 28 May 2009 | 5:26 pm

It's Hard Being A Hipster

Christina writes:

I, like many young NPR listeners, reluctantly count myself as among those with the slightly pejorative label 'hipster.' When I heard the lady on the last podcast say that one can shop at consignment shops and Goodwill, I thought, "Hey I do that... why am I still not able to save money?"

I think one of the most ironic things about a subculture that loves irony, is that the image, like any image, is difficult to keep up. While most of my friends and I live in a way that would reflect thriftiness, there are still expenses beyond thrift store clothes and couches dragged in from the street.

I'm learning to live like I am indeed the struggling grad student that I am. This means less organic produce, less spices and sauces imported from East and South Asia, zero new music, zero indie rock shows, zero arthouse movies, no more art classes at the local community art center and much less travel. Also, eco-friendly stuff like picture frames made of woven newspaper are so expensive, so I just do without the eco-friendly stuff. Too bad I won't be able to buy those bamboo headphones that I want.

My piercings are gone and since I can no longer afford trendy haircuts and dyes, my mousy brown hair is grown-out and boring.

Fortunately I don't have the expenses some of my friends do, like amps, guitars, pottery wheels and camping equipment.So, apart from school and a side job, I just volunteer and read. It's probably good for me anyway to trade in 'indie cred' for 'normal person actually poor like everyone else cred.'

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Source: NPR Blogs: Planet Money | 28 May 2009 | 5:23 pm

Diagnosis for Mass. health care: Pricey

Since Massachusetts reformed its health care system in 2006, it's achieved almost universal insurance coverage. But a new study says the overhaul is being undermined by rising costs and other issues. Janet Babin reports.
Source: Marketplace | 28 May 2009 | 5:10 pm

Why Time Warner-AOL merger failed

Time Warner and AOL are calling it quits, ending a disastrous partnership. Bob Moon reports on why this media marriage didn't work out.
Source: Marketplace | 28 May 2009 | 5:10 pm

What Chrysler needs after bankruptcy

Just a month after it filed for bankruptcy, Chrysler is wrapping up the proceedings -- much sooner than most observers anticipated. But now comes the hard part. Amy Scott reports.
Source: Marketplace | 28 May 2009 | 5:10 pm

The World’s 10 Weirdest Vending Machines

Vending machines have been around since the first century AD. By today’s accounts, even the first vending machine, which dispensed holy water to temple visitors, was weird.

The tradition continues. This month alone, Germans released a 24K gold bar vending machine, and an Italian entrepreneur exhibited a machine that makes pizza from scratch. These machines are featured along with 8 other oddities below:

Dog-O-Matic

Source: Slippery Brick

The Dog-O-Matic, an automatic dogwashing machine, is a hit in the town of St. Max, France. Inventor Romain Jarry wants to launch it in Britain next year, but claims that “at the moment people are still getting used to the idea,” according to the Daily Mail. That’s probably because the device looks like a canine waterboarding machine. “It doesn’t take long to wash the dog,” he said. “The longest part is the drying. The dogs don’t seem to get bored. They just sit there and they come out clean.” If your dog makes it through without trauma, your wallet won’t: It costs $21 to wash a small dog, $35 for a medium dog, and $49 for a big animal.

Instant Judaism

Source: Jacob Richman

This vending machine sits in Jerusalem’s central bus station, where it sells booklets on Jewish traditions and laws. The purpose of the sponsoring organization, Hadaf Hayomi, is to “spread Torah knowledge worldwide in a beautiful manner.” Not sure how beautiful vending machines are, but they’re certainly spreading the message. (From Jacob Richman’s blog).

Gold-to-Go

Source: Wirtschaftswoche

Online discounter Gold-Supermarkt.de launched the “Gold-to-Go” machine in May to address increasing demand for the precious metal within Germany. The machine sells 1 gram, 24-karat gold bars, and updates prices every 10 minutes. The company plans to install 500 machines in train stations and airports Germany, Austria, and Switzerland. The tiny bars are hardly a good investment: Goldbugs pay 31 Euros cash for a bar worth about 21 Euros. But you can’t beat the bars for novelty points.

Pet Beetles

Source: PhotoMann

According to Doug Mann, who took the picture above, some Japanese kids like to keep rhinoceros beetles as pets. The roadside vending machine above sells them for 100-300 yen each. The males, which have long horns protruding from their heads, are especially coveted. Department stores in Japan also sell the bugs.

Call-a-Ball

Source: We Make Money Not Art

If the urge to play a game of pick-up soccer with your friends ever hits, Call-a-Ball will provide. This soccer ball dispensing machine spits out an RFID-embedded ball when you send an SMS with the vending machine code on it. You can also register to have the machine send a “challenge” message to your friends via SMS. When you’re done kicking, just pop the ball back into the machine.

Schoolgirl Panty Machine

Source: PhotoMann

No, it’s not an urban legend. Though Japan’s famous used schoolgirl panty vending machines were purportedly banned in 1993, individuals continued to report their existence around the country until at least 2001. The panties are supposedly worn by schoolgirls before they make it into the vending machines, where they sell for upwards of $50 a pop.

Rolls Royce-o-Mat

Source: NYTimes

Miami’s Mondrian South Beach hotel boasts one of the world’s fanciest vending machines. The specially designed Semi Automatic machine only takes credit cards. In return, it deposits a variety of luxury items, including 24-karat gold handcuffs, designer vases, jewelry, and a Rolls Royce Silver Shadow (rental only). According to the New York Times, an anti-recession T-shirt is among the machine’s bestsellers.

Marijuana To Go

Source: Geekologie

The pot vending machine featured above dispensed up to 1oz/week of prescription pot. Approved users could choose from five strains, which they would receive in a vacuum-sealed plastic capsule. The machines were installed in California in early 2008, then seized by DEA agents not long thereafter.

Let’s Pizza

Source: NowPublic

“Let’s Pizza,” a vending machine released by Italian entrepreneur Claudio Torghele, makes pizza from scratch in less than 3 minutes. All you need to do is choose one of four types of pizza, pay $4.95, and watch as the machine creates a fresh pie. The machine mixes and presses the dough, adds sauce and toppings, and bakes the pizza in an infrared oven. At the end of the process, you pick up the steaming pizza on a cardboard tray. If you’re a hygiene freak, or simply in a hurry, you could become fast friends with the “Let’s Pizza.”

Tie Vending Machine

(Source: SurferJerry.com)

Another Japanese vending-machine oddity, in case a paper shredder or cup of coffee gets the better of your old tie.

Source: Business Pundit | 28 May 2009 | 5:06 pm

Bernstein's Dell Sees $70 to $80 Oil Late 2009

Source: Bloomberg - All Podcasts | 28 May 2009 | 5:03 pm

Boockvar Says Many Equities Are Inflation Hedges

Source: Bloomberg - All Podcasts | 28 May 2009 | 4:58 pm

Birinyi Sees U.S. Stocks Rising for Couple of Years

Source: Bloomberg - All Podcasts | 28 May 2009 | 4:57 pm

Visteon Files for Chapter 11 Bankruptcy, Endangers Ford

Michigan-based auto parts supplier Visteon filed for Chapter 11 bankruptcy today. The Wall Street Journal reports:

Visteon is by far Ford’s largest parts supplier, and the auto maker accounts for one-third of Visteon’s $9 billion of annual sales. Korean-based auto maker Hyundai Motor Co. is the next biggest customer, with 30% of Visteon’s sales.

Whether Visteon is able to restructure or is forced to liquidate depends largely on how much support Ford is willing to give, said Doug Bernstein, managing partner of the bankruptcy group at law firm Plunkett Cooney P.C.

Ford assumed $167 million in Visteon secured loans this month. Visteon hopes Ford will let it borrow against that loan for bankruptcy financing and also provide other lending as well, said people familiar with the matter.

The Truth About Cars reports that the Visteon bankruptcy has been in the cards for a while:

In the nine years since FoMoCo spun off its vehicle climate systems, interior parts, lighting and electronic systems maker, Visteon has never posted an annual profit.

None of its overseas subsidiaries or joint ventures outside the US are part of the filing. Not that they need any help with it: In March Visteon’s main UK subsidiary filed for reorganization.

Automotive News reports that the company’s creators will be there for their progeny. “Visteon said Ford has committed to ensure long-term continuity of supply and to support debtor-in-possession (DIP) financing for the restructuring efforts. Ford is still Visteon’s biggest customer and accounted for about 31 percent of its $1.35 billion of sales last quarter.”

Ford, taking inspiration from Delphi–a similar GM experiment intended to cut labor costs–spun off Visteon to increase shareholder value. Visteon, whose business model turned out to be a loser, tried outsourcing and constant reorganizing to save itself, to no avail. The company never made money. Yet its failure could trigger a domino effect resulting in a government bailout of Ford.

Ford, all of a sudden, isn’t looking so solid anymore.

Source: Business Pundit | 28 May 2009 | 4:38 pm

Drossos Sees U.S. Dollar Depreciating Through 2010

Source: Bloomberg - All Podcasts | 28 May 2009 | 4:24 pm

The End of Advanta

Advanta is wrapping up its credit card business, quickly. News of the company's plans to cut off credit were reported earlier this month, and the company said would notify customers at "the appropriate time prior to June 10." Apparently the appropriate time was yesterday. My boyfriend received a second day air letter at our apartment informing him that his card was being cut off -- in just two days. The Philadelphia Inquirer reports:

Advanta Corp. said yesterday that it expected to move up the date after which its customers would no longer be able to use their credit cards, to next Saturday from June 10.

The Spring House company, which specializes in credit cards for small businesses, said last week that it was freezing nearly one million accounts to cut its losses and preserve its capital reserves.

Industry analysts called the swiftness of the action unprecedented. Advanta posted a first quarter loss of $75 million and last month its customers defaulted at a rate of 20 percent.

While the unexpected shut off maybe merely inconvenient for some consumers, it could cause major problems for a number of small businesses who use the card regularly to cover expenses.

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Source: NPR Blogs: Planet Money | 28 May 2009 | 3:53 pm

Toys “R” Us Buys FAO Schwarz

Toys “R” Us purchased FAO Schwarz today for an undisclosed amount. Bloomberg has more:

Toys “R” Us plans to continue operating FAO Schwarz’s two retail stores in New York and Las Vegas under the same name, along with the company’s Web site and catalog businesses, Toys “R” Us said late yesterday in a statement.

The deal combines two retailers that have faced increased competition from the Internet and discount chains (ed: especially Wal-Mart) during the recession. U.S. retail sales of toys generated $21.6 billion in 2008, a 3 percent drop from 2007, according to researcher NPD Group Inc. Mass merchant, discount and online retailers saw the most modest declines, NPD said, as consumers looked for ways to buy non-necessities at the lowest cost.

The New York Times Dealbook puts the purchase in context:

Like many retailers, Toys “R” Us is using the economic downturn to take market share. This year, Toys “R” Us bought eToys.com, babyuniverse.com and the resource site ePregnancy.com.

The acquisitions help the company dominate the toy segment, leaving Wal-Mart and Target as its main competitors.

Toys “R” Us underscored that it would operate all the F. A. O. Schwarz businesses under the F. A. O. Schwarz name and maintain the hands-on shopping experience at the stores.

Source: Business Pundit | 28 May 2009 | 3:19 pm

AP Source: GM Closing 14 Plants

From the Dayton, Ohio, Daily News, "AP Source: GM to announce 14 plant closures Monday." The lede:

A person briefed on General Motors Corp.'s plans says the company on Monday will identify the 14 factories it will close as it heads toward a likely Chapter 11 bankruptcy protection filing.

The person says United Auto Workers officials in Detroit have told plant-level union leaders that the company will make the announcement, not the union.

The paper reports that a GM spokesperson wouldn't comment.

The Detroit Free Press say the GM board meets this week to decide whether to file for bankruptcy. UPDATE: GM and Treasury have reached a deal with major bondholders giving them more equity in exchange for not fighting the government's bankruptcy plans.)

(Thanks, @maple_fan, who lives outside Dayton and tweets, "This is surreal in an ex-GM town.")

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Source: NPR Blogs: Planet Money | 28 May 2009 | 3:01 pm

Time Warner to spin off AOL, ending ill-fated deal

NEW YORK -- Time Warner Inc. is dumping AOL after spending nearly a decade trying to build a new-age media empire only to wind up in a weaker position than when the marriage began.

Source: L.A. Times - Business | 28 May 2009 | 2:55 pm

Lobsters Vs. Bologna

Just got this economic indicator from my in-laws:

"We were in Maine over Memorial Day weekend. Lobstermen are upset because lobsters are selling for the same price as bologna."

Trucks on the side of the road were selling them for $4 a pound.

This news story from Canada (headline: "Bologna, $7.69/kg; Lobster, ditto") blames the economy.

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Source: NPR Blogs: Planet Money | 28 May 2009 | 1:50 pm

Lazy Road Worker

Source: Business Pundit | 28 May 2009 | 11:42 am