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Air France pilots told not to fly Airbus jets after Brazil crash Air France scrambled to replace pressure sensors on its A330 Airbuses yesterday after a pilots’ union urged crew to boycott the long-range jets because faulty airspeed readings are suspected over last week’s crash off Brazil. Source: Latest Business News from Times Online | 10 Jun 2009 | 11:25 pm Underground strike could cause two days of chaos FA offers England football fans a refund Source: Latest Business News from Times Online | 10 Jun 2009 | 10:28 pm Opening Bell: 06.10.09 Obama Drops Tough Plan On Compensation (WSJ) "The Obama administration is dropping its plan to cap salaries at firms receiving government bailout money, leaving them subject to congressionally imposed limits on bonuses, according to people familiar with the matter." FDIC Looks To Defuse Citi Tensions (FT) Complimentary hand jobs for all. Plus: "Sheila Bair on Tuesday addressed Citigroup's board in an effort to defuse tensions sparked by the regulator's push to replace Vikram Pandit as chief executive, [though she did not in fact address VP's position]. People close to the situation said Ms Bair called for an end to squabbling between the two sides, reminding the bank that the FDIC is carrying out its normal regulatory duties." Submarine To Begin Search For French Black Box (Reuters) The French submarine will be charged with finding the data recording device that might prove helpful in figuring out the cause of the Air France crash. E*Trade And Citadel Are In Talks On Aid Plan (WSJ) "Terms of the deal aren't known but the two have been negotiating for weeks to try to find a way to bolster E*Trade's fortunes, according to these people. Meantime, the company said Tuesday that Kenneth Griffin, Citadel's founder and CEO, also will join the finance and risk-oversight committee of E*Trade's board. Citadel and E*Trade couldn't be reached for additional comment." Paulson & Co. Invest 100MM In CB Richard Ellis (WSJ) "Real-estate services provider CB Richard Ellis Group Inc. announced hedge-fund operator Paulson & Co., which made billions anticipating a crumbling housing market, will buy $100 million in stock as part of a $550 million capital-raising effort by the company." Seven Indicted On Charges Of Selling Tax Shelters (NYT) "Denis Field, who was chairman and chief executive of BDO Seidman from 1999 through late 2003, and before that led the firm's national tax practice, was charged with 22 counts in Federal District Court in Manhattan. Prosecutors are investigating the web of banks, law firms, accounting firms and investment boutiques that sold questionable tax shelters to wealthy individuals from the late 1990s through recent years." GM Tweaks Dealer Rules (Detroit News) GM said it expects that its dealers "will remove non-GM brands from the GM showroom by December 31, 2009...and will operate a showroom exclusive to GM products going forward. GM reserves the right to require in certain markets that dealer provide completely exclusive GM facilities on the dealership premises going forward." Sponsored Topics: Hedge fund - Federal Deposit Insurance Corporation - Sheila C. Bair - Business - BDO Seidman Source: Dealbreaker | 10 Jun 2009 | 12:55 pm Northern Rock investors step up pay-out fight Shareholders suing the Government over the nationalisation of Northern Rock began a legal appeal this morning. Source: Latest Business News from Times Online | 10 Jun 2009 | 12:27 pm Top Analyst Upgrades (ALNY, DB, DSCM, ZEUS, SEPR, X, YHOO) These are some of the top pre-market analyst upgrades and positive research calls we have seen from Wall Street research calls early this Wednesday morning: Alnylam (ALNY) Started as Buy at Jefferies and at Roth. Deutsche Bank (DB) Raised to Neutral at JPMorgan. Drugstore.com (DDSCM) Started as Buy at Janney Montgomey Scott. Olympic Steel (ZEUS) Raised to Buy at [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jun 2009 | 11:58 am First fall in oil use since 1993 Global oil consumption fell 0.6% in 2008, the first time there has been a fall since 1993, according to BP. Source: BBC News | Business | World Edition | 10 Jun 2009 | 11:57 am Top Analyst Downgrades (CRDN, FSLR, NUE, RS, SINA, TLB) These are some of the top pre-market analyst downgrades and cautious research calls we have seen early this Wednesday morning: Ceradyne (CRDN) cut to Underperform at Wachovia; Cut to Accumulate at ThinkEquity. First Solar (FSLR) Cut to Hold at Soleil. Nucor (NUE) Cut to Hold at KeyBanc. Reliance Steel (RS) Cut to Hold at KeyBanc. Sina (SINA) Cut to Neutral [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jun 2009 | 11:56 am News Corp. seen winning Japanese satellite license A News Corp. subsidiary is expected to be among nine applicants to receive certification to show programs via a new satellite broadcasting network in Japan, according to a report in the Nikkei newspaper. Programming could begin airing as soon as 2011. Source: MarketWatch.com - Top Stories | 10 Jun 2009 | 11:54 am Oil tops $71 Oil prices surged past $71 a barrel Wednesday on the back of a global stock market rally and ahead of the government's weekly supply report. Source: Business and financial news - CNNMoney.com | 10 Jun 2009 | 11:49 am Indications: U.S. and China optimism lifts stock futures Stock futures point to a strong start as investors go back into equities and commodities on confidence surrounding prospects for further recovery in the U.S. and Chinese economies. Source: MarketWatch.com - Top Stories | 10 Jun 2009 | 11:49 am London Markets: British shares sharply higher; metal stocks climb Metal extractors surge in London on Wednesday, with Eurasian Natural Resources the top advancer in percentage terms. Source: MarketWatch.com - Top Stories | 10 Jun 2009 | 11:47 am Militants attack Chevron facility in Nigeria Nigerian militants said they had sabotaged a Chevron oilpumping station in the Niger delta region. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jun 2009 | 11:46 am Stock futures point toward higher open (AP) AP - Stock index futures rose Wednesday, pointing to a higher opening on Wall Street following gains in overseas markets and rising oil prices. Source: Yahoo! News: Stock Markets News | 10 Jun 2009 | 11:41 am Stock futures jump on commodities, energy boost (Reuters) Reuters - Stock futures pointed to opening gains of more than 1 percent on Wednesday, following a rally in global stock markets underpinned by higher commodity and energy prices. Source: Yahoo! News: Business | 10 Jun 2009 | 11:41 am Stock futures jump on commodities, energy boost (Reuters) Reuters - Stock futures pointed to opening gains of more than 1 percent on Wednesday, following a rally in global stock markets underpinned by higher commodity and energy prices. Source: Yahoo! News: Stock Markets News | 10 Jun 2009 | 11:41 am Home Depot raises full-year profit forecasts Home Depot Inc., the world’s largest home-improvement retailer, raised its profit forecasts for the year, as it improved customer service, lowered costs and cited a “correction” in the home-improvement market. Source: MarketWatch.com - Top Stories | 10 Jun 2009 | 11:41 am Bored IT Managers Source: Business Pundit | 10 Jun 2009 | 11:39 am Home Depot raises full-year earnings expectations (AP) AP - Home Depot, the nation's largest home improvement retailer, anticipates its full-year earnings may now come in better than previously forecast. Source: Yahoo! News: Business | 10 Jun 2009 | 11:37 am Mortgage apps at lowest since Nov. Read full story for latest details. Source: Business and financial news - CNNMoney.com | 10 Jun 2009 | 11:34 am Earnings Watch: Updates, advisories and surprises A roundup of the latest corporate earnings reports and what companies are saying about future quarters. Source: MarketWatch.com - Top Stories | 10 Jun 2009 | 11:31 am Home Depot raises full-year earnings expectations Home Depot, the nation's largest home improvement retailer, anticipates its full-year earnings may now come in better than previously forecast. The move comes a few weeks after smaller... Source: RSS feed - channel BNewsBusiness | 10 Jun 2009 | 11:30 am Stein Mart, Inc. Shareholders Elect Directors, Approve Proposals; CFO JAMES DELFS TO RETIRE JACKSONVILLE, Fla., June 10 /PRNewswire-FirstCall/ -- Shareholders of Stein Mart, Inc. (Nasdaq: SMRT) elected eleven members of the... Source: RSS feed - channel BNewsBusiness | 10 Jun 2009 | 11:30 am Russia delays Telenor appeal over $1.7 bln fine A Russian court on Wednesday delayed until September an appeal by Norwegian telecoms giant Telenor to save its 29.9 percent stake in Russian operator Vimpelcom, Telenor said in a statement. Source: RSS feed - channel BNewsBusiness | 10 Jun 2009 | 11:29 am Home Depot shares jump on raised profit forecast NEW YORK (Reuters) - Home Depot Inc raised its 2009 profit forecast and stood by its sales expectations on Wednesday ahead of a meeting with analysts and investors, sending its shares up 3.4 percent. Source: Reuters: Business News | 10 Jun 2009 | 11:28 am Home Depot shares jump on raised profit forecast (Reuters) Reuters - Home Depot Inc raised its 2009 profit forecast and stood by its sales expectations on Wednesday ahead of a meeting with analysts and investors, sending its shares up 3.4 percent. Source: Yahoo! News: Business | 10 Jun 2009 | 11:27 am Home Depot shares jump on raised profit forecast NEW YORK (Reuters) - Home Depot Inc raised its 2009 profit forecast and stood by its sales expectations on Wednesday ahead of a meeting with analysts and investors, sending its shares up... Source: RSS feed - channel BNewsBusiness | 10 Jun 2009 | 11:27 am Stock futures point to gains (Reuters) - Stock index futures pointed to a higher open on Wall Street on Wednesday, with futures for the S&P 500 up 1.3 percent, Dow Jones futures up 1.2 percent and Nasdaq 100 futures up 1.1 percent. Source: Reuters: Business News | 10 Jun 2009 | 11:26 am BSkyB rejects Setanta rescue deal BSkyB refuses a £50m lifeline to Irish pay-TV broadcaster Setanta - which is facing administration - it has emerged. Source: BBC News | Business | World Edition | 10 Jun 2009 | 11:25 am Chrysler sale to Fiat cleared Chrysler's sale of key assets in the struggling US carmaker to a consortium headed by Fiat will be completed on Wednesday a Fiat spokesman said. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jun 2009 | 11:22 am Setanta board holding emergency refinancing talks LONDON, June 10 (Reuters) - Emergency talks to refinance Irish sports broadcaster Setanta were being held on Wednesday, according to a source familiar with the situation. Source: RSS feed - channel BNewsBusiness | 10 Jun 2009 | 11:11 am Rising U.S. mortgage rates sap loan applications NEW YORK (Reuters) - A spike in U.S. mortgage rates drove down total home loan applications last week as demand for refinancing shriveled to the lowest level since November, the Mortgage... Source: RSS feed - channel BNewsBusiness | 10 Jun 2009 | 11:11 am Rising U.S. mortgage rates sap loan applications NEW YORK (Reuters) - A spike in U.S. mortgage rates drove down total home loan applications last week as demand for refinancing shriveled to the lowest level since November, the Mortgage Bankers Association said on Wednesday. Source: Reuters: Business News | 10 Jun 2009 | 11:11 am Rising U.S. mortgage rates sap loan applications (Reuters) Reuters - A spike in U.S. mortgage rates drove down total home loan applications last week as demand for refinancing shriveled to the lowest level since November, the Mortgage Bankers Association said on Wednesday. Source: Yahoo! News: Business | 10 Jun 2009 | 11:11 am Pound rally finds legs as manufacturing strengthens Sterling head back to highest levels since October as manufacturing strengthens. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jun 2009 | 11:09 am Fiat to close Chrysler deal, shares rise MILAN (Reuters) - Italian car maker Fiat SpA was set to close its takeover of Chrysler on Wednesday in an ambitious move to survive and grow out of one of the worst crises in global auto industry. Source: Reuters: Business News | 10 Jun 2009 | 11:08 am Fiat to close Chrysler deal, shares rise (Reuters) Reuters - Italian car maker Fiat SpA was set to close its takeover of Chrysler on Wednesday in an ambitious move to survive and grow out of one of the worst crises in global auto industry. Source: Yahoo! News: Business | 10 Jun 2009 | 11:08 am BP says $60-$90 oil price arguably the right level LONDON, June 10 (Reuters) - BP Chief Executive Tony Hayward said it could be argued $60-$90 was the right price range for oil because it would support investment in new supply without destroying demand... Source: RSS feed - channel BNewsBusiness | 10 Jun 2009 | 11:07 am UPDATE 1-BP says $60-$90 oil price arguably the right level LONDON, June 10 (Reuters) - BP Chief Executive Tony Hayward said on Wednesday it could be argued $60-$90 was the right price range for oil because it would support investment in new supply without destroying... Source: RSS feed - channel BNewsBusiness | 10 Jun 2009 | 11:07 am Charter warns on profits on tool downturn Shares of Charter fell by more than 15 per cent this morning after the UK engineering company warned that full-year results could miss expectations “by a substantial amount” if the difficult trading it has suffered in May continues. Source: Latest Business News from Times Online | 10 Jun 2009 | 11:07 am Riksbank borrows €3bn from ECB Sweden's central bank geared up for a possible Latvian devaluation by borrowing €3bn from the European Central Bank under a pre-existing swap agreement Source: Financial Times - US homepage | 10 Jun 2009 | 11:03 am Stocks ready to climb U.S. stock were set to open higher Wednesday after the Supreme Court cleared the way for Chrysler to exit bankruptcy and a rise in oil prices. Source: Business and financial news - CNNMoney.com | 10 Jun 2009 | 11:01 am Week-to-week mortgage applications fall 7.2%: MBA With interest rates pressing higher, mortgage applications fall a seasonally adjusted 7.2% during the first week of June from the week before, as volumes of filings to refinance existing home loans continue their recent pullback, the Mortgage Bankers Association's latest data show. Source: MarketWatch.com - Top Stories | 10 Jun 2009 | 11:00 am iQor Continues Expansion in Buffalo New Employment Opportunities Available NEW YORK and BUFFALO, N.Y., June 10 /PRNewswire/ -- iQor, Inc., a global provider of business process outsourcing (BPO)... Source: RSS feed - channel BNewsBusiness | 10 Jun 2009 | 11:00 am The Home Depot Presents Strategic Priorities and Outlines Long-Term Operating Targets; Updates 2009 EPS Guidance ATLANTA, June 10 /PRNewswire-FirstCall/ -- The Home Depot(R), the world's largest home improvement retailer, will today outline its key strategic priorities and discuss its... Source: RSS feed - channel BNewsBusiness | 10 Jun 2009 | 11:00 am Europe Markets: Commodity-sector firms lead Europe to sharp gains European shares jump on Wednesday, with sharp gains from commodity-sector firms helping stocks stage a broad-based advance. Source: MarketWatch.com - Top Stories | 10 Jun 2009 | 10:49 am Commodities help world markets advance (AP) AP - World stock markets rose sharply Wednesday amid higher commodity prices and renewed hopes about the state of the U.S. banking sector. Source: Yahoo! News: Stock Markets News | 10 Jun 2009 | 10:48 am Improving risk appetites weigh on dollar The dollar retreated as improving risk appetite pushed investors away form the relative safety of the US currency. Source: Financial Times - US homepage | 10 Jun 2009 | 10:47 am Short Interest In Banks Plunges The short interest in most large banks fell very sharply for the period ending May 29, an indication that traders believe that TARP repayments and ongoing strong earnings mean the fate of American financial firms will continue to improve.   Shares sold short in Bank of America (BAC) dropped 40% to 199.5 million shares. The short interest in [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jun 2009 | 10:46 am Peshawar bombing fuels security fears A month after Pakistan's military attacked Taliban militants in the northern Swat valley, the country awoke to more grizzly images of destruction - this time from the Pearl Continental Hotel in Peshawar Source: Financial Times - US homepage | 10 Jun 2009 | 10:45 am EU argues over banking watchdogs EU ministers back a framework for improving financial supervision but the EU is split over what powers new regulators should have. Source: BBC News | Business | World Edition | 10 Jun 2009 | 10:45 am Corrections: U.S., China optimism lifts stock futures On June 10, a MarketWatch article misstated the level of government TARP funds that banks paid back. The story has been corrected. See corrected article. Source: MarketWatch.com - Top Stories | 10 Jun 2009 | 10:43 am UK aerospace 'facing job cuts' The UK aerospace sector is likely to cut 10% of jobs in the next year, about 10,000 posts, the industry body warns. Source: BBC News | Business | World Edition | 10 Jun 2009 | 10:42 am Congress demands answers from Fed For the second time this year, the Federal Reserve is under pressure to come clean on its role in a costly government bailout of a big financial company. Source: Business and financial news - CNNMoney.com | 10 Jun 2009 | 10:30 am China real estate prices ease 0.6% in May on year Real estate prices in China's 70 largest cities fall 0.6% in May Source: MarketWatch.com - Top Stories | 10 Jun 2009 | 10:29 am Supreme Court clears Chrysler sale The U.S. Supreme Court on Tuesday cleared the way for the sale of Chrysler to a consortium led by Italian automaker Fiat. Source: Business and financial news - CNNMoney.com | 10 Jun 2009 | 10:27 am Surprise rise in output fuels hope worst is over Expectations that the economy is recovering were reinforced today by data showing the first rise in industrial production for 14 months. Source: Latest Business News from Times Online | 10 Jun 2009 | 10:19 am Germany approves new 'bad bank' The German cabinet has approved a "bad bank" scheme to enable the country's regional banks to remove toxic assets from their balance sheets. Source: BBC News | Business | World Edition | 10 Jun 2009 | 10:18 am Housing Inventory Down, But Figures Not Meaningful Housing inventory came down a bit in May, but not enough to put a real foundation on faltering home prices. ZipRealty reported “the supply of homes available for sale in 28 major metropolitan areas at the end of May was down 3.9% from a month earlier.” ZipRealty figures do not include many house in foreclosure because banks [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jun 2009 | 10:13 am Camping sales boost for Halfords Halfords enjoys record sales of camping equipment, but a fall in the price of sat-nav systems hit profits. Source: BBC News | Business | World Edition | 10 Jun 2009 | 10:10 am Tube strike: I can't make it to work - will I get paid? London commuters' journeys to work will be delayed - or made impossible - by the Tube strike. But what is the legal position if they can't put in a full day at the office? Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jun 2009 | 10:06 am Movers & Shakers: Wednesday's biggest moving stocks Among the companies whose shares are expected to see active trade in Wednesday’s session are SAP, Ameriprise Financial and BP. Source: MarketWatch.com - Top Stories | 10 Jun 2009 | 10:04 am European stocks forge higher (AFP) AFP - Europe's leading stock markets rose Wednesday, after gains in Tokyo and a mixed showing in New York, with energy and mining companies boosted by strong commodity prices, dealers said. Source: Yahoo! News: Stock Markets News | 10 Jun 2009 | 10:03 am With Pay Cap Restrictions Faltering, Will Talent Return To Wall St.? Wall St. firms and the large money center banks with investment and M&A arms have continued to insist that their best talent will head to private equity firms and hedge funds as opportunities for multi-million dollar paydays disappear. The notion was probably flawed from the start. The number of people who work at private financial [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jun 2009 | 9:58 am Crunch time looms over future of Setanta The fate of Setanta could be decided today as time runs out for the stricken broadcaster. Source: Latest Business News from Times Online | 10 Jun 2009 | 9:43 am Palau to take Guantánamo Uighurs The tiny Pacific nation of Palau has agreed to take 17 Chinese Uighurs currently held at Guantánamo Bay, ending a long US struggle to find another country to accept the detainees Source: Financial Times - US homepage | 10 Jun 2009 | 9:42 am The Theory The Low Demand Will Moderate Oil Prices Dies The theory that the recession would mitigate the price of oil had all the trappings of being true. Consumption in the US, UK, EU, and Japan happen to be down substantially. Industrial production has been dropping at a near-record pace. Consumer spending, especially on gas, has dropped. Fewer people are driving and those who are driving drive [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jun 2009 | 9:40 am Chinese inflation declines again China's consumer price inflation has fallen for the fourth straight month. Source: BBC News | Business | World Edition | 10 Jun 2009 | 9:32 am UK industrial output posts first rise in 14 months British industrial output rose unexpectedly in April and for the first time in more than a year official data showed on Wednesday raising the prospect that the economy could exit recession as early as this quarter. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jun 2009 | 9:28 am Oil tops $71 after large drop in U.S. crude stocks LONDON (Reuters) - Oil topped $71 a barrel on Wednesday for the first time in 7-months on signs demand for crude could be recovering, with U.S. crude stocks falling last week and the Department of Energy raising its forecast for global demand. Source: Reuters: Business News | 10 Jun 2009 | 9:26 am Metro seeks takeover of Arcandor Metro, Germany's biggest retail group, wants to buy the assets of collapsed retailer Arcandor. Source: BBC News | Business | World Edition | 10 Jun 2009 | 9:17 am Why you can't get a car loan Auto dealers are using rebates, discounts, and other incentives to lure buyers back into their showrooms. But once they get customers through the door, dealers are still battling an issue that has troubled the industry for months: a lack of financing. Source: Business and financial news - CNNMoney.com | 10 Jun 2009 | 9:14 am Signs That Ford (F) Sales Are Dipping Over the past week, the 24/7 Wall St.–The Channel Checkers poll surveyed Ford dealerships to gauge business trends at the ten retailers.  We asked the following questions: 1. What is the best selling vehicle currently? 2. Are there any special deals or promotions now? 3. Do you offer free satellite radio? 4. Has there been an increase in sales in the past few months? • 48% of respondents [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jun 2009 | 9:12 am UK wins EU bank concession The UK has secured a promise from its European Union partners that EU supervisors will not be given the power to force national governments into recapitalising banks with tax payers' money Source: Financial Times - US homepage | 10 Jun 2009 | 9:08 am EU to seek rapid progress on financial regulation (Reuters) Reuters - European Union leaders will call at a summit next week for rapid progress on agreeing and implementing new financial regulations to prevent another global economic crisis, a draft summit declaration showed on Wednesday. Source: Yahoo! News: Business | 10 Jun 2009 | 9:07 am EU to seek rapid progress on financial regulation BRUSSELS (Reuters) - European Union leaders will call at a summit next week for rapid progress on agreeing and implementing new financial regulations to prevent another global economic crisis, a draft summit declaration showed on Wednesday. Source: Reuters: Business News | 10 Jun 2009 | 9:07 am UK output sees surprise increase UK industrial output rose unexpectedly in April - the first month-on-month climb since February 2008, official figures have shown. Source: BBC News | Business | World Edition | 10 Jun 2009 | 9:07 am Average Purchase At Darden (DRI) Unit Falls Over the past week, the 24/7 Wall St.–The Channel Checkers poll surveyed various Red Lobster locations, part of Darden Restaurants (DRI), to gauge trends in the casual dining business.  We asked the following questions: 1. Is this location new? (One year or less) 2. How often is lobster being ordered compared to last year? 3. What are the most popular items on the menu [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jun 2009 | 9:06 am Mortgage hunting? 3 sites to check Source: Business and financial news - CNNMoney.com | 10 Jun 2009 | 9:05 am Sales At Ann Taylor (ANN) Hold Steady Over the past week, the 24/7 Wall St.–The Channel Checkers poll surveyed Ann Taylor (ANN) locations to gauge business trends at the ten retailers.  We asked the following questions: 1. On a scale of 1-5 with 5 being best how would you say business is at your store now? 2. Do you have any excess inventory that will go on [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jun 2009 | 9:00 am Year-high for oil boosts miners Oil hit a new high for the year this morning after forecasts indicated an increase in global consumption, providing a fillip for commodity stocks and fuelling another morning of gains for the FTSE 100. Source: Latest Business News from Times Online | 10 Jun 2009 | 9:00 am Examining The Torture Of Ken Lewis The House Oversight Committee has subpoenaed the Fed to get information relating to the Bank of America (BAC) buyout of Merrill Lynch. Ken Lewis, the bank’s CEO, claims that former Treasury Secretary Henry Paulson and Fed chief Ben Bernanke coerced him into completing the transaction by threatening to throw him and his board out. It [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jun 2009 | 8:52 am Zara owner's net profit down 15% Spanish retailer Inditex, parent of the Zara fashion chain, said that profits fell due to the economic downturn. Source: BBC News | Business | World Edition | 10 Jun 2009 | 8:50 am Halfords gets boost as Brits gets on bikes Halfords the bicycle and car parts retailer is benefiting as more people try to save money by cycling to work and repair older cars rather than buy new ones. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jun 2009 | 8:47 am Treasury mulls Northern Rock sale The Treasury is mulling the sale flotation or remutualisation of Northern Rock in the autumn The Times newspaper reported on Wednesday citing senior banking sources. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jun 2009 | 8:17 am Citizens Advice sees 'enormous' rise in debt problems An advice charity has seen a steep increase in the number of people contacting it about redundancy and debt problems during the first quarter of the year. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jun 2009 | 8:10 am Facebook misses out on revenue - again Source: Business and financial news - CNNMoney.com | 10 Jun 2009 | 8:07 am UK pension deficit eases as markets rise The funding position of UK defined benefit schemes eased slightly in May according to the latest figures from the Pension Protection Fund PPF. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jun 2009 | 8:07 am The real test of consumer strength While some kids are still counting the days until the end of this school year, retail experts are looking ahead to the back-to-school shopping ritual as the first real test of whether the economy is recovering. Source: Business and financial news - CNNMoney.com | 10 Jun 2009 | 8:00 am Big business makes hay off stimulus Big companies, ranging from AT&T to Dell to FedEx to Tyson Foods, are among those cashing in on the billions of dollars of federal stimulus money that is rolling out the door. Source: Business and financial news - CNNMoney.com | 10 Jun 2009 | 7:59 am Oil hits 71 mark for first time in 7 months Oil hit the 71 a barrel mark for the first time in seven months after an influential report showed that stockpiles in the US had declined. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jun 2009 | 7:39 am London stock market opens higher (AFP) AFP - The London stock market opened slightly higher on Wednesday after closing stable the day before. Source: Yahoo! News: Stock Markets News | 10 Jun 2009 | 7:27 am Australian stocks: Market closes over 2pc up MELBOURNE - The Australian share market closed higher on Wednesday, boosted by the major miners and big banks, and positive data on consumer confidence and housing finance. At the 1615 AEST close, the benchmark S&P/ASX200 index... Source: New Zealand Herald - Business | 10 Jun 2009 | 7:02 am SAG approves contract The Screen Actors Guild wins residuals for shows that stream on the Internet and a 3% pay raise. The contract passes in a landslide vote. ... Source: RSS feed - channel BNPaperBusiness | 10 Jun 2009 | 7:00 am GM picks next chairman: AT&T ex-chief Ed Whitacre Edward E. Whitacre Jr. lacks experience in the auto industry, but he probably won't handle daily operations. He will become chairman when General Motors exits bankruptcy protection. ... Source: RSS feed - channel BNPaperBusiness | 10 Jun 2009 | 7:00 am Verizon puts cellphone customer through the wringer The company tries to hold an Aliso Viejo man accountable for $10,000 worth of Internet access in a month. It eventually admits a billing error. ... Source: RSS feed - channel BNPaperBusiness | 10 Jun 2009 | 7:00 am House OKs a 'cash for clunkers' bill Under a plan aimed at boosting new auto sales, consumers who turn in gas-guzzling cars and trucks would get vouchers of up to $4,500 toward the purchase of more fuel-efficient vehicles. ... Source: RSS feed - channel BNPaperBusiness | 10 Jun 2009 | 7:00 am Supreme Court won't block Chrysler merger Three Indiana pension funds had said they were being shortchanged by the bankruptcy plan. Chrysler batted 1.000... Source: RSS feed - channel BNPaperBusiness | 10 Jun 2009 | 7:00 am Verizon puts cellphone customer through the wringer The company tries to hold an Aliso Viejo man accountable for $10,000 worth of Internet access in a month. It eventually admits a billing error. We've all found unexpected charges on our phone bills at one time or another. But nothing compares with the nearly $10,000 hit that Aliso Viejo resident Mark Elliot took from Verizon Wireless. Source: L.A. Times - Business | 10 Jun 2009 | 7:00 am DreamWorks is expanding beyond the big screen The animation studio is pushing into such avenues as TV, touring musicals and theme park attractions to produce a more reliable revenue stream. DreamWorks Animation SKG Inc. is dreaming big. Source: L.A. Times - Business | 10 Jun 2009 | 7:00 am Oil closes above $70 for the first time in 2009 Some analysts question whether the economy is strong enough to justify oil at $70. Others say that if it rises above $80, the burdensome cost to consumers will cause demand -- and oil prices -- to fal Oil closed above $70 a barrel for the first time this year Tuesday, and its swift surge from the $30s over just a few weeks is conjuring up images of its meteoric and economy-crippling rise to more than $140 last summer. Source: L.A. Times - Business | 10 Jun 2009 | 7:00 am St. Regis resort in Dana Point faces foreclosure sale The owners of the Orange County resort, known for being the site of a $440,000 AIG retreat after the federal bailout, default on a $70-million loan. ... Source: RSS feed - channel BNPaperBusiness | 10 Jun 2009 | 7:00 am 10 big banks given approval to return $68 billion in bailout money Goldman Sachs, JPMorgan Chase and Morgan Stanley are among the firms able to repay the taxpayer funds. That doesn't mean the U.S. banking system is on a path to normalcy any time soon, economists say. Reporting from Washington, Los Angeles and New York -- The Treasury Department's decision Tuesday to allow 10 major banks to repay their federal bailout money is a measure of how much the fear of a wholesale collapse of the banking system has receded since last fall. Source: L.A. Times - Business | 10 Jun 2009 | 7:00 am DreamWorks is expanding beyond the big screen The animation studio is pushing into such avenues as TV, touring musicals and theme park attractions to produce a more reliable revenue stream. ... Source: RSS feed - channel BNPaperBusiness | 10 Jun 2009 | 7:00 am GM picks next chairman: AT&T ex-chief Ed Whitacre Edward E. Whitacre Jr. lacks experience in the auto industry, but he probably won't handle daily operations. He will become chairman when General Motors exits bankruptcy protection. Edward E. Whitacre Jr., the newly anointed chairman of General Motors Corp., isn't exactly what you'd call a car guy. Source: L.A. Times - Business | 10 Jun 2009 | 7:00 am St. Regis resort in Dana Point faces foreclosure sale The owners of the Orange County resort, known for being the site of a $440,000 AIG retreat after the federal bailout, default on a $70-million loan. Want to buy a five-star, down-on-its-luck resort? Source: L.A. Times - Business | 10 Jun 2009 | 7:00 am Supreme Court won't block Chrysler merger Three Indiana pension funds had said they were being shortchanged by the bankruptcy plan. Chrysler batted 1.000 on Tuesday, clearing away two critical legal obstacles to its restructuring plan and putting the automaker on track for a merger with Italian automaker Fiat in the next few days. Source: L.A. Times - Business | 10 Jun 2009 | 7:00 am Oil closes above $70 for the first time in 2009 Some analysts question whether the economy is strong enough to justify oil at $70. Others say that if it rises above $80, the burdensome cost to consumers will cause demand -- and oil prices -- to fal... Source: RSS feed - channel BNPaperBusiness | 10 Jun 2009 | 7:00 am China's porn-blocking mandate leaves PC makers with big tasks Companies, including those in the U.S., must determine how to incorporate the software. Experts are skeptical of the program. The order by China's Ministry of Industry and Information Technology was unprecedented in scope: All personal computers sold in the country as of July 1 would have to include government-sponsored Internet filtering software. Source: L.A. Times - Business | 10 Jun 2009 | 7:00 am China's porn-blocking mandate leaves PC makers with big tasks Companies, including those in the U.S., must determine how to incorporate the software. Experts are skeptical of the program. ... Source: RSS feed - channel BNPaperBusiness | 10 Jun 2009 | 7:00 am Median home prices drop below 1989 levels in some parts of Southland Properties in several areas are selling for less than they did 20 years ago, and that's not including inflation. Some first-time buyers are nabbing houses for less than what their parents paid. In parts of Southern California, the housing crash has upended a basic tenet of the American dream: that home values always increase over the long term. Source: L.A. Times - Business | 10 Jun 2009 | 7:00 am 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: RSS feed - channel BNPaperBusiness | 10 Jun 2009 | 7:00 am NZ stocks: Market little changed ahead of rate decision The New Zealand sharemarket was little changed today ahead of the Reserve Bank of New Zealand's interest rate decision tomorrow. The benchmark NZSX-50 index closed up 5.567 points, or 0.197 per cent, at 2827.971, after yesterday... Source: New Zealand Herald - Business | 10 Jun 2009 | 6:25 am Currency: Dollar gains on US ahead of rate decision The New Zealand dollar rose today as attention turned to tomorrow's interest rate decision by the Reserve Bank of New Zealand (RBNZ). By 5pm today the NZ dollar was buying US63.10c, up from US61.86c at 5pm yesterday. The currency... Source: New Zealand Herald - Business | 10 Jun 2009 | 5:55 am U.S. to unveil TARP pay rules by week's end: official WASHINGTON (Reuters) - The Obama administration will unveil executive pay rules for firms receiving government aid by the end of the week and will name a pay czar with power to reject compensation plans at firms getting "exceptional assistance," an administration official said late on Tuesday. Source: Reuters: Business News | 10 Jun 2009 | 5:17 am Court clears Chrysler deal with Fiat The US government and Fiat warned that Chrysler could go out of business as soon as next week if the Supreme Court did not quickly reject an attempt by three Indiana pension funds to block the carmaker's restructuring Source: Financial Times - US homepage | 10 Jun 2009 | 4:37 am U.S. Said to Seek New Powers for SEC Over Banks’ Executive Pay (Bloomberg) Bloomberg - June 10 (Bloomberg) -- The Obama administration intends to seek new powers for the Securities and Exchange Commission to force financial firms to give shareholders votes on executive pay packages, according to people familiar with the matter. Source: Yahoo! News: Stock Markets News | 10 Jun 2009 | 4:00 am 15 Kid-Friendly Deals (Deal of the Day) A slew of kid-oriented deals will make entertaining the kids this summer a lot more affordable. Families looking to take a week-long vacation can find packages that include free meals, activities and accommodations for children. Restaurants and movie chains are sponsoring days of the week when kids can either eat a meal or see a movie for free. Even Broadway shows are cutting kids some slack on admission prices. Appealing to families with children is yet another way struggling companies are hoping to lure customers. After all, parents are a good target audience. A recent study by consumer market research firm Mintel International found that even as parents cut back on expenses, they "are not willing to deprive their children." “Families are still spending on kids, but [when] they are, they’re looking for bargains,” says Chris Haack, a senior analyst at Mintel International. See 15 kid-friendly deals With fewer international tourists and business travelers, travel-related businesses in particular, are relying on leisure travelers to help maintain their bottom line, says Bjorn Hanson, a professor of hospitality and tourism management at New York University. “If consensus forecasts are correct, this will be the best year for discounts in this economic cycle," he says. From vacation packages to free meals, here are some of the latest kid-friendly deals being offered: VACATION PACKAGES AND TRAVEL "What Will You Celebrate?" at Disney theme parks Savings: $63 for a child (ages 3-9), $75 for anyone age 10 and up. Celebrate your birthday at Disneyland or Disney World parks and gain free admission. Season pass holders or those purchasing a multiday pass, can receive a one-day Fast Pass to skip the lines, or a gift certificate for park stores equal to the value of one day’s ticket. Rules and restrictions: Must show a government-issued photo ID – or, for kids, a birth certificate – to prove date of birth. Offer is good for adults, or children older than 3. Offer expires: Dec. 31 The Hyatt Classic Family Vacation Savings: About $640 for a four-night stay, plus 15% off meals. Get a second room for the kids at a 50% discount, with free breakfast for up to four kids. In hotels with “Camp Hyatt” kids’ activities such as nature walks, scavenger hunts and hula dancing, one child gets a free half-day. Plus, the whole family can enjoy a 15% discount on dining and spa services. Rules and restrictions: In the U.S., Canada and the Caribbean, kids under 18 are eligible. In other parts of the world, kids must be under 12. Over 175 Hyatts world-wide are participating, but it’s not available everywhere. So check for availability first. Offer expires: Sept. 7 Kids Stay Free at Club Med Resorts Savings: About $600 for a child age 4 to 15, staying for a week. Kids under 15 stay and eat for free at four Club Med Resorts, in Florida, Mexico and the Dominican Republic. Rules and restrictions: Kids must be under 15 years old and stay at least three nights. One child per adult may qualify for a maximum of two children. Offer expiration: Travel must be booked by June 30 and occur before Dec. 19. Kids Fly Free on Cayman Airways Savings: About $515 for one child flying round-trip from New York and staying three nights at a participating hotel. With this deal from Orbitz, kids fly free to the Cayman Islands. Stay in a participating hotel, and the kids get to stay for free, too. Rules and restrictions: Kids must be 11 or under. One free child per paying adult. Flights leave from New York, Miami or Tampa for a two-night minimum stay. Offer expiration: Book by Sept. 2 for travel between June 1 and Sept. 7. Save on Summer Travel With Amtrak Savings: $26 for an adult and two children traveling from Boston to New York. For travel on Amtrak’s Northeast Corridor adult tickets are 25% off, and two kids can travel with each adult for half of that discounted price. Rules and restrictions: Tickets must be bought 14 days in advance. The offer only applies to coach seats. Kids eligible for the discount must be between the ages of 2 and 15. Offer expires: Sept. 3 ENTERTAINMENT AMC Summer Movie Camp Savings: $7 (based on the approximate price of a matinee ticket). AMC Theaters offers $1 family films Wednesdays at 10 a.m. Proceeds from tickets and concessions go to Variety’s Children’s Charity and the Will Rogers Institute. Rules and restrictions: At participating theaters only. Offer expires: Aug. 5 Regal Cinemas Free Family Film Festival Savings: $8 (based on the approximate price of a matinee ticket). See selected G- or PG-rated movies for free every Tuesday and Wednesday at 10 a.m. Rules and restrictions: At participating theaters only. First-come, first-served seating. Offer expires: Aug. 12 or 19, depending on location Clearview Cinemas Kids’ Club Savings: $8 (based on the approximate price of a matinee ticket). Clearview Cinemas in New York and New Jersey are running eight weeks of free family films Thursdays at 10:30 a.m. Rules and restrictions: At participating theatres. First-come, first-served seating. Offer expires: Aug. 20 Student Rush Tickets for "Billy Elliot" Savings: $80 for two tickets. The multiple-Tony-winning musical offers day-of student rush tickets at half price for its New York shows. Rules and restrictions: Show a current school-issued student ID. Tickets must be purchased at the box office on a Tuesday, Wednesday or Thursday. No expiration date. Kids’ Night on Broadway Savings: $130 for a kid’s ticket to "Shrek," plus a free kid’s entree at participating Times Square restaurants in New York. The first Tuesday and Wednesday of every month kids get free admission to participating plays. Tickets go on sale two months in advance. Some local restaurants also offer free entrees for kids as part of the promotion. Currently "Guys and Dolls," "Mamma Mia," "Hair," "The 39 Steps" and "Shrek" are participating, although shows may not participate every night, so check with the theatre first. Rules and restrictions: Kids must be 6 to 18 years old and accompanied by an adult. No expiration date. DINING Kids Eat Free at Applebee’s Savings: About $5 for one kid’s menu meal, including one side dish. On Monday nights, some Applebee’s locations offer a free meal for one child and $1 meals for any children beyond that. This offer is not available at every location, so check with your local restaurant first. Rules and restrictions: One child per paying adult. Additional kids’ meals cost $1. Not available everywhere. No expiration date. Kids Eat Free at IHOP Savings: About $3-$5 for one kid’s entrée. Some IHOP locations let kids eat free every day from 4 p.m. to 8 p.m. Individual franchises set up their own promotions, so check with your local IHOP first. Rules and restrictions: Kids must be 12 and under. Not available at all locations. No expiration date. The D-Zone at Denny’s Savings: About $3 (based on the price of an average kid’s meal). Kids eat free on Tuesday nights at Denny’s from 4 p.m. to 10 p.m. In some locations the deal is offered on Saturday nights as well. The promotion isn’t available everywhere, so call before you go. Rules and regulations: Kids must be 10 and under. Two free kids’ meals for every paying adult. Not available at all locations. No expiration date. Family Fun Night at Chick-fil-A Value: About $3 (based on the price of one kid’s meal). At some Chick-fil-A locations, kids can eat free on Tuesdays from 5:30 p.m. to 7:30 p.m. The deal isn’t available everywhere, so check with your local restaurant. Rules and restrictions: Free kid’s meal when an adult combo meal is purchased. Not available at all locations. No expiration date. 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 | 10 Jun 2009 | 4:00 am Reverse a Losing Roth IRA Conversion (The Tax Guy) When it comes to retirement planning, it's easy to make mistakes. If you converted a traditional IRA into a Roth account last year before the stock market free fall, for instance, you may be especially forlorn. Most likely your Roth IRA is now worth considerably less than it was on the conversion date. Even worse: You're stuck paying 2008 taxes on phantom value that no longer exists. Mistake indeed. Thankfully, you can reverse that ill-advised 2008 Roth conversion. In fact, you can make it so it's like the conversion never happened, and, as a result, that inflated 2008 conversion tax bill will also disappear. Even better, you have until October 15 to accomplish the reversal. (The deadline applies whether or not you extended your 2008 Form 1040 to that date.) However, if you plan to hold stocks in your IRA, and you think the market is headed up from here, you may want to get the reversal done ASAP (I’ll explain why later). Here’s how Roth conversions work and how to reverse an ill-timed conversion: The Tax Hit From Last Year’s Conversion When you converted your traditional IRA into a Roth account, the transaction was treated as a taxable distribution from the traditional IRA followed by a contribution of the distributed amount to the Roth account. So the conversion triggered a federal income tax bill (and maybe a state income tax bill, too) based on the traditional IRA’s value on the conversion date, minus any nondeductible contributions made to that account. (This assumes that the traditional IRA that you converted was the only one that you owned.) Now, thanks to the rocky stock market, that Roth IRA is most likely worth a lot less than it was on the conversion date, which means you’ll pay 2008 taxes on money you no longer have -- unless you reverse the conversion by the Oct. 15 deadline. How to Reverse a 2008 Conversion Using IRS lingo, you reverse an ill-advised conversion by recharacterizing the Roth account back to traditional IRA status. By doing so, it’s like the conversion never happened: The tax hit disappears, and you’re right back where you started with no tax harm done. To reverse a conversion, you need to fill out the proper form (the Schwab form, for example, is called “IRA Recharacterization Letter of Authorization”) and submit it to your Roth IRA custodian or trustee. Reporting the Reversal on Your Form 1040 Your IRA custodian or trustee should have reported to you, and to the IRS, the deemed distribution that resulted from last year’s Roth conversion on a 2008 Form 1099-R. If you have yet to file your 2008 Form 1040 because you extended your return, simply enter the Form 1099-R distribution amount on line 15a. Then enter a taxable amount of zero on line 15b. These two entries will show you had a conversion and a subsequent reversal--with the net result of zero taxable income. If you’ve already filed your 2008 Form 1040, you’ll need to file an amended return, using Form 1040X, to show the reversal and collect your rightful tax refund. On line 1 of Form 1040X, subtract the amount of taxable income that was triggered by the now-reversed conversion, and calculate the reduced 2008 tax bill on lines 6-10. Then explain on page 2 of Form 1040X that the changes are due to reversing the 2008 conversion. Of course, by reversing the conversion in 2009, it will trigger a 2009 Form 1099-R from your IRA custodian or trustee, reporting the deemed distribution from reversing the Roth account back to traditional IRA status. So on this year’s Form 1040 (which you’ll file next year), you’ll enter the Form 1099-R distribution amount on line 15a. Then enter a taxable amount of zero on line 15b. These two entries will show that you had a conversion reversal that did not result in any 2009 taxable income. Reconverting After a Reversal Converting a traditional IRA into a Roth account can still be a great idea if you get the timing right. (Read Time to Convert to a Roth IRA? for more information.) Therefore, you might want to reconvert the reversed (a.k.a. "recharacterized") account from traditional IRA status back into Roth status all over again. Reconverting makes sense if the account is loaded with assets you believe will appreciate quickly. That way, when all is said and done, you’ve still converted the same traditional IRA into a Roth, but you’ve done so at a lower tax cost than when you tried the first time last year. However, there’s a timing restriction. For an account that was originally converted to Roth status in 2008 and then reversed back to traditional IRA status in 2009, you have to wait at least 30 days after the reversal (recharacterization) date to reconvert. Here’s an example: You originally converted your traditional IRA into a Roth in 2008 when the stock market was healthy. Then the account took a big nosedive, so you reverse (recharacterize) it back to traditional IRA status on July 1, 2009, to avoid an inflated 2008 tax bill. The earliest you can reconvert the account back into a Roth IRA is July 31, 2009 (30 days after the reversal date). 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 | 10 Jun 2009 | 4:00 am 5 Stocks That Look Too Popular (Screens) American Express (AXP) has been the subject of relatively bright news of late. It successfully raised funds by issuing stock early this month and is widely believed to be close to repaying government bailout funds. Also, new credit card restrictions seem likely to hurt American Express’s rivals far more than itself, since less of its revenues come from customer interest, a central focus of the crackdown. One problem, though: American Express shares, up more than 40% this year, trade at 28 times this year’s earnings forecast. That’s almost double the stock market’s average price/earnings ratio over long time periods, suggesting the stock has gotten ahead of itself. Investors seem to be betting, not just that the company will weather the current recession in health, but that it will quickly return to the level of profitability it enjoyed in 2007. House and stock prices were then still plump and consumers were spending almost all of their after-tax income. That year, American Express earned $3.36 a share. Shares trade at only eight times that figure today. But if Wall Street estimates are to be believed, the company is a long way from returning to that kind of profitability. A consensus of 19 analysts who cover the stock calls for earnings of $1.36 next year. That would be an impressive increase from this year’s forecast of 94 cents, but even if we assume the company will meet that growth expectation, the stock still stands at a lofty 20 times 2010 earnings. Wall Street darling Google (GOOG), for comparison, trades at 18 times 2010 earnings. Also, there’s reason to be cautious on next year’s earnings consensus for American Express. The highest estimate in the consensus stands at $2.37 and the lowest one at just 61 cents. That’s an unusually wide spread. Studies show that broadly scattered earnings consensuses — a sign of analyst indecision — are more likely than tightly clustered consensuses to be fallen short of come reporting time. All this isn’t to say that American Express is sure to disappoint. It might not. Indeed, the high stock price is a sign of investor confidence. And shares carry a dividend yield of 2.9%, so investors waiting for a recovery will at least pocket some cash along the way. But with the market in general looking pricey right now at 17 times forecast 2009 earnings, it’s a good time to be frugal. American Express combines a sizable share price gain this year, a lofty P/E ratio, considerable debt, high expectations for next year’s growth and wide disagreement among forecasters. Those are qualities I’d avoid at the moment. Below are listed four other companies that share those attributes. All have demonstrated success, or at least reason for hope, in recent months. Thus, the big price gains. But all look too pricey for my tastes and perhaps for yours. Kindly don’t read this as a recommendation to sell shares short. That’s risky for all but the most experienced and well-funded investors. Rather, if you own these stocks, ask yourself whether it might be time to take profits and shop for something cheaper. For ideas on that, check back here later this week for a roundup of promising stocks that still have single-digit P/E ratios.
Company	Ticker	Industry	Price	Price Change YTD (%)	P/E Current Fiscal Year	Proj. EPS Growth Next Year (%)
American Express	AXP	financial services	$26.93	48	29	45
Equinix	EQIX	telecom services	72.50	36	53	39
BrogWarner	BWA	car components	34.95	62	117	450
Knology	KNOL	cable television	8.09	57	58	193
JC Penney	JCP	department stores	28.97	50	40	63

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.

Stephens Small Cap Fund Sees Opportunities

BIKE RACING IS GOOD PREP WORK FOR INVESTMENT professionals, says fund manager Ryan Crane.

"There's a certain parallel in what I do for a living and what I do for fun," explains the 37-year-old Crane, who's been cycling competitively since age 12. "On a bike, you're riding against the clock, and the fastest guy wins. There's a lot of objectivity in racing."

Crane's day job as manager of the $44 million Stephens Small Cap Growth Fund (STSGX), launched in 2005, requires similar traits. "You have to have a competitive spirit and a drive to excel. Performance matters, and at the end of the day you are rewarded for your efforts. And your scorecard is in the newspaper every day."

The University of Houston grad does well in both his pursuits. In 2004, he won biking's U.S. Master's National Championship in matched sprints, and the Pan-American Masters Championship in Cuba in multiple events. While at AIM Capital Management, Crane ran its Small Cap Growth (GTSAX) portfolio; the five-star fund grew from $28 million in assets in 1998 to $3 billion-plus at its 2003 peak, generating a five-year cumulative return of 85.78% during his tenure versus the Russell 2000 Growth index's 33.77%.

Crane joined Stephens Investment Management in late 2004 as chief investment officer and senior portfolio manager. His two- and three-year total returns -- losses of 16% and 8%, respectively -- still place him in Morningstar's 16th and 33rd percentiles. But he's got a bunch of individual stock picks that are outperforming this year.

THE HOUSTON-BASED FIRM oversees some $450 million-plus in assets for wealthy individuals, pension plans, foundations and large institutions, including the states of Florida and Arkansas. The money is spread across separate accounts and small- and mid-cap investment strategies, including two mutual funds. The Stephens Mid Cap Growth Fund (STMGX) was launched in February 2006.

The small-cap fund has turned things around in 2009, clocking a year-to-date return of 13.75% through June 4, slightly underperforming its benchmark by 0.65 percentage points, and outpacing its peer group by 0.76 percentage points, respectively. "So far, so good," says Crane. "Small-caps historically lead the market out of recessions," he adds, "and growth funds like ours tend to be more aggressive out of the gate."

Crane and his team of three other veteran stockpickers seek two types of companies: those with what they call "core growth," meaning well-managed with strong business franchises and a competitive edge in fast-growing markets; and companies that have been experiencing rapidly accelerating earnings growth, owing to a specific business catalyst.

Right now, he sees many opportunities in the fund's main investment areas, namely in health care, consumer, business and financial services (which represent about two-thirds of assets), high-tech software and hardware stocks (which account for about a fourth of the value of his holdings), and manufacturing -- which makes up the rest.

THE BIG WINNER FOR the fund this year has been Stec (STEC) a solid-state disk-drive maker that fits Stephens' category of a stock with an earnings catalyst. Its shares are up 322% this year. The company's drives, he says, are faster, lighter and more energy-efficient than rivals' vying for notebook computer sales. The stock now trades at 19 times this year's earnings and 14 times 2010 forecast. Crane expects earnings to increase 35% next year, to $1.08 a share, from 80 cents expected this year.

Software-provider Epiq Systems (EPIQ), whose products facilitate the bankruptcy filing process, also possesses a catalyst: an uptick in business failures should fuel percentage-point earnings growth in the mid-teens over the next two years. "Filings will decrease as the economy improves, but that's not going to happen overnight," Crane says. He believes Epiq will earn 88 cents a share next year, up from 70 cents this year. The stock, down 2.7% since the beginning of the year, trades at 16.30.

There are other sorts of beneficiaries of a weak economy. For instance, Crane likes VistaPrint (VPRT), which provides low-cost software and services for printing business cards and stationery and other materials for new small and midsized enterprises. With annualized earnings growth of 20% and shares trading at 18.6 times forward earnings, the company remains attractive going forward, Crane believes. He thinks the company's per-share earnings will increase to $2.15 next year, from an expected $1.79 a share this year. The stock trades at 40, and has already gained 115% this year.

An example of a core holding that Crane bought in October 2004 is, appropriately enough, Core Laboratories (CLB) -- a Dutch company that provides evaluation services to the oil and gas industry. Because the company helps energy producers maximize their reserves and production, Core Labs is a "perfect play on the supply constraints we are seeing in the energy business," Crane says. The company has a "great track record of consistent performance and should see 10%-plus earnings growth this year. The stock trades at 17 times 2010's earnings estimate of $5.32 a share.

Another core stake that Crane believes will continue to do well is Cybersource (CYBS), a leader in online-payment processing and fraud detection. "As online transactions grow, so does Cybersource," Crane says. He sees earnings jumping 18% to 85 cents a share in 2010. The shares trade at 14.03, for a multiple of about 16.5.

As Crane says, performance counts -- whether it's cycling and or investing. He's hoping that companies like Core and Cybersource can put up the kind of numbers that Stec and Vistaprint and other holdings -- such as offshore-drilling-equipment supplier Dril-Quip (DRQ), up 90%, and online jewelry-merchandiser Blue Nile (NILE), up 82% -- have in 2009.

Meanwhile, Crane's off later this year to test his performance at the Master's World Championship of bicycling in Australia.

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.

Small Business: Should You Hire Your Family?

IN A BAD ECONOMY, THERE MAY BE MORE temptation than ever to turn a small business into a family business. Maybe your brother-in-law needs a job. Or Mom and Dad have cat food in the cupboard and don’t own a cat. Personally, the thought of hiring members of my family gives me indigestion. But a family company can be an all-around winner—provided you learn how to manage the “family” part.

Of the 6 million small businesses that employ 100 or fewer workers, 20 percent involve two or more family members. It turns out that some of the traits associated with these family-owned animals put them in better stead to survive and prosper in these leaner, credit-crippled years than conventionally owned firms. For starters, family businesses tend to be patient capitalists—building conservatively over years and turning a deaf ear to the siren song of debt, says Matthew Brady, head of the wealth-advisory group at Barclays. And money isn’t the only altar at which they worship; they’re more likely to focus on issues like legacy and commitment to community, and thus be that much more averse to foolish bets.

The offshoot is enviable, asset-rich balance sheets. Case in point: Boardroom Inc., a family-run publishing company in Stamford, Conn. Martin Edelston, 80, started the company in 1972 and now employs his wife, three children and—he hopes someday—grandchildren. Because the company is comfortably profitable on sales in excess of $100 million and has zero debt, it’s in an awesome position to ride out the recession. “I highly recommend it,” Edelston enthuses.

On the flip side, working with your kin can be a bite of hell sandwich when it doesn’t work. When octogenarian Viacom founder and chairman Sumner Redstone had a falling out a few years ago with his daughter, Shari, a company executive once considered heir apparent, the world learned about it. And even though we’re talking about two unsympathetically richer-than-God characters, it isn’t jolly for anyone to have a circus-like family drama that simultaneously pollutes the company. Plus, organizations that are seen as nepotistic can be hamstrung in hiring top talent, if potential hires see kinfolk blocking the path to the top. Given the nettlesome issues of succession and governance, it’s not surprising that few family-owned businesses survive to the next generation—only 30 percent, according to the Family Firm Institute, a trade group and research association.

Your Heart v. Your Brain

Ultimately, mixing family with work requires certain precautions and constant maintenance. “Use your brain, not your heart” when thinking about hiring your kin, says Don Schwerzler, the founder of Family Business Institute, in Atlanta. Compassion for someone who has lost his job is not a good reason. Make sure there’s a real job waiting for him and spell out your expectations for his duties, hours, vacation, compensation and equity opportunity.

Harder still but just as necessary: Spell out what will happen if he screws up and fails. Those difficult talks can be easier if you involve an advisory board in both hiring and firing. Should your new employee become your worst nightmare, it’s a relief to be able to say, “The board and I decided that a brick could do better work.”

The founder’s family doesn’t have to march in lockstep with the founder’s vision. It’s actually smarter if the family members hold varying points of view, learning to embrace those differences and extract the best ideas without temper tantrums. “In great family businesses, there is a surprising amount of disagreement when new ideas are first being discussed,” says Schwerzler. For Glenn Mutchler of Harrington Park, N.J.’s Mutchler Inc., a specialty chemical company with $28 million in annual sales, horizontal management is what works. He tries to create an environment where family members and the other 24 employees feel free to speak up. “We are all committed communicators,” says Mutchler, who works with his brother, wife and daughter in the firm his father founded. Many family enterprises break down because the putative leader must always be right, observes Mutchler. “I’ve been able to let go of that,” he says. “Even Erica, my 26-year-old daughter, will occasionally read me the riot act, and I’ll listen.”

The upshot is that, in a family-owned company, strict lines of authority and organizational charts–-conventional management’s best friends—have no teeth. But successful family-run companies still need ways to keep the family professionally focused. Boardroom Inc., for example, is a heavy user of a “family business adviser,” who meets with the family members every month. One of the adviser’s jobs, says Edelston, “is to look for sources of friction—principally with me.” In each meeting, Edelston’s kids must report on their jobs. If someone is found exhibiting less than ideal behavior, he’s fined $20. “Not a lot, but it still stings,” says Edelston. Such family referees are a specialty unto their own and can be found affiliated with business schools across the country. The Family Firm Institute’s membership now includes 1,500 consultants and educators working in this field, an increase of 50 percent over the past six years.

Dad, or CEO?

With or without an outside observer, the closest of families will have spats—particularly when one of the employees is a teenage know-it-all. The Old Greenwich, Conn.–based Miss O and Friends is a Web-entertainment and retail business aimed at hip tween girls—“too old for Barbie, and too young for Britney,” says the founder, Juliette Brindak. Now a sophomore at Washington University in St. Louis, Brindak first designed characters for the Web site in 2000, when she was 10.

As the business grew, her entire family became immersed. Paul Brindak, 51, who has a marketing and IT background, had to learn to tread carefully between his roles as dad and CEO. “Pulling rank just won’t work,” says Paul, who says it’s useful having a division of church and state when it comes to creative and business operations. “If I put my dad hat on in a creative meeting,” he says, “I’m told: ‘Dad, stay out,’ which I accept.” If, on the other hand, a family employee like Olivia, 14, acts as though she’s calling the shots, Paul falls back on moral suasion rather than dad-autocracy. “I explain that, unless she’s willing to crunch numbers and do spreadsheets, she is not running the whole company,” he says.

In all the navigating of family dynamics, there’s one key issue to attend to—making sure the family member you hire doesn’t feel taken advantage of. It’s tempting to underpay a relative; after all, it’s not like you have to compete for his loyalty. Jaime Mautz, of Pacific Ink, in San Diego, recently hired her father for a warehouse-management job, for a slightly lower salary than she would have had to pay someone else. Because he works fewer hours, says

Mautz, the arrangement is fair for her dad. But saving money was always a bonus, not the point. More important, ultimately, was having an employee she could trust. “We know the animal,” she says.

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

Stock Futures Point to Broad Rally (Market Update)

News at a Glance

• Chrysler Cleared: High Court won't hear pension case.
• Futures Jump: Major indexes headed for early gains.
• Fed Update: Beige Book report due out this afternoon.
• Energy Boost: Oil trading above $70 a barrel.

The Lowdown

Wall Street is preparing to bounce over the mid-week hump.

Stocks looked to open sharply higher Wednesday, as traders welcomed word that Fiat's acquisition of Chrysler would go ahead as planned.

The Chrysler deal had been threatened by a lawsuit from several Indiana pension funds. However, the Court's refusal to hear the suit allows the company to continue its plan, CNN reported.

In economic news, the Federal Reserve will release its Beige Book report on regional economic conditions later this afternoon. Separately, the Commerce Department will release the latest reading of the monthly trade deficit later this morning.

Traders also welcomed a stubborn bump in energy prices. By 6:33 a.m., oil traded up $1.18 at $71.19 a barrel.

World markets were broadly higher. In Asia, Japan's Nikkei picked up 2.1%, while Hong Kong's Hang Seng climbed 4.0%. In Europe, the U.K.'s FTSE picked up 2.1% in midday trading.

Corporate News

• Microsoft (MSFT) saw its share of the search audience reach double-digit figures for the first time in two years, the Associated Press reported, citing comScore data. The firm's share of the market reached 11.1% last week, up from 9.1% in the prior week.
• The New York Times (NYT) plans to keep The Boston Globe open and publishing, but the parent company said it would trim more than 20% of its staff to balance the books, Reuters reported. The Times's decision came after the Globe's union rejected a new contract designed to save the parent company about $10 million in costs.

The Economy

• The April reading of the monthly trade balance is scheduled to be released at 8:30 a.m. by the Commerce Department. In March, the difference between U.S. exports and imports stood at $27.6 billion. Economists expect the gap to have widened to $29.0 billion.
• The crude inventories report for last week is scheduled to be released at 10:30 a.m. by the Energy Department. In the prior week, inventories were above the upper limit of the average range for this point in the year.

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

Hollywood stars accept new contract

English urges consumers to take their banks to task

Aussie consumers brimming with confidence

Supreme Court gives go-ahead to Chrysler sale

First day jitters for Jetstar - passengers delayed by two hours

Software companies merge

Electronic card spending rises

Wellington Drive forecasts bigger loss

Google book deal faces growing scrutiny

Judge OKs Chrysler's bid to cut U.S. dealers

Inventor of salad bars dies

Ten US banks to repay Tarp funds

US banks to pay back $68bn in rescue funds$

Remind me, what was the point of new Labour?

Write-Offs: 06.09.09

$$$ Sam Israel's GF-- the one he runs around on with egrets-- gets probation. [Reuters]

$$$ Gitmo Detainee Joins Bernie Madoff in NYC Prison [ABC News]

$$$ Glen Whitney quits Rentech to create math museum [NYDN]

$$$ Alliance Bernstein's former head of HR, Rosanne Peress, who was relieved of her duties earlier this year, has filed a massive lawsuit against her old employer. In it, she makes a bunch of sexual and racial discrimination allegations involving several top managers. This is why you don't fuck with HR-- they know all your secrets! [PDF]

$$$ In response to this Gasparino tells us: "I think Barry's a little too obsessed with me. And I'll just leave it at that. I'm glad he's found stable work as a media pundit, even though I can't figure out where he's ever worked in the media. He sounds like the perfect guy to get a reporting job at CJR." [TBP]

$$$ Obama Drops Tough Plan on Bank Compensation; Salaries Safe, Bonuses Hit [WSJ]

Genting buys 3.2% stake in MGM Mirage

House panel to subpoena Fed over BofA-Merrill deal

U.S. Steel, AK Steel Upgraded, Nucor Reduced at Morgan Stanley

Steep climb ahead for U.S. financial reforms

Hank And Ben To Play Game Of Catch-Me-If-You-Can With House Oversight Committee

More from Bloomberg re: the Fed getting subpoenaed on what it did or didn't do to Ken Lewis. The House Oversight Committee clearly has no idea what it is up against. It can subpoena all the Fed records it wants related to BAC's purchase of Merrill and it won't find what it's looking for, or get a straight answer either way. Ken Lewis will swear over and over again that he was or wasn't pressured into the deal, depending on how much he's been drinking, and Ben Bernanke and Hank Paulson will die of laughter as they relish in the fact that whatever the did or didn't say to KL was never put down on paper, and their opponent has already contracted himself once already.

Fed Gets Subpoena From House Panel Over Bank of America-Merrill [Bloomberg]

Earlier: Bank of America Covering Ang Moz's Legal Fees

Lindland Says Liquidation Unlikely for Chrysler

Countrywide exec warned on loans at Fed '06 meeting (Reuters)

Reuters - The chief risk officer of Countrywide Financial Corp, the poster-child company for the loose U.S. home loans that staggered the world economy, was warning against them even when it put him at odds with his own company -- and with Fed chairman Ben Bernanke.

Minack Sees No V-Shaped Economic Recovery

Fiat Starts To Kick Chrysler To The Curb

In the span of 2 days, Fiat has downgraded its commitment to Chrysler from 'married for life' to 'get yourself together in 6 days or you're toast'. Evidently the Justice Department's delay in dealing with the pesky Indiana pension funds is starting to test Fiat patience.

On Monday Fiat's CEO Sergio Marchionne's response to whether or not they would walk away from a deal with Chrysler it it wasn't completed by June 15th was emphatic

Lugar Calls Obama's Cairo Speech `Signal Achievement'

Warren: Stress Test Banks Again

The Treasury Department should stress test the banks again, Elizabeth Warren told the Joint Economic Committee of Congress today. The chair of the Congressional Oversight Panel warned that the first round was based on unemployment figures that weren't dire enough:

Let's face it, the numbers are bad and they're heading in the wrong direction. The worst-case scenario number for 2009 is in fact not the worst case. We're going to see worse numbers.

As the Treasury today announced a list of 10 banks that can start paying back the bailout money and exiting TARP, Warren's panel released a full report calling for another look.

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How the major stock indexes fared on Tuesday (AP)

TARP’s Warren Says Price on Bank Warrants Are Unclear

Layoffs Watch '09: Diabolical Genius At DE Shaw

Layoffs are said to have gone down at DE Shaw about an hour ago, with the quants getting prettay prettay prettay creative about how they told people to walk out the building and not come back. The reception desk was apparently closed with a "hastily printed sign claiming there was construction, even though there was none to speak of, so that visitors wouldn't be exposed to the crying employees in the conference rooms that flank the front desk." About half the 30-man recruiting department was placed in one room, half in the other. Behind door number one: a group of people who told they were being fired, to get their stuff and hit the bricks immediately following an HR interview. Behind door number two: a group of lucky people told they get to keep their jobs, for now. Supposedly no one else at The Shaw was told anything about the axings, or whether or not more are planned.

No comment from DES at this time.

Update: A spokeswoman for DE Shaw confirmed the layoffs, though emphasized that the cuts did not affect front office, and said that the firm views the decision as "a result of efficiency right-sizing analysis." She also told us that DE Shaw is "still growing," as it relates to both assets and humans ($30 billion AUM as of June 1, and accepting resumes daily).

Greenhunter Energy stock jumps 61.7 percent (AP)

Greenhunter Energy stock jumps 61.7 percent (AP)

Bank of America Covering Ang Moz's Legal Fees

Which you already knew, thanks to our resident Tan Man scholar, but nice to see it confirmed. In other Bank of Amerillwide news, a house panel has subpoenaed the Federal Reserve re: whether or not it at a role in pressuring Ken Lewis to keep his trap shut on the Merrill losses he knew were coming. Most of you will recall that Lewis/Cuomo first tried to put it on Ben Bernanke and Hank Paulson working as a team, a story Paulson later (that day) refuted, claiming he acted alone when he told K to the L he would break a Boone's bottle over his face (and get him fired) shareholders were briefed on the situation prior to the deal going through.

Presented By:

Allen Stanford Looks To The Sea For His Defense

So you've been charged with an $8 billion fraud and are going to have the SEC combing over every last account transfer and trade in your house of Ponz- who do you call to represent you? If you go by the moniker Sir Allen the answer is a little known law firm that, naturally, specializes in admiralty and maritime law. The cricket loving knight has hired The Gulf Law Group (whose home page features pictures of a lighthouse, a cargo ship, and an offshore drilling platform) to prove that his little venture was totally legit. And so the seeds of the 'not fit for trial' defense are sown.

Allen Stanford lost at sea? [Reuters]

China Green Agriculture files to sell stock, debt (AP)

'Getting Struck By Lightning'

The Nielsens have kept both their home and sense of humor. Jeff Nielsen

 

This little drawing came in from Jeff and Chiara Nielsen, who are feeling pretty good these days in their recently refinanced Salt Lake city home.

The first time we heard from Jeff, he was not making art. He was banging his head against the wall trying to get through to his mortgage servicer. On paper, Jeff was the perfect candidate for President Obama's plan to stem home foreclosures. He kept trying to apply, but despite a 100-page application and at least 100 calls to his servicer, he says he could not get any response..

We put Jeff on the podcast. Two days after the podcast ran, he was suddenly approved.

Julia Gordon, with the Center for Responsible Lending, explains this to us on All Things Considered today.

She says that in general, loan servicers are overwhelmed and it's hard to get through the system. But she says there is always the "getting struck by lightning option." That would be to get national media interested in you. Getting the attention of a congressperson works, too. Otherwise, you're likely to wait in a long, long line.

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Some bright spots emerge in tough job market (AP)

DJ'ing The Close

According to CNBC, when the market is flat, that calls for "When the levee breaks." A fifteen point "rally" (Sue Herrra's words) = break out the "Black dog." Just so the control room can have it queued up and ready to go, please at this time, 1) where the Dow will close and 2) what ballad would be most appropriate (Zeppelin other otherwise).

Related: DJ'ing The Bailout

Phil Falcone Demonstrates Remarkable Restraint In Not Cutting Small Child

Harbinger head Phil Falcone and his wife, Lisa "Dime Piece" Falcone, recently made a nice $10 million donation to High Line, NYC's newest park. The couple did so because they are extremely generous but probably also for the number one reason anyone gives money to anything-- the ribbon cutting ceremony. You'd think ten million would get you spot right up front, away from the riff raff (i.e. the people who coughed up less than 5 mill) but then you wouldn't have accounted for the other husbands and wives who gave the same amount, like Barry Diller and Diane Von Furstenberg, Mayor Bloomberg, and the assembled underprivileged children. Damn the underprivileged children! Cityfile notes Falcone's unenviable (and unfair!) position at yesterday's unveiling. Behold as he assesses the situation, attempts to push his way to the front, then becomes aware of his surroundings, and holds back. A lesser hedge fund manager would've trampled short-stack.

And that's all well and good but guess what? We like our hedge fund managers immature and selfish and acting as though, in a room full of people, they're the only one that matters. So, for those of you reading, we suggest you review the following footage, and moving forward, know what kind of behavior is expected.

Farrell Sees Consumer Spending Returning to Two-Thirds of GDP

Kasriel Sees U.S. Inflation Above 3% in 2011

Caron Says U.S. 30-Year Mortgage Rate Will Stay Above 5%

Dodd Says More Regulations Are Overarching Risk for Mastercard

Barrow Sees British Pound at $1.80 by Next Year's U.K. Election

April wholesale inventories fall 1.4%

5 Ways To Make Money Off Your Pets

With the market in the gutter, job skills alone won’t bring home the bacon. If you haven’t started looking around for supplemental income, maybe it’s time to start. You could sell the couch, downgrade your appliances, and quit your Saturday drinking habit, but that still doesn’t amount to steady pennies in the bank.

What if your newest income source lay right at your feet? Panting, say, and begging for a treat? Fido, Snowball, or even Ted the Tarantula could be a potential new income source. Here are five ways people make money off their pets.* One of them may fit you, as well:

1. Model Them

If you think your hairless Sphynx is exceptionally cute–and have had complete strangers verify this as fact–why not capitalize off her looks? Most magazines, ad agencies and charities periodically feature animals. Be in the right place at the right time, and voila, Susie’s face could land on cover of a Petco ad. Animal models rake in fees of up to $200/hour, with dogs grossing the most pay. Cats, birds, lizards, and other pets trail behind in terms of demand, but the opportunity still exists. The first step is making sure your pet is well-behaved and doesn’t bite cameramen. After that, all you need is a good agency and a good opportunity.

2. Milk Them

If you happen to have goats or cows in your backyard, milking is an obvious, if not lucrative, way to make money. However, if you’re tight on space, other critters’ fluids can actually pay quite well. Take Chuck Kristensen, who has about 50,000 spiders living in plastic cups inside his basement. Kristensen runs Spider Pharm, one of the world’s biggest spider venom producers. Each day, he “milks” his spiders by sedating them with carbon dioxide, then forcing it to release venom using a mild electric current. It takes hundreds of spiders to gather enough venom for a full order, but that order–often just a thimbleful–can fetch hundreds of dollars.

Needless to say, Kristensen, a lifelong spider lover, isn’t in it for the money. But it must be a nice perk.

3. Have Them Play

If your own Hollywood dreams never panned out, and your kids aren’t looking too good, either, why not go for the dog? You never know–your Sparky could be the next Air Bud. Or Lassie, Benji, Morris, Spuds MacKenzie, or, heck, even the Taco Bell dog. Once you build your pet’s resume with a list of awards, certifications and acting classes, the sky’s the limit. Even if Sparky doesn’t hit the big time, he can always make a $1,000 appearance in a commercial.

4. Show Them

If you’re passionate about your breed, and willing to deal with big overhead and time commitment, showing could pay off–if it doesn’t turn you into a neurotic mockumentary subject first. After spending thousands of dollars and hours finding the perfect puppy, buying quality food, developing a strict exercise and training regimen, paying club and registration fees, socializing her, taking her to the vet, and grooming her, you might have a spitting chance at taking home a small money prize.

More likely, you’ll just get a ribbon and a pat on the ego.

5. Sell Their Goods

Unless your housepet has a special skill, like this fishing dog, it probably won’t produce much marketable product. That changes when you widen the definition of “pet.” If you have room for chickens, goats, alpacas, or even minicows, your pets can produce goods, as well. Sell milk or organic eggs to your neighbors or local farmer’s market; sell wool to a guild or fiber co-op, or make your own cheese, yogurt, or yarn to sell. If you’re sitting on some land, and are interested in keeping farm animals, why not try it out? The worst you can do is only produce enough food for yourself.

*Disclaimer: Any relationship between these hobbies and the word lucrative is purely coincidental.

Buyer's Remorse

Click to enlarge. Regretting it in Greenville, South Carolina. punk_drizzle

 

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Taking Stock: Lessons from history

What's Up With Warrants?

Even after the 10 big banks pay back their bailout money and exit TARP, say analysts, the Treasury stands to make as much as $4.6 billion on the $68.3 billion it loaned them. In exchange for the loans, the Treasury got warrants giving it the option to buy a bank's shares at a set (read: discounted) price until 2018 -- a situation most banks don't like.

The warrants could be a way for Treasury to keep some control over the banks. It's unclear how the government would use any power it keeps through holding on to the warrants. Lawmakers have expressed interest a wide variety of measures, from controlling executive pay to limiting the number of visas for foreign workers and overhauling financial system.

Some of the smaller banks have bought back their warrants from Treasury for a low price. But one bank, Centra, ended up paying $750,000 to buy back its warrants after borrowing $15 million, for just six weeks, from the program. That amounted to an annual interest rate of 60 percent.

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Norman Brinker Leaves Powerful Legacy

Dallas restaurant magnate Norman Brinker passed away today at the age of 78. I just learned about Brinker today. I wish I had known about him earlier. He strikes me as a classic American business success story, a man who built an empire based on hard work and good ideas. Here’s an excerpt from a Dallas Observer article covering Brinker’s life:

Brinker, who started out as a busboy in Southern California, moved to Dallas in the early 1960s.
His first restaurant was a coffee shop on Gaston Avenue called Brink’s.

Brinker retired as chairman in 2000 after building the chain of more than 1,000 casual-dining restaurants. The company now has 1,700 restaurants in 27 countries.

Not only that–Brinker was national champion polo player, survived a bad accident and cancer, and mentored numerous employees and entrepreneurs. He left a powerful legacy. I hope others follow in his footsteps.

Will Taxpayers Make $$ On TARP?

Treasury Department just sent out this statement saying that 10 of the largest financial institutions have been cleared to repay their bailout money, totaling as much as $68 billion.

In addition to Treasury's potential income from sale of the warrants, these 10 institutions have already paid dividends on the preferred stock totaling approximately $1.8 billion over the last seven months. Dividend payments received for all CPP participants are approximately $4.5 billion to date.

(CPP is the capital purchase plan, where the government bought preferred shares in over 600 banks, totaling $199 billion.)

There are plenty of other places for the taxpayers to lose money, with the auto companies, for instance, or through the programs administered through the Federal Reserve Bank.

But so far so good with the banks.

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U.K. town takes on movie studio

Stimulus creates application avalanche

Digital TV is coming, ready or not

When will gas-price rise run out of fuel?

Court takes brake off Chrysler-Fiat deal

TARP payback raises more questions

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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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 lent Chrysler 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"

In this case it's not saving fish, it's saving the economy.

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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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.

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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GM’s Only Remaining Niche Market