Steel Partners Investors In For Another Drunken Surprise?

We can't say for certain, of course, but if Warren Lichtenstein's history is any guide, hell to the yes. Last New Year's Even, the Steel Partners head informed his investors that he'd decided to turn the firm's flagship fund into a publicly-listed vehicle, without telling anyone, after losing 43 percent of its assets in the first first 11 months of 2008. He worked up the courage to do so by getting hammered before sitting down to type.

Which is why we think it's only logical to ask if, after being charged with his last DUI, Lichtenstein again got the urge to get something ("Don't be mad but I spent all your money on the slots") off his chest.

Sponsored Topics: Steel - New Year - Warren Lichtenstein - Business - Metals
Source: Dealbreaker | 9 Jun 2009 | 4:12 pm

Bankruptcy Filings Jump Up

It's not just the country's automakers who are dealing with bankruptcy. The Administrative Office of the U.S. Courts says bankruptcy filings for the year ending in March 2009 are up 33.3 percent from 2008. While the majority of the filings are for non-business debts, filings involving business are up 59.7 percent from the same period last year.

There were 330, 477 bankruptcy filings in the first quarter of this year, the highest since 2005. Read the full report here.

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Source: NPR Blogs: Planet Money | 9 Jun 2009 | 4:02 pm

Bonus Watch '09: Citi

Citi is reportedly paying retention bonuses to two employees it poached from Morgan Stanley. A whopping two kind of seems like a NBD situation, but I guess you might feel differently if you're one of the many Citi employees getting zilch. The issue is also complicated by the fact that Forbes got the lawyer representing a bunch of former Citi dwellers who got canned last year to get their thoughts on the matter. I think you can guess how they feel about the sitch (also: they're all women so now this is being made a gender thing, possibly, when it should really just be a Citi Sucks thing. Stay on point, girls.)

In a bid to attract talent, Citigroup has been paying traders in London guaranteed bonuses totaling millions of dollars. Among the lucky recipients are Rachel Lord, an executive in Citi's equities group, and Stefanos Bitzakidis, who is listed on Bloomberg as global head of exotic equity derivatives. The two received a total of roughly $3 million in guaranteed bonuses to join Citigroup from Morgan Stanley this year, says a person familiar with the situation. They are among a number of traders in Citi's equities division who have received guarantees to join the firm in recent months.

"Paying retention bonuses in the face of unlawfully terminating women who were making money for the company and were highly qualified is completely outrageous," says Douglas Wigdor, a New York attorney who is representing five women suing Citi over their layoffs late last year.

Sponsored Topics: Morgan Stanley - London - New York
Source: Dealbreaker | 9 Jun 2009 | 3:45 pm

Bond Report: Treasurys up ahead of 3-year-note sale

Treasury prices rise, pushing yields down from 7-month highs, before the government sells $35 billion in 3-year notes, the first of three big note and bond auctions this week.

Source: MarketWatch.com - Top Stories | 9 Jun 2009 | 3:37 pm

10 banks allowed to pay back TARP

Ten leading banks won approval to repay money from the government's controversial TARP program, regulators said Tuesday, which could represent approximately $68 billion in returned bailout funds.
Source: Business and financial news - CNNMoney.com | 9 Jun 2009 | 3:36 pm

Ex-AT&T CEO to head up new GM

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 9 Jun 2009 | 3:35 pm

Market reacts coolly to bank bailout repayment (AP)

AP - Investors reacted coolly to word that 10 of the nation's largest banks can repay $68 billion in bailout money.

Source: Yahoo! News: Stock Markets News | 9 Jun 2009 | 3:33 pm

U.S. approves 10 banks repaying bailout funds (Reuters)

Reuters - U.S. officials on Tuesday gave 10 of the nation's biggest banks approval to pay back a combined $68 billion of taxpayer money pumped into them to combat the credit crisis.

Source: Yahoo! News: Business | 9 Jun 2009 | 3:31 pm

Arcandor files for bankruptcy

German retailer Arcandor, the owner of Thomas Cook, has filed for bankruptcy, putting 50,000 jobs at risk.
Source: BBC News | Business | World Edition | 9 Jun 2009 | 3:23 pm

Geithner says to "streamline" regulatory structure

WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner said on Tuesday he would soon revamp the country's regulatory system to prevent a repeat of excessive risk-taking that has tipped it into a severe recession.
Source: Reuters: Business News | 9 Jun 2009 | 3:20 pm

Ag futures mostly up, livestock prices mixed

Agriculture futures mostly rose Tuesday on the Chicago Board of Trade. Wheat for July delivery added 4.5 cents to $6.025 a bushel, while July corn rose 6.5 cents to $4.415 a bushel and...
Source: RSS feed - channel BNewsBusiness | 9 Jun 2009 | 3:18 pm

Brazil economy shrinks less than expected

Brazil is recovering more quickly than expected from the global economic crisis, data for gross domestic product in the first quarter suggest
Source: Financial Times - US homepage | 9 Jun 2009 | 3:18 pm

U.S. approves 10 banks repaying bailout funds

WASHINGTON (Reuters) - U.S. officials on Tuesday gave 10 of the nation's biggest banks approval to pay back a combined $68 billion of taxpayer money pumped into them to combat the credit crisis.
Source: Reuters: Business News | 9 Jun 2009 | 3:17 pm

Ten US banks to pay back bail-out

Ten of the largest US banks will be able to repay $68bn in government bail-out money, the US Treasury says.
Source: BBC News | Business | World Edition | 9 Jun 2009 | 3:16 pm

US wholesale inventories slide in April

US wholesale inventories fell for the eight month running in April as companies continued to slash stocks to combat weak demand
Source: Financial Times - US homepage | 9 Jun 2009 | 3:12 pm

Supreme (Bankruptcy) Court

I've been talking to bankruptcy lawyers recently, trying to understand the rules of bankruptcy, and whether our listener Mandy Dalton, who is a clown, will get paid the $200 she was owed when the giant mall owner General Growth Properties filed for Chapter 11.

It's been confusing because one big bankruptcy in the news, Chrysler, hasn't exactly been following the traditional rules.

That's why Supreme Court Justice Ruth Bader Ginsburg put the deal on hold yesterday with minutes ticking down on the clock.

NPR's Frank Langfitt reported on this weeks ago.

In that story Richard Mourdock the state treasurer of Indiana made the argument now being made to the Supreme Court. (Mourdock oversees police and teacher pension funds that leant Chrylser money.)

"It's wrong, that people can just suddenly, arbitrarily change 100 years of American legal practice to say secured creditor doesn't mean secured creditor."

Jay Westbrook, a professor of bankruptcy law at the University of Texas offered this context.

"When the bankruptcy process is being used to try to save a business, the courts and the parties have to accept a kind of rough justice.... The classic example we always use in bankruptcy is that the debtor has this shipload of raw fish, right? And we've got to move quickly before the fish spoil or they'll be no value for anybody"

We'll have to see what Justice Ginsburg thinks.

A lawyer for Chrysler has argued that the company is losing $100 million for each day it's stuck in bankruptcy.

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Source: NPR Blogs: Planet Money | 9 Jun 2009 | 3:11 pm

Northern Trust Receives Authority to Repay U.S. $1.576 Billion

CHICAGO, June 9 /PRNewswire-FirstCall/ -- Northern Trust Corporation (Nasdaq: NTRS) announced today that it received authority from the federal government to redeem...
Source: RSS feed - channel BNewsBusiness | 9 Jun 2009 | 3:11 pm

U.S. bankruptcies highest since 2005

NEW YORK (Reuters) - U.S. bankruptcy filings rose in the first quarter to the highest since 2005, government data show, as rising unemployment, falling housing prices and tight credit made it harder for people to hold off their creditors.
Source: Reuters: Business News | 9 Jun 2009 | 3:09 pm

Chrysler awaits next word from court

The Supreme Court threw a wrench into the plans to have a quick bankruptcy process at Chrysler LLC, delaying the company's combination with Italian automaker Fiat.
Source: Business and financial news - CNNMoney.com | 9 Jun 2009 | 3:08 pm

Shepherd, Smith, Edwards & Kantas Receives Million Dollar Arbitration Award Against Prudential Equity Group

DETROIT, June 9 /PRNewswire/ -- Shepherd, Smith, Edwards & Kantas LLP ( href="http://www.sseklaw.com/">www.sseklaw.com ), a national firm specializing in...
Source: RSS feed - channel BNewsBusiness | 9 Jun 2009 | 3:08 pm

ASR Applauds the Introduction of Comprehensive Retirement Security Legislation in the U.S. House

Bill Includes Increased Access to Guaranteed Retirement Income WASHINGTON, June 9 /PRNewswire-USNewswire/ -- The Americans for Secure Retirement (ASR) coalition...
Source: RSS feed - channel BNewsBusiness | 9 Jun 2009 | 3:07 pm

Milliman Study Indicates Decline in Pension Funding Status in May

After two months of improvement, corporate pension funding status declines in May SEATTLE, June 9 /PRNewswire/ -- Milliman, Inc., one of the premier global...
Source: RSS feed - channel BNewsBusiness | 9 Jun 2009 | 3:07 pm

Still Searching for a Bottom: A Mid-Year Economic Review

CHICAGO, June 9 /PRNewswire/ -- "The previous expansion peaked in December 2007, which means we are now eighteen months into the current recession. The good news is that signs...
Source: RSS feed - channel BNewsBusiness | 9 Jun 2009 | 3:07 pm

Channel 4 risks missing out on future pay users

The cashstrapped broadcaster has put its back catalogue online for free but this shortterm view may deny longterm gains as ondemand services grow.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 9 Jun 2009 | 3:06 pm

Tech shares higher, led by Texas Instruments (Reuters)

Reuters - Technology shares led Nasdaq higher on Tuesday after Texas Instruments raised its outlook, but other indexes were lower after plans by big banks to repay government bailout funds failed to stir investors.

Source: Yahoo! News: Business | 9 Jun 2009 | 3:05 pm

Tech shares higher, led by Texas Instruments

NEW YORK (Reuters) - Technology shares led Nasdaq higher on Tuesday after Texas Instruments raised its outlook, but other indexes were lower after plans by big banks to repay government bailout funds failed to stir investors.
Source: Reuters: Business News | 9 Jun 2009 | 3:05 pm

Tech shares higher, led by Texas Instruments (Reuters)

Reuters - Technology shares led Nasdaq higher on Tuesday after Texas Instruments raised its outlook, but other indexes were lower after plans by big banks to repay government bailout funds failed to stir investors.

Source: Yahoo! News: Stock Markets News | 9 Jun 2009 | 3:05 pm

Geithner says to "streamline" regulatory structure (Reuters)

Reuters - U.S. Treasury Secretary Timothy Geithner said on Tuesday he would soon revamp the country's regulatory system to prevent a repeat of excessive risk-taking that has tipped it into a severe recession.
Source: Yahoo! News: Business | 9 Jun 2009 | 3:04 pm

LaJobi Recalls Bonavita 'Cabana' Drop Side Cribs Due to Entrapment and Strangulation Hazards

WASHINGTON, June 9 /PRNewswire-USNewswire/ -- The U.S. Consumer Product Safety Commission, in cooperation with the firm named below, today announced a voluntary recall of the...
Source: RSS feed - channel BNewsBusiness | 9 Jun 2009 | 3:04 pm

News on McDonald's (MCD), Caterpillar (CAT), and the CBOE SPX Volatility Index (VIX) - www.ONN.tv Reports

CHICAGO, June 9 /PRNewswire/ -- Today's "Options News" from href="http://www.onn.tv/?cid=PRNewswire">www.ONN.tv discusses the market's see-saw price...
Source: RSS feed - channel BNewsBusiness | 9 Jun 2009 | 3:04 pm

3 netbooks go head-to-head

Netbooks are models of portability. But can you stare at those little screens all day? Our reviewer put three to the test.
Source: Business and financial news - CNNMoney.com | 9 Jun 2009 | 3:00 pm

Cameron Hughes Wine Appoints Regal Wine Co. as California Distributor

Cameron Hughes Wine Becomes One of Few Brands Outside Kendall Jackson Welcomed to Regal Family SAN FRANCISCO, June 9 /PRNewswire/ -- Cameron Hughes Wine, a...
Source: RSS feed - channel BNewsBusiness | 9 Jun 2009 | 3:00 pm

Boeing Elects Nielsen Chairman and CEO David Calhoun to Board of Directors

CHICAGO, June 9 /PRNewswire-FirstCall/ -- The Boeing (NYSE: BA) board of directors has elected David L. Calhoun as its newest member. Calhoun, 52, is chairman of the management...
Source: RSS feed - channel BNewsBusiness | 9 Jun 2009 | 3:00 pm

Competition For Which Country Has The Most Inadequate Bank Stress Test Heats Up

It's one thing to put on a high school senior prank of a bank stress test and then hide your head in the sand. It's quite another to pretend to stand behind it and then call out somebody else's. On the same day the Obama administration is calling for European countries to administer tougher bank stress tests, Elizabeth Warren, head of the Congressionally appointed oversight panel for TARP, is calling for the US stress tests to be repeated right now because (shockingly) they weren't stressful enough. Among the panels concerns are the unemployment assumptions and "some serious questions" about the stress test methodology. There is only one way to explain this- Geithner is sending Ashton Kutcher to punk every European bank head.

TARP Panel Report Gives Lukewarm Review to Stress Tests [CNBC]

Sponsored Topics: Elizabeth Warren - Troubled Asset Relief Program - United States - Stress - Business
Source: Dealbreaker | 9 Jun 2009 | 2:59 pm

Arcandor files for insolvency

Ailing German retail group Arcandor has told Berlin that it would file for insolvency after failing to secure state aid
Source: Financial Times - US homepage | 9 Jun 2009 | 2:58 pm

Market reacts coolly to bank bailout repayment

NEW YORK -- Investors reacted coolly to word that 10 of the nation's largest banks can repay $68 billion in bailout money.

Source: L.A. Times - Business | 9 Jun 2009 | 2:57 pm

The Ratings Game: FBR upgrades oil drillers on 2011 profit prospects

FBR Capital Markets upgrades drillers Schlumberger, Diamond Offshore, Baker Hughes and Smith International, in the belief that the downbeaten oil-services sector will experience a marked profit rebound in 2011.

Source: MarketWatch.com - Top Stories | 9 Jun 2009 | 2:57 pm

Former AT & T CEO to become new GM chairman

DETROIT -- General Motors Corp. says the former chairman and CEO of AT&T; Inc. will become the chairman of the reorganized automaker later this summer.
Source: RSS feed - channel BNPaperBusiness | 9 Jun 2009 | 2:50 pm

Treasury: Ten banks can repay $68 billion in TARP

A group of 10 large financial institutions are given the go-ahead by the Treasury Department to repay $68 billion in funds they received as part of the government’s almost $200 billion bank bailout program.

Source: MarketWatch.com - Top Stories | 9 Jun 2009 | 2:50 pm

Former AT & T CEO to become new GM chairman

DETROIT -- General Motors Corp. says the former chairman and CEO of AT&T Inc. will become the chairman of the reorganized automaker later this summer.

Source: L.A. Times - Business | 9 Jun 2009 | 2:50 pm

Steve Liesman: We're Guesstimating That TARP Repayments Will Come Out To About $68 Billion

He and the crew are (actual quote here) "pretty sure" that the checks will come in as follows:

JPMorgan: $25 billion

Goldman Sachs: $10 billion

Morgan Stanley: $10 billion

US Bancorp: $6.6 billion

Bank of NY: $3 billion

State Street: $2.6 billion

American Express: $3.6 billion

BB&T: $3.1 billion

Capital One: $3.55 billion

The Journal is down with the $68 billion figure but is apparently refusing to live a little this morning, and will not be throwing darts against the wall to figure out who's repaying what. Which, is disappointing.

Sponsored Topics: CapitalOne - GoldmanSachs - US Bancorp - AmericanExpress - JPMorgan Chase
Source: Dealbreaker | 9 Jun 2009 | 2:47 pm

US investors turn to materials and energy stocks

US equities struggled for direction as rising commodity prices and a slip in the strength of the dollar tempted investors to buy shares in large materials and energy companies
Source: Financial Times - US homepage | 9 Jun 2009 | 2:46 pm

The Fruits Of Bill Ackman's Latest All-Nighter

Q1's been over for what many of you would might characterize as quite some time now. Most managers are currently considering what pearls of wisdom and hilarious bon mots they'll be offering their investors for the next quarterly missive. Not Bill Ackman. He just turned in his thoughts on January/February/March '09 period yesterday, after what we're assuming was his now second Red Bull-fueled late night/early morning since college. Odds are he doesn't need us or his mother to write a (joint) note accounting for the tardiness, but we will remind you, Ack-boy's had his hands full. The point is, with those fuck-sticks in Minneapolis making the biggest mistake of their lives, Bill's finally been able to do all the stuff that got put on the back burner, like this letter and all his DVR'd episodes of Britain's Got Talent (nobody tell him Susan Boyle came in second, as he's rooting for her and cannot take another disappointment).

Ackman covers a variety of topics in his latest, including Target, General Growth and the sense he's been getting that some haters don't appreciate the media attention visited on Pershing Square's house via the 1-stock fund battle.* The Ackmeister writes:

"...you should expect that we will do our best to fade into the sunset as far as the media is concerned until such time as an investment opportunity requires us to work more closely with the press. We hope such time is many moons from now. We write this paragraph knowing full well that when this letter eventually reaches the press, it may lead to further articles about our attempt to quietly go on our way."

This hurts us for two reasons: 1) we get the sense that he's daring us (and others, but mostly us) to prove him wrong and not print it. So right now, I'm sitting here feeling like my hands are tied! Which I guess was the intent! You're good my friend. 2) "fade into the sunset"? Stars don't fade into the sunset, Bill. Does your hero Susan Boyle have any plans to fade into the sunset? I don't think I have to tell you, she does not. We're also slightly troubled by the signature, which seems to have been written in anger. However, if this is some sort of coded "go fuck yourself TGT," message, well done. Finally, Joe "Real Men Don't Cry (At Shareholder Meetings)" Nocera, you got a shout-out, too. But you'll have to read on to see it.

*We're not certain it's so much "media attention" in general as it is "CNBC." Next time, you come to Dealbreaker, and we'll help you get the message out in a way that's palatable to all, this much I promise you.

Sponsored Topics: Britain's Got Talent - Pershing Square - Susan Boyle - Minneapolis - Business
Source: Dealbreaker | 9 Jun 2009 | 2:45 pm

Fixedrate savers face sharp drop in interest rates

Savers coming off generous fixedrate bonds face sudden drop in income
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 9 Jun 2009 | 2:44 pm

German retail giant goes bust (AFP)

AFP - German retail and tourism giant Arcandor filed for bankruptcy on Tuesday, putting around 43,000 jobs at risk after Berlin dismissed the company's request for emergency state aid.

Source: Yahoo! News: Business | 9 Jun 2009 | 2:41 pm

U.S. consumer confidence improves in June

NEW YORK (Reuters) - U.S. consumer confidence rose in June, mirroring the strong gains the stock market has made since early March, a survey released on Tuesday said.
Source: Reuters: Business News | 9 Jun 2009 | 2:41 pm

Clarcon Skin Sanitizers Contain Harmful Bacteria

The FDA recently found high concentrations of harmful bacteria in Clarcon products. Utah-based Clarcon Biological Chemistry Laboratory Inc. manufactures brands including Citrushield Lotion, Dermassentials, Skin Shield, Iron First Barrier Hand Treatment, and Total Skin Care.

The FDA recommends customers throw away all Clarcon products, according to an AP article. The Clarcon manufacturing plant was found to have “serious deviations from the FDA’s Good Manufacturing Practice requirements,” says the article.

Clarcon might have to change the wording in the “Quality” section of its website after this. It says:

Poor manufacturing can destroy great science. For this reason, Clarcon manufactures its own products to ensure that the formulas developed in its laboratories are produced consistently and precisely for customers.

Source: Business Pundit | 9 Jun 2009 | 2:39 pm

Another Hedge Fund ETF Launches (MCRO, QAI)

NYSE Euronext has begun trading the IQ Hedge Macro Tracker ETF (NYSE: MCRO), sponsored by IndexIQ Advisors LLC.  This marks the second product by IndexIQ Advisors to list on NYSE Arca after its IQ Hedge Multi-Strategy Tracker ETF (NYSE: QAI) launched on March 25. The ETF’s investment objective is to seek investment results that correspond to [...]

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Source: 24/7 Wall Street | 9 Jun 2009 | 2:39 pm

Oil rises above $69 as dollar eases

LONDON (Reuters) - Oil snapped a two-day slide on Tuesday, climbing above $69 as the U.S. dollar retreated.
Source: Reuters: Business News | 9 Jun 2009 | 2:39 pm

Germany's Arcandor to file for bankruptcy

Shares of German retailer Arcandor tumbled after the company said it will file for bankruptcy, after being rejected on two fronts for a state loan guarantee and rescue aid.

Source: MarketWatch.com - Top Stories | 9 Jun 2009 | 2:39 pm

Financial Stocks: Financial sector quiet after TARP-payback details

The Treasury Department is set to announce that it will allow as many as 10 banks to repay the funds they’ve borrowed under the Troubled Asset Relief Program, according to press reports.

Source: MarketWatch.com - Top Stories | 9 Jun 2009 | 2:38 pm

Fiat to stay course on Chrysler despite court delay

MILAN/WASHINGTON (Reuters) - Italian automaker Fiat SpA will not walk away from its deal to buy bankrupt Chrysler LLC, a spokesman said on Tuesday after a U.S. Supreme Court order put the sale in doubt.
Source: Reuters: Business News | 9 Jun 2009 | 2:35 pm

Europe Markets: Technology stocks shine in modestly higher Europe

Shares in Europe trade modestly higher, with the technology sector a standout as investors pick up on signs that the business environment for the industry could be improving.

Source: MarketWatch.com - Top Stories | 9 Jun 2009 | 2:35 pm

Fiat commits to Chrysler deal despite court delay

MILAN -- Italian automaker Fiat said today it will not turn its back on a deal to acquire a controlling stake in Chrysler despite a U.S. Supreme Court stay on the sale.

Source: L.A. Times - Business | 9 Jun 2009 | 2:35 pm

10 big banks get OK to repay $68 billion in bailout money

The Treasury Department has approved 10 of the nation's largest banks to repay $68 billion in government bailout money.

Source: L.A. Times - Business | 9 Jun 2009 | 2:35 pm

10 big banks get OK to repay $68 billion in bailout money

The Treasury Department has approved 10 of the nation's largest banks to repay $68 billion in government bailout money.
Source: RSS feed - channel BNPaperBusiness | 9 Jun 2009 | 2:35 pm

Market reacts coolly to bank bailout repayment

NEW YORK -- Investors reacted coolly to word that 10 of the nation's largest banks can repay $68 billion in bailout money.
Source: RSS feed - channel BNPaperBusiness | 9 Jun 2009 | 2:34 pm

British government extends trade-credit support

The British government expands program designed to ensure the nation's supply chain has adequate credit-protection.

Source: MarketWatch.com - Top Stories | 9 Jun 2009 | 2:32 pm

Movers & Shakers: Tuesday's biggest gaining and declining stocks

Stocks expected to move significantly in trading on Tuesday include Men’s Wearhouse, Navistar, Pall, P&G, Talbots and Texas Instruments.

Source: MarketWatch.com - Top Stories | 9 Jun 2009 | 2:31 pm

Nicola Horlick behind bid for Bramdean fund

The City "superwoman" is the mystery bidder for Bramdean Alternatives the fund Vincent Tchenguiz is trying to liquidate.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 9 Jun 2009 | 2:25 pm

Airline Stocks: Sector stumbles and struggles on prior-day losses

Airline stocks struggle in early activity after posting broad losses in prior-day trading on news of deeper projected global losses for the industry.

Source: MarketWatch.com - Top Stories | 9 Jun 2009 | 2:25 pm

Ten US banks to repay Tarp funds

The US Treasury said that it would allow 10 banks to repay government aid because they had raised sufficient capital
Source: Financial Times - US homepage | 9 Jun 2009 | 2:24 pm

Nasdaq leads early advance

The Nasdaq gained Tuesday morning and the broader market struggled as the government said 10 bailed-out banks will repay loans, and investors awaited the latest news about Chrysler after the Supreme Court delayed its exit from bankruptcy.
Source: Business and financial news - CNNMoney.com | 9 Jun 2009 | 2:24 pm

Tech Stocks: TI, Marvell shares lead broad tech-sector gains

Technology stocks make broad gains in early trading Tuesday, led by Texas Instruments as investors greet the communications chip maker's upwardly revised second-quarter financial forecasts. An upgrade lends a bigger boost to Marvell Technology shares.

Source: MarketWatch.com - Top Stories | 9 Jun 2009 | 2:24 pm

Keydata 'sold noncompliant Isas'

Keydata the investment manager was made insolvent by the FSA due to a tax liability caused by selling noncompliant Isas.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 9 Jun 2009 | 2:21 pm

Investors hail taxi share plans

Shares in the manufacturer of the iconic London black cab jump 10% after it unveils plans to raise £9.4m to fund global expansion.
Source: BBC News | Business | World Edition | 9 Jun 2009 | 2:18 pm

Brazil's economy enters recession

Brazil goes into recession after official figures show its economy contracted by 0.8% in the first three months of 2009.
Source: BBC News | Business | World Edition | 9 Jun 2009 | 2:17 pm

Thomas Cook says it's business as normal as Arcandor files for insolvency

Tour operator says collapse of its majority owner Arcandor will have 'no impact' on its finances or customers' holiday plans.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 9 Jun 2009 | 2:12 pm

April wholesale inventories fall 1.4%

WASHINGTON -- Wholesalers slashed inventories more than expected in April as businesses struggled to get stockpiles in line with falling sales.

Source: L.A. Times - Business | 9 Jun 2009 | 2:12 pm

April wholesale inventories fall 1.4%

WASHINGTON -- Wholesalers slashed inventories more than expected in April as businesses struggled to get stockpiles in line with falling sales.
Source: RSS feed - channel BNPaperBusiness | 9 Jun 2009 | 2:12 pm

Thomas Cook 'not affected' by Arcandor insolvency

Thomas Cook has reassured customers after the travel firm's parent company Arcandor announced its bankruptcy.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 9 Jun 2009 | 2:09 pm

Texas Instruments hikes outlook

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 9 Jun 2009 | 2:04 pm

Can the UAW survive in its new role?

The role of the United Auto Workers used to be a simple one: adversary to the Detroit Three, fighting in recent decades to keep jobs in the U.S. and maintain the great wages and benefits that helped create a blue-collar middle class that stretched from Indiana to Michigan.
Source: Business and financial news - CNNMoney.com | 9 Jun 2009 | 2:04 pm

The next great crisis: America's debt

Normally Paul Krugman, the liberal pundit and Nobel laureate in economics, and Paul Ryan, a conservative Republican congressman from Wisconsin, share little in common except their first names and a scorching passion for views they champion from opposite political poles. So when the two combatants agree on a fundamental threat to the U.S. economy, Americans should heed this alarm as the real thing. What's worrying both Krugman and Ryan is the rapid increase in the federal debt - not so much the stimulus-driven rise to mountainous levels in the next few years, but the huge structural deficits that, under all projections, keep building the burden far into the future to unsustainable, ruinous heights. "The long-term outlook remains worrying," warned Krugman in his New York Times column. Krugman strongly supports President Obama's spending plans but bemoans the shortfall in taxes to pay for them.
Source: Business and financial news - CNNMoney.com | 9 Jun 2009 | 2:00 pm

Talbots to cut more jobs

(Reuters) - Talbots Inc posted a much narrower-than-expected loss on Tuesday, a day after the women's apparel retailer decided to sell its J.Jill division to Golden Gate, and said it would cut corporate headcount across all locations by about 20 percent.
Source: Reuters: Business News | 9 Jun 2009 | 1:49 pm

Arcandor collapses after Merkel refuses aid plea

Arcandor, the German retail giant which owns a majority-stake in Thomas Cook, has applied for bankruptcy after Angela Merkel refused to give state aid.


Source: Latest Business News from Times Online | 9 Jun 2009 | 1:44 pm

Punch pockets further £30m from pub sale

Punch Taverns, the embattled pub company, will make a further dent in its £5 billion debt mountain after selling 11 of its top pubs to Greene King, the Abbot Ale and IPA brewer, for £30.4 million.


Source: Latest Business News from Times Online | 9 Jun 2009 | 1:44 pm

FuelCell and POSCO in Korea: When Contracts Really Add Up (FCEL

FuelCell Energy Inc. (NASDAQ: FCEL) is screaming higher in early trading before the bell, and it is easy to see why.  The company announced that POSCO Power ordered 30.8 megawatts of FuelCell Energy Modules and components, with estimated value of $58 million.  This won’t help in the immediate future, but this adds to future orders. South [...]

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Source: 24/7 Wall Street | 9 Jun 2009 | 1:35 pm

Yingli Scores Another Incremental Pact (YGE)

Yingli Green Energy Holding Company Limited (NYSE: YGE) has announced a new pact that has shares rising this morning.  The company entered into a strategic sales agreement at the PV America conference in Philadelphia, PA. and has agreed to supply Recurrent Energy with crystalline PV modules through 2012.  This supply pact is for expected use [...]

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Source: 24/7 Wall Street | 9 Jun 2009 | 1:23 pm

Public sector productivity falls

Value for money from public services fell by 3.2% between 1997 and 2007, the Office for National Statistics says.
Source: BBC News | Business | World Edition | 9 Jun 2009 | 1:15 pm

Sporting chance

Why the Setanta Sports channel is in deep trouble
Source: BBC News | Business | World Edition | 9 Jun 2009 | 1:14 pm

Government trade credit insurance scheme extended

The Government has extended its £5bn trade credit insurance scheme to include companies that have been hit by a reduction in cover since last October following heavy business lobbying.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 9 Jun 2009 | 1:00 pm

Fun At Home And Away

In Detroit, the Supreme Court's hold on the bankruptcy sale of Chrysler to Fiat looks like a "bump in the road" or maybe a "television time-out in the last 30 seconds of a basketball game."

The hometown paper says Justice Ruth Bader Ginsburg, who issued an order Monday holding up the sale and who typically fields appeals from the bankruptcy court in New York, could still decide the matter herself.

In Indiana, home of the pension funds seeking to block the Chrysler sale, the state treasurer tells the Indianapolis Star why he's fighting over $6 million. Richard Mourdock says, "If the changes that the federal government has made indiscriminately go through, the capital markets of the United States are at risk."

Meanwhile, the New York Times goes all-out on economic tensions inside the European Union. It's worth a read, and never mind that odd lead photo of the mom with her hand over her baby's face.

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Source: NPR Blogs: Planet Money | 9 Jun 2009 | 12:56 pm

Getting Out From Under the TARP (AXP, BK, BBT, COF, GS, JPM, STT, USB)

The Treasury is finally allowing some of the TARP recipient banks that posed the systematic risk to begin repaying the Treasury’s preferred stock funds.  This will get these institutions out from under as much oversight from regulators, but more importantly it will take away the political-risk headlines and will reduce some of the importance over [...]

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Source: 24/7 Wall Street | 9 Jun 2009 | 12:55 pm

Opening Bell: 06.09.09

CEO Forgot To Tell Wife About Pay Cut (Reuters)
Willie Walsh, CEO of British Airways failed to mention to his significant other that he'll be working in July for nothing, explaining that she read it in the paper. No word yet on retaliatory action.

White House Pairs Back Finance Reforms (WSJ)
"The decision is partly practical and partly political. Key administration officials believe they can achieve many of their goals by overhauling rules, such as imposing tougher restrictions on how much capital banks must hold to cushion against losses. Officials worry that trying to start from scratch could ignite messy turf battles that might slow or even derail the entire process."

US Could Announce Plan To Allow Ten Banks To Repay (Bloomberg)
We could see the Treasury announce today its plans to allow ten major US banks to repay their TARP funds. To be included on the list (if there's any sanity): JPMorgan, MS, GS. Guesses as to the other 7 are more than welcome!

Shell Agrees To Settle Nigerian Activist Death Case (WSJ)
"Shell has denied it played any role in the execution of Mr. Saro-Wiwa by the military government. In a statement, Malcolm Brinded, head of the company's exploration and production unit, said: "Shell has always maintained the allegations were false. While we were prepared to go to court to clear our name, we believe the right way forward is to focus on the future for Ogoni people, which is important for peace and stability in the region."

AIG Headquarters Up For Landmark Status (NYP)
"Surprisingly, the iconic 70 Pine St., steeped in Art Deco detail and a commanding skyline presence since 1932, is not a designated city landmark; thus, it enjoys no protection from demolition or ruinous changes.

Sponsored Topics: Malcolm Brinded - Troubled Asset Relief Program - Willie Walsh - British Airways - Ogoni people
Source: Dealbreaker | 9 Jun 2009 | 12:55 pm

Business mortgage defaults in US set to rise

Defaults on US commercial mortgages could hit 4.1 per cent by the end of the second quarter, their highest level since the 1992 recession, according to Real Estate Econometrics, a property research firm...
Source: RSS feed - channel BNPaperBusiness | 9 Jun 2009 | 12:51 pm

Arcandor to file for insolvency

Arcandor, the German retailer that owns the Karstadt department store chain and a 53 per cent stake in UK travel group Thomas Cook, told the government on Tuesday that it would file for insolvency after...
Source: RSS feed - channel BNPaperBusiness | 9 Jun 2009 | 12:50 pm

Fiat to stay course on Chrysler despite court delay (Reuters)

Reuters - Italian automaker Fiat SpA will not walk away from its deal to buy bankrupt Chrysler LLC, a spokesman said on Tuesday after a U.S. Supreme Court order put the sale in doubt.
Source: Yahoo! News: Business | 9 Jun 2009 | 12:44 pm

Setanta 'is on brink of collapse'

Setanta is facing administration "within days" reports suggest, while would-be subscribers have hit difficulties.
Source: BBC News | Business | World Edition | 9 Jun 2009 | 12:43 pm

Horlick named as mystery bidder for Bramdean

Nicola Horlick today stunned the City by unveiling herself as the mystery suitor for Bramdean Alternatives, the investment trust at the centre of a major City row.


Source: Latest Business News from Times Online | 9 Jun 2009 | 12:37 pm

Three groups have entered bids for GM's Saab: report

STOCKHOLM (Reuters) - Three groups have entered bids for Saab, General Motor's Swedish car unit, and a preferred bidder is to be chosen by the end of this week, the Financial Times newspaper reported on Tuesday, citing sources.
Source: Reuters: Business News | 9 Jun 2009 | 12:37 pm

P&G to name McDonald CEO: report

NEW YORK (Reuters) - Procter & Gamble Co is set to name Robert McDonald as its next chief executive officer, taking over from A.G. Lafley, the Wall Street Journal reported on Monday.
Source: Reuters: Business News | 9 Jun 2009 | 12:35 pm

Solar offers 400 jobs to Michigan auto town

Outside Saginaw, Mich., an old auto town of 56,000 people about 100 miles northwest of Detroit, a company making silicon for solar panels is doing the exact opposite of the Big Three. It's hiring.
Source: Business and financial news - CNNMoney.com | 9 Jun 2009 | 12:18 pm

World stocks take breather as they seek direction (AP)

AP - European stock markets rose modestly Tuesday and Wall Street futures turned higher — though activity was subdued as investors awaited signals about whether the rally of the last three months will continue through the summer.

Source: Yahoo! News: Stock Markets News | 9 Jun 2009 | 12:16 pm

Bank stability chief warns on 'uncertain' outlook

The UK's economic outlook is still "highly uncertain" despite tentative signs that the recession might be coming to an end, according to Paul Tucker, the Bank of England's Deputy Governor for Financial Stability.


Source: Latest Business News from Times Online | 9 Jun 2009 | 12:00 pm

Lloyds to close all C&G branches

Lloyds Banking Group is set to close all its 164 Cheltenham & Gloucester branches in November in a move which will lead to 1,660 job losses as the bank steps up its integration of HBOS, the mortgage...
Source: RSS feed - channel BNPaperBusiness | 9 Jun 2009 | 11:48 am

Warning on reverse mortgages

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 9 Jun 2009 | 11:47 am

Cheltenham ? Gloucester branch closure: what it means for customers

How will customers be affected by the Lloyds latest move.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 9 Jun 2009 | 11:40 am

Top Analyst Upgrades (ATHN, BPSG, FWRD, JDAS, MRVL, MWA, SWY, STT)

These are some of the top pre-market analyst upgrades and positive research calls we have seen from Wall Street early this Tuesday morning with about two hours until the market opens: athenahealth (ATHN) Raised to Outperform at Blair. Broadpoint Securities (BPSG) Started as Outperform at KBW. Forward Air (FWRD) Raised to Buy at KeyBanc. JDA Software (JDAS) Started as [...]

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Source: 24/7 Wall Street | 9 Jun 2009 | 11:39 am

Top Analyst Downgrades (DNB, GG, HIG, MAS, MR, RMG)

These are some of the top pre-market analyst downgrades and cautious research calls we have seen early this Tuesday morning with about two hours until the open: Dun & Bradstreet (DNB) Started as Neutral at Baird. Goldcorp (GG) Cut to Neutral at UBS. Hartford Financial (HIG) Cut to Hold at Citigroup. Masco (MAS) Cut to Sell at UBS. Mindray Medical [...]

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Source: 24/7 Wall Street | 9 Jun 2009 | 11:35 am

GM’s Only Remaining Niche Market

Source: Business Pundit | 9 Jun 2009 | 11:35 am

European stocks in modest recovery (AFP)

AFP - Europe's leading stock markets recovered slightly on Tuesday after sliding into the red a day earlier and following a flat finish on Wall Street overnight.

Source: Yahoo! News: Stock Markets News | 9 Jun 2009 | 11:33 am

Lloyds closing all C&G branches

Lloyds Banking Group says it will cut 1,660 jobs after deciding to close all 164 branches of Cheltenham & Gloucester.
Source: BBC News | Business | World Edition | 9 Jun 2009 | 11:30 am

iPhone price cut could trigger smartphone price war

Apple's decision to slash the price of its existing 8GB iPhone 3G to 99 with the launch of its new 3GS model could force rivals to respond.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 9 Jun 2009 | 11:29 am

P&G to name McDonald CEO: report (Reuters)

Reuters - Procter & Gamble Co is set to name Robert McDonald as its next chief executive officer, taking over from A.G. Lafley, the Wall Street Journal reported on Monday.

Source: Yahoo! News: Business | 9 Jun 2009 | 11:21 am

Starbucks (SBUX) Raises Earnings By Cheating Customers?

It is a devilishly clever way for a company with flagging revenue to raise sales. Cheat customers by double charging them. According to several media outlets, as many as one million Starbucks customers were charged twice what they should have been on May 22nd and 23rd. No one has been able to find out if the coffee chain [...]

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Source: 24/7 Wall Street | 9 Jun 2009 | 11:06 am

'Great Game'

Russia and Europe fight pipeline 'war' with huge stakes
Source: BBC News | Business | World Edition | 9 Jun 2009 | 11:05 am

Johnson is 'leading candidate' to replace PM, says David Miliband

They came to bury him | David Aaronovitch | Rachel Sylvester | Peter Riddell | Comment central blog | Red box blog


Source: Latest Business News from Times Online | 9 Jun 2009 | 11:03 am

German exports fall 29% in April

Germany's exports in April were 28.7% lower than a year ago, the Federal Statistics Office says.
Source: BBC News | Business | World Edition | 9 Jun 2009 | 11:03 am

Heritage Oil plans $5bn merger with Genel$

Heritage Oil today unveiled plans for a merger with Turkey’s Genel Energy International in a move that will create a Kurdish-focused FTSE 100 oil group valued at about $5 billion.$


Source: Latest Business News from Times Online | 9 Jun 2009 | 10:49 am

US envoy seeks to bridge gap with Israel

George Mitchell, US Middle East envoy, has begun talks to try to narrow the gap between Washington and Israel over Jewish settlements in the occupied West Bank and the need for an independent Palestinian state
Source: Financial Times - US homepage | 9 Jun 2009 | 10:44 am

As YouTube Video Streams Top One Billion A Day, Service Flounders Financially

New data from TechCrunch indicates that Google’s  (GOOG) YouTube has reached one billion streams served per day. The numbers probably mean that the service is losing much more than analysts figure, a number that ranges as high as $300 million a year. It also mean that Google’s challenge to create sales from the service faces larger hurdles [...]

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Source: 24/7 Wall Street | 9 Jun 2009 | 10:44 am

Lloyds job cuts hit 4500 with closure of Cheltenham ? Gloucester branches

Lloyds jobs losses since its merger with HBOS will reach 4500 following the closure of 160 Cheltenham ? Gloucester branches.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 9 Jun 2009 | 10:42 am

Stressing The “Stress Test” System

Maybe the initial “stress tests” of America’s 19 largest banks were flawed. Or, perhaps taking a single snapshot is not an adequate way to measure the ever-changing financial system. The Congressional Oversight Panel which monitors the effectiveness of the use of TARP funds does not believe that the government is doing enough to track the ongoing health [...]

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Source: 24/7 Wall Street | 9 Jun 2009 | 10:13 am

UK house prices rise 1.1% as buyers return

The housing market showed further tentative signs of stabilising today with prices rising by more than 1 per cent during April, government figures showed.


Source: Latest Business News from Times Online | 9 Jun 2009 | 10:02 am

Apple (AAPL) And Palm (PALM): Lose Money On Every Sale And Make It Up On Volume

One of the first rules students are taught at The Harvard Business School is that it is a bad practice to sell products at a loss and hope to make up the deficit on heavy sales volume. The management at Apple (AAPL) and Palm (PALM) may be on their ways to making that mistake. Apple cut [...]

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Source: 24/7 Wall Street | 9 Jun 2009 | 9:52 am

Lloyds helps FTSE to bounce back

The London stockmarket recovered some of yesterday's falls with Lloyds leading the charge following news of fresh cuts at the bailed-out bank.


Source: Latest Business News from Times Online | 9 Jun 2009 | 9:31 am

Lloyds boosts FTSE bounce back

Lloyds topped a stronger FTSE as it bounced back from yesterday's losses on the announcement of fresh job cuts and the closure of Cheltenham & Gloucester branches.


Source: Latest Business News from Times Online | 9 Jun 2009 | 9:31 am

Horlick behind bid for Bramdean fund

Nicola Horlick, the well-known City fund manager who founded Bramdean Asset Management, is behind a takeover approach for Bramdean Alternatives, an investment fund which invests in hedge funds and private...
Source: RSS feed - channel BNPaperBusiness | 9 Jun 2009 | 9:08 am

Rio risks Japanese probe over BHP deal

Japan’s monopolies regulator is poised to launch a full anti-trust investigation into Rio Tinto’s proposed iron ore joint venture with BHP Billiton, saying that the deal may raise “serious concerns over anti-competitive issues.”


Source: Latest Business News from Times Online | 9 Jun 2009 | 9:01 am

Rising deficits threaten Asian ratings

Standard & Poor's warned that the credit ratings of a number of Asian economies had come under pressure as their massive economic stimulus measures put a strain on their budgets
Source: Financial Times - US homepage | 9 Jun 2009 | 8:52 am

California stops funds for recent contracts

California Gov. Arnold Schwarzenegger, facing a state budget gap of $24.3 billion ordered a halt to funding for state contracts on everything from pencils to office space.
Source: Financial Times - US homepage | 9 Jun 2009 | 8:45 am

Heritage Oil and Genel Energy unveil $6bn merger

Heritage Oil and Genel Energy announced their merger on Tuesday, creating an Anglo-Turkish oil company esimated to be worth up to $6bn that would be the largest investor and developer in the burgeoning...
Source: RSS feed - channel BNPaperBusiness | 9 Jun 2009 | 8:42 am

BlackRock nears $13bn BGI deal

BlackRock looks set to seal the acquisition of Barclays Global Investors and become the world's biggest money manager
Source: Financial Times - US homepage | 9 Jun 2009 | 8:15 am

BlackRock nears $13bn BGI deal

BlackRock looks set to seal the acquisition of Barclays Global Investors and become the world's biggest money manager by Wednesday, according to people close to the talks.The US group plans to pay Barclays...
Source: RSS feed - channel BNPaperBusiness | 9 Jun 2009 | 8:15 am

Paris and Berlin plan reforms push

France and Germany have set their sights on a combined effort to steer the European Union out of economic crisis and away from political discord after scoring election triumphs
Source: Financial Times - US homepage | 9 Jun 2009 | 8:11 am

Australian stocks: Market suffers slight drop

MELBOURNE - Weaker commodity prices and resource stocks pulled the Australian share market down almost one per cent, offsetting gains among financial stocks. At 1615 AEST, the benchmark S&P/ASX200 was down 36.3 points, or 0.91...
Source: New Zealand Herald - Business | 9 Jun 2009 | 7:55 am

High court keeps Chrysler deal on hold

The Supreme Court extends a stay, saying it needs more time to consider the proposed sale to Fiat.

The U.S. Supreme Court in a surprise move ordered a temporary delay Monday in the bankruptcy sale of Chrysler to Italian automaker Fiat, saying it needed more time to decide on complaints that the government-engineered deal was unfair to some bondholders.

Source: L.A. Times - Business | 9 Jun 2009 | 7:00 am

Microsoft's Bing TV ad: Huh?

Judging from a commercial for Microsoft's new Bing 'decision engine,' the company needs to search for a smarter marketing campaign.

As an opening gambit, Microsoft's campaign for its new Bing search engine accuses Google of causing global economic ruin. That's cheeky.

Source: L.A. Times - Business | 9 Jun 2009 | 7:00 am

At the Apple iPhone 3G S unveiling, AT&T gets lousy reception

Some new features that iPhone users have clamored for won't be immediately available on the iPhone carrier's network. Software developers at the unveiling jeer at every mention of AT&T.

In the secrecy that often surrounds Apple Inc.'s every move, industry cryptologists had plenty to study in Monday's otherwise widely hailed unveiling of the company's newest iPhone, the 3G S.

Source: L.A. Times - Business | 9 Jun 2009 | 7:00 am

Chrysler dealers' time almost up

789 franchises are slated to go out of business tonight. Chrysler arranges for leftover inventory to be sold to surviving dealerships at a loss. And GM dealers wrestle with contract issues.

For 789 Chrysler dealers, today is D-day.

Source: L.A. Times - Business | 9 Jun 2009 | 7:00 am

Some owners who used homes to buoy finances are sinking

They relied on cash-out refinancing or took out home equity lines of credit to get capital during the easy-money era, but now many are underwater on their loans.

In better economic times, Santa Clarita mortgage broker Fred Arnold relied on a home equity line of credit if his cash flow was uneven and he needed to cover payroll.

Source: L.A. Times - Business | 9 Jun 2009 | 7:00 am

NZ stocks: Telecom pushes market higher

The sharemarket managed a small gain today on the back of a nearly 2-per cent rise for top stock Telecom. The benchmark NZSX-50 index closed up 0.2 per cent, or 5.8 points, at 2822.40, in contrast to its 18-point loss yesterday....
Source: New Zealand Herald - Business | 9 Jun 2009 | 6:09 am

Banks' interest rate rises slammed by MPs

MPs have lashed out at banks for failing to reduce mortgage rates, for protecting their profits, and in the case of Australian institutions, for treating New Zealand firms differently. Labour Party finance spokesman David Cunliffe...
Source: New Zealand Herald - Business | 9 Jun 2009 | 5:54 am

Currency: Dollar weak ahead of RBNZ rate call

The New Zealand dollar remained weak today ahead of a possible Reserve Bank interest rate cut on Thursday, and as the US dollar rose on expectations of a US rate rise. By 5pm, the kiwi was at US61.86c, down from US62.83c late yesterday...
Source: New Zealand Herald - Business | 9 Jun 2009 | 5:51 am

Credit Card Rewards: The Best and Worst

The credit crunch might be easing, but credit card companies are still cutting back—even on those prized rewards. Some cards used to award bonus points after the first purchase but don’t anymore. Others are imposing stricter rules and fees upon redemption. We singled out some of the best and worst rewards cards available.

• American Express Blue Cash

American Express scored top marks for its rewards program in a J.D. Power survey last fall, and experts cite this card as one of the best. It has no annual fee and provides up to 5 percent cash back on gas station, drugstore and supermarket purchases. But to boost its rewards from 0.5 to 1.25 percent on all other purchases, you’ll first need to spend at least $6,500. “It’s best suited for more aggressive chargers,” says Curtis Arnold, author of "How You Can Profit From Credit Cards" and founder of CardRatings.com.

RATING: ****

• Fidelity Retirement Rewards American Express Card
• Schwab Bank Invest First Visa Signature

Among the newest and most lucrative cards, these two offer 2 percent cash back on retail purchases. But they’re both linked to brokerage firms, and rewards get swept into retirement or brokerage accounts. Though neither card has an annual fee, card holders might find that their APRs—17 and 14 percent, respectively—offset any rewards they receive.

RATING: ***

• Capital One No Hassle
• Discover Miles

Among credit card users, gift-card rewards are more popular than merchandise, hotel stays and gas rebates combined, according to J.D. Power. Yet most consumers who try to redeem rewards points for gift cards find they aren’t getting a full 1 percent return. Research firm Corporate Insight shows that two of the worst offenders are Capital One’s No Hassle card, which gives just 0.74 percent back, and Discover’s Miles card, which provides a mere 0.63 percent. A spokesperson for Capital One says the company believes its card returns 1 percent in rewards, and Discover declined to comment.

RATING: **

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Source: SmartMoney.com | 9 Jun 2009 | 4:00 am

Traders Leave Major Indexes Barely Changed (Market Update)

News at a Glance

• Stutter Step: Major indexes flat in morning trading.
• Profits Recalculated: Texas Instruments brightens outlook.
• Payback Time: Nine banks expected to be allowed to repay TARP.
• Employment Stabilizing: Manpower survey suggests labor steady.

The Lowdown

Wall Street is picking up where it left off yesterday: stuck in neutral.

Stocks kept on sputtering Tuesday morning, as traders remained cautious on higher energy prices and activity in the financial sector. By 11:01 a.m., the Dow Jones Industrial Average had dropped 33 points to 8731. The Nasdaq had picked up 5 at 1847, and the S&P 500 had given up 2 at 937.

Ten of the nation's top financial institutions were given the green light to repay about a combined $68 billion in loans taken out as part of the Troubled Asset Relief Program, Reuters reported. The decision to repay the loans came after the firms came to grips with the realities of accepting that money, including federal power over executive compensation.

The labor market looked a bit more stable after the staffing firm Manpower (MAN) said its global quarterly index of the near-term employment situation remained flat in the U.S. for Q3. The firm said the disparity between firms seeking to hire new employees and firms planning to make additional cuts remained constant at -2.

In other economic news, the wholesale inventories fell 1.4% in April, a bit more of a decline than economsits had expected.

World markets were fairly flat. In Asia, Japan's Nikkei slipped 0.8%, while Hong Kong's Hang Seng gave up 1.1%. In Europe, the U.K.'s FTSE picked up 0.3% in afternoon trading.

Energy prices perked up. By 10:45 a.m., crude traded up $1.17 at $69.26 a barrel.

Corporate News

• Texas Instruments (TXN) boosted its revenue and earnings guidance for the second quarter of this year, the firm said. The chipmaker expects to earn between 14 and 22 cents a share, up from a prior estimate of a penny to 15 cents a share. TI expects sales of between $2.30 billion to $2.50 billion, up from a prior estimated range of $1.95 billion to $2.40 billion.
• Barclays (BCS) may sell its fund unit to BlackRock (BLK) for between $12 billion and $13 billion, Bloomberg reported, citing anonymous sources. The deal would rank as the largest acquisition of an asset-management division ever.

The Economy

• Wholesale inventories, a measure of lag in demand relative to expectations, fell 1.4% in April, compared to a revised 1.8% decline in March, the Commerce Department said. For April, economists had expected a 1.1% decline. REPORT

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 | 9 Jun 2009 | 4:00 am

10 Things Your Bartender Won't Tell You (10 Things)

1. “It’s my world; you’re just drinking in it.”

Back in the day, bartending was all about consistency and service. From the humblest watering hole to the fanciest hotel bar, bartenders knew how to mix a repertoire of classic cocktails just right every time, and the customer came first. Today, not so much. Ray Foley, author of Bartending for Dummies, says a growing number of the 500,000 working barkeeps in the U.S. are following the lead of celebrity chefs, hoping to make their mark with their own signature drinks. Sure, that means an explosion of creative cocktails dressed with such exotica as cucumber shavings or lavender foam. But good luck if you’re in the mood for an old standard such as a sidecar.

The upshot? A lack of consistency, for one, says Tony Abou-Ganim, who created the Bellagio’s cocktail program in Las Vegas. “I can go to the same bar, order the same thing from three different bartenders, and get three different drinks,” he says. Even worse is customer service. Some bartenders have flipped the old equation, Foley says, putting 30 percent into pleasing customers and 70 into showcasing their personality: “The prime thing we’re losing in the bar business right now is service for the customer.”

2. “Your top-shelf pretensions are money in my pocket.”

From wild-berry-infused vodka to the latest in Herradura tequila, liquor companies continue introducing highend spirits as the consumer thirst for luxury goods trickles down to beverages. Sales of the most expensive brands of vodka, rum, tequila, and scotch rose 21 percent in 2007, while those of the cheapest grew by just 3 percent, according to the Distilled Spirits Council. But Tony Abou-Ganim warns, “A higher price doesn’t always mean better quality.” He notes, for example, that many bars now use lime-flavored powder in their cocktails, which can dilute subtler notes in an expensive spirit.

Another concern: scams involving “short pouring” and brand substitution that have ridden the luxury-spirits wave, according to Robert Plotkin, a beveragemanagement consultant. Say you order two premium cocktails. The bartender might pour only half a shot of alcohol into each—but he’ll charge you for two, ring up just one, and pocket the difference. Or you might be charged for a premium Cadenhead’s rum that’s actually a basic Bacardi. Your best defense: Sit at the bar, where you can see your drinks being made.

3. “Bar Tabs are for suckers.”

While visiting New York City a few summers ago, Chris Romanowski started a tab at ESPN Zone for his family and friends. But once the air hockey ended and they paid the bill, they saw they’d been charged for 21 drinks despite having ordered only 13. Romanowski contested the charges and eventually got his money back. (Susan Abramson, regional marketing manager for ESPN Zone, says the Times Square establishment is under new management and that “we try to make sure [our guests] are satisfied at all times.”)

“My advice would be to not run a tab,” says Plotkin, who after 20 years behind the bar notes, “It’s really easy to inflate tabs.” For example, a bartender might give a buddy a free bottle of Heineken, then bury the charge in your bill, especially if you’re with friends or getting tipsy and not keeping track of who’s ordered what. One of the most common ploys, according to Elizabeth Godsmark, coauthor of Controlling Liquor, Wine & Beverage Costs, involves billing you for a round without breaking it down into separate charges. If you’d still rather run a tab than pay for drinks one at a time, be sure to get a receipt that specifies the number and cost of each drink.

4. “It’s all about the bottom line—down to our choice of glassware.”

Between 20 and 30 percent of booze served in a bar never gets paid for, due in large part to bartenders’ overpouring their spirits. But management is cracking down and working every angle to curb this practice. In 2005, for instance, a study published in the British Medical Journal found that when bartenders were asked to free-pour a shot of liquor, they dumped an average 20 percent more into a short, wide tumbler than into a tall highball glass—even though they knew each held 12 ounces. And these weren’t amateurs; they had, on average, nearly six years of experience. According to Brian Wansink, the Cornell University professor behind the study, bartenders are subject to an optical illusion that makes them gauge volume based more on the height of a glass than on width.

The industry jumped on the data: Immediately after the study was released, many bar owners and industry publications began advising managers to choose taller barware to save money while giving guests the impression they were getting more. So next time you want a stiffer drink at no extra cost, ignore what your eyes tell you and insist on a short glass.

5. “Fast service doesn’t necessarily mean good service.”

Much the way fast-food places use the three-minute rule, some bars now require that drinks be mixed, poured, and at the table within a certain time frame. And while you might enjoy faster service that way, it doesn’t guarantee greattasting drinks. In fact, it could mean the opposite. Clear cocktails, like the classic martini, should always be stirred carefully to achieve the right level of chill, says cocktail specialist Ted Haigh. But “bartenders are under pressure to make things faster,” which is why “shaking has become ubiquitous.”

Some drinks take so long to make that bartenders try to deter customers from ordering them. When Heather Leonard, a former bartender from New York City, used to muddle lime juice, mint, and sugar for a mojito, she’d often hide it below the counter. “Once everyone sees you’re making a mojito, they want one,” she says. “And after 30 minutes, you’re four customers deep.” The emphasis on speed can also lead to carelessness. In a rush, bartenders sometimes skip the tongs and jam barware into the ice machine—risking broken glass in your drink. So when a bar seems busy, you might want to order your liquor neat.

6. “This bar is filthy.”

Most bars offer dim lighting for atmosphere—but it can also hide a lot of hazards. Slippery floors, sticky countertops, and lemon wedges strewn about the floor are among the most common problems undercover investigators find in bars, according to Gwen Lennox, CEO of Keeping Tabs, which conducts independent evaluations for bar owners. Nightclubs frequented by twentysomethings tend to be the worst, she says, but it’s not always easy to spot problems, such as open bottles of alcohol that haven’t been cleaned or covered between shifts, thus encouraging the buildup of dust and germs.

Bars and taverns are just as susceptible to spreading food-borne illnesses as restaurants, warns Dean Peterson, director of environmental health for San Mateo County in California. Indeed, healthinspection reports for establishments connected to a bar cite all sorts of violations, ranging from dirty floors to lip-stained tumblers. One North Carolina inspector even found black-slime mold in an ice machine—though it might not make you sick, it “would be kind of repulsive to have in your drink,” says Frances Breedlove, food sanitation section chief for Wake County. So what types of bars have a better track record? Those tied to restaurants, says Bonnie Nasset, operations manager at Keeping Tabs.

7. “Restaurants are a terrible place to get a good drink.”

Restaurants are a tough business. The majority of new establishments close their doors within the first three years, and only 30 percent last 10 years. One way to up the chance of turning a profit and running a successful restaurant is to secure a liquor license as soon as possible, since owners can expect to earn up to 40 percent of their profit from alcohol. To further milk every drop of their drink sales, restaurants are micromanaging and automating their bartending wherever possible. By using so-called liquor-control systems, all a bartender needs to do is push a button to fill up, say, a pitcher of beer, thus saving time and controlling the pour to the letter; it even allows workers to serve another customer while the machine pours the next drink.

In a climate like this, “anyone can pretty much bartend,” says Tara Clark, general manager of a restaurant and bar located just outside Atlanta, as long as they have a friendly personality. “If people don’t get a great martini, as long as you can hold a great conversation, they’ll forget about the drink,” she says.

8. “I don’t know diddly about wine.”

You’d think a bar would be the perfect place to order a crisp chardonnay. Think again. Experts say bars tend to minimize their wine offerings because the bulk of their sales comes from spirits or beer. Some bar managers and their staff know so little about wine that they leave it up to distributors to develop their menu, even though these salespeople might get rewarded with free trips or other incentives to push certain brands, says Ty Wenzel, author of Behind Bars: The Straight-Up Tales of a Big-City Bartender. That’s why it’s not uncommon for bars to limit their list to a single red and a single white offering. In fact, Wenzel says one trick she used to clear out old stock at her own bar was to pass off the house wine—a cheap cabernet—as a more exotic shiraz or syrah. “I couldn’t believe they couldn’t tell the difference,” she says.

One way around the issue is to ask your bartender to show you the bottle and pour the wine in front of you. Also, keep in mind that if bottles are stored near a hot kitchen or displayed on a shelf where natural light can strike them all day, their contents can oxidize or begin to spoil, rendering even a decent wine undrinkable.

9. “Your drink costs whatever I say it costs.”

When Alexandria Steppe wants a Corona from one of her favorite clubs in Asbury Park, N.J., she doesn’t always know how much it’s going to cost: During a recent visit, her beer was $4 when her boyfriend ordered it, then $6 when Steppe ordered one from the very same bartender later that night. What’s more, there are three different bars in the club, and she’s discovered that the bartenders in the back charge less for drinks than those who work closer to the front of the house. “I don’t think it’s fair, but there isn’t much I can do about it,” Steppe says.

While it’s not uncommon for bars to feature certain specials like “ladies drink free,” many bartenders will go one step further, charging different rates to different people, particularly if a patron appears drunk. “What it usually means is that the bartenders are playing fast and loose, and they’re probably not putting all of the money into the register,” says Lennox. The best way to avoid getting overcharged? Ask for a receipt, or if that’s impractical, ask to see the drinks menu. If you note a discrepancy, speak to the manager.

10. “Unless you’re using a walker, expect to be carded.”

There’s little logic when it comes to getting your ID checked these days. Some bartenders seem to have no qualms letting underage drinkers run rampant, while others wait to see what a person orders before they ask for identification. A toasted-almond cocktail, for example, is often popular among teens, while folks who order a scotch on the rocks are typically assumed to be of drinking age. Then there are the places with tougher rules, where no one who appears under the age of 40 is allowed a drink until they’ve flashed their license. So no matter how old you are, or appear to be, carry your card at all times.

Even so, policing has become so strict at some places that even a valid ID isn’t good enough. Back in 2006, while waiting for a pool table at a Dave & Buster’s in Arcadia, Calif., 29-year-old Jason Flores ordered a few rounds of vodka tonics with his friends. Once a table opened up and the optometrist started carrying his drink toward it, he was stopped and accused of having a fake ID. Flores spent nearly half an hour trying to convince the management otherwise—going so far as offering to have the police come over and authenticate his ID. In the end, the group was given permission to stay at the pool table, although no one was allowed to order or drink any more alcohol. Flores says this was after they had already paid for their drinks and tipped the bartender. Manager Steve White says he doesn’t recall the situation, but notes that the bar hews close to the letter of the law, “which is extremely strict” when it comes to checking ID. Cards can be considered suspect if they are cracked or torn or if the laminate has been peeled back.

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 | 9 Jun 2009 | 4:00 am

Interview With JPMorgan Funds' David Kelly

DAVID KELLY, CHIEF MARKET STRATEGIST FOR JPMORGAN FUNDS, is fairly upbeat about the likelihood of an economic recovery. He thinks a bottom has been reached, and a strong rebound will ensue. Yet Kelly, 46 years old, readily admits forecasting can be a miserable venture. Yes, we are in a severe recession, but diversification remains the best defense in the long term. Market-timing isn't worthwhile -- as many individual investors learned when they pulled out of equities during the recent market meltdown. Last week he gave Barron's his updated view.

Barron's: What are some of the key themes you are looking at?

Kelly: It looks like we are past the worst of the declines in global output. But there is a big question mark about the pace at which the economy, in the U.S. and around the world, will recover. There are a lot of aspects of the situation that really are unique to this recession, that we haven't seen in recent decades. We don't know how fast we pull out of it, although it does look like we have hit bottom in terms of overall economic growth.

So you think we have hit a bottom?

We are seeing signs of that. If you look at housing, if you look at autos, if you look at inventories, all these things have fallen to levels that should represent a bottom -- and, indeed, in many cases, they aren't falling any further. In particular, the housing numbers don't show signs of falling further. We have also seen, around the world, very big declines in production -- but not as much of a decline in consumption. That normally sets you up for some kind of economic rebound. At worst, we will see much smaller declines in output in the second quarter than in the first. In some countries, we will see some positive numbers.

Why don't you think the economy will plateau?

That is very much a function of unemployment. The unemployment rate will peak after the recession has ended. But if the U.S. unemployment rate ends this year at 10%, it isn't going to stay at 10%. It either goes up or it goes down. And as it comes down, we tend to see above-average economic growth. During the past 40 years, the average growth rate of the U.S. economy has been about 3%.

But if unemployment comes down by, say, one percentage point per year, you get 4% GDP [gross domestic product] growth. Hard as it is to imagine today, once this economy begins to expand, it probably will expand at a faster-than-average pace.

Why do you say we can look forward to such a strong recovery? Some are a little more skeptical.

The single most likely scenario is that unemployment gradually comes down. If you look at unemployment historically, it goes up much faster than it comes down. When unemployment is going up, it goes up by two percentage points a year. But when unemployment is coming down, it comes down about one percentage point a year. Think of what that means: If we end up at 10% unemployment, it will come down one point a year for each of the next five years, and you get a five-year expansion even before you hit full employment. And during those years the economy grows by about 4% per year. That is the most likely scenario. Most alternative scenarios are worse.

Such as?

Maybe consumers save more. That is Risk No. 1. Risk No. 2 is oil. We are going to have an election in Iran soon. If President [Mahmoud] Ahmadinejad gets re-elected, you have to have to wonder how willing Israel will be to let Iran pursue a nuclear program. That could easily be a flash point. Another risk: we are at the start of hurricane season.

It is really significant that, in what is indisputably the worst global recession since World War II, we have seen oil above $60 a barrel. That tells us that, fundamentally, supplies are pretty tight and we are running out of oil and we are so dependent on oil.

Your forecast for 4% GDP growth during a recovery is more optimistic than others'. Is it too bullish?

No. I don't think so. It is very representative of expansions we have seen. Now, it is possible that we could have a W-shaped recession, in which case things deteriorate again. All I'm saying is that if the economy begins to get into an expansion like those of the 1980s or 1990s, chances are it will be an expansion characterized by about 4% GDP growth, which we actually saw in those expansions. It is very hard, in the teeth of a brutal recession, to think about the characteristics of an expansion. But expansions by definition have above-average economic growth.

What kind of shape is the consumer in?

It is very important to distinguish between what a consumer should be doing and what a consumer is capable of doing. Consumers are capable of contributing to an economic rebound.

We have seen a massive refinancing boom that is pushing down debt-service expense. We certainly have lower oil prices than we did a year ago. We have some income-tax cuts. So that lets consumers finance a rebound in spending as part of an overall economic rebound. For many consumers in their 40s, 50s and 60s with all the loss in wealth that they have seen in the last year and a half, do they really continue to spend at the pace of the 1990s or earlier this decade? Or is this a time they decide to pull back and just buy what they need as opposed to what they want?

What is your sense of what happened late last month, when 10-year Treasury yields backed up to above 3.70%, versus around 2% at the end of 2008? That raised concerns that higher borrowing costs will make a solid recovery harder to achieve.

The bond market is trying to tell us something. Let me give you three possible alternatives. One could be that the bond market has realized just how much supply the federal government is going to try to issue. I don't think that is it, because the truth is, we have known about that supply ever since President Barack Obama's budget was announced. A second possibility for the higher yields is inflation expectations. If you look at the difference between the yields on TIPs [Treasury inflation-protected securities] and nominal bonds, that actually is a good measure of expected inflation. And since 10-year Treasury yields were at 2.50% in mid-March versus around 3.70% late last week, about half the increase in nominal bond yields has been due to an increase in inflation expectations. Another possibility for the recent increase in yields is that investors expect a better economy.

Suffice it to say we will have more debt, and rates will move higher. Is that manageable within the context of a recovery?

Yes, it is, although it is a drag on the economy. We have seen historically that, when interest rates begin to move up, it obviously makes the financing a little bit more difficult. But it also gives people a kick in the pants; it is a reason to lock in that financing now, before rates go higher still.

So, generally speaking, if you have very low interest rates moving into a more moderate or normal level, that isn't going to choke off an economic expansion. It actually gives people a certain amount of confidence that the economy is healthy when they see rates moving back to more normal levels.

How attractive are equity valuations now?

If you buy the notion that five years from now, the economy will be back to close to full employment -- and that we do have a nice expansion like we had in the 1980s and the 1990s, and if that scenario plays out -- then stocks are very cheap.

As of late last month, we would have to go up about 73% just to get back to where we were at the market peak. And you add in cumulative dividends of, say, 15% to 20% over the next five years, it is very easy to see how you can double your money in stocks over that time, the key being if we have an expansion.

Does buy-and-hold investing still make sense?

Yes, it does. I hope people will remember what happens in the long run. It is true that last year was a very bad year for a diversified portfolio. Asset allocation didn't seem to work, because even if you had stocks and a lot of bond funds, unless they were the safest bond funds, you would have lost very severely. But no strategy is perfect. It is a little bit like saying you win every time you roll the dice, except when you roll snake eyes. Eventually, you will roll two ones. But that doesn't mean it is a bad strategy to bet the other way.

Volatility spiked last year, unnerving investors. What is the outlook there?

Volatility has come down a lot, as measured by the VIX index. You can also see it in the daily movement of stock prices, which is less than half of what it was in the three months following the collapse of Lehman last September.

I'm not that concerned about volatility going up. If the good scenario unfolds in the economy and if the economy gradually mends its wounds and comes back, then I expect volatility to continue to fall -- because the market is never as volatile on the way up as it is on the way down. Greed is a milder emotion than fear, so volatility will tend to come down as the market comes back. The only thing that worried me about volatility was [that] it unsettled people and moved them away from an appropriate long-term strategy. It made them too emotional.

What most troubled you with the way individual investors handled the recent market meltdown?

What troubles me the most is that people lost faith in things that they really should believe in. This was an unprecedented financial crisis, but it has pretty much calmed down, and now we have a very severe but precedented recession.

What disturbs me is the phrase, "It is different this time." You hear it on the upside, you hear it on the downside. So many individual investors believe that the economy will never come back. For whatever number of reasons, that disturbs me because, first of all, it isn't logical based on history. We have got 300 million people spending too much, and working too hard. All of that tends to drive the economy, particularly over the long run. So it isn't logical, but it also causes people to move away from stocks into very safe portfolios, such as Treasuries. But they tend to move into those asset classes a little late. It worries me when an individual investor tries to time markets.

What sectors look attractive?

Within fixed income, three months ago I would have said high-yield, but it has had a big run. So I'm more neutral there. In terms of bonds, I have tried to be short-duration, because I expect interest rates are going to move up, and I try not to be in the very highest-quality fixed income. I like to have some opportunity for credit spreads to narrow some more. Within equities, to me the clearest shot is technology. When the global economy turns around -- and we do think it will -- technology should benefit. You could say health care and financials should benefit, too. But the problem with both is that there is a greater threat of government oversight. That can affect returns in an unpredictable way. I am encouraged, though, that what we have seen recently out of the financial sector suggests there will be less government control than we have worried about.

Is tech at the top of your list for equities?

It is between tech and financials, but financials are going to give you a bumpier ride.

Do any other sectors look interesting?

If you believe in a cyclical upturn, then you have to look at cyclicals. That would suggest that consumer discretionary, for example, has better opportunities than consumer staples.

But there is a big question mark there about consumer attitudes. For example, we are beginning to see some trends, one being that used-car sales are doing much better than new-car sales. If the new America is a frugal America, that does say something about discretionary consumer spending.

What do you think could go wrong?

I am concerned about the extraordinary things that the federal government and Federal Reserve have done. In theory, those things will work, and, in theory, we have time, because it will take us a long time to get back to full employment. We should have time for monetary and fiscal stimuli to work before they cause an inflation problem.

But I'm worried about that process of getting back to normal, because we are a long way from normal. If the government moves too fast, there is a real deflation threat. And if they do it too slowly or they don't have enough discipline, there is an inflation threat once you get into the second half of the next decade. There is too much about what we are doing that we have seen in theory but not in practice.

What about a few closing thoughts?

I have laid out a reasonably optimistic scenario in which the economy does begin to recover as this year goes on, even if we hit 10% unemployment. We could have a long expansion. But there are lots of things that could disrupt that. We don't know the future. The reason you diversify isn't because of what you are expecting; it is the stuff that you don't expect that ends up biting you.

And to me, the most important thing is: Even if people have an optimistic view of the economy, they have got to realize there are lots of things we cannot forecast that could interrupt a recovery. That's why they still have to be balanced in their portfolios.

Thanks, David.

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 | 9 Jun 2009 | 4:00 am

Personal grievance awards break new records

Personal grievance awards broke new records across New Zealand last year - with Wellington being the best city to make a claim. An analysis of last year's decisions shows records were set for both highest and lowest payouts, Employers...
Source: New Zealand Herald - Business | 9 Jun 2009 | 3:42 am

New Telstra CEO on A$2m a year

Telstra's new chief executive David Thodey will earn a total fixed annual remuneration of A$2 million ($2.57 million), including superannuation payments. Documents filed with the Australian Securities Exchange today said Thodey's...
Source: New Zealand Herald - Business | 9 Jun 2009 | 3:30 am

Business wary of green practices that hurt profits

Privately-owned New Zealand businesses score poorly compared to overseas counterparts in their willingness to spend money on environmentally-friendly practices that hurt the bottom line. New Zealand businesses ranked 34th out of...
Source: New Zealand Herald - Business | 9 Jun 2009 | 2:30 am

Outlook for job seekers better - but only just

The outlook is somewhat brighter for job seekers in the next three months, although employers' hiring intentions are still weaker than a year ago, according to a survey today. Employers' intentions have improved slightly for the...
Source: New Zealand Herald - Business | 9 Jun 2009 | 2:00 am

Building industry slump continues

The slump in the construction industry continued in the March quarter, new figures show. While the decline in the residential sector slowed sharply, non-residential activity turned negative after two positive quarters. The seasonally...
Source: New Zealand Herald - Business | 9 Jun 2009 | 12:20 am

Write-Offs: 06.08.09

$$$ Ferraris on Sale at Hamptons Auto Classic [Luxist]

$$$ Two more Bank of America directors resign [WSJ]

$$$ Swedish pirates capture EU seat [BBC]

$$$ SAC, Moore Capital, and Paulson & Company are up 13.93 percent, 6.3 percent and 8.75 percent YTD. [NYT]

Sponsored Topics: Bank of America - Business - BBC - Financial Services - Banking Services
Source: Dealbreaker | 8 Jun 2009 | 11:08 pm

Presented By:

Source: Dealbreaker | 8 Jun 2009 | 11:08 pm

Morgan Stanley Makes Agressive CLO Call- They're Most Comfortable With AAAs

There are some bold calls coming out of Morgan Stanley on CLOs these days, A recent report highlighted the massive rally across the top part of capital structure over the past several months. When you see AAs doubling to (almost) 50 cents on the dollar over the course of 4 weeks, surely MS is going to make a bold call, drive people into an all out buying frenzy, and give the all clear for getting back into CLOs. If Paul Krugman says the recession is almost over, what more do you need?

Sponsored Topics: Paul Krugman - Morgan Stanley - Recession - Arts - Recreation
Source: Dealbreaker | 8 Jun 2009 | 10:58 pm

NZ stocks: Sharemarket edges down early

The sharemarket edged down early, even as top stock Telecom gained in the first few minutes after the market opened while several other leading stocks lost ground. Telecom was up 3c early to $2.59, reversing some of yesterday's...
Source: New Zealand Herald - Business | 8 Jun 2009 | 10:55 pm

Hear: Buying The Vote

On today's Planet Money:

-- Voters in Lebanon picked a coalition backed by the U.S. over one supported by Hezbollah in elections on Sunday. In the weeks before the vote, Ben Gilbert of Executive magazine (paid sub. requ'd.) says he began hearing reports of people offered plane tickets and even cash to vote a particular line. Gilbert says both sides seem to have been courting voters, at an eventual cost of $1,000 a vote. He explains the economics of buying someone's ballot.

-- An economic puzzle: Automakers wring bigger profits out of bigger vehicles like trucks, SUVs and the GM Hummer, but why? Robert Frank, a Cornell economist and author of The Economic Naturalist, says the dismal science explains everything. Frank answers the Hummer riddle in three and half minutes.

Bonus: Paying more for car repair?

Download the podcast; or subscribe. Intro music: Aqualung's "Good Times Gonna Come." Find us: Twitter/ Facebook/ Flickr.

Bill Smith writes from Austin:

My wife's five-year-old Honda needs a new A/C compressor, and the Honda dealer says it will cost $3000 to replace it. That seems like an obscene amount of money.

It occurred to me that car dealers may be jacking up their repair rates to compensate for weak car sales. I Googled around and found this, "Vehicle Repairs Cost an Average 34% More at New Car Dealerships Than Independent Repair Shops." It's a press release about a report by the Automotive Aftermarket Industry Association.

An article in Detroit Bureau cited the report, adding, "As new car sales languish, dealers are increasing the promotion of repair and collision services to make up for the lost revenue. If you aren't careful, you could end up paying too much for their services."

Maybe we need to spend more time on our bicycles like Laura Conaway.

Finally, my message is getting through.

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Source: NPR Blogs: Planet Money | 8 Jun 2009 | 10:40 pm

Financial Crisis Hurting Hipsters

Know those homeless-looking people you see on Bedford Ave? The ones who look homeless given their choice of attire, but aren't, and are in reality living in pretty sweet condos, etc? In years past you'd be secure in your disdain for the fact that despite only working part-time at America Apparel, they were shacking up in $5,000/month apartments. Now, not so much. 'Cause some of these hipsters are actually homeless, relatively speaking. Like everything in life, the blame can be squarely placed on parents, who are always ruining everything. Take any of Ernie DiGiacomo's tenants. For the past five years, most of their moms and dads were sending him $1,500-$2,500 checks each month. Now? Those assholes are "pulling back financial help," to the extent that their children have to move home (or pay their own way, but be serious). And how 'bout those would-be home-owning hipsters? Are their parents still helping them out there? No!

The number of sales in Williamsburg dropped nearly a quarter in the first three months of this year compared with the same period a year ago, according to HMS Associates, a Brooklyn appraisal firm. And in three recent cases, Mr. Weinstein said, owners sold their apartments in short sales -- selling for less than the bank is owed, to avoid foreclosure -- because they were no longer receiving parental help.

Mr. Weinstein has been advising two brothers in their late 20s who wanted to buy a $700,000 apartment with $250,000 from their parents. But their parents' investment portfolio has lost so much value that they now can give only $50,000. Since the brothers make about $45,000 a year each, they are now shopping for a $500,000 apartment.

It is an adjustment that many have to deal with. Eric Gross, 26, a construction worker, was going to buy, with help from his father, a $600,000 one-bedroom condo with city views at Northside Piers, a luxury building, he said. But his father, who works in the auto industry, said he had to reduce his contribution. "He's pulling back the lifeline," Mr. Gross said. So Mr. Gross is scaling back, shopping for a $300,000 apartment, said his real estate agent, Binnie Robinson of AptsandLofts.com.

Parents Pulling the Plugs On Williamsburg Trust-funders [NYT]

Sponsored Topics: Foreclosure - Real estate broker - Real estate - Short - Eric Gross
Source: Dealbreaker | 8 Jun 2009 | 10:09 pm

How the major stock indexes fared on Monday (AP)

AP - Stocks reversed steep losses in the final hour of trading Monday to end little changed.
Source: Yahoo! News: Stock Markets News | 8 Jun 2009 | 9:51 pm

Home, Home On The Runway

Jake Rome writes from Southern California:

Trekked out to the old Los Angeles Air Force Base to witness first-hand the deterioration that's taken place since the Great Recession forced the 360 South Bay developers to abandon their once-hopeful housing development.

The website for the project, 360 South Bay, says, "Happiness, prosperity and sunshine are a part of everyday life when you call Los Angeles and Ventura home." It also notes that at 360 South Bay, sales are "temporarily unavailable."

This one went bad right from the start. "There were essentially no sales when we had our grand opening in October of 2007," the developer wrote in a proposal to turn some of what had been built into apartments. The developer withdrew the proposal.

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Source: NPR Blogs: Planet Money | 8 Jun 2009 | 9:33 pm

O’Hanlon Says North Korea's Nuclear Program Is an `Act of War'

Source: Bloomberg - All Podcasts | 8 Jun 2009 | 9:32 pm

Stanford’s Lazear Says U.S. Job Market Faces Lengthy Downturn

Source: Bloomberg - All Podcasts | 8 Jun 2009 | 8:51 pm

Neal Soss Says `Cash Hoarding' Led Companies to Cut Jobs

Source: Bloomberg - All Podcasts | 8 Jun 2009 | 8:50 pm

A Tax On Health Insurance

With the news that Congress is considering taxing workers on the value of their health benefits, the rest of the America is wrestling with a proposal that's standard procedure for families like mine.

The idea for lawmakers is to find some way to pay for an overhaul of health care. One possible source is to take away the tax exemption workers now get on employee-sponsored health insurance. Let's say your company pays you a salary of $50,000 and spends $6,000 a year on your family health insurance. Under current law, your gross income is still $50,000.

Unless, that is, you're insuring a spouse or partner in a situation where the federal government considers you unmarried. For me, that the case because I'm one half (and not the better half, either) of a same-sex couple. My health insurance and my son's are tax-free. My partner's is added to my salary. At the end of each year, my employer deducts taxes for Social Security and Medicare in a lump sum -- resulting in what we call the "short check," the one missing $500 or so. I then owe another $1,000 or so to the IRS, all money that my legally married colleagues never have to pay.

So what's the economic point? On a personal level, I don't like paying the extra taxes, but I guess I'm proof that you can pay them and still enjoy living. More broadly, I think the disparity in treatment says something about just how patchwork our system for dealing with health care has become. It's another symptom of what Scott Horsley calls our "Hummer of health care systems: big, costly and inefficient."

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Source: NPR Blogs: Planet Money | 8 Jun 2009 | 8:26 pm

Apple Steps Up Its Game With New iPhone 3GS

Image: Engadget

Today at WWDC 2009, the new iPhone 3GS, which hits stores on June 19, stole the show. Equipped with video, voice control, a 3 megapixel camera, and other cool features, the 3GS is another homerun by Apple. Below is a review of some the WWDC keynote’s highlights, as noted on Engadget’s liveblog:

iPhone 3GS

The iPhone 3GS is supposed to be twice as fast as the 3G. Its 3 megapixel camera comes it autofocus and auto white balance. All you have to do is tap what you want to focus on. It takes macro shots from as close as 10cm.

It also shoots video, with audio. You can edit and share videos with a tap of your finger, as well as scrub along with them.

Comprehensive voice control, a built-in digital compass, and Nike+ support are other neat features. You can also invert black and white, zoom in displays, and read text through the 3GS. All 3GS phones will also come with hardware encryption. With 23% less packaging, the devices are greener, too.

Costs: $199 for the 16GB 3GS. $299 for the 32GB 3GS. And only $99 for the 3G.

The iPhone 3GS hits the market a week from today, releasing in more than 80 countries by August.

iPhone OS 3.0

AT&T support will be ready “by the end of the summer,” whatever that means. No mention of partnership with AT&T. You can now rent and buy movies from iTunes on your iPhone. It has new parental controls, and tethering, which lets you share a connection with your computer. Find My iPhone feature lets you located your iPhone remotely, then send it a message, make it audio alert, or wipe out its data. Other features: New HTML support for audio and video tags. AutoFill feature now live. The new OS also supports more than 30 languages.

OS 3.0 is free for iPhone users and $9.95 for iTouch users. It releases on June 17.

MacBook Pro

Apple released a new version of the 15-inch MacBook Pro. It uses the same non-removable battery as the 17-inch version. They replaced the ExpressCard slot with an SD slot. With (up to) 3.06GHz Core 2 Duo CPU, and 8 gigs of RAM, it’s also Apple’s fastest notebook ever. It costs $1,699. The 17-inch now costs $2,499. New: A 13-inch MacBook Pro, starting at $1,199.

MacBook Air

Pricing now starts at $1,499; $1,799 with SSD configuration. It also comes with the new SD slot and, like the MacBook Pro, a standard backlit keyboard. It also has a FireWire 800 port.

Snow Leopard

The new, improved version of Leopard has Exchange support, runs 45% faster, and saves 6GB of disk space after installation. A new feature, called Expose, zooms out your open windows when you click and hold on an application. Snow Leopard also uses AI for text selection. The trackpad now has handwriting recognition.

An upgrade to Snow Leopard costs $29 ($49 for a family pack), available in September.

Safari 4

Safari 4 for Leopard, Tiger, and Windows ships today. They’re calling it the fastest browser on any platform. Expose gives you several new ways to find and sift through content. For example, you can drop images directly into an email message. Another example: you can view your history in a cover flow. Another new feature is crash resistance. If a plugin crashes your browser, your windows will stay intact, all you have to do is reload the page. In Quicktime, you now get a visual timeline of your video, as well as trim and share features.

**
With affordable iPhones, Apple is on fire. Competitors (Blackberries) have some serious catching up to do.

Source: Business Pundit | 8 Jun 2009 | 7:20 pm

Goldman’s O’Neill Says U.S. Growth to Stay Below 5% Past 2011

Source: Bloomberg - All Podcasts | 8 Jun 2009 | 6:56 pm

Levitt Says Executive Pay Restrictions Won't Work

Source: Bloomberg - All Podcasts | 8 Jun 2009 | 6:43 pm

Plenty Of Blame To Go Around

Right after we all talked over assignments for our latest This American Life hour, I started making calls. One hour later I had my head in my hands. Financial regulation is one of those things where the more you dig, the foggier the picture becomes. There are so many layers and it's really hard to separate the multiple moving parts.

The Office of Thrift Supervision stood out for a number of reasons, one biggie being that they regulated some of the largest failures of this crisis. Michael Roster, the regulation lawyer at the end of our story, had something to add this morning. He says that when you see the list of failures, yes, the OTS looks pretty bad. But imagine if all those "too big to fail" institutions were allowed to fail, instead of getting bailed out:

When looking at which regulatory agencies had failed banks under them, we should remember that the larger U.S. banks and holding companies are regulated by the Fed and the Office of the Comptroller of the Currency (OCC) and, unlike entities under the OTS, were deemed too big to fail and thus were bailed out instead of being closed. But for that, I think you'd find the score is pretty even among all the agencies and, if anything, many of the larger failures in dollar amounts and number of entities are at these other agencies. Ironically, the Fed and the OCC have been vigorous advocates for the Basel II economic models, which would have reduced capital even further.

There's a cool list of failed banks here (scroll down and you can sort by regulator). As for the banks that have been propped up? We can spread out the blame a little:

Citigroup/Citibank
Holding Company Regulator: Federal Reserve
Bank regulator: Office of Comptroller of the Currency

Bank of America
Holding Company Regulator: Federal Reserve
Bank regulator: Office of Comptroller of the Currency

AIG
Holding Company Regulator: Office of Thrift Supervision
Bank regulator: Office of Thrift Supervision

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Source: NPR Blogs: Planet Money | 8 Jun 2009 | 6:15 pm

Entrepreneurship is a way to recovery

Paul Kedrosky, editor of the business blog 'Infectious Greed,' talks with Tess Vigeland about why entrepreneurs are a good bet to help us get out of this economic mess, even in the middle of a credit crunch.
Source: Marketplace | 8 Jun 2009 | 5:47 pm

Europeans vote with economy in mind

The economy topped the list of concerns for the 375 million people who voted in the European elections. Christopher Werth reports.
Source: Marketplace | 8 Jun 2009 | 5:44 pm

'Buy American' will lose U.S. more jobs

Commentator Mark Perry says the 'Buy American' clause in the stimulus package makes little sense economically, and might destroy more U.S. jobs than it will save.
Source: Marketplace | 8 Jun 2009 | 5:44 pm

Reforms to derivatives could be costly

Traders bought and sold complex financial contracts called derivatives over the last decade. But no one knew the destruction they'd cause in the new millennium. John Dimsdale reports on new regulation that could be coming to the industry.
Source: Marketplace | 8 Jun 2009 | 5:44 pm

Boston Globe reporter votes no to cuts

The Boston Globe's newsroom will soon vote on a proposal by its parent company for deep pay and benefit cuts. Globe reporter Scott Allen talks with Tess Vigeland about what he thinks of the plan and why he voted against it.
Source: Marketplace | 8 Jun 2009 | 5:44 pm

Impact of Ticketmaster's paperless tix

Ticketmaster is trying a new strategy to combat scalpers: paperless tickets. Miley Cyrus fans will be the first to try out the new system. Jill Barshay reports.
Source: Marketplace | 8 Jun 2009 | 5:43 pm

What you might not see on Chinese PCs

Soon, all PCs sold in China will have to come equipped with censorship software. Officials say it's meant to block access to pornographic Web sites. Jeremy Hobson reports on why computer-makers are likely to comply with Beijing's orders.
Source: Marketplace | 8 Jun 2009 | 5:42 pm

Feds scrutinize big banks' management

Regulators are taking a close look at the management and board of directors at some of the nation's biggest banks. Steve Henn reports the feds have already forced some shakeups.
Source: Marketplace | 8 Jun 2009 | 5:42 pm

Apple sinks after "aggressive" iPhone pricing report (Reuters)

Reuters - Shares of Apple Inc tumbled more than 3 percent to a session low of $139.57 on Monday after CNBC reported that the company would introduce "aggressively" lowered price-points for its newest iPhone.

Source: Yahoo! News: Stock Markets News | 8 Jun 2009 | 5:36 pm

Flying While Broke

Update: due to popular demand, we've added a chart of commercial airline accidents per million departures after the jump. There seems to be no real link to recession years using that data, either.

Do recessions lead to airplane crashes?

Investigators looking into the disappearance of an Air France flight over the Atlantic last week believe the jet's airspeed indicator failed. Airbus, the manufacturer of the plane, had recently recommended that Air France replace the parts that calculate airspeed, but Air France hadn't completed the work yet.

Air France's stock has been hurting since last year, as it suffers along with the rest of the air industry. That's caused some to wonder whether the economic downturn -- and the cost-cutting that goes with it -- will make flying more dangerous.

Using stats from Air Disaster, a website that pulls in data from the Federal Aviation Administration, I plotted the number of commercial airline accidents during past American recessions above, through 2004. If you see a pattern, let us know -- because I don't.

Bloomberg reports today that the global airline industry is set to lose $9 billion in 2009. But these loses aren't likely to impact safety, according to Gary Northam, the chair of the Safety Science Department at Embry-Riddle Aeronautical University.

Northam told me it's more likely that Air France just hadn't gotten around to swapping out those airspeed parts. "You can't change out every one of those parts immediately," he said. "It just takes a long time."

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Source: NPR Blogs: Planet Money | 8 Jun 2009 | 5:34 pm

Weak financials drag down FTSE 100 (AFP)

AFP - The leading share index slipped into the red on Monday amid fears for the financial sector.

Source: Yahoo! News: Stock Markets News | 8 Jun 2009 | 5:02 pm

Wells Fargo's Evergreen paying $40M in SEC accord (AP)

AP - An investment fund owned by Wells Fargo & Co. has agreed to pay $40 million to settle federal charges that it inflated the value of a mutual fund that invested mainly in securities tied to home mortgages and only selectively told shareholders about the fund's problems.
Source: Yahoo! News: Stock Markets News | 8 Jun 2009 | 4:39 pm

Wells Fargo's Evergreen paying $40M in SEC accord (AP)

AP - An investment fund owned by Wells Fargo & Co. has agreed to pay $40 million to settle federal charges that it inflated the value of a mutual fund that invested mainly in securities tied to home mortgages and only selectively told shareholders about the fund's problems.
Source: Yahoo! News: Business | 8 Jun 2009 | 4:39 pm

Empty Desks in Kansas

Teresa writes:

In April, my husband and I read in our local paper, the Kansas City Star, that they would be reducing the number of sections by eliminating some and combining others. As twenty somethings, we know we are supporting a dying industry. A stark reminder of that occurred Friday night as we walked by the headquarters of the paper (see attached picture). My husband, a teacher, commented he might ask them if he could have some of those chairs for his elementary school.

I'm wondering, is the Star waiting for the economy to rebound, at which time they might need that office equipment? Until then, why keep it in such plain view?

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Source: NPR Blogs: Planet Money | 8 Jun 2009 | 4:36 pm

Munster Sees Apple Rising to $180, Steve Jobs Returning

Source: Bloomberg - All Podcasts | 8 Jun 2009 | 4:12 pm

Maloney Sees Resistance as U.S. 10-Year Notes Yield Near 4%

Source: Bloomberg - All Podcasts | 8 Jun 2009 | 3:56 pm

Sorrentino Sees Rough Patch Ahead for U.S. Equities

Source: Bloomberg - All Podcasts | 8 Jun 2009 | 3:49 pm

The 100 Most Mentioned Brands on Twitter

Brand Republic has a list of the 100 most mentioned brands on Twitter. Here are the top 10:

1 Starbucks
2 Google
3 BBC
4 Apple
5 AIG
6 Amazon
7 Microsoft
8 Guardian
9 Dell
10 Coca-Cola

More

Note that fewer than half of the brands have Twitter accounts (including Apple). A strong brand will generate buzz no matter what, but it surprises me that most of the brands on the list haven’t set up Twitter accounts anyway. Twitter provides a way to boost even the most popular brands through intelligent campaigning, like Starbucks’ recent posters.

What are companies waiting for?

Source: Business Pundit | 8 Jun 2009 | 3:45 pm

CCLA's Bevan Recommends Playing Safe With Equities

Source: Bloomberg - All Podcasts | 8 Jun 2009 | 3:26 pm

Where to Find WWDC 2009 Live Coverage

Today at 10am PST, Apple SVP Phil Schiller’s WWDC 2009 keynote will finally reveal the new iPhone (or not). Live TV coverage of the event isn’t permitted, so you’ll have to catch live streams via blogs and tweets. Here are a list of prominent WWDC 2009 liveblogs and twitterers:

Liveblogs
Engadget
CNET
Slashgear
Technologizer
Macworld
Macrumors
Ars Technica
Gizmodo
CrunchGear

Twitter
@macrumors
@macjournals
@mmilian (LA Times)
@theappleblog

Find more keynote twitterers here.

Source: Business Pundit | 8 Jun 2009 | 3:13 pm

The Ratings Puzzle

As we mentioned over the weekend on This American Life, the credit rating agencies at the center of the financial crisis have been around for something like a century. The folks at Standard and Poors pulled the tome in the photo above from their library for us. Back in the day the rating agencies published these phone book sized things on a regular basis for investors. (The binding on this one read "Feb-June 1942 VOLUME 1".)

Clearly the ratings provide a valuable service.

You can see a scan of some pages from John Moody's book of 1917 steam railroad ratings here.

There's a push now to overhaul the ratings system. You can read testimony from heads of the rating agencies, and from people who would like to change the system, including NYU's Larry White (pictured at right), who argues some of the blame goes back to a rule put in place by the Comptroller of the Currency in 1936.

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Source: NPR Blogs: Planet Money | 8 Jun 2009 | 3:10 pm