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Money in Icelandic banks was at unnecessary risk, say MPsMore than £1 billion of taxpayers’ money was put at “unnecessary risk” in Icelandic banks as a result of misinformation and complacency in a range of public organisations, a Commons committee concluded yesterday. Source: Latest Business News from Times Online | 11 Jun 2009 | 10:33 pm Job Loss Down, A Little
How we're doing. Source: Department of Labor
But when economists say that the downturn is moderating, this is the kind of number they mean. Of the states, Florida registered the biggest decrease in new claims, citing fewer layoffs in construction, manufacturing and agriculture among other industries. Michigan noted 4,385 fewer layoffs, a change it attributed to fewer cannings in the automobile industry. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 11 Jun 2009 | 2:18 pm Ferrero cleared of hazelnut fraudConfectioner Ferrero has been cleared of allegations of fraud relating to the supply of hazelnuts.Source: BBC News | Business | World Edition | 11 Jun 2009 | 1:21 pm The Ratings Game: B. of A. gets upgrade on capital raises, valuationBank of America Corp. and its chief executive, Ken Lewis, continue to face heat over the controversial acquisition of Merrill Lynch, but one Wall Street analyst says the banking giant’s ability to raise capital removes some uncertainty and makes the stock a buy.
Source: MarketWatch.com - Top Stories | 11 Jun 2009 | 1:15 pm New Palm CEO gets Wall Street welcomeNEW YORK (MarketWatch) -- As Jon Rubenstein readies to take the chief executive post at Palm Inc., news of his appointment earned a warm reception from Wall Street early Thursday.
Source: MarketWatch.com - Top Stories | 11 Jun 2009 | 1:12 pm Indications: U.S. futures dip on retail data, ahead of auctionU.S. stock futures dip early on Thursday, losing steam after the government reported a smaller-than-expected rise in retail sales in May.
Source: MarketWatch.com - Top Stories | 11 Jun 2009 | 1:11 pm Futures Movers: Oil stays up after jobs, retail sales dataCrude-oil futures up after jobs, retail sales data.
Source: MarketWatch.com - Top Stories | 11 Jun 2009 | 1:09 pm Gasoline boosts retail sales (Reuters)
Source: Yahoo! News: Business | 11 Jun 2009 | 1:08 pm Economic Report: Retail sales rise 0.5%, but it's mostly inflationU.S. sales at retail stores increase 0.5% in May, but much of the seasonally adjusted increase reflects higher gasoline prices, the Commerce Department estimates.
Source: MarketWatch.com - Top Stories | 11 Jun 2009 | 1:08 pm Fewer jobless seek first-time benefitsThe number of Americans filing for initial unemployment insurance fell more than expected last week, but ongoing claims ticked higher, according to government data released Thursday.Source: Business and financial news - CNNMoney.com | 11 Jun 2009 | 1:05 pm Wall Street focus on economic recoveryUS investors focused on signs of economic recovery after the release of figures on joblessness and consumer spending.Source: Financial Times - US homepage | 11 Jun 2009 | 1:02 pm Foreclosure hits 1 in 398 householdsLenders filed fewer foreclosure notices in May, but the total number of filings was still the third-highest monthly total on record.Source: Business and financial news - CNNMoney.com | 11 Jun 2009 | 1:01 pm New jobless claims drop; retail sales riseThe number of newly laid-off Americans filing jobless claims fell more than expected last week and retail sales grew in May for the first time in three months, fresh evidence that the worst of the recession may have past.
Source: L.A. Times - Business | 11 Jun 2009 | 1:01 pm Opening Bell: 06.11.09
US Pushes A Troubled Citi To Heal Itself (NYT) California nears financial "meltdown" as revenues tumble (Reuters) 
Sponsored Topics: California - JPMorgan Chase - Wall Street Journal - Citibank - Washington Source: Dealbreaker | 11 Jun 2009 | 1:00 pm NewsWatch: Thursday's biggest gaining and declining stocksStocks expected to move significantly in trading on Thursday include two railroad-related issues – Greenbrier and Genesee & Wyoming – as well as C.R. Bard, Cadence Design, Coke, GM, Microsoft, Palm and Vulcan.
Source: MarketWatch.com - Top Stories | 11 Jun 2009 | 1:00 pm Stocks headed for weak openU.S. stocks were slightly lower Thursday, as investors reacted to an increase in retail sales and a better-than-expected report on initial jobless claims.Source: Business and financial news - CNNMoney.com | 11 Jun 2009 | 12:58 pm Fed criticized B. of A. over Merrill deal: ReportU.S. Federal Reserve officials criticized Bank of America in email comments after the banking giant attempted to withdraw from its effort to buy Merrill Lynch, congressional investigators find.
Source: MarketWatch.com - Top Stories | 11 Jun 2009 | 12:57 pm New jobless claims drop to 601K; retail sales riseThe number of newly laid-off Americans filing jobless claims fell more than expected last week and retail sales grew in May for the first time in three months, fresh evidence that the worstSource: RSS feed - channel BNewsBusiness | 11 Jun 2009 | 12:56 pm Economic Report: Initial jobless claims fall; record ongoing claimsWhile first-time claims for state unemployment benefits declined, ongoing claims reached fresh weekly highs, the Labor Department reports.
Source: MarketWatch.com - Top Stories | 11 Jun 2009 | 12:56 pm Retail sales climb 0.5 percent in May (AP)
Source: Yahoo! News: Business | 11 Jun 2009 | 12:53 pm Gasoline boosts U.S. retail salesWASHINGTON (Reuters) - Sales at U.S. retailers rose for the first time in three months in May as expected, lifted by strong gasoline and building material receipts, according to a government report on Thursday that bolstered views the recession was abating.Source: Reuters: Business News | 11 Jun 2009 | 12:52 pm US retail sales up 0.5% in MayUS retail sales rose in May, for the first time in three months, fueled mostly by higher gasoline prices, the government said Thursday amid signs a prolonged recession is easing. The...Source: RSS feed - channel BNewsBusiness | 11 Jun 2009 | 12:49 pm Gloves off at Tesla. Who is the real founder?Source: Business and financial news - CNNMoney.com | 11 Jun 2009 | 12:46 pm Real moneyHow can Real Madrid afford £80m for Ronaldo?Source: BBC News | Business | World Edition | 11 Jun 2009 | 12:46 pm Before the Bell: Retail sales, Bank of America, Palm in focusU.S. stock market futures gave up early gains to trade slightly lower Thursday after the latest figures on retail sales showed a smaller-than-expected rise that was largely fuelled by inflation, with investors also awaiting another key auction of government debt.
Source: MarketWatch.com - Top Stories | 11 Jun 2009 | 12:46 pm Southwest CEO says June looking worse than MayThe CEO of Southwest Airlines says June revenue looks weaker than May, and he doesn't yet see signs of a turnaround. "It's a very, very difficult time, and earnings are going to be very...Source: RSS feed - channel BNewsBusiness | 11 Jun 2009 | 12:46 pm Stock futures slip following economic data (Reuters)
Source: Yahoo! News: Business | 11 Jun 2009 | 12:45 pm Stock futures slip following economic data (Reuters)
Source: Yahoo! News: Stock Markets News | 11 Jun 2009 | 12:45 pm Stock futures slip following economic dataNEW YORK (Reuters) - Stock index futures slipped on Thursday as investors wrestled with data that offered conflicting signals on the economy.Source: Reuters: Business News | 11 Jun 2009 | 12:45 pm Bankrate: Mortgage Rates Surge HigherNEW YORK, June 11 /PRNewswire-FirstCall/ -- Mortgage rates soared this week, with the average 30-year fixed mortgage rate rising to 5.95 percent. According to...Source: RSS feed - channel BNewsBusiness | 11 Jun 2009 | 12:45 pm More Than 90% of Private Equity Managers Expect 'Credit Crisis' to Persist in 2010 According to New Report From CPA Firm Rothstein KassOver 40% Expecting Capital Market Improvement During Second Half of Next Year Amid Intense Competition, Uncertain Exit Strategies 78.8% Anticipate Greater...Source: RSS feed - channel BNewsBusiness | 11 Jun 2009 | 12:45 pm Pioneer Bankshares, Inc. Declares 2nd Quarter DividendSTANLEY, Va., June 11 /PRNewswire-FirstCall/ -- The Board of Directors of Pioneer Bankshares, Inc. (OTC Bulletin Board: PNBI) in Stanley, VA declared a second quarter dividend onSource: RSS feed - channel BNewsBusiness | 11 Jun 2009 | 12:44 pm Stock index futures trading in narrow rangeStock futures are trading in a narrow range after a better-than-expected report on jobless claims and anticipated growth in retail sales. A report on weekly jobless claims shows only...Source: RSS feed - channel BNewsBusiness | 11 Jun 2009 | 12:43 pm Stock index futures trading in narrow range (AP)
Source: Yahoo! News: Stock Markets News | 11 Jun 2009 | 12:43 pm Retail sales end 2-month slumpRetail sales rose in May, breaking two straight months of declines, but the gains were fueled primarily by auto purchases and higher gas prices that pumped up gasoline station sales.Source: Business and financial news - CNNMoney.com | 11 Jun 2009 | 12:41 pm Dorel names Juvenile Segment President - Hani Basile confirmedEXCHANGES TSX: DII.B, DII.A MONTREAL, June 11 /PRNewswire-FirstCall/ - Dorel Industries Inc. (TSX: DII.B DII.A) today announced the promotion of Hani Basile to...Source: RSS feed - channel BNewsBusiness | 11 Jun 2009 | 12:41 pm Bisk Education Unveils New CPEasy Catalog Featuring Unlimited Access to Online CPE CoursesWith the economy in turmoil, CPAs nationwide are turning toward Bisk Education, the most trusted name in CPE to stay current with timely insight on critical industry changesSource: RSS feed - channel BNewsBusiness | 11 Jun 2009 | 12:35 pm New jobless claims drop more than expected to 601KThe tally of newly laid-off Americans requesting jobless benefits fell for the third time in the past four weeks, fresh evidence that companies are cutting fewer jobs. The Labor...Source: RSS feed - channel BNewsBusiness | 11 Jun 2009 | 12:34 pm Continuing Jobless Claims Approaches 7 MillionThe Labor Department has released its new round of weekly jobless claims. The jobless claims filed last week came in 601,000, and Bloomberg showed the consensus estimate from economists as 625,000. We had an unofficial whisper number at or just under 600,000, so that official estimate may have been artificially high. The preliminary figure last [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 11 Jun 2009 | 12:32 pm Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.
Source: MarketWatch.com - Top Stories | 11 Jun 2009 | 12:31 pm IEA sees recovery in oil demandThe rich countries' energy watchdog has noted the first signs of a true recovery in oil demand, saying the recent oil price rally was at least partially underpinned by improved market fundamentalsSource: Financial Times - US homepage | 11 Jun 2009 | 12:29 pm Pound hits 2009 high against euroSterling reaches its highest level against the euro since the start of the year after data hints the UK recession may be over.Source: BBC News | Business | World Edition | 11 Jun 2009 | 12:20 pm Oil demand shows 1st rise since Aug.Read full story for latest details.Source: Business and financial news - CNNMoney.com | 11 Jun 2009 | 12:13 pm Oil bonds highlight risk of imperfect recoveryMoney is a powerful drug. The global economy is digesting unprecedented doses of the stuff. It has responded positively to the treatment but there are already signs of adverse side effects not least in the commodities and bond markets.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 11 Jun 2009 | 12:01 pm Ploughing onHow Indian firms are dealing with the downturnSource: BBC News | Business | World Edition | 11 Jun 2009 | 11:57 am IEA sees start of recovery in oil demandLONDON (Reuters) - World oil demand will contract by less than previously expected in 2009, the International Energy Agency said on Thursday in a further sign the economic outlook may have stopped deteriorating.Source: Reuters: Business News | 11 Jun 2009 | 11:48 am Satyam shares rise after profitShares in Satyam, the fraud-hit Indian IT firm, rise for a third consecutive day after figures show it remains in profit.Source: BBC News | Business | World Edition | 11 Jun 2009 | 11:46 am China's Beijing Auto interested in Volvo: reportSHANGHAI/STOCKHOLM (Reuters) - Beijing Automotive Industry Holding Corp (BAIC) is interested in buying Ford Motor Co's Volvo car unit, the Wall Street Journal reported, adding a new name to a list of potential Chinese bidders for the Swedish luxury car brand.Source: Reuters: Business News | 11 Jun 2009 | 11:44 am Greater oil demand seen for 2009Demand for oil this year will be more than previously expected, according to the International Energy Agency (IEA).Source: BBC News | Business | World Edition | 11 Jun 2009 | 11:44 am Strange Product Idea
Source: Business Pundit | 11 Jun 2009 | 11:40 am Top Analyst Downgrades (ATHN, CNQR, NOA, TIN, UNH, VPRT)These are the top pre-market analyst downgrades or cautious calls we are seeing from Wall Street firms early this Thursday morning with more than two hours until the market opens: Athenahealth (ATHN) Started as Hold at Auriga. Concur Tech (CNQR) Cut to Neutral at Piper Jaffray. North American Energy (NOA) Cut to Market Perform at Raymond James. Temple-Inland (TIN) [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 11 Jun 2009 | 11:34 am Top Analyst Upgrades (CAR, BAC, BCSI, CLRT, IHS, MA, PLXS, QTWW, SLB)These are some of the top early bird analyst upgrades and positive research calls we are seeing from Wall Street this Thursday morning with more than two hours until the market opens: Avis Budget (CAR) Raised to Equal Weight at Barclays. Bank of America (BAC) Raised to Outperform at KBW. Blue Coat Systems (BCSI) 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 | 11 Jun 2009 | 11:28 am E-mail shows Fed strong-armed BofABank of America CEO Ken Lewis heads to Capitol Hill on Thursday, and he's likely to be grilled by lawmakers about the government's role in ensuring that the bank complete its controversial merger with Merrill Lynch.Source: Business and financial news - CNNMoney.com | 11 Jun 2009 | 11:25 am Oil rises to $72 as IEA raises demand outlookLONDON (Reuters) - Oil firmed to $72 a barrel on Thursday after the International Energy Agency raised its estimate for 2009 oil demand, adding to signs the fall in consumption may have bottomed out.Source: Reuters: Business News | 11 Jun 2009 | 11:20 am Oil rises to $72 as IEA raises demand outlook (Reuters)
Source: Yahoo! News: Business | 11 Jun 2009 | 11:20 am Ronaldo set for £80m Real switchCristiano Ronaldo looks set to leave Manchester United after the Premier League club gave Real Madrid permission to speak to the winger after receiving a world record bid of £80mSource: Financial Times - US homepage | 11 Jun 2009 | 11:01 am Loan alert: the best fixedrate mortgagesSwap rates which govern the cost of fixedrate mortgages have risen sharply. Here are some of the best deals available.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 11 Jun 2009 | 11:00 am European stocks up ahead of key US data (AP)
Source: Yahoo! News: Stock Markets News | 11 Jun 2009 | 10:46 am iPod maker named CEO of PalmJon Rubinstein, the engineer credited with building both the iPod and the Palm Pre, leads the company.Source: Business and financial news - CNNMoney.com | 11 Jun 2009 | 10:31 am Luanda 'priciest city for expats'Luanda is the most expensive city in the world for foreign workers, according to a survey.Source: BBC News | Business | World Edition | 11 Jun 2009 | 10:29 am 4 ways Obama health plan will raise costsAmerica is finally getting a detailed look at the sweeping, long-awaited health-care reform platform championed by President Obama. This week the Democrats have unveiled their two primary proposals -- a 700-plus page bill in the Senate and the outline of the forthcoming version in the House that presents essentially the same blueprint for change.Source: Business and financial news - CNNMoney.com | 11 Jun 2009 | 10:24 am China investment surge boosts recovery hopesBEIJING/TOKYO (Reuters) - Chinese investment surged in May, fanning hopes the world's third-largest economy may lead a global recovery, although a record slump in Japan's first quarter GDP reinforced expectations any rebound would be slow.Source: Reuters: Business News | 11 Jun 2009 | 10:21 am New mortgage approvals rise 16% in AprilFurther evidence of a revival in the housing market was provided this morning when the Council of Mortgage Lenders (CML) reported that its members granted 16 per cent more home loans in April than in March. Source: Latest Business News from Times Online | 11 Jun 2009 | 10:17 am What Does China Do When The Stimulus Well Is Dry?There is no shortage of cleverness among the bureaucrats who run China. Exports in May fell more than 26% according to the country’s custom’s agency. That rate was worse than the 22.6% decline in April. To balance the drop in exports, the Chinese government has continued to pump what it says will be $585 billion into [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 11 Jun 2009 | 10:11 am China May Buy Volvo, GM May Be NextThe Associated Press released an exclusive story which reported that Chinese car company Beijing Automotive Industry Holding might buy Volvo. It is odd that the auto firm cannot find a buyer in Sweden, the country where it was started and is headquartered. The recession may make the Swedes skittish about being in the global car [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 11 Jun 2009 | 10:08 am Sterling rallies against the dollarSterling rose for the fourth day this week reaching the highest levels for seven months as pessimism surrounding the UK economy receded.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 11 Jun 2009 | 10:07 am Oil firms as IEA raises forecast for demandOil firmed above 72 a barrel on Thursday after the International Energy Agency raised its estimate for 2009 oil demand adding to signs the fall in consumption may have bottomed out.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 11 Jun 2009 | 10:05 am The Federal Reserve Loses Money On Every Investment, Will Have To Make It Up On VolumeThe Federal Reserve issued the first installment of what it calls its ongoing series of monthly reports that provides new information on its credit and liquidity programs. Most of the June report was dry, but two things stood out. The first was the extent to which the Fed balance sheet is made up of junk, [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 11 Jun 2009 | 10:04 am Budget: The Revenue That Was Never ThereThe Treasury said that the federal budget deficit in May was almost $190 billion bringing the total for the government’s fiscal year to $992 billion. The government keeps its calendar running from September to September for reasons that are not clear to anyone. The first reaction to the news was that the government’s red ink for [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 11 Jun 2009 | 10:00 am May U.S. foreclosures third highest on recordNEW YORK (Reuters) - U.S. foreclosure activity for May ebbed from April's record, but mortgages still failed at a staggering pace as President Barack Obama's rescue programs had not had time to fully take root, RealtyTrac said on Thursday.Source: Reuters: Business News | 11 Jun 2009 | 9:57 am May U.S. foreclosures third highest on record (Reuters)Reuters - U.S. foreclosure activity for May ebbed from April's record, but mortgages still failed at a staggering pace as President Barack Obama's rescue programs had not had time to fully take root, RealtyTrac said on Thursday.Source: Yahoo! News: Business | 11 Jun 2009 | 9:57 am Zipcar plans to go public next year: report(Reuters) - U.S. car sharing company Zipcar is planning to launch a initial public offering of its shares next year, the New York Post reported.Source: Reuters: Business News | 11 Jun 2009 | 9:55 am Treasury reviews building societies' fundingThe Government is working on plans to relieve pressure on building societies by making their funding rules more flexible. Source: Latest Business News from Times Online | 11 Jun 2009 | 9:53 am Foreclosures Keep Up Economic PressureThe optimist’s view of the May foreclosure data from RealtyTrac is that the rate dropped 6% from April. The realist’s view is likely to focus on the 18% increase from May 2008. Neither view can ignore the fact that foreclosure filings hit more than 321,ooo homes last month. The sunny side of the foreclosure numbers [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 11 Jun 2009 | 9:52 am Demand For Oil Gets StrongerThe International Energy Agency seems to have caught on to what everyone else already knows: demand for oil is moving up. The IEA’s new forecast may still be off in terms of how much crude oil the world will need in the next year. According to The Wall Street Journal, “The Paris-based agency said in its closely [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 11 Jun 2009 | 9:35 am Harley (HOG) Buyers Go Down ScaleOver the past week, the 24/7 Wall St.–The Channel Checkers poll surveyed Harley Davidson dealers. We asked the following questions: 1. What is the best selling motorcycle model right now? 2. Are they sold out of any models right now? 3. How is business compared to this time last year? 4. Has there been an increase in sales in the past month? • 36% of respondents cited [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall Street | 11 Jun 2009 | 9:20 am China's Beijing Auto interested in Volvo: report (Reuters)
Source: Yahoo! News: Business | 11 Jun 2009 | 9:14 am Recovery hopes fail to lift FTSEA report from Britain's leading economic think-tank yesterday suggesting that the recession ended in March and that growth in GDP resumed in April and May failed to lift spirits in the London market. Source: Latest Business News from Times Online | 11 Jun 2009 | 9:03 am Iraq frees three of five arrested US contractorsThree of five US security contractors arrested in Baghdad as part of an investigation into the killing of a fellow American contractor have been freed, Iraq's government spokesman said.Source: Financial Times - US homepage | 11 Jun 2009 | 8:59 am Battling throughLatvians remain optimistic despite the recessionSource: BBC News | Business | World Edition | 11 Jun 2009 | 8:58 am Nikkei breaches 10,000-mark on Japan GDPJapan’s economy contracted at a record pace in the first three months of the year, but the rate of decline was less than initial estimates suggested, pushing the Nikkei index through the 10,000 mark for the first time since October. Source: Latest Business News from Times Online | 11 Jun 2009 | 8:48 am 'Bloke Coke' cleared from Venezuelan shop shelves... by order of the governmentVenezuela bans the sale of the calorie-free Coke Zero, calling it harmful to people's well-being.Source: BBC News | Business | World Edition | 11 Jun 2009 | 8:47 am Asia stocks mixed as Nikkei retreats from 10,000 (AP)
Source: Yahoo! News: Stock Markets News | 11 Jun 2009 | 8:42 am London stocks drop at open (AFP)
Source: Yahoo! News: Stock Markets News | 11 Jun 2009 | 8:40 am Homebase sales sizzle as weather improvesThe recent warm weather has provided a welcome boost to Homebase as the DIY chain shrugged off last year's dismal performance to report strong sales of barbecues and other outdoor equipment. Source: Latest Business News from Times Online | 11 Jun 2009 | 7:54 am Abbeybranded credit cards to disappear as Santander name takes overAbbey the Spanishowned high street bank is to begin rebranding its credit cards under the name of its parent company Santander from Monday it has announced.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 11 Jun 2009 | 7:51 am Australian stocks: Market up 22 pointsSYDNEY- The Australian share market has closed at fresh calendar year high as resource stocks continued their strong gains. At 1615 AEST, the benchmark S&P/ASX200 index was up 22.8 points, or 0.57 per cent, to 4047.2, while the...Source: New Zealand Herald - Business | 11 Jun 2009 | 7:49 am Argos chief executive warns against getting carried away by recovery talkBoss of one of UK's largest retailers has warned against getting carried away by signs of 'green shoots'.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 11 Jun 2009 | 7:48 am Iranian elections reach tense climaxIran's presidential election campaign moved towards a gripping climax, with thousands of demonstrators camped around the state broadcaster to protest against a final television address allocated to Mahmoud Ahmadi-Nejad, the controversial incumbentSource: Financial Times - US homepage | 11 Jun 2009 | 7:47 am Australian unemployment rate upAustralian unemployment has surged to a seven-year high as the global downturn continued to hit companies.Source: BBC News | Business | World Edition | 11 Jun 2009 | 7:05 am California leading growth in nation's green jobs economy, study findsIn 2007 alone, clean energy spurred the opening of 10,209 businesses with 125,390 jobs in the Golden State, according to a report by the Pew Charitable Trusts. ...Source: RSS feed - channel BNPaperBusiness | 11 Jun 2009 | 7:00 am Executive pay targeted in Obama administration crackdownCompanies that received bailout money will be subjected to tougher restrictions on executive compensation. Kenneth Feinberg is appointed 'pay czar' to oversee paychecks at seven firms. ...Source: RSS feed - channel BNPaperBusiness | 11 Jun 2009 | 7:00 am Shipyard plan doesn't jibe with Port of Los Angeles' visionYacht builder Gambol Industries wants to build a modern ship-building facility while the port, dockworkers and businesses prefer the site to be a dump for toxic material dredged from the harbor.Deep inside the nation's busiest seaport lurks the old Southwest Marine shipyard, a collection of rusting corrugated-metal buildings, broken windows and dark interiors that has appeared in more than a dozen films and television shows, including "Die Hard," "24" and "CSI: Miami."
Source: L.A. Times - Business | 11 Jun 2009 | 7:00 am CVS and Longs customers can get $2 coupons for finding expired itemsCalifornia shoppers are limited to one coupon for each visit during which they find an expired product on shelves. The offer is part of a settlement announced by the state attorney general's office. ...Source: RSS feed - channel BNPaperBusiness | 11 Jun 2009 | 7:00 am More than 250,000 Southland households not ready for digital TV switchIf owners of older analog sets don't get converter boxes or cable or satellite service by Friday, their televisions will just show a blue screen.Southern California is home to the major TV producers and studios, but when it comes to getting ready for Friday's transition to all-digital broadcasts, we're among the nation's top slackers.
Source: L.A. Times - Business | 11 Jun 2009 | 7:00 am Cadiz water deal was all wet the last timeKeith Brackpool's latest plan to tap 'surplus' Colorado River water for the Southland had been rejected in 2002. Now he's got some powerful backing.People who say that nothing's harder to get rid of than a bad penny must never have met Keith Brackpool.
Source: L.A. Times - Business | 11 Jun 2009 | 7:00 am Rising interest rates send Dow down 24 pointsInvestors are demanding higher yields on long-term Treasury notes, and that in turn is pushing up mortgage rates.The Treasury bond market just can't catch a break. Interest rates jumped again Wednesday, sending stock prices down moderately, after investors demanded a higher-than-expected yield at the government's auction of $19 billion in 10-year notes.
Source: L.A. Times - Business | 11 Jun 2009 | 7:00 am Nonprofit group aims to promote Internet accessThe California Emerging Technology Fund launches a campaign to boost awareness in poor communities.About half of California's low-income households have no Internet access, the California Emerging Technology Fund says, creating a gap that the nonprofit is hoping to close with its $1.5-million Get Connected campaign debuting in Boyle Heights today.
Source: L.A. Times - Business | 11 Jun 2009 | 7:00 am Sidelined cash has Wall Street salivatingBulls are hoping that investors tire of low yields from money funds, which have grown dramatically since mid-2006, and move big chunks of that cash into stocks.Besides the apparently moderating recession, what gets Wall Street bulls excited these days is talking about the mountain of cash sitting on the sidelines -- particularly in money market mutual funds.
Source: L.A. Times - Business | 11 Jun 2009 | 7:00 am California leading growth in nation's green jobs economy, study findsIn 2007 alone, clean energy spurred the opening of 10,209 businesses with 125,390 jobs in the Golden State, according to a report by the Pew Charitable Trusts.New green jobs sprouted faster than the overall workforce expanded in California and across the nation from 1998 to 2007, according to a study released Wednesday by the Pew Charitable Trusts .
Source: L.A. Times - Business | 11 Jun 2009 | 7:00 am Fiat completes Chrysler takeoverThe move allows the U.S. automaker to emerge from bankruptcy and again puts the company in foreign hands.Just over a decade ago, German auto giant Daimler bought Chrysler for $38 billion, an alliance that promised to reinvent the auto industry but instead ended in tears.
Source: L.A. Times - Business | 11 Jun 2009 | 7:00 am Economy's slide eases, Federal Reserve data findsReports suggest the worst of the recession is over. Several Fed bank regions say their expectations of future business activity have improved. ...Source: RSS feed - channel BNPaperBusiness | 11 Jun 2009 | 7:00 am Sidelined cash has Wall Street salivatingBulls are hoping that investors tire of low yields from money funds, which have grown dramatically since mid-2006, and move big chunks of that cash into stocks. ...Source: RSS feed - channel BNPaperBusiness | 11 Jun 2009 | 7:00 am Fiat completes Chrysler takeoverThe move allows the U.S. automaker to emerge from bankruptcy and again puts the company in foreign hands. Just...Source: RSS feed - channel BNPaperBusiness | 11 Jun 2009 | 7:00 am Rising interest rates send Dow down 24 pointsInvestors are demanding higher yields on long-term Treasury notes, and that in turn is pushing up mortgage rates. ...Source: RSS feed - channel BNPaperBusiness | 11 Jun 2009 | 7:00 am Cadiz water deal was all wet the last timeKeith Brackpool's latest plan to tap 'surplus' Colorado River water for the Southland had been rejected in 2002. Now he's got some powerful backing. ...Source: RSS feed - channel BNPaperBusiness | 11 Jun 2009 | 7:00 am Fiat closes Chrysler dealFiat CEO Sergio Marchionne will head the new company. The Italian carmaker will provide small-car and fuel-efficient engine technology in return for an initial 20% stake in the U.S. automaker. ...Source: RSS feed - channel BNPaperBusiness | 11 Jun 2009 | 7:00 am Nonprofit group aims to promote Internet accessThe California Emerging Technology Fund launches a campaign to boost awareness in poor communities. About half...Source: RSS feed - channel BNPaperBusiness | 11 Jun 2009 | 7:00 am Homebase enjoys rise in sales thanks to good weatherHome Retail the owner of Argos and Homebase reported sales which beat forecasts in the first quarter as gardening products got a boost from better spring weather.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 11 Jun 2009 | 6:45 am Chinese exports fall for seventh monthChinese exports plunged sharply in May posting the seventh straight monthly decline customs authorities said on Thursday highlighting the continued impact of the global economic crisis.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 11 Jun 2009 | 6:33 am Japanese shares breach 10000 as economy shrinks less than thoughtShare prices broke through the 10000 point barrier for the first time in eight months after data suggested the economy shrank less than thought.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 11 Jun 2009 | 6:19 am NZ stocks: Market slips after OCR decisionThe sharemarket slipped on a day in which there was a tightening of monetary conditions even though the Reserve Bank of New Zealand left the official cash rate unchanged at 2.5 per cent. The NZ dollar rose, which reduces exporters'...Source: New Zealand Herald - Business | 11 Jun 2009 | 6:18 am UK economy is growing again says NIESRThink tank's data shows British economy grew in April and May suggesting the recession has ended.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 11 Jun 2009 | 5:55 am Currency: Dollar climbs on OCR decisionThe New Zealand dollar rose today and so did wholesale interest rates off which some home mortgages are priced in the wake of the Reserve Bank of New Zealand's (RBNZ) Monetary Policy Statement. The RBNZ left the official cash rate...Source: New Zealand Herald - Business | 11 Jun 2009 | 5:24 am Ex-clients sue Lehman over auction-rate securitiesNEW YORK (Reuters) - Lehman Brothers Holdings Inc is being sued by two former clients for more than $190 million, alleging the failed bank deceived them about the market for auction-rate debt.Source: Reuters: Business News | 11 Jun 2009 | 5:05 am China exports fall more sharply in MayThe fall in Chinese exports and imports accelerated in May, dashing hopes that a collapse in the country's external trade flows had bottomed out and pointing to the continued weakness in global demandSource: Financial Times - US homepage | 11 Jun 2009 | 4:47 am 5 Companies Upping Their EstimatesThe S&P 500 has soared over 35% since bottoming out in early March. That may sound like a decent rally. But what still gives investors pause are the first-quarter performance numbers that came out during that run. Earnings underlying the S&P slipped a whopping 39% during that period. The idea that the market has gotten ahead of itself is one of the key reasons many market watchers expect stocks to pull back at some point later this year. That said, there is actually some good news brewing as the second quarter comes to a close at the end of this month: A select few companies are actually revising their quarterly and annual performance projections upward. There are several ways to look at this mini-trend. It could signal that investors and businesses are finally starting to open their wallets once again. It could also show the early signs of a broader economic recovery. However, maybe it simply means companies are beating low expectations. “Even when the economy’s really sick, there are some firms that can beat estimates because of good moves or good luck,” says Dan Seiver, a finance professor at San Diego State University. “I’d like to say these are the green shoots, but I don’t really think these count.” Only time will tell if Seiver is right. Over the next few weeks companies will manage their second-quarter earnings reporting by pre-releasing performance numbers. It’s an easy way for them to match investor expectations with actual results and, hopefully, prevent the big increases and decreases in stock prices that occur when traders are caught off guard. These announcements will give investors an inside look at what's to come next month. Until then, here are five companies that recently increased their forecasts — and some insights into why the revisions were necessary. Home Depot
“Today’s news builds upon what I’ve been seeing from Home Depot since the middle of 2008, where they’ve become much more efficient in their operations,” says Brian Sozzi, an equity research analyst at Wall Street Strategies. He adds that CEO Frank Blake’s emphasis on the shopping experience has paid off: “If you’re a longtime Home Depot shopper, you can really tell the difference.” General Mills
Consumers may be cutting back on their spending, but food apparently isn’t one area they're skimping on. The company (GIS) says U.S. retail sales demonstrated strong growth in 2009, and it has invested in new products and consumer marketing. Earnings for 2009 will also reflect a gain from the sale of Pop Secret popcorn to Diamond Foods. Diamond Foods
Brands like Emerald make this company a big player in the snack nuts business. U.S. retail sales have been growing, thanks in part to a strong Easter promotion. The company (DMND) also recently bought Pop Secret popcorn from General Mills. The company says popcorn sales are growing, which it credits to cost-cutting consumers watching more movies at home. Pepsi Bottling Group
Pepsi Bottling Group (PBG) has raised both its second quarter and its 2009 earnings guidance. PBG credits improved sales in the U.S., continued commodity price deflation and decreased volatility in foreign currencies for the improved outlook. However, commodity prices may rise more than PBG seems to expect. “We’ve already seen it over the past few weeks with oil prices going back up,” says David Silver, another analyst at Wall Street Strategies. Increasing fuel prices will impact the company’s costs, as will the rising price of aluminum and high fructose corn syrup. Meanwhile, PepsiCo (PEP) is proposing to acquire the company or key parts of it. Texas Instruments
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Source: SmartMoney.com | 11 Jun 2009 | 4:00 am 7 Ways to Save at an Amusement Park (Deal of the Day)Consumers sick of riding this year's bumpy economic roller coaster can find great deals on the real thing at amusement parks nationwide. Declining attendance has parks slashing prices at the gate. Wet N’ Wild Orlando, for instance, is currently advertising its “best deal ever” -- unlimited visits to the park during 2009, for the regular single-day pass price of $45. (That's half the price of its regular annual season pass.) Southern California residents can snag a three-day pass to Disneyland at a special rate of $99, compared with $180 for other visitors. In fact, discounts on admission are pretty much standard these days. "There's typically so much discounting going on at parks that few people actually pay the gate price," says John Gerner, managing director of Leisure Business Advisors LLC, a Richmond, Va.-based consulting group. Cheaper admission prices are a good start for families watching their wallets, but savvy consumers can cut costs even further by using a few smart moves. Here's how: Visit on weekdaysSaturdays are amusement parks' busiest days, so many offer discounts for weekday attendees, says David Mandt, spokesman for the International Association of Amusement Parks and Attractions, a trade group. Through June 11, Cedar Point in Sandusky, Ohio, is offering a $30 pass to those who visit on a Tuesday, Wednesday or Thursday (regularly admission would cost $44), while Wet 'n Wild knocks $40 off the price of its season pass (regularly $90) if you opt for weekday access only. Buy onlineTicket prices on the web are often 35% cheaper, plus you'll save time waiting in line. Online-only promotions are also plentiful this year — because the date-specific tickets let parks estimate headcount, they can cut overhead on slow days, says Robert Niles, editor of ThemeParkInsider.com. Buy online at Knott’s Berry Farm in Buena Park, Calif., and you’ll save $17 off the regular $52 one-day pass. Stick to one parkWith plenty to see and do — and long lines for everything — aiming to visit multiple parks in one day is overly ambitious for many people, says Danielle Courtnay, spokeswoman for the Orlando/Orange County Convention & Visitors Bureau. Save with a single park pass for short visits. At Walt Disney World, a one-day, one-park ticket is $75, while a one-day Park Hopper is $125. You’ll save $50. Arrive late in the dayArrive at the park once the afternoon rush has dispersed, and you can easily save 20% or more with so-called twilight entry passes, says Mandt. Knott's Berry Farm cuts its ticket price in half after 4 p.m., which gives you four to seven hours in the park. Clip couponsLook for amusement park coupons on the groceries you buy, and at the restaurants you frequent. Coca-Cola (KO) is offering two-for-one weekday admission or $15 off weekend admission to Six Flags Great Adventure in Jackson, N.J., on specially-marked cans. Get a season passSeason passes typically pay for themselves in just two visits, and offer additional value through freebies and special access, says Niles. Six Flags Great Adventure's 3-Park Combo season pass for 2009 costs $130 and includes free passes for a friend on specific dates, free access to 15 other Six Flags parks nationwide and $300 worth of in-park coupons. The $100 VIP season pass for 2009 at King's Dominion in Doswell, Va., provides first-in-line ride access, early entry to the attached water park, half-price deals for friends and free, specially-designated parking. Check your walletEmployers, banks, professional organizations and clubs may offer discounts or specially-priced tickets. The University of North Carolina at Chapel Hill offers employees $34 tickets to Carowinds (regularly $47), and a $20 discount at Six Flags Over Georgia ($40). Even your driver's license may be helpful in securing a deal. Walt Disney World offers Florida residents discounts on both daily tickets and annual passes. A seven-day park hopper would be $238 — $40 cheaper than out-of-state visitors pay.
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Source: SmartMoney.com | 11 Jun 2009 | 4:00 am 5 Stocks With Single-Digit P/Es (Screens)Low price/earnings ratios are usually easy to find, even when the broad stock market seems expensive. For example, the S&P 500 index has climbed more than 30% in three months and now trades at 22 times trailing earnings, well above stocks’ 137-year average trailing P/E of 15. Still, one out of every eight index members has a P/E in single digits. The task for investors, of course, is culling companies that seem under-appreciated from ones that deserve their piddling valuations. Often, a single-digit P/E means a company’s earnings are expected to decline. Not all declines are equal, though. Some suggest long-term decay. Others are a temporary product of swings in consumer spending or raw materials prices. Shares of companies that trade cheaply because of expected, temporary earnings stumbles might be just the thing for investors who worry that the broad market is priced for disappointment. Earnings underlying the S&P 500 are expected to grow 9% this year, even though they shrank by 39% in the first quarter. The index’s price of about 17 times the 2009 forecasts suggests investors think reported growth will top the estimate, even though earnings last quarter fell short of forecasts by 24%. By contrast, for the humbly priced stocks to follow, a certain amount of anticipated disappointment is already priced in. Chevron’s (CVX) earnings are expected to plunge this year but rebound sharply next year. My sympathies to the analysts who must try to assign precise numbers to such forecasts. Last summer crude peaked at more than $145 a barrel. Just before Christmastime it fell below $35. Now it’s over $70 again. Better, perhaps, to focus on the dividend yield, which stands at 3.7%, versus about 2.3% for the broad market. Carnival (CCL), the cruise line, seems perfectly emblematic of the sort of pricey frolicking the middle class can do without during a recession. The stock is accordingly about half its price of two years ago. Profits are indeed expected to fall 27% in Carnival’s fiscal year ending Nov. 30, but in its past two quarterly reports the company topped estimates by double-digit percentages. Perhaps the outlook is gloomier than the reality. One downside: Management scrapped the dividend late last year. Archer Daniels-Midland (ADM) buys, stores, processes and ships crops. Over the long term, its usefulness to a hungry planet seems assured. In the short term, its profits can swing with the frenzy of a futures pit. Last quarter the company missed earnings forecasts by 30%. The quarter before it beat by 33%. The stock is nine times forecast earnings for its current fiscal year ending June 30, but 12 times next year’s lower forecast. Still, the higher of the two numbers seems plenty reasonable compared with the broad stock market. Shares pay 2%. Below are listed these and two other stocks with single-digit P/Es.
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Wall Street appears ready to bounce.
Stocks looked set to rebound from Wednesdays's losses, as traders grew optimistic ahead of the latest retail and labor data. Shortly before 7 a.m., Dow, Nasdaq and S&P 500 futures were trading a bit above fair value.
The May report on retail sales is due out at 8:30 a.m. this morning. Traders will be eyeing the report closely, as sales are expected to rise for the first time since February. A rebound in consumer spending is widely considered a necessary condition for the progress of the recovery.
In other economic news, the weekly jobless claims report and the April report on business inventories are also scheduled to be released later this morning.
In housing, foreclosure filings slipped 6% in May, easing off a record high in April, RealtyTrac said. However, May marked the third worst month on record for foreclosures, as well as the third consecutive month during which filings came in above 300,000. Filings were highly polarized: ten states accounted for 77% of foreclosure activity last month. The states with the most culprits: California, Florida and Nevada.
In Washington, the Obama administration tapped Kenneth Feinberg as its new so-called "pay czar," a post that will shape the landscape of executive compensation. Feinberg handled Washington's compensation fund for the victims of the 2001 terrorist attacks.
On the Nymex, energy prices continued their rally. By 6:36 a.m., crude traded up 63 cents at $71.96 a barrel.
World markets were fairly flat. In Asia, Japan's Nikkei finished down 0.1%, while Hong Kong's Hang Seng ended flat. In Europe, the U.K.'s FTSE picked up 0.5% in midday trading.
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AFP - Japanese share prices have briefly topped the 10,000 level for the first time since October amid growing hopes of an economic recovery.
$$$ "A memo [prepared by the staffers for Republican lawmakers] said that Richmond Fed President Jeffrey Lacker wrote in a Dec. 20 e-mail that Bernanke intended to "make it even more clear that if they play that card and they need assistance, management is gone," referring to a threat by Bank of America to break off its deal with Merrill.
That was a "gun placed to the head of Bank of America to go through with the merger," the Republican memo said." [Bloomberg]
$$$ Girlfight at Citigroup [Cityfile]
$$$ Hedge Fund AdultVest Unveils Free Porn Service [FINalternatives]
$$$ Happy 50th Birthday, Eliot Spitzer! Hooks are on us.
If one of you had told me last year that the first harrowing tale I wrote about former Bear Stearns chairman Ace Greenberg and a dog wouldn't be the last (Ace had seriously contemplated leaving BSC on account of depression stemming from his four-legged best friend not placing well in dog shows), I would've said, "Jimmy, please." And right about now, I would've been eating those words.
The Post reports that Greenberg's granddaughter, Allison Frey, pictured here, was struck in a hit and run last night, and despite fracturing both knees and requiring braces and crutches to walk, Little G is most upset about losing her papillon Maltese, Bagel, who ran off during the commotion.
"I don't even care about my legs. I want my dog," Allison told reporters. Despite having been flung onto the roof and rolled onto the ground by the cab that hit her on Park Avenue, the first thing she thought of after getting up off the street ("covered in blood from a blow to her head") was "Where's Bagel?" Sadly, no one knows, though perhaps someone should look into the fact that an older gentleman smoking a J was spotted lurking at the scene of the crime. There's more, but I can hardly go on:
It is almost a foregone conclusion that the CMBS market is headed for some real pain over the next couple of years. The problem is so glaring that even the Treasury is aware of it and looking for ways to avoid a complete meltdown. A major issue confronting the market is the reluctance of CMBS servicers to even talk to investors or property owners before the underlying loans become delinquent due to tax considerations.
When CMBS offerings are created, the underlying mortgages are legally held by tax-free trusts. The trusts can be forced to pay taxes if the underlying loans are modified before they become delinquent, according to current CMBS rules.
The solution seems pretty clear- allow for loan modification while avoiding any negative tax consequences. But time is ticking and the Treasury's record of avoiding major market meltdowns is disconcerting at best. Your move Timmy.
Relief for Commercial Real-Estate Debt? It Seems Possible [WSJ]
On today's Planet Money:
-- Bankruptcy is a wonderful tool, says GM CFO Ray Young, whose company is now in Chapter 11. And hey, it went so well for Chrysler.
-- If you happen to be one of the jilted creditors, bankruptcy doesn't seem quite so wonderful. Clown Mandy Dalton says a mall operator that went bust still owes her $200 for a family fun day. She talks it over with bankruptcy lawyer Jay Strock.
Bonus: Twitter crowd lobs questions at GM CFO Ray Young, after the jump.
Download the podcast; or subscribe. Intro music: Dirty Projectors' "Cannibal Resource." Find us: Twitter/ Facebook/ Flickr.
Adam Davidson and I asked people on Twitter if they had questions for GM CFO Ray Young. He agreed to answer them, including that bedeviling one about why the company saves money by closing dealerships.
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You can blame AIG for practically anything these days, be it the collapse of the Roman Empire, your testing positive for dope or the weird look a stray cat gave you walking home, on account of the fact that said pussy is inhabited by the spirit of Hank Greenberg. The latest is the foreclosure of the St. Regis Monarch Beach, whose owners defaulted on a $70 million loan from Citigroup Global Markets Realty Group. Unless some white knight rides in to the rescue (be it on horse or Zamboni), the place is going to auction on July 7. Where did things go wrong? Well, there's the whole "economy" situation, but that's just noise. This thing can be blamed squarely on a certain insurer's penchant for manicures, pedicures, and $200,000 worth of facials.
The St. Regis became something of an emblem of corporate excess and greed last October, as the global financial system was threatening to melt down.The taint arrived by association with AIG, the giant New York insurer that, because of massive wrong-way bets on the mortgage markets, became the largest recipient of bailout money from the federal government.
The event was widely vilified and lampooned, and bookings at the St. Regis dropped by 20% in the months following it, St. Regis marketing director Michael Mustafa told Hotels Magazine. By Mustafa's estimate, about a third of the drop-off was attributable to what the magazine termed the "AIG curse."
A few opening thoughts:
1) I'm sorry, did we expect that they were going to coddle the guy?
2) The Journal reports that the Fed's top lawyer [noted] at one point that Mr. Lewis "can be reckless." Code for drunk?
3) Please let the emails be released and please let some of the various subject lines read, "We will sic Angelo Mozilo on your ass if we have to. We've already bought his loyalty via Hollywood Tans coupons," "We'll send you home in a bodybag," and "Do you like apples? Well we're gonna shove a Boone's bottle up your ass. How do you like them apples?"
Honk if you get it. Marzia Niccolai writes:
I recently bought the foreign service exam study guide since I am taking the test this Friday. The test consists of, among other things, basic economics questions. I was so amused by one of the sample questions that I just had to share:
All of the following are examples of United States products that would typically fail to be produced to optimal output without government intervention EXCEPT:
A. national defense products.
B. light provided by lighthouses.
C. new automobiles.
D. new highways.
And in the answer section:
C. This is the correct answer. Automobiles are not a public good. Optimal production of automobiles is related to the demand for them by individual consumers.
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"Last weekend my family sat down and we were watching the commercial movie "Titanic." And as I was listening to Dr. Burgess from Texas talk about the debt and the burgeoning debt load that the United States takes, once the ice gash came in the side of the Titanic, which we all remember was called the "unsinkable Titanic," we think of the United States. Nothing can possibly sink the United States. We will always be a superpower. But one thing that has kept us a superpower has been freedom, free market economists. We are in the process of watching the deconstruction of free market economists before our very eyes, something we have never seen. But as the ice ripped that hole in the Titanic, water started being taken on, and the engineer came out and brought the blueprint of the Titanic. Water came into the first chamber, spilled over to the second, spilled over to the third, and by the time it filled up so many chambers, it was over. It was impossible to resurrect that ship."
Bachman Likens US To Titanic [Minnesota Independent]
Isn't it awkward when seemingly insane people, or those without a firm grasp on the English language, or thirteen year-old kids pulling pranks, or, the worst of the worst, freaks on the internet, hack into your email and send out embarrassing messages to your boss, cc'ing your co-workers and a coupla news outlets...not because they make you and your organization look bad but because they've got a point?
An email sent under the name of a Securities and Exchange Commission enforcement attorney caused a commotion both at the SEC and outside it. The long message harshly criticized the agency's chairman and inspector general.The email, received by several SEC officials and several news organizations Tuesday morning, including The Wall Street Journal, said it came from Irene Gutierrez, a senior counsel in the agency's Internet enforcement group.
The first was sent...with subject heading of 'Report Card.' Much of it encouraged SEC Chairman Mary Schapiro to remove the SEC's inspector general [and began], "With the end of the school year upon us, it seem slike [sic] the appropriate time to grade your performnce [sic]...."
An Email Causes Stir At SEC [WSJ]
When Ken Lewis wasn't timing the Countrywide purchase just right or glowing from deftly outsmarting John Thain in the Merrill deal, he was apparently busy driving out more than half of the top 100 executives that made him 2008 Banker of the Year. When chief risk officer Amy Brinkley leaves this summer, she will be the 52nd departure of the top 100 executives who were at the bank in 2005. If you think that number sounds a bit high, you're probably right.
Many companies begin to worry if they lose 5 percent of their top executives per year, said Bradford Bell, an associate professor at Cornell University specializing in human resources issues. Other experts said annual turnover around 10 percent would be considered at the high end. Bank of America's turnover of top executives equates to 13 percent per year.
"For top talent, that is quite large," Bell said. "Companies devote a lot of resources to keeping these people happy and keeping them in the company."
But a BAC spokesman says there is absolutely nothing to worry about here. This kind of attrition is totally normal.
The Federal Reserve just released the latest Beige Book, its survey of economic conditions across the country. The good news is that the downturn seems to be moderating in five of the 12 districts. The bad news is the job market, almost the whole thing:
Labor market conditions continued to be weak across the country, with wages generally remaining flat or falling. Two Districts also mentioned employers' plans to scale back employee benefit programs. The Atlanta, Chicago, and St. Louis Districts reported that some state and local governments faced hiring freezes or outright job cuts. While manufacturing employment levels remained low, some Districts saw signs that job losses may be moderating.
The folks worrying about inflation because of all the federal borrowing may have to wait a minute. The Fed says prices are flat or heading downward at every stage of production.
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I love a good conspiracy. This one, involving Great Depression-era businessmen attempting to overthrow President Roosevelt in a military coup, just about beats them all:
In the summer of 1933, shortly after Roosevelt’s “First 100 Days,” America’s richest businessmen were in a panic. It was clear that Roosevelt intended to conduct a massive redistribution of wealth from the rich to the poor. Roosevelt had to be stopped at all costs.
The answer was a military coup. It was to be secretly financed and organized by leading officers of the Morgan and Du Pont empires. This included some of America’s richest and most famous names of the time:
* Irenee Du Pont - Right-wing chemical industrialist and founder of the American Liberty League, the organization assigned to execute the plot.
* Grayson Murphy - Director of Goodyear, Bethlehem Steel and a group of J.P. Morgan banks.
* William Doyle - Former state commander of the American Legion and a central plotter of the coup.
* John Davis - Former Democratic presidential candidate and a senior attorney for J.P. Morgan.
* Al Smith - Roosevelt’s bitter political foe from New York. Smith was a former governor of New York and a codirector of the American Liberty League.
* John J. Raskob - A high-ranking Du Pont officer and a former chairman of the Democratic Party. In later decades, Raskob would become a “Knight of Malta,” a Roman Catholic Religious Order with a high percentage of CIA spies, including CIA Directors William Casey, William Colby and John McCone.
* Robert Clark - One of Wall Street’s richest bankers and stockbrokers.
* Gerald MacGuire - Bond salesman for Clark, and a former commander of the Connecticut American Legion. MacGuire was the key recruiter to General Butler.
The plotters attempted to recruit General Smedley Butler to lead the coup. They selected him because he was a war hero who was popular with the troops. The plotters felt his good reputation was important to make the troops feel confident that they were doing the right thing by overthrowing a democratically elected president. However, this was a mistake: Butler was popular with the troops because he identified with them. That is, he was a man of the people, not the elite. When the plotters approached General Butler with their proposal to lead the coup, he pretended to go along with the plan at first, secretly deciding to betray it to Congress at the right moment.
(More)
It reads like a hoax, but was it? I’d like to hear from history buffs regarding the veracity of this story.
I also found the story pertinent because the government is engaged in its biggest economic rescue since FDR. If high-powered politicians and businessman were able to band together in an attempted coup then, what’s stopping them now? Better surveillance, perhaps? A more centralized government?
Right now, the political consequences of the Great Recession remain unknown. However, I don’t think it’s a stretch to imagine extreme outcomes, especially if economic conditions linger long enough.
(Even more reading here.)
UPDATE: We have a winner. What timing, huh?
Every so often, someone comes along and pulls off a project that amazes you. Eric Sipple, also known as @saalon, a certifiable Web genius, built the Planet Money Listener Race to Refinance. Check it out in brief after the jump and in all its glory at Sipple's site. (For the intrepid few, note the possibility of joining in.)
Our contestants are were Sipple, who claims claimed to be in the lead; Meghan Barbato, who's building an empire on Whiskerbears; and Noel Paterson, a game developer who got laid off from one job and found another in the first few months of Planet Money.
I'm I was betting on Barbato, personally, if only because of the Whiskerbears. But in this economy, who knows knew. A huge thanks to Sipple for getting this carousel going and to the others for daring to outrun him. (And for you super geeks, the source code.)
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Reuters - U.S. Treasury Secretary Timothy Geithner said on Wednesday the Obama administration wants to give the Securities and Exchange Commission power to give shareholders a stronger say over executive pay.
The House approved the “Cash for Clunkers” program yesterday, a $4 billion program that subsidizes new, fuel-efficient cars for people driving clunkers. CNN has more:
The measure would give consumers vouchers worth as much as $4,500 to turn in gas guzzlers and buy new cars that are more fuel efficient.
The House bill would go into effect within 30 days of enactment but it is not retroactive for new purchases made earlier this year.
Clunkers eligible for the program must get 18 miles per gallon, or less, in combined city and highway driving. A $3,500 subsidy can be used toward purchasing cars and vans that are more fuel efficient than the older clunkers by four miles per gallon. A $4,500 subsidy can be used toward purchasing cars and vans that are more fuel efficient than older cars by 10 miles per gallon.
However, cars that have not been insured for the past year or those that are older than 25 years are not eligible to be traded in for vouchers.
Autoblog adds:
The vehicle has to have been insured for the last year and there is no trade-in value beyond the voucher. The program is also available for leases. Dealers are required to provide proof that the vehicle (1984 MY or later) has been crushed or shredded, and the government estimates that around 25 million vehicles are eligible.
Not sure if you drive a clunker? Go to fueleconomy.gov and research your car’s official gas mileage.
Some people will welcome the chance to trade in their old cars, whose resale values have likely plummeted, for something smaller. But I doubt this bill affects enough people to significantly stimulate the auto industry. It’s a friendly gesture to a certain group of people, but little more.
If the government were serious about getting gas-guzzlers off the road in the short term, it would increase taxes on gas. But that wouldn’t be necessary. The market will naturally price out gas guzzlers once the price of oil increases again.
The government is wasting its time with this bill.
Hey, it's got a canopy roof. Margaret Schulte and Barry Stellrecht
Margaret Schulte and Barry Stellrecht write:
We tend to drive a lot on back roads, and one of the things we've noticed all across the USA are the elaborate, landscaped gates with fancy subdivision names -- and nothing behind them. This one, which is in coastal North Carolina, is offering a free boat "with homesite purchase."
As a wacky couple who eschews living in a house and lives on a boat anyway, we thought it was particularly funny. We'll take a free boat, but you can keep the homesite!
The developers of Bogue Watch have a handy map of what's been sold.
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On Monday's podcast, we talked about the economics of buying votes for the election last Sunday in Lebanon. The going price was about $1,000 apiece. An coalition backed by the U.S. government defeated one pushed by Hezbollah.
A pair of responses, the first from Leandro Serrano, who forwards Thomas Friedman's NYT column on the glories of a free and fair elections. Serrano writes:
He is saying the opposite that you are saying in your podcast. Whom do I have to believe?
The second comes from Zaher Hulays, a Lebanese American working in Massachusetts, who writes that the price of an individual vote sounds like a bargain:
I do have a few issues with the way you addressed the economics of vote buying, indeed the $1000 per vote seems to be an excellent value considering that a Hezbollah win would severely restrict foreign aid to the Lebanese government and army, limit foreign investment, curtail tourism in Lebanon, and possibly create a conflict with Israel that would make the destruction of the summer 2006 war seem like child's play.
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AFP - The London stock market advanced on Wednesday with energy and mining companies boosted by strong commodity prices.
A man in Ballymoney, Ireland found a whole dead mouse inside a loaf of bread in late 2007. Now, a court has fined the bakery £1,000 plus additional fines. The BBC has more:
North Antrim Magistrates Court heard how a man purchased a Hyndman’s malt loaf from a supermarket in the Ballymoney area before Christmas 2007. When he unwrapped the loaf he discovered the small lifeless mammal embedded in the base of the bread. The judge fined the company, D Hyndman and Son Ltd, Maghera, £1,000 plus costs for placing unsafe food on the market.
The court heard that tins in which the bread is baked were oiled the night before they were filled with dough. Some time between the tins being sprayed and being filled, the mouse got into the tin, a prosecuting lawyer said.
“In fairness to the defendant they have engaged pest control services who regularly inspect the premises and did so before this incident,” she said.
The defence lawyer said an “onerous inspection” is held at the bakery every six weeks and that two field biologists attend each year. There are 131 bait stations in the premises at present, he said. Staff carry out daily inspections and two full-time cleaners are employed at the bakery who both work eight hours per day. In imposing the fine, the judge said he had considered public concern but also the steps taken by the company to ensure proper hygiene.
Finding mice in bread isn’t unheard of. Baby mice appeared in British bread in 2005; a man supposedly found a mouse baked into a hot dog bun in North Carolina last December.
This is not the most important economic story today, but it's the one I keep thinking about: College in Need Closes a Door to Needy Students.
Facing a deficit, Reed College -- raise your hands, alums -- went back through its list of accepted students and replaced more than 100 who'd need financial aid with others who could pay full freight. I'm not saying it's wrong. I'm just saying it's such a drag.
One student, Hannah C. Moser, got into the Portland, Ore., college but couldn't win enough in financial aid to attend. Now she's going to school closer to home. "I've actually struggled pretty bad with not being able to go to Reed, just because it was my reach school and everything about it was perfect and I impossibly got in," she told the New York Times. "And then I couldn't go."
I've been that kid, and at the time I was crushed and really quite mad about it. It turned out that the school I was able to attend was more than good enough, maybe even better for me personally. And years later, I was glad not to be toting three times the student loans I'd have taken on for my reach school, if that had even been possible. Just saying.
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Reuters - Spiking 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.
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New Forecast: FY2009 EPS (continuing operations) flat to up 7%
New Forecast: FY2009 EPS will “exceed” previous guidance
New Forecast: FY 2009 Non-GAAP EPS between $1.31 and $1.36
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