Dairy Crest insures its £516m pension scheme

Dairy Crest, the milk and cheese supplier, has spent £160 million buying an insurance policy that covers its pension liabilities to its retired workforce.


Source: Latest Business News from Times Online | 19 Jun 2009 | 3:18 pm

Give It A Go In Hawaii

If you want to attempt to actually make money during the recession, your best bet (according to the U.S. Bureau of Economic Analysis) is to go to Hawaii, or maybe Virginia:

Personal income in the fastest growing state, Hawaii, was up 0.8% while personal income in the next fastest growing state, Virginia, grew 0.3%. Earnings growth in these states was concentrated in the federal civilian and military sectors and was accounted for by first-quarter pay raises as well as some initial hiring for the 2010 Census.

Meanwhile, R. Allen Stanford, who is under investigation for an alleged $8 billion dollar ponzi scheme, surrendered to the FBI yesterday outside of his girlfriend's home. He's set to appear in court today. Up until now, the only person from Stanford Group Co. to face criminal charges is his chief investment officer, Laura Pendergest-Holt.

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Source: NPR Blogs: Planet Money | 19 Jun 2009 | 2:31 pm

The House Of Pandit Is A Buy

Just when you think there is a limit to laughable bullish calls, Dick Bove wakes up on a Friday and says Citi, "the only truly international bank in the world", is a buy. Among Bove's reasons for putting your $3 and change to work in Citi is Sheila Bair's favorite, that Citi is "too big to fail", and its earnings.

Citigroup's normalized earnings estimate makes the bank attractive, Bove said. Though it will take time to return to the core business, Citi will have that time, he said, explaining why he is positive on the company's outlook.

Citigroup is a Buy: Bove [CNBC]

Sponsored Topics: Business - Bair Sheila C - Citibank - Sheila Bair - Financial services
Source: Dealbreaker | 19 Jun 2009 | 2:30 pm

Aon's UK boss Peter Harmer quits for Australia

Peter Harmer has quit as the UK chief executive of Aon, the insurance broker and pensions consultant, to return to his native Australia.


Source: Latest Business News from Times Online | 19 Jun 2009 | 2:30 pm

Bailed Out CEOs Used Company Jets For Private Use Several Months Ago-- How Does That Make You Feel?

Angry? Steaming mad? As though you could kill a person with your bare hands? That's what the Journal is hoping, which is presumably why they blasted this story in an News Alert last night, as though it JUST. COULDN'T. WAIT. Get a load of this: a bunch of CEOs whose company's took TARP money used their firm's jets for personal use after receiving the funds.

Like Ken Lewis. Two days after Christmas he flew to the Reynolds Plantation Resort in Greensboro, Georgia, which cost the taxpayer $5,300. And John Mack-- on December 26 he flitted off to Wilmington, North Carolina, where he just so happens to own a beach front property, a trip which clocked in at about 8 large. Oh, and get a load of this: Sandy Weill borrowed Citi's ride for a jaunt to Mexico for a New Year's bash which, yes, you already knew but still, doesn't it just make your blood boil? Is there huge vein in your forehead about to burst? Are you about to rip off your shirt Hulk-style and either march on down to Ken Lewis's desk and knock everything off in a rage that would've been more effective if you'd gotten the office right, or send a strongly worded email to Mack, subject line: UNACCEPTABLE?

Sponsored Topics: Ken Lewis - Mexico - Troubled Asset Relief Program - North Carolina - Citibank
Source: Dealbreaker | 19 Jun 2009 | 2:30 pm

Jobless rate rises in nearly all states

Forty-eight states and the District of Columbia recorded unemployment rate increases in May, the government reported Friday. One state registered a rate decrease, and one state had no rate change.
Source: Business and financial news - CNNMoney.com | 19 Jun 2009 | 2:17 pm

Energy Stocks: Energy stocks find footing and rise; Valero up

Energy stocks make an early move higher, with Valero Energy taking part even as the refiner loses out in its $725 million bid for a big chunk of a Dow Chemical refinery in the Netherlands.

Source: MarketWatch.com - Top Stories | 19 Jun 2009 | 2:16 pm

Wall Street rises on bets that economy is improving (Reuters)

Reuters - Stocks rose on Friday as a recent spate of improving economic data beckoned investors back into equity markets for a second day, but analysts warned sentiment remained fragile.

Source: Yahoo! News: Business | 19 Jun 2009 | 2:15 pm

European Stocks to Watch: Managers look to Europe retailers as recovery play

Recent economic data suggest the U.K. could beat the rest of Europe out of recession, but fund managers are attracted to Europe, particularly retailers.

Source: MarketWatch.com - Top Stories | 19 Jun 2009 | 2:14 pm

Tech Stocks: Tech stocks rise in early trades; RIM shares fall

Technology stocks made moderate gains, boosted by a broad market uptick, while Research In Motion declined following a forecast that disappointed some investors.

Source: MarketWatch.com - Top Stories | 19 Jun 2009 | 2:14 pm

Where are the jobs? North Dakota

Need a job? Move to North Dakota.
Source: Business and financial news - CNNMoney.com | 19 Jun 2009 | 2:13 pm

Currencies: Dollar loses ground to euro

Dollar loses ground to euro, but remained in a tight trading range.

Source: MarketWatch.com - Top Stories | 19 Jun 2009 | 2:13 pm

Dow follows overseas indexes higher

NEW YORK -- Investors are shedding some of their caution about the economy.

Source: L.A. Times - Business | 19 Jun 2009 | 2:12 pm

U.S. homes recovery distressingly slow: Reuters/UMich (Reuters)

Reuters - A "distressingly slow" U.S. housing recovery, with inflation-adjusted home values expected to decline over the next five years, makes it unlikely that housing wealth will drive consumer spending in the next decade, a Reuters/University of Michigan survey found.
Source: Yahoo! News: Business | 19 Jun 2009 | 2:11 pm

Stocks push higher after lackluster week (AP)

AP - Investors are shedding some of their caution about the economy.

Source: Yahoo! News: Stock Markets News | 19 Jun 2009 | 2:09 pm

Metals Stocks: Gold, silver on track for third weekly loss

Gold and silver futures rise fractionally, but gains are unlikely to interrupt what's been two consecutive weeks of losses.

Source: MarketWatch.com - Top Stories | 19 Jun 2009 | 2:09 pm

Futures Movers: Crude tops $72 after Nigerian rebels bomb pipeline

Crude futures top $72 a barrel, catching a bid as Nigerian rebels claim responsibility for bombing a pipeline in the African nation, a key exporter of oil.

Source: MarketWatch.com - Top Stories | 19 Jun 2009 | 2:08 pm

Nestle recalls Toll House cookie dough products

Nestle USA says its baking unit has voluntarily recalled Toll House refrigerated cookie dough products after a number or illnesses were reported by those who ate the dough raw.

Source: L.A. Times - Business | 19 Jun 2009 | 2:08 pm

Senator We Have a (Math) Problem

Senator Johnny Isakson (R-GA) has his math wrong. I just heard him on Morning Edition dramatizing the trillion dollar price tag for health-care reform.

"If you converted dollars to seconds and you said how many years will it take for a trillion seconds to pass its 317,097 years 11 months and 2 days."

He's off, by a lot. Isakson is describing what a much more expensive, 10 trillion dollar program would be.

And he forgot about leap years.

According to the U.S. Naval Observatory which maintains our atomic clocks, a year is 365.2422 days. So a year has 31,566,926.1 seconds in it. Which would mean that a trillion seconds is about 31,678 years 265 days.

Here's our podcast on the large numbers popping up in the financial crisis.

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Source: NPR Blogs: Planet Money | 19 Jun 2009 | 2:05 pm

CarMax 1Q earns fall, still tops view (AP)

AP - Auto retailer CarMax Inc. said Friday its fiscal first-quarter profit fell 2.7 percent on a double-digit sales drop, a loss in its auto financing arm and charges related to loans, but still beat Wall Street expectations.

Source: Yahoo! News: Business | 19 Jun 2009 | 2:04 pm

Setanta faces Premier League deadline

Troubled sports broadcaster Setanta was on Friday racing against the clock to secure a rescue plan to avoid its 46 English Premier League matches for next season being auctioned off to...
Source: RSS feed - channel BNewsBusiness | 19 Jun 2009 | 2:00 pm

Chuck Jaffe: Oops: I have to eat crow over these stupid picks

It may be time to start marinating the crow and looking for a good recipe for humble pie.

Source: MarketWatch.com - Top Stories | 19 Jun 2009 | 1:55 pm

Stocks in early advance

Stocks rallied Friday, extending the previous day's advance, as investors focused on signs of stabilization in the economy.
Source: Business and financial news - CNNMoney.com | 19 Jun 2009 | 1:49 pm

Obama regulatory plan hits brokers: report (Reuters)

Reuters - The Obama administration's proposed financial regulatory revamp could upend Wall Street brokerages by compelling brokers to put their clients' interests ahead of their own, The Wall Street Journal said on Friday
Source: Yahoo! News: Business | 19 Jun 2009 | 1:48 pm

Obama regulatory plan hits brokers: report

NEW YORK (Reuters) - The Obama administration's proposed financial regulatory revamp could upend Wall Street brokerages by compelling brokers to put their clients' interests ahead of their own, The Wall Street Journal said on Friday
Source: Reuters: Business News | 19 Jun 2009 | 1:48 pm

Google to step up anti-porn efforts in China

Google Inc. said Friday that it was working to block pornography reaching users of its Chinese service after a mainland watchdog found the search engine turned up large numbers of links to...
Source: RSS feed - channel BNewsBusiness | 19 Jun 2009 | 1:45 pm

Billionaire Stanford set for federal court hearing

RICHMOND, Va. Texas billionaire R. Allen Stanford is scheduled to appear before a federal judge in Virginia at 1:30 p.m. Eastern time Friday for an initial hearing after surrendering to...
Source: RSS feed - channel BNewsBusiness | 19 Jun 2009 | 1:45 pm

Hugoton Royalty Trust Declares June Cash Distribution

DALLAS, June 19 /PRNewswire-FirstCall/ -- U.S. Trust, Bank of America Private Wealth Management, as Trustee of the Hugoton Royalty Trust (NYSE: HGT), today declared a cash...
Source: RSS feed - channel BNewsBusiness | 19 Jun 2009 | 1:45 pm

Cross Timbers Royalty Trust Declares June Cash Distribution

DALLAS, June 19 /PRNewswire-FirstCall/ -- U.S. Trust, Bank of America Private Wealth Management, as Trustee of the Cross Timbers Royalty Trust (NYSE: CRT), today declared a cash...
Source: RSS feed - channel BNewsBusiness | 19 Jun 2009 | 1:45 pm

Smaller crowds greet new iPhone from Apple

NEW YORK/SAN FRANCISCO (Reuters) - The latest iPhone hit stores on Friday with new features and faster speeds, drawing some fans but not the crowds that had swarmed Apple and AT&T stores at previous iPhone launches.
Source: Reuters: Business News | 19 Jun 2009 | 1:44 pm

Wall Street opens higher on bets on economy (Reuters)

Reuters - Stocks opened higher on Friday as a recent batch of improving economic data lured investors back into equities for a second day.

Source: Yahoo! News: Stock Markets News | 19 Jun 2009 | 1:43 pm

Wall Street opens higher on bets on economy

NEW YORK (Reuters) - Stocks opened higher on Friday as a recent batch of improving economic data lured investors back into equities for a second day.
Source: Reuters: Business News | 19 Jun 2009 | 1:43 pm

It's time: Apple's iPhone 3G S debuts

Customers lined up at Apple Stores around the world to be among the first to own the new iPhone 3G S, which went on sale Friday.
Source: Business and financial news - CNNMoney.com | 19 Jun 2009 | 1:43 pm

Dow follows overseas indexes higher

Investors are shedding some of their caution about the economy. Stocks are rising Friday, following gains in markets overseas. The buying follows better-than-expected economic data on...
Source: RSS feed - channel BNewsBusiness | 19 Jun 2009 | 1:40 pm

China orders Google to restrict searches

China has ordered Google to suspend some of its local search operations in a storm over links to pornographic content
Source: Financial Times - US homepage | 19 Jun 2009 | 1:37 pm

Russell Rebalance Including & Excluding Key IPO’s (BPI, DGI, OPEN, RST, RHIE, SWI, CYOU, LOPE, MJN, RAX)

We will have some changes or further additions and deletions coming today from Russell for the highly awaited Russell rebalance and reconstitution taking place late this month.  What is interesting about the group’s additions and deletions is that there are many of the hot (and not so hot) companies which came public via an IPO [...]

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Source: 24/7 Wall Street | 19 Jun 2009 | 1:35 pm

Dollar firms on upbeat US data

The dollar firmed against the euro and yen on Friday as surprisingly strong US economic data raised hopes that recovery may be taking root in the world's biggest economy, traders said. ...
Source: RSS feed - channel BNewsBusiness | 19 Jun 2009 | 1:32 pm

Earnings Watch: Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.

Source: MarketWatch.com - Top Stories | 19 Jun 2009 | 1:31 pm

Critical Alerts for XOM, ABT, LOW, WPI, and GNW Released by Seven Summits Research

CHICAGO, June 19 /PRNewswire/ -- Seven Summits Research issues PriceWatch Alerts for key stocks. Seven Summits Strategic Investments' PriceWatch Alerts are...
Source: RSS feed - channel BNewsBusiness | 19 Jun 2009 | 1:31 pm

Critical Alerts for X, CAT, ESRX, SYK, and PAAS Released by Seven Summits Research

CHICAGO, June 19 /PRNewswire/ -- Seven Summits Research issues PriceWatch Alerts for key stocks. Seven Summits Strategic Investments' PriceWatch Alerts are...
Source: RSS feed - channel BNewsBusiness | 19 Jun 2009 | 1:31 pm

Deerfield Spa Presents Love Your Life Workshops With Master Certified Life Coach, Dawn Morningstar, August 3-7

EAST STROUDSBURG, Pa., June 19 /PRNewswire/ -- Deerfield Spa ( href="http://www.deerfieldspa.com/">http://www.deerfieldspa.com/ ) announced today it will present free of...
Source: RSS feed - channel BNewsBusiness | 19 Jun 2009 | 1:30 pm

E-Trade prices 435 mln share offering, shares fall

NEW YORK (MarketWatch) -- Shares of E-Trade Financial Corp. fell 18% in pre-market trade Friday as traders re-priced the online broker's stock after the company priced a public offering at a 23% discount to the previous session's close.

Source: MarketWatch.com - Top Stories | 19 Jun 2009 | 1:27 pm

Bond Report: Treasurys volatile with yields near week highs

Treasury prices are volatile , caught between higher yields and skittishness ahead of next week’s debt sales.

Source: MarketWatch.com - Top Stories | 19 Jun 2009 | 1:25 pm

Dairy Crest in talks over final salary scheme

Dairy Crest has admitted it is in talks with staff over the future of its final salary scheme after insuring the remainder of its pension liabilities for £160m.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 19 Jun 2009 | 1:24 pm

Fed's Hoenig says inflation a longer-term issue: report

WASHINGTON (Reuters) - Federal Reserve Bank of Kansas City President Thomas Hoenig said on Friday that the U.S. central bank was thinking seriously about its exit strategy, but inflation was not yet an imminent danger.
Source: Reuters: Business News | 19 Jun 2009 | 1:21 pm

Swiss strike tax deal with U.S.

ZURICH (Reuters) - Switzerland and the United States have reached agreement on a double taxation treaty, the Swiss finance ministry said on Friday, a key step toward removal from a list of tax havens.
Source: Reuters: Business News | 19 Jun 2009 | 1:14 pm

Wall Street set to build on gains

US stock futures pointed to a higher opening as investors awaited latest data on the jobs market and looked set to carry the momentum of the previous session's mild rally into the weekend.
Source: Financial Times - US homepage | 19 Jun 2009 | 1:12 pm

Ex-Merrill exec denies talk of buying back bank

NEW YORK (Reuters) - Former Merrill Lynch executive Winthrop Smith on Friday denied approaching Bank of America Corp Chief Executive Kenneth Lewis with two other former Merrill executives to discuss buying back all or part of the bank.
Source: Reuters: Business News | 19 Jun 2009 | 1:09 pm

Engine growth

Engines are a safer bet that aircraft during a recession
Source: BBC News | Business | World Edition | 19 Jun 2009 | 1:04 pm

Stanford in U.S. court in massive fraud case (Reuters)

Reuters - Texas billionaire Allen Stanford will appear in federal court in Virginia on Friday to answer allegations he orchestrated a massive fraud through his Antigua bank that bilked investors out of millions of dollars.

Source: Yahoo! News: Business | 19 Jun 2009 | 1:04 pm

Stanford in U.S. court in massive fraud case

RICHMOND, Virginia (Reuters) - Texas billionaire Allen Stanford will appear in federal court in Virginia on Friday to answer allegations he orchestrated a massive fraud through his Antigua bank that bilked investors out of millions of dollars.
Source: Reuters: Business News | 19 Jun 2009 | 1:04 pm

Opening Bell: 06.19.09

Stanford Is Indicted In Fraud, Surrenders (WSJ)
As expected, Allen Stanford was charged yesterday with possibly running a Ponzi scheme. He was arrested outside his girlfriend's home in Virginia, which is somewhat disappointing, compared to the scene that could've gone down had the authorities cuffed him at the gym.

Ex-Merrill Trio Discussed Buying Back Bank (FT)
Dan Tully, former Merrill chief executive; Launny Steffens, former head of Merrill's private client business; and Winthrop Smith Jr, son of one of Merrill's co-founders showed up on Ken Lewis's doorstep earlier this year asking or all or some of the bank back. Obviously they got shot down and obviously Ken Lewis is kicking himself and shout "Stupid, Lewis, stupid" circa now.

Switzerland Looks At Cutting Size Of Banks (FT)
In order to stem risks posed by the inevitable failures of UBS and Credit Suisse.

SEC Weighs Hedge Fund Registration (WSJ)
"It's something still being talked about," Mary Schapiro said in an interview.

Citigroup's CEO Deserves More Patience (NYT)
He's made some mistakes, but Vikram Pandit didn't get Citi in the hole it currently resides in, and more importantly, he's not as bad as Ken Lewis, who you'll note still has a job.

Sponsored Topics: Hedge fund - Mary Schapiro - Allen Stanford - Ken Lewis - Business
Source: Dealbreaker | 19 Jun 2009 | 1:00 pm

Smaller crowds greet new iPhone from Apple (Reuters)

Reuters - The latest iPhone hit stores on Friday with new features and faster speeds, drawing some fans but not the crowds that had swarmed Apple and AT&T stores at previous iPhone launches.
Source: Yahoo! News: Business | 19 Jun 2009 | 12:56 pm

$1 billion 'cash for clunkers' passed

The Senate on Thursday passed a $1 billion effort to subsidize new auto sales by giving vouchers toward the purchase of new cars.
Source: Business and financial news - CNNMoney.com | 19 Jun 2009 | 12:47 pm

European stocks rally on technical bounce (AFP)

AFP - Europe's leading stock markets rose further on Friday owing to technical reasons, analysts said, and following gains on Wall Street overnight and earlier in Tokyo trade.

Source: Yahoo! News: Stock Markets News | 19 Jun 2009 | 12:44 pm

Russell Booting Out Speculative Energy Stocks in Rebalances (AXAS, AKNS, AEZ, KAZ, CPE, CFW, CPST, DBLE, EXXI, FTK, GGR, GMET, GRH, TMR, MIND, NCOC, PEIX, QRCP, RAME, TIV, TRMA)

This year is going to mark a significant change in the Russell rebalance and reconstitution at end of June.  Now that oil and other energy related commodities have been cut in half from the year ago highs, we are seeing a significant number of the smaller cap and more speculative companies tied to energy.  This [...]

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Source: 24/7 Wall Street | 19 Jun 2009 | 12:44 pm

Vacation jets for bailout bank execs - report

Executives from some banks propped up by federal funds used company jets for personal purposes, according to a report published Friday.
Source: Business and financial news - CNNMoney.com | 19 Jun 2009 | 12:42 pm

Blackout threat rises as refinery row spreads

Some of Britain's biggest power stations could be forced into unscheduled shutdowns if industrial action over sackings at the Lindsey oil refinery escalates.


Source: Latest Business News from Times Online | 19 Jun 2009 | 12:37 pm

Oil plant sackings spark walkouts

The sacking of nearly 700 construction workers at Lindsey Oil Refinery prompts a series of walkouts at other sites.
Source: BBC News | Business | World Edition | 19 Jun 2009 | 12:18 pm

Merced: Ghost Town, USA (BusinessWeek Online)

BusinessWeek Online - The housing crisis is creating ghost towns of once-bustling communities like Merced. In largely abandoned neighborhoods, paved sidewalks and driveways lead to empty lots strewn with utility coils. Unfinished frames with rotting rafters and rusted hinges sit alongside occupied homes. Roughly 40% of the homes in Merced are considered distressed, meaning owners are behind on their mortgage payments or can't make them at all. The toll is expected to rise, even though California extended its moratorium on foreclosures for another 90 days.
Source: Yahoo! News: Business | 19 Jun 2009 | 12:08 pm

Bove Runs Up Citi Again (C)

Citigroup, inc. (NYSE: C) is back under focus by an old bull in the stock.  Dick Bove of Rochdale Securities has started coverage of the troubled bank with a BUY rating and a $4.00 price target.  That $4.00 may only be just over 25% higher than the $3.13 price.  But this is also something that [...]

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Source: 24/7 Wall Street | 19 Jun 2009 | 12:07 pm

Stable housing market tempts Taylor Wimpey

Taylor Wimpey, the housebuilder, is considering plans to increase the number of new sales outlets and further land purchases.


Source: Latest Business News from Times Online | 19 Jun 2009 | 11:50 am

Fool-proof wedding gift

Question: My son just got engaged and I'd like to give him and his fiancé an hour with a financial planner as a gift. Can you recommend a reputable Web site or association so I can find them a trustworthy planner near where they live? --Debby B., Tulsa, Oklahoma
Source: Business and financial news - CNNMoney.com | 19 Jun 2009 | 11:49 am

Thinking Outside the Box Doesn’t Work in Geometry Class

Source: Business Pundit | 19 Jun 2009 | 11:40 am

Stanford surrenders to FBI

Sir Allen Stanford has surrendered to US authorities in Virginia after a warrant was issued for his arrest and will face criminal charges tied to an alleged $8bn fraud, the Texas billionaire's lawyer said
Source: Financial Times - US homepage | 19 Jun 2009 | 11:33 am

Decline in world economy moderating: IMF's Lipsky

BODRUM, Turkey (Reuters) - The International Monetary Fund is likely to revise its 2010 growth forecast for the world economy up with signs the rate of decline in global output has moderated, a senior IMF official said on Friday.
Source: Reuters: Business News | 19 Jun 2009 | 11:29 am

Iran's supreme leader backs poll result

Ayatollah Ali Khamenei, warned the leaders of those protesting against the presidential elections that they would be held responsible for the unrest and insisted that the result was fair.
Source: Financial Times - US homepage | 19 Jun 2009 | 11:29 am

Barter for your dental surgery

A few entrepreneurs are exploring a novel solution to the problem of finding affordable health care for themselves and their staff: Swap for it.
Source: Business and financial news - CNNMoney.com | 19 Jun 2009 | 11:27 am

Personal data exposed on website

Personal data including the signatures of recipients has been exposed on the Parcelforce website, the BBC learns.
Source: BBC News | Business | World Edition | 19 Jun 2009 | 11:26 am

Car scrappage scheme stems production decline

Britain’s car scrappage scheme helped to stem the fall in vehicle production last month, according to figures released today.


Source: Latest Business News from Times Online | 19 Jun 2009 | 11:23 am

10 ways the iPhone changed smartphones

Source: Business and financial news - CNNMoney.com | 19 Jun 2009 | 11:04 am

Top Early Bird Analyst Upgrades & Downgrades (BIDU, BAX, CCL, IBM, LDK, MSFT, SPWRA)

These are the top big analyst calls from Wall Street we have seen very early this Friday morning with over two and a half hours until the market opens: Baidu (BIDU) Started as Underweight with $244 target at HSBC. Baxter (BAX) Started as Buy at BofA/Merrill Lynch. Carnival (CCL) Raised to Outperform at Wachovia. Hershey (HSY) was named as [...]

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Source: 24/7 Wall Street | 19 Jun 2009 | 11:02 am

Gordon Brown signs up to creation of new EU financial regulators

Gordon Brown surrenders some power to Brussels with creation of new European supervisory bodies.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 19 Jun 2009 | 10:57 am

EU 'risks lagging US on regulation'

Europe risks falling behind the US in policing the financial system and the current crisis could prove 'a wasted opportunity' to ensure its future stability, a top European Central Bank policymaker has warned
Source: Financial Times - US homepage | 19 Jun 2009 | 10:49 am

Setanta payment deadline looming

Setanta must make payments to the Premier League by Friday or risk losing its rights to cover the Premier League next season.
Source: BBC News | Business | World Edition | 19 Jun 2009 | 10:47 am

Oil rises towards $72 a barrel

Oil prices rose back towards the $72 a barrel mark on Friday, with bullish sentiment bolstered by yesterday's improved US economic data and continued supply concerns in Nigeria. Oil futures, which many...
Source: RSS feed - channel BNPaperBusiness | 19 Jun 2009 | 10:37 am

Oil rises towards $72 a barrel

Oil prices rose back towards the $72 a barrel mark on Friday, with bullish sentiment bolstered by yesterday's improved US economic data and continued supply concerns in Nigeria
Source: Financial Times - US homepage | 19 Jun 2009 | 10:37 am

John Lewis sales jump on electricals surge

Sales at John Lewis, Britain’s biggest department store group, improved last week, boosted by a strong performance in electrical goods.


Source: Latest Business News from Times Online | 19 Jun 2009 | 10:29 am

World stocks buoyed by US recovery hopes (AP)

AP - World stock markets rose Friday after a run of stronger than anticipated U.S. economic data the previous day renewed investors' hopes that the world's largest economy may recover from recession this year.

Source: Yahoo! News: Stock Markets News | 19 Jun 2009 | 10:27 am

Swiss franc pressured by intervention talk

The Swiss franc remained on the back foot on Friday following speculation that the Swiss National Bank had intervened to stem the currency's strength.Although there was no official confirmation, many investors...
Source: RSS feed - channel BNPaperBusiness | 19 Jun 2009 | 10:24 am

Asian stocks rise on upbeat US data

Asian stocks ended the week on a positive note, recovering some of the losses made in the past few days as investors were buoyed by better-than-expected factory and jobs data from the US. The upbeat data...
Source: RSS feed - channel BNPaperBusiness | 19 Jun 2009 | 10:23 am

$2.2 trillion - amount spent on health care in '07

Americans are being told daily that health reform isn't just the right thing to do -- it will also help save the economy.
Source: Business and financial news - CNNMoney.com | 19 Jun 2009 | 10:18 am

America’s Next Export: Pollution Control

A new study from MIT says that if the US and China cannot control and reduce carbon dioxide emissions from coal-burning plants, efforts at cutting back on global warming may be a failure. The AP got an early version of the document produced by the university. The study goes a long way toward implying that China [...]

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Source: 24/7 Wall Street | 19 Jun 2009 | 10:09 am

Porsche posts steep fall in sales

Debt-ridden German carmaker Porsche has posted a steep fall in sales and higher refinancing costs for first nine months of its fiscal year
Source: Financial Times - US homepage | 19 Jun 2009 | 10:09 am

Porsche global sales slump by 28%

Porsche sees its nine-month unit sales slump by more than a quarter after demand is hit by the worldwide recession.
Source: BBC News | Business | World Edition | 19 Jun 2009 | 10:04 am

Microsoft (MSFT) Willing To Spend $10 Billion On Search

Yahoo! (YHOO) and Google (GOOG) actually have something to worry about, if Steve Ballmer is not bluffing. The Microsoft (MSFT) CEO says that he company is prepared to spend 5% to 10% of its operating income on search engine initiatives over the next five years. Microsoft’s annual operating income is about $22.2 billion. Ten billion dollars could buy Microsoft [...]

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Source: 24/7 Wall Street | 19 Jun 2009 | 9:56 am

European carmakers hit by Porsche profit fall

German car shares were lower on Friday after sportscar maker Porsche reported declining profits amid a 27.6 per cent fall in sales for the first nine months of the fiscal year.Porsche shares fell 1.3 per...
Source: RSS feed - channel BNPaperBusiness | 19 Jun 2009 | 9:50 am

Hopes for housing market lift developers

London equities advanced on Friday, as hopes for an economic recovery at home and abroad offered the FTSE 100 some impetus.The benchmark index rose 75 points to 4355.81, a rise of 1.75 per cent, helped...
Source: RSS feed - channel BNPaperBusiness | 19 Jun 2009 | 9:44 am

Toyota (TM) Prius Success, Another Detroit Failure

Toyota (TM) has booked 180,000 domestic orders for its Prius hybrid model in the first month that it has been on the market.  There is no reason to think that the car will not do extremely well in America. It is considered to be the best hybrid made by any car company and has sold [...]

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Source: 24/7 Wall Street | 19 Jun 2009 | 9:39 am

Thailand exports in record slump

Thailand's exports slumped by a quarter as demand for Thai goods overseas continued to drop during the downturn.
Source: BBC News | Business | World Edition | 19 Jun 2009 | 9:34 am

Chinese, Flush With Cash, May Buy Into Assets And Dodge Government Worries

The big money in China is starting to worry that by the time it starts to shop for undervalued assets outside its borders, the recovery may be underway and the bargains may be gone. China’s trouble is that a number of developed nations don’t want China to own or control strategic assets of companies which [...]

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Source: 24/7 Wall Street | 19 Jun 2009 | 9:21 am

European stocks climb at open, London up 0.25 pct (AFP)

AFP - Europe's leading stock markets rose further at the open on Friday, with London's FTSE 100 index of leading shares up 0.25 percent to 4,291.57 points.

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

Bailed-out banks' CEOs used jets for personal use: report

(Reuters) - Chief executives of some banks that received federal money, including Bank of America Corp, Morgan Stanley and Regions Financial Corp, used company jets for their personal use, the Wall Street Journal reported on its website.
Source: Reuters: Business News | 19 Jun 2009 | 9:18 am

UK car production drops sharply

The number of new cars made in the UK in May fell dramatically year-on-year, industry figures show.
Source: BBC News | Business | World Edition | 19 Jun 2009 | 9:10 am

Dairy Crest may shut pension plan

One of the UK's largest milk producers may close its final-salary pension scheme to its existing members.
Source: BBC News | Business | World Edition | 19 Jun 2009 | 9:03 am

Heads Of Bailed Out Firms Still Love Their Private Jets

The Wall Street Journal, in a bit of investigative reporting, found that the CEOs of companies that have received federal bailout funds are still having fun using their firms’ private jets. Or, in some cases, these executives make the case that it is better to use the jets than fly commercial. The situation is not as bad as [...]

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Source: 24/7 Wall Street | 19 Jun 2009 | 8:56 am

Setanta in cliffhanger over Premier payment

Setanta, the Irish pay-TV broadcaster, must today pay £10 million to the English Premier League or lose its right to the games next season.


Source: Latest Business News from Times Online | 19 Jun 2009 | 8:20 am

Rafsanjani bides time as fury builds

One of the most powerful figures in the Iranian regime and leading backer of Mir-Hossein Moussavi has remained silent since protests began over the presidential election
Source: Financial Times - US homepage | 19 Jun 2009 | 8:03 am

Media Digest 6/19/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

Reuters:   Investors are putting money into emerging markets except Eastern Europe. Reuters:   Stanford will go to court for a $8 billion fraud allegation. Reuters:   RIM’s (RIMM) outlook disappointed. Reuters:   CEOs at bailed out companies used corporate jets for private trips. Reuters:   Congress may not accept all of Obama’s financial reforms. Reuters:   Former Merrill executives are discussing buying back part of their [...]

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Source: 24/7 Wall Street | 19 Jun 2009 | 7:59 am

Switzerland looks at cutting size of banks

Switzerland's central bank warned that Zurich was examining the forced shrinkage of banking groups such as UBS and Credit Suisse to contain the risks posed by their size
Source: Financial Times - US homepage | 19 Jun 2009 | 7:59 am

Stanford Financial executives indicted in alleged 8bn fraud

An unknown number of top executives at Stanford Financial were last night indicted by the US Department of Justice over the alleged 8bn fraud at the company run by Texan billionaire Sir Allen Stanford.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 19 Jun 2009 | 7:55 am

Australian dollar closes higher

SYDNEY - The Australian dollar has closed higher after a report showing an improvement in US manufacturing boosted financial markets' appetite for growth assets. At 1700 AEST, the Australian dollar was trading at US$0.8043/47,...
Source: New Zealand Herald - Business | 19 Jun 2009 | 7:51 am

Sacked oil workers told to reapply for jobs

Nearly 900 workers at the Lindsey oil refinery in Lincolnshire have been told that they have until Monday to reapply for their jobs after being sacked after a series of wildcat strikes.


Source: Latest Business News from Times Online | 19 Jun 2009 | 7:49 am

Mervyn King compares handling financial crisis to taking a highpressure penalty

Bank of England Governor Mervyn King has compared handling the financial crisis to the tension of taking a highpressure penalty.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 19 Jun 2009 | 7:38 am

F1 faces split as eight teams break away

SILVERSTONE, England, June 19 - Formula One plunged into its biggest crisis in 60 years on Friday with eight of the 10 teams announcing plans to set up their own championship.The teams association FOTA...
Source: RSS feed - channel BNPaperBusiness | 19 Jun 2009 | 7:32 am

London stock market up at the open (AFP)

AFP - The London stock market was higher at the open on Friday, after closing up the day before.

Source: Yahoo! News: Stock Markets News | 19 Jun 2009 | 7:32 am

Homeowners 'are 25pc better off'

Record low interest rates has reduced mortgage costs.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 19 Jun 2009 | 7:00 am

Woman must pay $1.92 million for illegal music file-sharing, jury says

The only such U.S. case to go to trial ends a second time with the same finding but a higher damage award to the recording industry.

A replay of the nation's only file-sharing case to go to trial has ended with the same result, finding a Minnesota woman to have violated music copyrights and ordering her to pay hefty damages to the recording industry.

Source: L.A. Times - Business | 19 Jun 2009 | 7:00 am

The cupcake van may be coming your way

Adding to the gourmet street food phenomenon, a chocolate-brown 'Sprinklesmobile' starts rolling next week to cater to L.A.-area cupcake lovers.

It's hard enough resisting a fresh cupcake sitting placidly in the bakery case. Now that cupcake is coming after you.

Source: L.A. Times - Business | 19 Jun 2009 | 7:00 am

Supreme Court makes age-bias suits harder to win

The justices, overturning a jury award won by a 54-year-old who was demoted, say workers bear the full burden of proof. ...
Source: RSS feed - channel BNPaperBusiness | 19 Jun 2009 | 7:00 am

Financial, healthcare stocks lead market higher

Several upbeat reports on the economy helped the Dow end a three-session losing streak. The S & P 500 also notches a gain, but the Nasdaq slips. ...
Source: RSS feed - channel BNPaperBusiness | 19 Jun 2009 | 7:00 am

Automakers are using Twitter as a marketing vehicle

Car companies are finding the social media website to be 'a great medium to get the word out' about upcoming product launches.

You've used the Internet to do research on your new car and to find the value of your old one, and you've visited online fan sites and notice boards to get the most out of your shiny new ride. But have you tracked a new-car launch or auto product on Twitter?

Source: L.A. Times - Business | 19 Jun 2009 | 7:00 am

U.S. may seek new rule for money market funds

Obama proposal says regulators should consider forcing the mutual funds to float their share prices. Regulators...
Source: RSS feed - channel BNPaperBusiness | 19 Jun 2009 | 7:00 am

CB Richard Ellis raises $450 million in bond sale

The brokerage is forced to offer a high rate to lure investors. It will use the cash to pay off loans coming due.

CB Richard Ellis Group Inc., the world's largest commercial property brokerage, borrowed $450 million Thursday at a steep interest rate as part of the firm's effort to stay solvent in the most punishing real estate market in decades.

Source: L.A. Times - Business | 19 Jun 2009 | 7:00 am

ABC unveils reorganized operations

The network combines its programming and production units in a cost-cutting move. Driven by a need to overhaul...
Source: RSS feed - channel BNPaperBusiness | 19 Jun 2009 | 7:00 am

ABC unveils reorganized operations

The network combines its programming and production units in a cost-cutting move.

Driven by a need to overhaul its program development process and cut costs, Walt Disney Co.'s ABC has finalized a complex consolidation of its ABC Entertainment and ABC Studios operations.

Source: L.A. Times - Business | 19 Jun 2009 | 7:00 am

Proposed expansion of Federal Reserve may trip up Obama financial reform plan

In congressional hearings, the president's plan to increase the central bank's authority to regulate the financial industry emerges as a stumbling block.

President Obama's plan to increase the authority of the Federal Reserve is emerging as a major stumbling block to congressional approval of his overhaul of financial industry regulations.

Source: L.A. Times - Business | 19 Jun 2009 | 7:00 am

VW California Biker: a dream van come true

The modernized Westfalia camper is available -- in Europe.

I would like many things. I would like a large four-bedroom ranch home to fall on Jon and Kate. I would like my life to be more like Bollywood. I wish my hair could talk.

Source: L.A. Times - Business | 19 Jun 2009 | 7:00 am

Aussie stocks lifted by banks

SYDNEY - The Australian share market ended the week steady following gains in the financial and energy sectors. At the 1615 AEST close the benchmark S&P/ASX200 index was up 7.5 points, or 0.19 per cent, at 3,899.6 points, while...
Source: New Zealand Herald - Business | 19 Jun 2009 | 6:54 am

House market 'encourages' builder

House builder Taylor Wimpey is "encouraged" by stability in the UK housing market, saying a "severe" downturn should now be avoided.
Source: BBC News | Business | World Edition | 19 Jun 2009 | 6:49 am

Sharemarket closes lower as Telecom slips

The New Zealand sharemarket edged lower today as top stock Telecom slipped from its highest level in nearly six weeks reached yesterday. Telecom fell 8c to 261, which was off yesterday's high of 270 after Telecom's competitors...
Source: New Zealand Herald - Business | 19 Jun 2009 | 6:31 am

Savings and investments: when the guaranteed isn't guaranteed

Nervous savers like the security of a guarantee but are they always watertight?
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 19 Jun 2009 | 6:17 am

Preparing your personal finances for a recovery

Economic recovery may trail unwelcome financial consequences in its wake for some households if they have not preempted the changes
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 19 Jun 2009 | 5:46 am

NZ dollar goes full circle

The New Zealand dollar ended the week pretty close to where it started it even though the central bank tried to talk the currency down. The NZ dollar was at US63.85c at 5pm, up from US63.02c at the same time yesterday. It was US64.10c...
Source: New Zealand Herald - Business | 19 Jun 2009 | 5:28 am

Former RBS boss Sir Fred Goodwin hands back £4.7m of controversial pension

Former RBS boss makes concession on controversial pension payment.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 19 Jun 2009 | 5:15 am

Allen Stanford arrested in the US after surrendering to the FBI

The billionaire and cricket entrepreneur Allen Stanford was arrested in Virginia overnight and is expected to appear in a US court this morning to face criminal charges.


Source: Latest Business News from Times Online | 19 Jun 2009 | 4:41 am

Major Indexes Get an Early Boost (Market Update)

News at a Glance

• Slower Decent: IMF official sees softer landing.
• Stocks  Rise: Session begins with modest gains.
• Make It Plural: Apple starts selling iPhone 3G S.
• In the Air: TARP firm CEOs abused jets: WSJ.

The Lowdown

Wall Street is looking to end the week on an upswing.

Stocks were higher Friday, as traders extended yesterday's gains on the heels of a global rally. By 9:36 a.m., the Dow Jones Industrial Average had climbed 56 points to 8612. The Nasdaq had risen 24 to 1831, and the S&P 500 had picked up 8 at 927.

World markets were broadly higher after U.S. markets got a boost Thursday on largely positive economic data. In Asia, Japan's Nikkei picked up 0.9%, while Hong Kong's Hang Seng advanced 0.8%. In Europe, the major indexes of London, Frankfurt and Paris climbed in afternoon trading.

The global economy got a vote of confidence from the Internal Monetary Fund. The decline in global output is slowing, which should trigger a change in the IMF's growth estimate for 2010, IMF First Deputy Managing Director John Lipsky said. "While the latest data point to a slowing of the global contraction, there is still great uncertainty regarding the timing and pace of economic recovery," he said in prepared remarks at a business conference in Turkey.

Commodities bounced with stock futures. On the Nymex, oil prices advanced. By 9:23 a.m., crude traded up 56 cents and $71.93 a barrel.

Looking ahead, next week will be a busy one for economic data. On Tuesday, traders will get a look at the May data on new and existing home sales. On Wednesday, the Federal Reserve hands down its latest policy statement on interest rates, and on Friday, the Commerce Department releases its May readings on personal income and spending.

Corporate News

• Research In Motion (RIMM), the maker of the BlackBerry, reported better-than-expected first-quarter earnings but disappointed traders with an outlook below analysts' views. For Q1, RIM earned $564.4 million, or 98 cents a share -- four cents better than Street views. For Q2, the firm expects to earn between 94 cents and $1.03 a share on sales of $3.45 billion to $3.7 billion. Analysts had expected a second-quarter profit of 97 cents per share and $3.61 billion in sales.
• Apple (AAPL) is set to release the latest version of its iPhone this weekend. The new 3G S will cost $399, or $199 for customers upgrading from earlier 3G phones.
• Toyota (TM) is seeing unexpectedly high demand for its new third-generation Prius, the Associated Press reported. Toyota has received 180,000 orders for the hybrid vehicle, well above the 10,000 the firm expected in the car's first month off the line.
• Bank of America (BAC), Morgan Stanley (MS) and PNC Financial Services (PNC) are among several banks receiving federal aid whose chief executives have been accused of using their corporate jets for personal reasons, The Wall Street Journal reported, citing flight records. Others include Regions Financial (RF) and Marshall & Ilsley (MI).

The Economy

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

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

Source: SmartMoney.com | 19 Jun 2009 | 4:00 am

A 401(k) Mismatch

In an environment like this, investors expect companies to do whatever they can to resuscitate shrinking profit margins. Layoffs, salary freezes, the free soda in the company cafeteria—nothing is sacred, not even the 401(k) program. Almost 250 companies have stopped matching employees’ contributions to their retirement savings or reduced the match since the beginning of the year (compared with virtually no cuts a year earlier). Dozens more say they plan to. And that, experts say, is a cost-cutting measure that investors shouldn’t be so quick to applaud.

It’s not as though companies are cavalierly axing these benefits; indeed, cutting the 401(k) match is a drastic measure for a troubled company, says Laura Sejen, global director for strategic rewards consulting at Watson Wyatt—and one that is among the last cost-saving moves a troubled firm tries. An increasing body of evidence sheds some light on why: Retirement benefits are an important component of employee satisfaction and loyalty, both of which are cost-effective for companies and good for long-term shareholders. Alex Edmans, a finance professor at Wharton, looked at the connection between employee satisfaction and stock price and found that when companies keep employees happy, their stock outperforms the broad market by more than double. Retirement benefits are only one component of employee satisfaction, he noted, “but the connection is logical.”

The effect of cutting the 401(k) match isn’t measured just over the long term; it indicates other, more immediate, financial trouble as well. A dividend cut is likely in the offing, if it hasn’t happened already, experts say. Of the dividend-paying companies that cut or suspended their 401(k) matches, 18 percent (one out of six) followed by cutting payments to shareholders, too.

Cutting retirement benefits can also prompt higher worker turnover, notes Julie Gorte, who looks at corporate behavior for the Pax World group of mutual funds. Hiring and training a new employee can cost up to four times the ex-worker’s annual salary, according to Pax research, which makes cutting that 3 percent match seem a little less prudent. The bottom line, says Gorte: When a company in your portfolio cuts its retirement benefits for its workers, they shouldn’t be the only ones who take notice.

When a firm cuts its 401(k) match

It’s bad news for workers
Almost 250 companies have cut 401(k) matching benefits for employees since the beginning of the year.

And for investors
When a firm axes retirement benefits, it’s a signal the company is grasping for savings, worker morale is heading south and the dividend could be in jeopardy.

How you’ll know
Companies aren’t required to report when they cut employee matches, so watch for news in the local papers or check the Web.

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 | 19 Jun 2009 | 4:00 am

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

1. “Welcome to the crowded skies.”

If you’ve flown much lately, you’ve probably noticed that air travel feels like rush hour on the subway. Indeed, as airlines get more efficient, they’re squeezing more people onto fewer planes. But that’s had an unintended consequence: More fliers get left behind. Airlines have always overbooked flights to compensate for last-minute cancellations. But they don’t always get the numbers right. And with so few seats open on later flights, fewer folks are volunteering to get bumped. As a result, the number of involuntarily bumped passengers is up, having grown 44 percent between the first nine months of 2005 and the same period in 2007, according to the Department of Transportation.

The silver lining for travelers is that airlines must get involuntarily bumped fliers to their destination within four hours of the expected arrival time or refund them up to $400. The bad news is that the problem isn’t going away—airlines are busy developing computer systems to help them rebook bumped passengers. “Instead of fixing the problem,” says Tony Polito, an associate professor at East Carolina University who has published several studies on the airline industry, “they are institutionalizing it.”

2. “Your hard-won air miles are worth less all the time.”

Air miles are easy to accrue. You can earn them using your credit card, getting a mortgage, “for anything short of breathing,” says Tim Winship, editor at large of SmarterTravel.com. American Airlines, for example, has thousands of “mileage partners” to whom it sells air miles, making its frequent-flier program an important revenue center. And United Airlines’ Mileage Plus plan brought in $600 million for the company in 2006.

But as miles flood the market, they’re getting harder to use. Joe Lopez, a publications manager in Phoenix, wanted to redeem the 70,000 miles he earned on Northwest—but couldn’t find a flight he liked. “It was ridiculous,” he says. (A Northwest spokesperson says 50,000 miles will get you a seat on almost any domestic flight the airline offers.) What’s worse, some airlines have reduced the shelf life of air miles, while others have increased the amount required for an upgrade. Winship says customers can keep their account current by using a credit card affiliated with the program, which will build miles as they make purchases. You can also redeem a small amount of miles, to keep your account active, on things like magazine subscriptions.

3. “We’ll give you a good deal—if we can get something out of it.”

Once in a while airlines do offer serious bargains. Currently, they’re doing so in an effort to steer you away from the Expedias and Travelocitys of the world. Why? Airlines pay these online booking sites a fee for every ticket they sell—something they’d rather not do. The upshot: If you’re looking for the best deals—anywhere from a few dollars off to savings of 25 percent or more—your first stop should be the airlines’ own websites.

The industry is following the lead of Southwest, which long ago pulled its tickets from travel sites. In 2005 it introduced Ding, a computer application that scans for the best fares and regularly updates you on deals. What does Southwest get in return? Loyalty and repeat fliers. “Subscribers to Ding are highly engaged customers,” says Anne Murray, senior director of marketing communication with Southwest. “They fly a lot.” American recently launched a similar application called DealFinder, which offers big discounts on flights, and other airlines may follow.

4. “We love hidden fees.”

The inflation-adjusted price of an airline ticket has actually fallen since the airlines were deregulated in 1978. But at the same time, fuel costs have risen. How do airlines make up the difference? In part, through additional fees. These fees keep the listed ticket price competitive but boost the total cost to travelers, often at the end of the booking process, when buyers are less likely to change their mind.

The most common is the fuel surcharge, which ranges from $5 to $25 or more. (Southwest hedged against rising oil prices before they spiked; it doesn’t have a fuel surcharge.) Other examples of fees: Northwest charges around $15 for an exit-row seat. United now charges approximately $25 each way for checking a second bag. And Allegiant, a small airline that provides services from cities like Missoula, Mont., to the Sunbelt, charges a fee just to book a ticket online—a process that costs the company virtually nothing. Even frequent-flier programs, which are supposed to let you book “free flights,” have added fees for things like booking too close to your travel date. “I keep seeing more and more of these hidden fees,” says George Hobica, creator of Airfarewatchdog.com. “I get complaints from people all the time.”

5. “Customer service isn’t always our top priority . . .”

A few years back, when Larry Meyer tried to fly from the U.S. Virgin Islands to Florida, he arrived at the airport only to find his flight had been canceled and nothing was available until the next day. “It really rubbed me the wrong way,” he says. “They have my number in the computer; you’d think they could call me.” Some customers, after enough bad experiences, have started fighting back. Kate Hanni, who was delayed on the tarmac for nine hours in 2006, formed a group that pushed New York State to enact a passengers’ rights law, which requires that passengers stuck on a plane for three hours or more have access to such basics as restrooms, food and water, and fresh air.

According to Claes Fornell, a professor at the University of Michigan Ross School of Business, the major U.S. airlines currently have their lowest customersatisfaction ratings in seven years. “There is collusion in dissatisfaction,” he says. “They all offer about the same lousy service.” But David Castelveter, spokesperson for the Air Transport Association, which represents the airlines, sees it differently. He says travelers, upset by delays that are often out of the airlines’ control, assume customer service is the problem when other factors are to blame. “This is a customer-service-driven business,” Castelveter says.

6. “. . . unless you have a lot of miles.”

They may be making a lot of customers miserable these days, but if airlines could be said to cater to anyone’s needs, it’s those of the folks in the top tier of their frequent-flyer programs—heavy travelers, many of whom fly for business and therefore buy the most expensive tickets. “These people get white-glove service,” says Henry Harteveldt, a travel analyst with Forrester Research. “[Airlines] really want to cultivate that relationship.” These favored flyers get the first crack at upgrades. The reservation center answers their call on the first ring. They often get special bonus-mile offers and free upgrades. And they can use first-class check-in, meaning shorter lines through security and early boarding.

Chuck Guedelhoefer, president of Raths, Raths & Johnson, a structural engineering firm in Willowbrook, Ill., cherishes the benefits he gets from United’s top-tier membership program. For one, it makes it easier for him to redeem frequent-flier miles. And because he has so many with United, he always gets seated in the exit row, so he doesn’t have to pay for upgrades to business class. “I even get treated better at the ticket counter,” he says.

7. “Our planes are ancient.”

Airline passengers in Europe are accustomed to seat-back entertainment systems with movies on demand and videogames—innovations that seem like space-age fantasies compared with the pull-down screens still so common in the States. That’s because after the industry’s near collapse in 2001, most major U.S. airlines decided they couldn’t afford new jets and stopped buying them. Now our commercial fleet averages 12 years old. And with so many older jets in the air, airlines feel little pressure to upgrade, says Richard Aboulafia, an aviation analyst with the Teal Group.

“An inordinate number of our planes [in the U.S.] are old and inefficient,” says Harteveldt. Among U.S. carriers, Northwest has the oldest planes, with an average age of 17 years. (JetBlue and AirTran, by contrast, have the newest fleets, averaging three years old.) It’s not that old aircraft are dangerous; they’re maintained to high safety standards. But in addition to being dingy and less comfortable for passengers, old planes cause more delays due to last-minute mechanical problems, and they guzzle fuel, a cost that filters down to customers. The situation is only going to get worse, says CreditSights analyst Roger King, since most U.S. airlines have placed few or no orders for new planes.

8. “Even we don’t understand our pricing.”

Most flights are divided into first class, business, and economy. But when it comes to pricing, there are often up to 200 different price points for seats on each plane. “Ticket pricing is a mix of science, game theory, and art—a threedimensional matrix,” Harteveldt says. The biggest factor, beyond basic costs like fuel and labor, is the competition. Airlines track one another’s fares, then try to determine how many business travelers, who generally pay a premium for flexible tickets, are likely to book a flight. On routes with lots of business travelers, seat prices can stay high because airlines know they’ll book seats at the last minute. As each seat sells, the prices of others fluctuate. “Domestic fares can change up to three times a day,” says Hobica.

But prices don’t only go up. If demand from business travelers is lagging, prices may fall as the flight time gets closer. If that happens and the fare drops by the time your flight leaves, you can get a voucher from a number of airlines for the difference—United, Southwest, and Alaska do this without deducting a fee.

9. “We’re at the mercy of ‘Leave It to Beaver’-era technology.”

Air traffic in the U.S. has been increasing, but our air-traffic control hasn’t changed much since the 1950s. This radar-based system tracks planes as they take off, travel, and land. And while it’s reliable, it’s not efficient. Planes are routed across the country on a series of highways in the sky, spacing them at least five miles apart for safety. And that’s the problem: Because radar pinpoints planes only every 12 seconds, their exact location is never known. “It’s like driving a car when you only look out the window every 12 seconds. You can’t get close to anything,” says R. John Hansman, director of the Massachusetts Institute of Technology International Center for Air Transportation.

The airlines would like to see this system replaced by one based on GPS technology, Castelveter says. That would allow planes to fly much closer together safely, which would help congestion. The main sticking point is how to pay for it—Congress has yet to decide how to fund the change.

10. “You’ll wait because the system’s broken.”

The year 2007 was one of the worst on record for airline delays: Only 77 percent of flights arrived on time, while 76 percent departed on time. And the antiquated air-traffic-control system isn’t the only reason. Airlines routinely stuff more flights into a given time slot than ever have hope of taking off. For example, there’s room for 32 to 52 flights to leave New York’s JFK airport between 8 and 9 a.m., but 57 are normally scheduled, automatically leading to delays, according to congressional testimony by the National Air Traffic Controllers Association. Newark, LaGuardia, and O’Hare all have similar chronic overscheduling problems. And when bad weather rolls in, delays increase and spread across the country. Fed up, the Federal Aviation Administration stepped in last year, capping flights going in and out of JFK at 83 for peak hours, down from the usual 100. Caps will be imposed at Newark as well.

Even the airlines say it’s a necessary temporary step. But the carriers would like more action from the government, including pushing through upgrades of the air-traffic-control system, which would increase capacity at airports. Castelveter blames part of the problem on corporate jets, which take off and land at smaller airports in the region whenever they choose, exacerbating delays. “It’s an incredibly complex problem,” says Shannon Anderson, associate professor of management at Rice University, one involving aging technology, competing airlines, and private and commercial carriers. “Just capping the number of flights is not going to solve it.”

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 | 19 Jun 2009 | 4:00 am

Toyota: King of the Road

"WE'RE NO. 1."

It is unlikely that Toyota would ever be politically insensitive enough to post that sign above its dealerships but, if the company wanted to, it soon could. Following plant closings, production cuts and the prospective sales of brands such as Hummer and Saturn and Saab by bankrupt General Motors (GMGMQ), the Japanese auto maker soon will race past its long-time Detroit rival to become the largest seller of light vehicles in the U.S. It has held the top spot globally since last year.

It won't be the only beneficiary of GM's and Chrysler's woes. That list includes Europe's Volkswagen (VLKAY), Ford (F), Honda (HMC) and probably South Korea's Hyundai (005380.Korea) and its affiliate Kia (000270.Korea). But the big winner, at least in terms of status, market clout and bragging rights, will be Toyota. That makes its American depositary receipts, which trade under the ticker TM, a good bet for long-term investors.

When the dust has settled, the Japanese maker's share of the North American light-truck and car market will rise to around 20% from its current 18.4%. In its court filings, GM says it aims to hold on to 19% -- but that seems unrealistic. It is more likely the slimmed-down General will have no more than 16% -- and some believe as little as 13%. Either way, GM will be left battling on its home turf for second place with Ford.

But Toyota, whose mid-sized Camry remains the best-selling car in the U.S., can't take too much joy in those numbers. In fact, despite its ascendant position, Toyota has serious short-term problems.

"Toyota faces challenges it never has before," says Stephen Girsky, a former analyst turned private-equity investor, who just recently helped General Motors arrange the sale of Saturn to the Penske Automotive Group (PAG). "Bigger and nimble is better than being small and nimble. But it's hard to be nimble when you are large -- and that may be a problem."

Certainly, the company isn't immune to the auto slump. After dropping 41% last month, its U.S. sales were off 39% this year. In the first three calendar months of 2009, its 2009 fiscal fourth quarter, Toyota reported a bigger-than-expected loss of $7.74 billion, eclipsing GM's $6 billion shortfall for the period. For the full year, the loss was $4.4 billion, Toyota's first annual deficit in 59 years. That led the company, which pays dividends twice a year, to cut its second-half payout to about 36 cents per ADR from 77 cents. This fiscal year, Toyota sees a $5.5 billion loss.

Hoping to bolster its results, Toyota has embarked on sweeping management changes. Out went Chief Executive Katsuaki Watanabe, accused of placing too much emphasis on increasing profits at the exclusion of all else. In came Akio Toyoda, the 52-year-old grandson of the company's founder -- the family and the company spell their names slightly differently -- a move made despite the fact that the family now owns less than 2% of Toyota. The new CEO arranged for Toyota to replace half of its directors, plus four of its five executive vice presidents and 18 of its 50-odd executive managing directors.

Given that some of those "retiring" early were both leaders of the company's global expansion and among the strongest critics of the new boss and the retreat to nepotism, what Toyoda described as "bold reforms" seemed to many to be a brutal coup d'état. Toyoda clearly is abandoning Watanabe's core policies of katushim (revolutionary change). His maxim is said to be genchi genbutsu, which essentially means: "Get out of your office and visit the source of the problem."

"What may seem like a coup d'état to others is in fact a regular and orderly process at Toyota," says Jim Lentz, president of Toyota USA. "Maybe you can say we are changing horses in midstream, but remember these horses have been in the barn for 25 years or more, and their strengths are well known to management." Lentz is convinced the U.S. auto market has bottomed and that sales will now trend up again. "We are concerned not about being the biggest, but being the best."

The jury will be out on Toyoda for months, though even some of the company's ardent supporters concede that changing leadership mid-crisis may not have been the wisest move. Among the problems facing him are those involving production in China, one of the few auto markets still growing. Here the problem isn't an excess of inventory but a shortage: Toyota failed to plan for the booming demand for small cars. In the first quarter of this year, its China sales fell 17% while sales by rivals, including GM, which had a 17% gain in the same period, moved into high gear.

In the U.S., still the world's biggest auto market, Toyoda is already moving at full speed. He is concentrating power in a small number of top managers, especially Yoshima Inaba, a former executive who quit two years ago and has been rehired -- a very unusual occurrence in Japan. Units that in the past reported directly to different bosses, including engineering, manufacturing and sales, will now report to Inaba, who may operate from a new U.S. headquarters in New York. As Toyota's de facto czar for America, Inaba faces acute challenges.

True, not all of the big manufacturer's problems, such as the global auto slump and the yen's strength, are of its own making. At the same time, however, Toyota occasionally has shot itself in the foot. Its most obvious self-inflicted injury came from an apparent belief in ever-growing demand that led the company to move into production of full-size pickup trucks at the very time that higher gasoline prices, the recession and the credit crunch were fast approaching. In 2006, Toyota opened a $1.3 billion plant in Texas to build its Tundra -- an ill-considered move, given the way the once-hot pickup sector has cooled. Another mistake: Constructing a $1.3 billion plant in Mississippi to turn out hybrids, a decision since put on hold, as those sales also have slid.

Earlier this year, faced with a near 30-year low in auto sales and ever-rising inventories that hit a high of 100 days, compared with a more normal 25 to 40 days, Toyota idled three U.S. assembly lines and said it plans to build just 5.8 million vehicles in 2009, 29% below the 2008 level.

"Toyota has some very large structural problems," says one industry expert who wishes to remain anonymous to avoid antagonizing the company. "It has way too much production capacity in both the U.S. and Japan and still doesn't really know how to make money on the newly popular smaller cars. There is an arrogance at the company that is beginning to impact its dynamism and creativity. The myth that Toyota is invulnerable is off-base. The truth is that Toyota is now suffering from its own versions of some of the same diseases that brought down GM."

Nonetheless, apparently encouraged by May sales that were down from a year earlier but exceeded April's, Toyota is ramping up production again. Over the remainder of the year, Toyota says it will increase the number of vehicles it builds in the U.S. by 65,000 units, mainly Camry, Corolla, Sienna, RAV4, Tacoma and Tundra models. Sales of all six rose in May, led by the Camry, up 24%, and Corolla, up 27%.

This summer will be crucial for Toyota. In addition to management changes and new leadership, it must cope with new rivalries. In particular, competition is growing, in the U.S. and abroad, for the Prius hybrid, especially from Honda's new hybrid Insight. Auto magazines in the U.S. and Europe generally rate the Insight as less technologically advanced than the latest Prius, but it costs about $2,000 less.

In addition, Hyundai and Kia have each launched models that challenge Toyota's lineup in both price and appeal. And, like Honda, they have deep enough pockets to fund incentives and discounts. More important, perhaps, Toyota will also have to compete with a potentially revitalized GM.

Says private-equity investor Girsky: "Toyota has a very strong corporate culture, one that has worked for a very long time. With not everything going the company's way, it remains to be seen what will continue to work and what won't."

Nonetheless, at the end of this bumpy road, the fact that Toyota entered the downturn from a position of strength strongly suggests it will be among the first to return to profit. With cash and equivalents of $30 billion, launches of several models in relatively strong markets such as Brazil and Russia and earnings set to bounce back in 2011, Toyota's ADRs could rise over the next year. If the U.S. auto market shows signs of perking up, they could go from their recent price in the high 70s to at least 115 -- a hardly demanding target considering they hit $137 about two years ago.

The Bottom Line
Toyota's American depositary shares are in the high 70s -- down nearly 50% from two years ago. If the auto market perks up, they can hit at least 115 during the next 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.

Source: SmartMoney.com | 19 Jun 2009 | 4:00 am

A New Number for You to Sweat: Your ID Score (Consumer Action)

You probably already know how an inaccurate credit score can cause you problems — but what about your “identity score”?

Though most consumers aren’t familiar with this type of rating, it’s increasingly being used by everyone from car dealers and banks to utilities and wireless service providers. Much as a credit score attempts to put a number on how good someone is at paying their bills, an identity score measures the risk that a consumer isn’t who they say they are.

Companies that sell ID scores say their products serve as a weapon to combat that fraud by helping to predict the likelihood of identity theft, which by some estimates cost consumers and businesses $48 billion last year. Already, such scores are used before most credit-card transactions or loan applications are approved -- and their use is expected to spread. Thanks to new regulations, most businesses will soon be required to use ID scores or some other type of methodology to confirm a customer's identity.

But the growing use of identity scoring is raising some questions, too. Some privacy advocates say the expansion of efforts to compile incredibly detailed consumer dossiers is troubling. Others say the scope of identity theft has been exaggerated -- in terms of losses to both businesses and consumers. And then there's the issue of accuracy: If some of the data used to calculate a score are wrong — due to errors in one’s credit report, for example — the score will be wrong as well.

A bad identity score — justly or not — is likely to create a number of issues for consumers, ranging from the inconvenience of having to answer some annoying questions when applying for credit to having important purchases or bank transfers slowed or put on hold for a matter of days while thorough ID verification takes place.

Companies that calculate and sell these scores say they're beneficial to businesses and consumers alike. As for privacy concerns, they say that consumers' personal information is never sold or shared with third parties. Some also say identity scores measure identity risk much more accurately than credit scores measure credit risk.

“Credit scores and identity scores should not be viewed with the same lens,” says Thomas Oscherwitz, chief privacy officer at San Diego-based ID Analytics, one of the companies that provide identity scores. “They have different purposes and are calculated differently.” Heather Grover, senior director of product management at Experian’s fraud and identity solutions group, says that consumers can make sure their identity score is accurate by disputing any erroneous information in their credit reports.

While nowhere near as big as the market for credit scores, ID scoring is becoming a fast-growing field. Players include FICO, which offers its Falcon product for scoring credit-card transactions; Experian's Precise ID, which is used to determine the fraud risk of new account applications; and ID Analytics'sID score, which is sold to companies directly and through partnerships with credit bureaus Equifax and TransUnion. It’s an industry estimated at $1 billion a year -- just from the credit-card issuers alone, according to Brian Riley, research director at financial services research firm TowerGroup.

Thanks to federal regulations scheduled to take effect Aug. 1, that market is only expected to grow. This so-called Red Flags rule will require any business that conducts transactions or extends payment terms to consumers (such as lawyers, retailers or telecom outfits) to have a system in place to identify and resolve red flags that a transaction or application is fraudulent, says Oscherwitz of ID Analytics who helped draft the rules five years ago as a staffer at the Senate Judiciary Subcommittee on Terrorism, Technology and Homeland Security.

Identity scores are calculated based on how certain personal information, such as your name, Social Security number, address, birth date or phone number, is used in transactions or for credit applications. For instance, your score might be higher -- signifying a higher risk -- if you move around a lot. Other factors that can raise your score, according to companies that calculate them: changing your name (say, after getting married) or living in an apartment building, where many people share the same street address. Even using an out-of-state cellphone number when applying for a car loan can boost your score.

If a score is deemed too high, an account application or transaction gets flagged. As a result, the consumer may be asked seemingly random “challenge” questions. They're meant to be questions that fraudsters are unlikely to be able to answer -- but in some cases, they can tax the memory of the authentic consumer. You might be asked the house number where you lived seven years ago, for instance, or the color of the car you owned in college or the issuer of the mortgage on your first home. Further up the inconvenience scale, you might even be asked to visit a bank branch to show your personal identification or to fax information to prove your identity.

And then, of course, there's the faulty information to contend with. David Szwak, a consumer credit attorney and partner at Bodenheimer Jones Szwak & Winchell in Shreveport, La., calls it the “garbage in – garbage out” problem. Some of the data used to calculate your identity score come from the “above the line” part of your credit report – which often contains errors.

“Almost every single report that I have seen has personal identification information that does not belong to that consumer,” says Szwak. “There are typographical errors, just plain old inaccurate addresses, multiple Social Security numbers on file.”

The result: Between 5% and 20% of applications for credit are flagged and less than 1% end up being fraudulent, says Andy Smith, a former vice president of business analytics at the fraud department of Capital One, the big credit-card issuer.

Smith says he often runs into such problems himself. “My last name is Smith, my father and brother’s names are David,” he explains. While trying to transfer a large amount of funds between trading accounts, he was unable to answer the questions correctly and was kicked out of the system for manual review. The transfer was delayed by three days.

While many consumers are likely to be unaware of the world of identity scores, some companies want to change that. ID Analytics, which says its ID Score is used by some of the biggest banks in the country, as well as major wireless service providers, is now making the score available to consumers at no charge through MyIDScore.com.

ID Analytics says consumers can use the score to assess their personal risk that their identity may have been stolen. But the company gets something out of it too: More information for its own database. In order to get the score, consumers must enter their name, address, phone number, date of birth. (Social Security numbers are by request, but providing it is optional.) The result is a three-digit number between 1 and 999 -- lower is better -- that assesses the level of risk that you’ve been a victim.

Mari Frank, a Laguna Niguel, Calif.-based attorney who specializes in privacy rights and identity theft, says consumers should be aware they're sharing sensitive personal information in order to get their score, which the company can then use to improve its products, according to its privacy policy.

CEO Bruce Hansen says ID Analytics may use the information to improve its web site, but does not plan to use it in product development. The company also says consumers can opt out, though the instructions – which require sending an email – are buried in the privacy policy’s fine print. ID Analytics says it is working on adding an opt-out option next to the fill-in form within the next month.

And much like the use of credit scores and reports has expanded dramatically over the years, from lenders to insurers and even employers, the potential for identity authentication and scoring is unlimited. Smith, the former Capital One exec, is now building a similar model that predicts instances of insurance fraud. “Stopping fraud is not that hard,” he says. “Stopping it without dropping a whole bunch of inconvenience on your customers is the trick.”

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 | 19 Jun 2009 | 4:00 am

5 Father-Son Teams Share Investing Secrets (On the Street)

Sure it's a cliché, but it happens to be true: You can't learn everything from books. As important as a degree from a business school can be to the education of a young money manager or advisor, there's nothing quite like the lessons imparted by an older, wiser, more experienced professional.

And who better to learn from than dear old dad?

"Steve first became interested in investing when he was about eight years old and he found out that you could put money in a bank and it would earn interest," says Ronald Rogé of his son Steven, who together run R.W. Rogé & Co.and the Rogé Partners fund (ROGEX). "In other words, he discovered that you could make money without working," the elder Rogé says with a chuckle.

Later Steven was curious about mutual funds. He collected baseball cards at the time, so his father explained that a mutual fund was kind of like a pack of cards -- a basket of individual stocks, some of which were potentially more valuable than others. By the time Steven was 12, he was hooked.

That's a common theme among the father-son teams SmartMoney spoke with ahead of Father's Day weekend. When talk at the family dinner table centers around stocks, bonds, mutual funds and the market, well, an interest in investing tends to get kindled at a very young age.

Even more important is that those relationships create an appreciation for history, for experience, for risk and for unconventional thinking -- things that can't necessarily be learned in an MBA program.

After all, when your dad's been in the business a long time, you stand to benefit from his decades on the front lines of the securities markets. Here, then, is a look at five father-and-son investing teams -- and some of the generational wisdom that has stood them in good stead. And lest we forget, daughters can benefit, too. Abigail Johnson helps run the company her family founded, mutual fund giant Fidelity.

Bryan and Bob Auer

Auer Growth Fund

Bryan, 73, had been managing his own investments quite successfully for a long time when his son Bob, 48, took a job as a broker at Dean Witter Reynolds in 1986. Bryan opened accounts with his son but wasn't interested in the firm's research or recommendations. Rather, he had his own stock-picking system -- one the duo continues to employ at Auer Growth fund (AUERX) to this day: Cull through thousands of stocks looking for 25% earnings growth, at least 20% sales growth and a forward price/earnings multiple of less than 12. "Once a stock stops having those characteristics or doubles in price, we sell," Bryan says. "We started that process in 1987 and by 2007 our accounts had an annualized return of more than 30%," says Bob. So in late 2007 they launched Auer Growth, with Bob acting as portfolio manager and Bryan in charge of portfolio analysis. Naturally 2008 was an inauspicious time to start a fund, but for the year to date it's up 22%. When asked what's the greatest lesson he's learned from his dad, Bob laughs. "Only how to compound money at 30% a year."

Gordon, Kent and Russell Croft

Croft Funds

Gordon, now 76, had been a director and manager at T. Rowe Price (TROW) for 20 years when his older son, Kent decided to leave his job at Salomon Brothers in 1989 and return to Baltimore to start a firm with his dad. "The first thing I did was make Kent president, so he has been the boss for 20 years," Gordon says. Russell joined the firm in 1999. "Both of them have the highest ethics and highest character that you can imagine," says Gordon, "and that holds you in good stead in this business." The Croft Value fund (CLVFX) seeks out high-quality companies with low P/Es that can be held for the long term. It's a strategy that's allowed the fund to beat the S&P 500 over the last three-, five- and 10-year periods. Kent, 46, says the greatest lesson he's learned from his dad is the importance of keeping long horizons on stocks. "When you're younger you tend not to quite think like that," he says. Russell, 35, says his father taught him and his brother to constantly question the conventional wisdom."That's in our blood," he says. "The search for inherent, hidden value with a contrarian nature -- we got that from our father more than anything."

Lloyd and Larry Glazer

Mayflower Advisors

In 1989 Lloyd, now 70, was a partner at Bear Stearns in Boston, a place he had worked for two decades. His son Larry, 41, had senior positions at H.C. Wainwright, Trammell Crow and Bank of Tokyo. They had long talked about working together and decided that the time was right. So they formed what Lloyd calls "a terrific partnership," setting up their advisory, Mayflower Partners, within Advest, a regional brokerage firm. When Merrill Lynch acquired Advest in 2005, the Glazers' clients urged them to strike out on their own. "And it has worked out wonderfully for us," Lloyd says. Mayflower was one of the first advisors to transition to a fee-based structure from a commission-based one, and was also quick to grasp the utility of ETFs for asset allocation and hedging positions, Larry says. But the most important lesson learned from Dad? "In our household we talked about debt and leverage at the dinner table," the son says. "I had that benefit from a very young age. As a result, our firm has no debt, and we advise clients to have little or no leverage."

Stephen and Samuel Lieber

Alpine Funds

Stephen, 83, and Samuel, 53, used to do a lot of sailboat racing together. "That's how we learned to work together as a team," says Stephen. That experience was critical to the 1989 launch of the Alpine International Real Estate Equity fund (EGLRX), the first global real estate offering of its kind. Not only did that wed the son's experience in real estate and REITS with the father's decades of asset and portfolio management, it taught Samuel a valuable professional -- and personal -- lesson. "In the late 1980s we were so big in the real estate sector that we found we were moving share prices around," Samuel says. "I expressed concern to my dad. He said look farther afield, broaden your horizons and look for other types of opportunities." That's how the first international real estate fund was born. Today Alpine runs nine funds, but that first lesson remains key, Samuel says. "Take a broad, holistic approach not only to investing, but also to life."

Ronald and Steven Rogé

R.W. Rogé & Co., Rogé Partners Fund

Ronald, 62, started R.W. Rogé in 1986 as a financial planning and advisory business. He first started stock picking in the early 1970s but found that he wasn't very good at it. He was better at finding good fund managers -- like his son Steven, 28, who joined the company in 1997. "I'm really good at strategy and looking at the big picture," Ronald says. "Steve is very good at finding undervalued stocks." Steven might have been a longtime disciple of Benjamin Graham and Warren Buffett, but his first job at Dad's office was making copies and doing other menial chores. After seven years of learning the business, Steven become portfolio manager of the Rogé Partners fund (ROGEX), which launched in late 2004. The fund got off to a good start, posting total returns of 10% and 21% in 2005 and 2006, respectively, but cooled off in 2007 and, of course, 2008. But then that just makes the lessons instilled by the father all the more important. "When you are a value investor the most important thing is patience," Ronald says. "Warren Buffett watched Coca-Cola (KO) for 25 years before he purchased it."

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 | 19 Jun 2009 | 4:00 am

SEC chief talks new financial regulations (AP)

AP - Making it easier for shareholders to seat directors on company boards, restricting short-selling in down markets, strengthening oversight of mutual funds, and tightening scrutiny and standards for investment advisers are among the pro-investor initiatives being undertaken by the Securities and Exchange Commission, the agency's chairman said Thursday.
Source: Yahoo! News: Stock Markets News | 19 Jun 2009 | 3:59 am

Sir Allen Stanford arrested in US

Texan billionaire Sir Allen Stanford surrenders to the US authorities in Virginia after a warrant is issued for his arrest.
Source: BBC News | Business | World Edition | 19 Jun 2009 | 3:57 am

GM to hit brakes on its only car built in California

The automaker says it will end production of the Pontiac Vibe in August. The vehicle is made in Fremont at the New United Motor Manufacturing plant, which is co-owned by GM and Toyota.

Come September, General Motors Corp. will have made what could be its last car in California.

Source: L.A. Times - Business | 19 Jun 2009 | 3:39 am

Pacific Blue challenges rivals to show on-time performance

Low-cost airline Pacific Blue is adding another wrinkle to the contest for New Zealand's flying public. The Christchurch-based subsidiary of Virgin Blue said that from today it would publish information on its website showing how...
Source: New Zealand Herald - Business | 19 Jun 2009 | 3:30 am

Ex-Merrill trio discussed buying back bank

Three former Merrill Lynch executives approached Ken Lewis, BofA chief, about two months ago to float the idea of acquiring some or all of their old company, but were politely rebuffed
Source: Financial Times - US homepage | 19 Jun 2009 | 3:02 am

Billionaire Stanford surrenders to FBI

DALLAS - Texas billionaire R. Allen Stanford, chairman of the troubled Stanford Financial Group, surrendered to FBI agents in Virginia on Thursday afternoon, his attorney said. Law enforcement officials said Stanford is in custody...
Source: New Zealand Herald - Business | 19 Jun 2009 | 3:00 am

Congress carves into Obama financial rule reforms

WASHINGTON (Reuters) - Senior U.S. lawmakers launched an assault on Thursday on the centerpiece of the Obama administration's financial reform plan -- giving the Federal Reserve new powers to police broad risks in the economy.
Source: Reuters: Business News | 19 Jun 2009 | 3:00 am

Music pirate ordered to pay recording companies $2m

MINNEAPOLIS - A jury ruling in the only US file-sharing case to go to trial said Thursday that a woman must pay nearly $US2 million to recording companies for illegally sharing 24 songs by artist such as Gloria Estefan, Green Day...
Source: New Zealand Herald - Business | 19 Jun 2009 | 2:30 am

Draconian law used to extract unpaid tax

Inland Revenue is employing "seldom used" techniques for collecting unpaid tax more frequently and more enthusiastically, accountants say. In one example IRD went as far back as nine years to assess a company's imputation credits...
Source: New Zealand Herald - Business | 19 Jun 2009 | 2:00 am

Surviving the Recession: The sweet taste of success

The Business Herald looks at six companies weathering the storm. There's nothing like a little sugar to keep up company morale. For Hamilton product development company BioVittoria, it's a sweetener that's keeping them in the...
Source: New Zealand Herald - Business | 19 Jun 2009 | 1:00 am

Obama plan puts too much faith in the Fed, say critics

WASHINGTON - President Barack Obama's plan to increase oversight of US banks and other financial institutions met with skepticism on Capitol Hill on Thursday, where senators sharply questioned whether it was enough to prevent another...
Source: New Zealand Herald - Business | 19 Jun 2009 | 12:30 am

Formula One in disarray as breakaway is confirmed

Source: Latest Business News from Times Online | 19 Jun 2009 | 12:23 am

Write-Offs: 06.18.09

$$$ Credit Suisse Traders Keep Rockin' Through Firings [Bloomberg]

$$$ Pink Elephant Southampton Files For Bankruptcy [Cityfile]

$$$ Rats play odds in gambling tests [BBC]

$$$ Barclays urged to dump 'casino bank' [Daily Mail]

$$$ The NYSE's Sarah Palin Shrine [AWL]

$$$ Bankruptcy Epitaphs 2009 [TRB]

Sponsored Topics: Sarah Palin - United States - Alaska - Government - Executive Branch
Source: Dealbreaker | 18 Jun 2009 | 11:33 pm

Presented By:

Source: Dealbreaker | 18 Jun 2009 | 11:33 pm

Mulberry reports sales turnaround with recessionproof bag

Luxury accessories firm Mulberry reported a dramatic turnaround in early summer sales with £450 Mitzy bag helping buoyup performance.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 18 Jun 2009 | 11:31 pm

Nine hundred workers sacked after wildcat strike at Lindsey oil refinery

Around 1200 contract workers had walked out of the Total plant in Lincolnshire after 51 employees were laid off.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 18 Jun 2009 | 11:21 pm

Hedge Fund Wives Being Forced To Drown Sorrows In Cheap Booze, And Other Horror Stories You Cannot Imagine

Here at Dealbreaker we've been taking careful note of the various ways in which the wives of formerly successful financial services hacks have been forced to demean themselves due to unprecedented market volatility. Flying commercial over private. Wearing J. Crew. Performing A2M without even the possibility of it resulting in a trip to the ATM. Driving Honda Pilots. Today the sob stories continue.

Since his hedge fund closed, one trader's wife has been slumming it among the masses, telling writer, Tatiana Boncompagni, "Do you know I have to take the subway now? I didn't get married for this." Fuck no she didn't! (Sadly, unless she cuts her losses, Jenny from the Block will be riding the 6 for the foreseeable future, on account of the fact that, in her opinion, Meal Ticket hasn't been trying hard enough to find a new job.) Thanks to her worthless hedge hub, another victim is downgrading to $60 bottles of wine at dinner. Tomorrow it'll probably be Old English. One wife is actually being forced to pimp it out (her house on Mustique, for $40,000 a week, not her body but presumably that's next). And there are the women whose situations are so bad they're not even allowed to get into it at all.

When I tried to interview an acquaintance whose husband works for SAC Capital for this article, she told me that she had been advised not to speak to anyone, even off the record.

Sponsored Topics: Hedge fund - Business - Investing - Mustique - Funds
Source: Dealbreaker | 18 Jun 2009 | 10:57 pm

So, You Know Those (Probably) Fake Bonds?

Italian and US secret services are now claiming the mob is behind the whole thing, which we like a whole lot. Stand by for comment from by you know who shortly. The FT reports:

Whether the men are really Japanese, as their passports declare, is unclear but Italian and US secret services working together soon concluded that the bills and accompanying bank documents were most probably counterfeit, the latest handiwork of the Italian Mafia.

Few details have been revealed beyond a June 4 statement by the Italian finance police announcing the seizure of 249 US Treasury bills, each of $500m, and 10 "Kennedy" bonds, used as inter-government payments, of $1bn each. The men were apparently tailed by the Italian authorities.

Sponsored Topics: Mafia - Finance - U.S. Treasury security - Italian language - Police
Source: Dealbreaker | 18 Jun 2009 | 10:15 pm

Bernie's Slightly More Legitimate Legacy Lives On In The Lipstick Building

The part of the House of Ponz that wasn't lying to people and stealing their money has a new keeper. Surge Trading is the new owner of Bernie's market making business and their CEO is ready to lead the former Madoff-ites into the future- albeit from the same address.

"I am proud to be working with this team of seasoned, dedicated and client-focused specialists. We are looking forward to quickly beginning the business of trading on behalf of our clients, growing our service offerings, and becoming an industry-leading business."

Madoff's Market-Making Business Is Revived by Surge Trading [Bloomberg]

---

The best thing you can do to minimize your risk of identity theft is ensure that your personal information is secure. It is very often small acts of criminal mischief that result in years of hardship for individual consumers. Applying common sense can provide a measure of identity theft protection. 1. Don't leave your financial paperwork lying around your house. Store paperwork with personally identifying information in a filing cabinet that is secured with a tamper-proof lock. 2. Never reveal any personal information to anyone who has called or e-mailed you. Ask them to send their request to you in writing through the mail. 3. Sign up for a credit monitoring service. It is a great way to track your credit improvement and stop identity theft. Additional Resources Proactive identity theft protection with Lifelock Monitor your credit score to track improvement and spot identity theft red flags

Sponsored Topics: Business - Bernard Madoff - Bernie - Bloomberg L.P. - Investing
Source: Dealbreaker | 18 Jun 2009 | 9:52 pm

How the major stock indexes fared on Thursday (AP)

AP - Stocks closed mostly higher but off their best levels Thursday following three straight days of losses. Investors piled back into financial and health care companies and moved out of industries like technology that had been leading the market. Several upbeat economic reports encouraged investors after a slide earlier this week that dragged the benchmark Standard & Poor's 500 index down 3.8 percent.
Source: Yahoo! News: Stock Markets News | 18 Jun 2009 | 9:38 pm

How the major stock indexes fared on Thursday (AP)

AP - Stocks closed mostly higher but off their best levels Thursday following three straight days of losses. Investors piled back into financial and health care companies and moved out of industries like technology that had been leading the market. Several upbeat economic reports encouraged investors after a slide earlier this week that dragged the benchmark Standard & Poor's 500 index down 3.8 percent.
Source: Yahoo! News: Business | 18 Jun 2009 | 9:38 pm

Sallie Mae shares gain on government contract (AP)

AP - The Department of Education has selected student lender Sallie Mae and three other companies to service the $550 billion in outstanding federal student loans and future loans owned by the government.
Source: Yahoo! News: Business | 18 Jun 2009 | 9:32 pm

TUI: We Are All Good In The Hood

No thanks to the fuck-up of a certain German bank--Deutsche--but no matter. Onward!

From: TUI Investor Relations

Sent: Thursday, June 18, 2009 12:06 PM

Subject: TUI: Open letter to our Shareholders

Importance: High

Dear Shareholder,

It will probably have not passed your notice that on Tuesday, 16th June the TUI share price dropped by more than 18% from 6.13 Euro to around 5.02 Euro. At almost 8 million shares, the number of shares traded on this day was well above the average. This development can be attributed to an analyst report on TUI by Deutsche Bank. On this day they published a research update setting a price target for the TUI share of 1.90 Euro and subsequently a sell recommendation.

Sponsored Topics: Deutsche Bank - Investor relations - Business - Financial Services - Share price
Source: Dealbreaker | 18 Jun 2009 | 9:20 pm

Re-REMICs Making A Comeback

CDOs may be vilified everywhere but the vastly different repackaging technology offered by re-REMICs is seeing a resurgence. Faced with potential widespread CMBS downgrades, issuers and investors are going back to the time honored tradition of repackaging decaying assets to create a new AAA-rated gem. If the CMBS TALF loans continue at their current rate of growth, namely zero, it's only a matter of time before re-REMICs get an invite to the party.

Commercial Mortgage Debt Rallies Amid New Securities Sales [Bloomberg]

Sponsored Topics: Term Asset-Backed Securities Loan Facility - Business - Commercial mortgage-backed security - Collateralized debt obligation - Financial Services
Source: Dealbreaker | 18 Jun 2009 | 9:10 pm

Rupkey Says U.S. Recession Ended in April or May

Source: Bloomberg - All Podcasts | 18 Jun 2009 | 8:10 pm

'I have no choice. So I go to work.'

On the shores of Bangladesh, old oil tankers and cargo ships come to die. For $2 a day poor laborers, equipped with little more than blow torches and hammers, break the ships down. One worker, just 13, tells his story.
Source: Marketplace | 18 Jun 2009 | 7:51 pm

Politics will undermine regulation plan

Analysts and lawmakers are questioning the Obama administration's plan for re-regulating the financial sector. Commentator Thomas Frank says the plan fails to address the largest problem of all -- politics.
Source: Marketplace | 18 Jun 2009 | 6:45 pm

Stimulus funds help, but aren't perfect

Dustin Woodman, manager of the Coconino Rural Environment Corps, talks with Kai Ryssdal about what the organization is doing with the $500,000 in stimulus funds it received from the federal government.
Source: Marketplace | 18 Jun 2009 | 6:42 pm

How agency will protect consumers

Reporter Jeremy Hobson talks with Kai Ryssdal about the Obama administration's proposal to create a new agency to protect consumers, and how it will work.
Source: Marketplace | 18 Jun 2009 | 6:42 pm

Plan under fire for 'too big to fail'

Treasury Secretary Tim Geithner spent his day defending the Obama administration's proposed financial overhaul to lawmakers. Amy Scott reports there are concerns the plan may give firms 'too big to fail' an unfair advantage.
Source: Marketplace | 18 Jun 2009 | 6:42 pm

Robert Stovall Says Enthusiasm Over Equities Premature

Source: Bloomberg - All Podcasts | 18 Jun 2009 | 6:38 pm

Prosperity in Equatorial Guinea

An awfully interesting post by Steve Coll just went up over at the New Yorker's Think Tank blog. Coll writes that he recently spent a week in the central African nation of Equatorial Guinea researching the country's new prosperity -- he says that they are "the only country in the world that appears to be immune from the global recession."

Equatorial Guinea's good fortune surely has much to do with the fact that the country, which Coll says was among the world's poorest just six years ago, discovered large oil reserves in the mid-90s. But the fact that China has invested heavily in the country doesn't hurt. Billions of dollars in grants and loans from the Chinese government have gone toward construction projects, many staffed by Chinese laborers. China gets to buy some of Equatorial Guinea's oil at a reduced price.

Along with the wealth has come a degree of political unrest.

Equatorial Guinea's president, Teodoro Obiang Nguema Mbasogo, has apparently survived multiple attempted coups; he himself took power in a 1979 coup that deposed Francisco Macas Nguema, the former dictator and Obiang's uncle. Obiang's presidency has also been marked with charges of human rights violations and, according to this 2004 BBC profile, a widening economic gap between the country's wealthy and its poor.

A great slide show at that New Yorker post suggests that some of that oil money has now begun to trickle down. Coll's piece will be one to look out for, and we'll certainly keep an eye on Equatorial Guinea as well.

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Source: NPR Blogs: Planet Money | 18 Jun 2009 | 6:32 pm

ING Groep Raised to `Buy' at Goldman Sachs

Source: Bloomberg - All Podcasts | 18 Jun 2009 | 6:04 pm

How Hyundai is Getting Ahead

Image: PaulTan

Knowledge@Wharton has an interesting article on why Hyundai is doing well. Good warranties, good quality, and payoff from risky maneuvers is positioning Hyundai well in the national market:

As American automakers struggle for survival, South Korea’s Hyundai Motor appears to be gaining on the pack with bold marketing and broad-based initiatives to improve quality. The company made a splash earlier this year when it unveiled its Hyundai Assurance program allowing customers to return a car if they lost a job. Competing automakers and other types of businesses soon followed with similar promises.

Years earlier, however, Hyundai had already begun to invest in new models and quality programs that have put the company on solid footing to profit from the current chaos in the global auto industry, according to Wharton faculty.

“There’s a sense that what Hyundai is doing on many fronts is working in terms of actually gaining some advantage during the crisis,” says Wharton management professor John Paul MacDuffie, who specializes in the automotive industry and is co-director of the International Motor Vehicle Program.

In 2008 — a brutal year for the auto business — Hyundai’s global unit sales rose 2%, lifting revenues by 5%. In the first three months of this year, the company’s global market share rose to 4.7%, compared to 4% a year earlier.

More

Hyundai is learning from its previous mistakes and coming out ahead. Its story is an excellent reminder that good business sense will still get you ahead, even in an environment full of messy bailouts.

Source: Business Pundit | 18 Jun 2009 | 5:54 pm

Dodd, Shelby Thwack Geithner Over A Bigger Fed

Treasury Secretary Timothy Geithner defended the Obama administration's overhaul of financial regulations on Capitol Hill this morning. Speaking before the Senate Banking Committee, Geithner faced intense questioning on one key element of the plan -- giving the Federal Reserve greater regulatory powers over large financial institutions.

Both Committee Chairman Christopher Dodd and the committee's top Republican, Sen. Richard Selby, both told Geithner they didn't like the idea of giving the Fed more regulatory control, largely because of its failure to see the financial crisis coming.

Dodd quoted one critic's view that giving the Fed more power was like giving a kid a "bigger, faster car right after he crashed the family station wagon."

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Source: NPR Blogs: Planet Money | 18 Jun 2009 | 5:09 pm

Postcard From Taiwan

Listener Josef Lieck just spent a week in Taiwan. He writes:

At first you might think it's a shopping mall a night, but then you'll see that all the doors are wide open on an early afternoon. It is actually a whole bunch of completely deserted flag ship stores in a shopping mall (Star Place) in Kaohsiung, Taiwan. People here tell me, yes, they have been hit and hit hard.

I went back to the shopping mall to see if I just caught a non-shopping day and time. But I hardly saw more customers there.

I also went to few other department stores and a brand new mega-mall (relatives love to show you the new malls) on different days and times, and it always felt like they just opened 15 minutes ago and the customers haven't arrived yet.

I had just spent time in India and have traveled to other Asian countries and cities, so I expected a shoving crowd like in Hong Kong or Bangkok. I was quite surprised to find even the night markets in Taipei (where it is generally more crowded than in Kaohsiung) really easy to navigate even during peak hours.

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Source: NPR Blogs: Planet Money | 18 Jun 2009 | 5:03 pm

What Happens To All Those Cars?

We've had some questions from you about our slide show of empty car dealers -- mainly about what happened to all the cars that were left on the lot after Chrysler's June 9 deadline for dealers to shut down.

I called up Howard Sellz, who owned Big Valley Chrysler Jeep Dodge in Van Nuys, Calif., until it closed down with 140 cars left on the lot. He said that dealers had two options: some chose to sell the cars after the deadline, without Chrysler warranties or benefits. Others, he said, took up Chrysler's offer to redistribute the cars to surviving dealerships to be sold.

"I've been here 44 years, to have an empty lot is the most depressing thing I've ever gone through in my life," he said.

Sending your cars to surviving dealership comes with some fees, he said.

Sellz cited a $350 transportation fee on '09 models, and said Chrysler also deducted the advertising fees from the cost of the car. "If the invoice for a car is $25,000, advertising costs you $900 to $1,000," he said.

On top of that, Chrysler won't take back a car if it has more than 125 miles on it according to Kevin Mullins, the general manager at Wilson Dodge in Flowood, Miss. Mullins says that after a few test drives, it's very possible for many unsold cars to wrack up that much mileage.

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Source: NPR Blogs: Planet Money | 18 Jun 2009 | 4:47 pm

Jarrett Says Obama Dedicated to Transparent Financial System

Source: Bloomberg - All Podcasts | 18 Jun 2009 | 4:46 pm

Putting jobless numbers in perspective

The Labor Department says the number of people on unemployment insurance rolls fell for the first time since January, which may indicate job losses are slowing. But Tamara Keith reports it's just a sign things are less bad.
Source: Marketplace | 18 Jun 2009 | 4:40 pm

London stocks higher at the close (AFP)

AFP - The London stock market edged higher at the close on Thursday, powered by better-than-expected US data.

Source: Yahoo! News: Stock Markets News | 18 Jun 2009 | 4:40 pm

Tilman Calls Consumer Financial Education a Priority

Source: Bloomberg - All Podcasts | 18 Jun 2009 | 4:34 pm

Mahindra & Mahindra Wants to Beat Chinese to US Auto Market

Indian automaker Mahindra & Mahindra is looking to beat the Chinese to the US diesel truck market. Bloomberg has more:

Early next year, Mumbai-based Mahindra plans to start selling small 2- and 4-door pickups with a diesel engine that meets California’s strict exhaust rules. U.S. plans for Chinese brands such as Chery Automobile Co. and Geely Automobile Holdings Ltd. have yet to materialize, five years into their announcements.

“Once you establish the brand, volumes will come,” Pawan Goenka, Mahindra’s president in charge of the automotive business, said in a June 16 interview. “There is a hole available to us which is not populated.”

Mahindra’s trucks will arrive in the U.S. even as recession and job losses have pushed auto sales to the lowest in three decades, triggering bankruptcy filings for General Motors Corp. and Chrysler LLC. A weak economy and cheaper diesel prices may help the Indian automaker win buyers seeking a bargain, said industry analyst Eric Noble.

“It’s not a bad time to launch a durable, value-oriented brand,” said Noble, president of Car Lab, an Orange, California-based consulting firm for automakers. “There’s no real competition in compact trucks with a diesel powertrain.”

Global tables turn quickly, don’t they? Only 10 years ago, US companies were excited about penetrating emerging markets in India and China. Now, Indian and Chinese companies are upbeat about entering new markets in the US.

“One man’s crisis is another’s opportunity” rings true here.

Source: Business Pundit | 18 Jun 2009 | 4:18 pm

JPMorgan's Patterson Is Focused on Commodity-Based Currencies

Source: Bloomberg - All Podcasts | 18 Jun 2009 | 3:42 pm

PETA Displays PR Prowess by Sending Obama a Katcha Bug Human Bug Catcher

PETA is sending President Barack Obama a Katcha Bug Humane Bug Catcher after witnessing him murder a fly on CNBC earlier this week. Sky News has more:

Peta spokesman Bruce Friedrich said: “We support compassion even for the most curious, smallest and least sympathetic animals. We believe that people, where they can be compassionate, should be, for all animals.” He said Mr Obama would soon receive a Katcha Bug Humane Bug Catcher which will allow him to trap flies before releasing them outside.

Mr Friedrich admitted that despite the President’s fly swatting antics, Peta was pleased with Mr Obama’s voting record in the Senate on behalf of animal rights. The group says it approves of his denouncement of factory farming and Canadian seal hunting, as well as his wife Michelle’s stance against wearing fur.

But Mr Friedrich added: “Swatting a fly on TV indicates he’s not perfect.

“We’re happy to say that we wish he hadn’t.”

The Bug Katcha

PETA describes the Katcha Bug, which costs $8, as follows:

Simply place Katcha Bug over the bug and slowly slide its plastic trapdoor shut. The bug will step onto the trapdoor as it closes, and you can carry Katcha Bug outside, where all you need to do is slide the trap door open, allowing the bug to walk away. You’ll have no problem catching even large spiders with this handy gadget. Katcha Bug measures 9 inches in length, so you won’t have to get too close for comfort.

Can you think of any other organization that would get this much national coverage sending a product to a global leader? PETA is good.

Source: Business Pundit | 18 Jun 2009 | 3:30 pm

Ely Calls U.S. Financial Regulation Too Ambitious

Source: Bloomberg - All Podcasts | 18 Jun 2009 | 3:29 pm

Key's McCain Sees End to Outperformance by Defensive Stocks

Source: Bloomberg - All Podcasts | 18 Jun 2009 | 3:28 pm

Page Sees 10-Year Treasury Yield Rising to 4.5% by End of Year

Source: Bloomberg - All Podcasts | 18 Jun 2009 | 3:25 pm

Elliott Wave's Prechter Sees `Big' Bear-Market Stock Rally

Source: Bloomberg - All Podcasts | 18 Jun 2009 | 3:18 pm

U.S. Companies Still Not Hiring

New claims for jobless benefits ticked upward last week by 3,000, to 608,000, the Department of Labor reports. For a sense of scale, consider that last week's number was revised upward by 4,000. The overall trend in new claims is still downward, if painfully slowly.

Keep your eye on those continuing claims, though, meaning the pool of people who've been canned and haven't yet found work. This time, those claims fell by 148,000, but they'd climbed by 78,000 the week before. It's hard to tell what to make of that, exactly. Ian Shepherdson of High Frequency Ecnomics takes a stab. He writes that continuing claims "lag initial claims by a few weeks; they ought to be falling now given that initial claims peaked more than two months ago."

After the jump, why so many people still can't get a job.

The gap between openings and hires suggests the companies are filling what vacancies exist from within, never posting the job for outsiders.

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Source: NPR Blogs: Planet Money | 18 Jun 2009 | 2:49 pm

Anonymous Joins Fight Against Tyranny In Iran

As anti-government protestors clash with Iranian government officials over the re-election of Mahmoud Ahmadinejad, the internet has been buzzing with reports of violence against protestors supporting Mir Hossien Mousavi, the presidential candidate declared the elections loser.

Prior to the elections many, including residents of Iran, believed the political process would work and Mir Hossien Mousavi would be declared the winner. Many voters opposed a second term of President Ahmadinejad, and by the amount of support Mousavi had, it was believed internationally that Iran would have a new ruling power. However as results came in, it became apparent the election was rigged. President Mahmoud Amedinejad was declared the winner, which set off a string of protests throughout Iran.

Social Media and Social Networking have come to play a huge part in getting out information about the protests. Not only is information being spread to people participating in the protests in Iran, but an international theatre has been set for the entire world to see using the internet. People in Iran went to using tools such as Twitter and Facebook. Once the government caught on, they began to shut down and filter the networks.

Anonymous joined the game. “Anonymous” as the group is called has no leader, no structural hierarchy, but is somehow organized. Made up of every possible profession to include even hackers and business professionals alike, Anonymous has proven in their fight against Scientology, that they are a force to be reckoned with. “Anons” as they have come to be known started Tweeting open Iranian proxies, as well as started a forum http://iran.whyweprotest.net offering advice and help to Iranian protestors as how to surf securely and avoid censorship. They are also telling Protestors to turn off their cell phones as the government can track them via BT antenna, find, and arrest them later. A link was also posted of proxies that the Iranian Government is using to get around their own firewalls.

Anonymous is not going to pull any punches, they have never done so. Under the guise of Anonymity, their numbers are strong. Cells of Anonymous are willing and prepared to fight this fight, they do not let tyranny go un-punished or unreported.

Many journalists and US supporters of the protests have reported they have been threatened by the Iranian government. Since “Anons” are “Anonymous” and they know how to remain that way in the digital world, if they stick to their guns, we can see a whole new digital revolution, one that just might help change the world.

by Jay Fowler

Source: Business Pundit | 18 Jun 2009 | 2:11 pm