Consumers see no beauty in lakes and mountains

Tractors are rolling through the streets of Brussels again, disgruntled farmers are pelting the police with eggs and butter is piling up in European warehouses.


Source: Latest Business News from Times Online | 24 Jun 2009 | 5:54 pm

Citi's Liar Loan Division To Take 2 Week Break

Citi's correspondent lending division, which produced $58.5 billion in mortgages last year and probably had a hand in the $28 billion in losses last year, recently sent out a letter to clients notifying them that the unit is shutting down their well oiled machine for two weeks to look into some mortgage applications that didn't meet their lofty quality control standards.

According to the June 22 letter, the review identified "valuation concerns" where "appraisal documentation is missing or incomplete," or where property-assessment methods were "insufficient/lacking."

Other missing information included employment confirmations, phone numbers, credit reports and rent verification, the letter said. The review also found "income calculation errors."

Citigroup Halts Some Mortgage Applications, Cites Missing Data [Bloomberg]

Sponsored Topics: Mortgage - Credit history - Business - Credit - Financial Services
Source: Dealbreaker | 24 Jun 2009 | 2:37 pm

Nobody Wants To Be A CEO

Of our nation's hell-holes that is, by which we of course mean places like AIG, Citi, Bank of America, Freddie Mac, etc. The Journal looks into the situation today and discovers that while some of these institutions are in need of a new guy or lady up top, nobody actually capable of doing so has come forward and pledged to work 'round the clock to fix these places for an annual salary of $1, a bunch of worthless stock, and the opportunity to have Maxine Waters shout at them in ǃ'OǃKung about their perceived role in late-night field trips with Goldman Sachs to dig up parakeet carcasses.

Sponsored Topics: Bank of America - Goldman Sachs - Vikram Pandit - Business - John Thain
Source: Dealbreaker | 24 Jun 2009 | 2:30 pm

Addax agrees C$8bn offer from Sinopec

Canadian-based but London-listed Addax has agreed to a C$8bn offer from Sinopec, the Chinese state-owned oil group
Source: Financial Times - US homepage | 24 Jun 2009 | 2:03 pm

Economic Report: New-home sales fall 0.6% to 342,000 pace

Sales of new homes in the United States were essentially unchanged near record-low levels in May as home builders continued to slash their inventories of unsold homes, the Commerce Department estimates.

Source: MarketWatch.com - Top Stories | 24 Jun 2009 | 2:01 pm

Stocks rise after strong durable goods reading (AP)

AP - A jump in durable goods orders is giving stocks a boost before the Federal Reserve's decision on interest rates.

Source: Yahoo! News: Stock Markets News | 24 Jun 2009 | 1:59 pm

Stocks rise ahead of Fed

A stronger-than-expected reading on durable goods orders gave stocks a lift at Wednesday's open, ahead of the latest from the Federal Reserve on interest rates and the economy.
Source: Business and financial news - CNNMoney.com | 24 Jun 2009 | 1:57 pm

Chuck Jaffe: Bill O'Neil shares his investing secrets

Most market observers talk about how the rules of investing have changed in the past few years. Veteran stock-picker Bill O’Neil says nothing has changed at all.

Source: MarketWatch.com - Top Stories | 24 Jun 2009 | 1:55 pm

US goods orders in shock jump

US orders for long-lasting manufactured goods rose unexpectedly in May, raising hopes the worst of the recession may have passed.
Source: BBC News | Business | World Edition | 24 Jun 2009 | 1:51 pm

Citigroup to boost salaries, cut bonuses: sources (Reuters)

Reuters - Citigroup Inc plans to raise salaries companywide to offset declines in bonuses, people familiar with the plans said, in an effort to retain employees after the troubled bank accepted $45 billion of federal bailout money.

Source: Yahoo! News: Business | 24 Jun 2009 | 1:47 pm

Indian automakers aim at Detroit

It wasn't too long ago that the thought of buying a reliable car from Korea seemed laughable. Today, automakers from India are ready get into the U.S. market and experts say their vehicles are no joke.
Source: Business and financial news - CNNMoney.com | 24 Jun 2009 | 1:46 pm

Bond Report: Treasurys fall before auction, FOMC outlook

Treasury prices and yields move modestly higher, as bond traders brace for pronouncements from the Federal Reserve following its semi-annual policy meeting and for the second of the government’s three debt auctions scheduled for this week.

Source: MarketWatch.com - Top Stories | 24 Jun 2009 | 1:45 pm

Stocks rise after strong durable goods reading

NEW YORK -- A surprise jump in durable goods orders is giving stocks a boost before the Federal Reserve's decision on interest rates.

Source: L.A. Times - Business | 24 Jun 2009 | 1:43 pm

Global recession nearing bottom, OECD says

PARIS -- The deepest global recession in over 60 years is close to bottoming out, but recovery will be weak unless governments do more to remove uncertainty over banks' balance sheets, the Organization for Economic Cooperation and Development (OECD) said today.

Source: L.A. Times - Business | 24 Jun 2009 | 1:41 pm

Orders for big-ticket items post surprise gain (Reuters)

Reuters - An unexpected jump in U.S. durable goods orders last month backed hopes that the economy was healing and this message was reinforced by a pick-up in home mortgage applications last week.

Source: Yahoo! News: Business | 24 Jun 2009 | 1:39 pm

Orders for big-ticket items post surprise gain

WASHINGTON (Reuters) - An unexpected jump in U.S. durable goods orders last month backed hopes that the economy was healing and this message was reinforced by a pick-up in home mortgage applications last week.
Source: Reuters: Business News | 24 Jun 2009 | 1:39 pm

Banks 'face deluge of litigation'

Banks face an "appalling prospect" if the Office of Trading is allowed to rule overdraft charges are unfair, a court hears.
Source: BBC News | Business | World Edition | 24 Jun 2009 | 1:38 pm

High gas prices stall July 4 travel

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 24 Jun 2009 | 1:38 pm

Stocks rise after strong durable goods reading

A surprise jump in durable goods orders is giving stocks a boost before the Federal Reserve's decision on interest rates. The Commerce Department said orders for big-ticket items rose...
Source: RSS feed - channel BNewsBusiness | 24 Jun 2009 | 1:37 pm

Wall Street opens higher after data, OECD (Reuters)

Reuters - Wall Street opened higher on Wednesday after data showed surprisingly strong May durable goods orders and ahead of a Federal Reserve policy meeting later in the day.

Source: Yahoo! News: Stock Markets News | 24 Jun 2009 | 1:36 pm

Wall Street opens higher after data, OECD (Reuters)

Reuters - Wall Street opened higher on Wednesday after data showed surprisingly strong May durable goods orders and ahead of a Federal Reserve policy meeting later in the day.

Source: Yahoo! News: Business | 24 Jun 2009 | 1:36 pm

Wall Street opens higher after data, OECD

NEW YORK (Reuters) - Wall Street opened higher on Wednesday after data showed surprisingly strong May durable goods orders and ahead of a Federal Reserve policy meeting later in the day.
Source: Reuters: Business News | 24 Jun 2009 | 1:36 pm

China's Sinopec to acquire Addax Petroleum

Canadian oil and gas exploration company Addax Petroleum Corp says that it has agreed to be acquired by Chinese refiner Sinopec in a deal valued at $8.27 billion (US$7.2 billion). The...
Source: RSS feed - channel BNewsBusiness | 24 Jun 2009 | 1:35 pm

Fed to hold fire on buying, talk down rate hikes

WASHINGTON (Reuters) - The Federal Reserve is expected to emphasize the U.S. economy's fragile state in a policy statement on Wednesday as it talks down expectations for a rate hike this year and holds fire on expanding asset purchases.
Source: Reuters: Business News | 24 Jun 2009 | 1:35 pm

Fed to hold fire on buying, talk down rate hikes (Reuters)

Reuters - The Federal Reserve is expected to emphasize the U.S. economy's fragile state in a policy statement on Wednesday as it talks down expectations for a rate hike this year and holds fire on expanding asset purchases.

Source: Yahoo! News: Business | 24 Jun 2009 | 1:35 pm

Israel Stocks: Israel stocks up; Barclays more positive on banks

Israel stocks rose on Wednesday, buoyed by strength in the banks after a sector upgrade at Barclays Capital, while a pullback in Alvarion and Nice Systems held back the technology benchmark.

Source: MarketWatch.com - Top Stories | 24 Jun 2009 | 1:32 pm

Critical Alerts for MA, HAL, JOYG, RHT, and AEO Released By Seven Summits Research

CHICAGO, June 24 /PRNewswire/ -- Seven Summits Research issues PriceWatch Alerts for key stocks. Seven Summits Strategic Investments' PriceWatch Alerts are...
Source: RSS feed - channel BNewsBusiness | 24 Jun 2009 | 1:31 pm

Critical Alerts for TXN, VALE, GG, AMTD, and JEC Released by Seven Summits Research

CHICAGO, June 24 /PRNewswire/ -- Seven Summits Research issues PriceWatch Alerts for key stocks. Seven Summits Strategic Investments' PriceWatch Alerts are...
Source: RSS feed - channel BNewsBusiness | 24 Jun 2009 | 1:31 pm

Metals Stocks: Copper rises on OECD outlook, U.S. durables data

Copper futures rise for a second session as the Organization for Economic Cooperation and Development raises its growth forecast and U.S. data on durable goods come in better than forecast, boosting expectations for improving demand for the industrial metal.

Source: MarketWatch.com - Top Stories | 24 Jun 2009 | 1:27 pm

Fed mulls tweaks to economic revival programs

WASHINGTON -- With signs the economy is improving but still fragile, Federal Reserve policymakers are considering whether some programs intended to drive down rates on mortgages and other consumer debt should be slowed down.

Source: L.A. Times - Business | 24 Jun 2009 | 1:26 pm

Fed mulls tweaks to economic revival programs

WASHINGTON -- With signs the economy is improving but still fragile, Federal Reserve policymakers are considering whether some programs intended to drive down rates on mortgages and other consumer debt...
Source: RSS feed - channel BNPaperBusiness | 24 Jun 2009 | 1:26 pm

Twitters 'Mafia' opportunity

A new Mafia video game has presented Twitter with an offer, but it's one that Twitter thinks it can refuse.
Source: Business and financial news - CNNMoney.com | 24 Jun 2009 | 1:24 pm

Jobs did not jump the liver-transplant line

Source: Business and financial news - CNNMoney.com | 24 Jun 2009 | 1:24 pm

Oracle beats the street

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 24 Jun 2009 | 1:24 pm

Qualcomm raking it in

Paul Jacobs could be the Clark Kent of the tech sector. Tall, clean-cut, and a tad bookish (he has a Ph.D. in engineering), he's the epitome of the mild-mannered CEO -- most of the time.
Source: Business and financial news - CNNMoney.com | 24 Jun 2009 | 1:23 pm

Analyst: Palm has sold 150,000 Pres so far

Source: Business and financial news - CNNMoney.com | 24 Jun 2009 | 1:21 pm

UPDATE 2-Gazprom defends export policies as sales plunge

* Cheap spot gas tempts customers, discounts won't help
Source: RSS feed - channel BNewsBusiness | 24 Jun 2009 | 1:21 pm

Swiss franc slides amid intervention rumors

The Swiss National Bank appears to up the ante Monday in its effort to halt the appreciation of the Swiss franc, strategists say.

Source: MarketWatch.com - Top Stories | 24 Jun 2009 | 1:21 pm

Citi boosting salaries to offset lower bonuses

Citigroup Inc. is increasing base salaries for many of its employees as it restructures its compensation program amid new restrictions on bonus payments. The increased salaries will...
Source: RSS feed - channel BNewsBusiness | 24 Jun 2009 | 1:20 pm

Durable orders in surprise gain

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 24 Jun 2009 | 1:20 pm

InvestorSoup.com Researches: MetroPCS, Navisite, Lubrizol, EMCORE, Huntsman and Wal-Mart

DALLAS, June 24 /PRNewswire/ -- Investment opinion and research company href="http://www.investorsoup.com/n/">InvestorSoup.com announces the availability of free, detailed
Source: RSS feed - channel BNewsBusiness | 24 Jun 2009 | 1:20 pm

Beacon Equity Highlights: Alkane, Oracle, Petsmart, Sonic, GT Solar, Bed Bath & Beyond

DALLAS, June 24 /PRNewswire/ -- Research company BeaconEquity.com announces the availability of detailed stock alerts on active stocks in today's news. Stock alerts...
Source: RSS feed - channel BNewsBusiness | 24 Jun 2009 | 1:20 pm

US durable goods orders show surprise rise

New orders for durable goods jumped in May for the second month running, as companies ramped up their spending after months of holding back, the commerce department said
Source: Financial Times - US homepage | 24 Jun 2009 | 1:18 pm

UPDATE 1-US FDA staff: No big safety issues with Ista drug

* Drug under review for treating allergy-related eye itch
Source: RSS feed - channel BNewsBusiness | 24 Jun 2009 | 1:17 pm

NYMAGIC, INC. Reports A.M. Best Co.'s Reaffirmation of Insurance Company Ratings

NEW YORK, June 24 /PRNewswire-FirstCall/ -- NYMAGIC, INC. (NYSE: NYM) reported today that A.M. Best Co. has affirmed the financial strength rating of A (Excellent) for New York...
Source: RSS feed - channel BNewsBusiness | 24 Jun 2009 | 1:17 pm

Duke of York urges London and New York to work together to overcome financial crisis

The Duke of York has urged London and New York to work together in a spirit of cooperation to overcome the financial crisis rather than compete against each other.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 24 Jun 2009 | 1:15 pm

OECD forecasts help drive Wall Street optimism

US stocks looked set to bounce on Wednesday morning and recover some of the ground lost on Monday
Source: Financial Times - US homepage | 24 Jun 2009 | 1:15 pm

Politically Incorrect?

Wikipedia defines office politics as a slang term for the often counterproductive human factors present between coworkers in an office environment. Your ability to tolerate and navigate office politics may be an indication of whether or not you need and are ready for a job or career change.

Can you identify with one of the following three office politics tolerance levels?

• Level Three: You love playing and winning the political game. You see the antics of your bosses, peers and subordinates as amusing and know how to benefit from office politics by being aware, strategic and charming.
• Level Two: In the past you were great at the game but your patience for gossip, biased promotions and other trivial matters that are a symptom of office politics is waning. Your desire to play this sport is gone and you get annoyed by wasting time with petty issues while there are more important things to do.
• Level One: You never bought into the game and you can't even fake it anymore. You have lost respect for people playing the game and you may lose sleep thinking about how office politics is hurting your ability to do your job and your organization's ability to be effective and productive.

If you identify with level one or two, it may be time for a change, and we can help. If you are curious about what we do, then try our free Career Change Assessment. This assessment is used by our coaches to assess our clients and now it's available to everyone.

The New World Institute specializes in helping executives who are at a career crossroads revitalize their careers. Call us for a free, no-obligation consultation: 347-445-5763.

Laurel Donnellan is the President and Co-Founder of The New World Institute.
www.thenewworldinstitute.com

Sponsored Topics: Human factors - Career - Politics - Slang - Business
Source: Dealbreaker | 24 Jun 2009 | 1:15 pm

Monsanto to cut 900 jobs as profit falls 14%

Monsanto Co. said its third-quarter profit slipped 14% on fewer sales of Roundup herbicide as low-cost competition eroded its market share, leading to a reorganization of the company and the dismissal of about 900 employees.

Source: MarketWatch.com - Top Stories | 24 Jun 2009 | 1:15 pm

Kesa swings to loss, slashes dividend payout

European electronics retailer Kesa Electricals swings to an annual net loss of $183.5 million due to restructuring and impairment charges.

Source: MarketWatch.com - Top Stories | 24 Jun 2009 | 1:15 pm

Rite Aid pares 1Q loss but lowers 2010 forecast

CAMP HILL, Pa. -- Drugstore operator Rite Aid Corp. said today it narrowed its fiscal first-quarter loss by closing stores and trimming costs, but it expects a greater deficit for the year because of refinancing...
Source: RSS feed - channel BNPaperBusiness | 24 Jun 2009 | 1:14 pm

Rite Aid pares 1Q loss but lowers 2010 forecast

CAMP HILL, Pa. -- Drugstore operator Rite Aid Corp. said today it narrowed its fiscal first-quarter loss by closing stores and trimming costs, but it expects a greater deficit for the year because of refinancing expenses.

Source: L.A. Times - Business | 24 Jun 2009 | 1:14 pm

HTC unveils new user interface, Android phone

Taiwanese mobile-phone maker HTC unveils its third Android-based device, nicknamed Hero, which showcases a new user interface focused on being easily tailored.

Source: MarketWatch.com - Top Stories | 24 Jun 2009 | 1:13 pm

Monsanto earnings beat expectations

The world's biggest seed company, is cutting 900 jobs as it continues to refocus its business away from its heritage as a chemicals company.
Source: Financial Times - US homepage | 24 Jun 2009 | 1:12 pm

Will Monsanto Ultimately Jettison Roundup and Herbicides Operations? (MON)

Monsanto Co. (NYSE: MON) posted a drop in third-quarter earnings to $694 million, or $1.25 EPS.  That compares to $811 million, or $1.45 EPS a year ago.  Revenues fell to $3.16 billion from $3.54 billion a year ago.  Consensus estimates from Thomson Reuters were were $1.17 EPS and $3.45 billion in revenues.  Monsanto also put [...]

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Source: 24/7 Wall Street | 24 Jun 2009 | 1:12 pm

Monsanto profit, restructuring send shares higher

NEW YORK (Reuters) - Monsanto Co, the world's biggest seed company, posted a smaller-than-expected profit drop and planned a restructuring to cut about 900 employees and realign its declining herbicide business, sending its shares higher.
Source: Reuters: Business News | 24 Jun 2009 | 1:12 pm

Holtz-Eakin Says Narrowing of Deficits Can Wait Until Recovery

Source: Bloomberg - All Podcasts | 24 Jun 2009 | 1:10 pm

Durable goods orders rise unexpectedly in May

WASHINGTON -- Orders to U.S. factories for big-ticket manufactured goods rose sharply for a second straight month in May, and a key indicator of business investment surged by the largest amount in nearly...
Source: RSS feed - channel BNPaperBusiness | 24 Jun 2009 | 1:10 pm

Durable goods orders rise unexpectedly in May

WASHINGTON -- Orders to U.S. factories for big-ticket manufactured goods rose sharply for a second straight month in May, and a key indicator of business investment surged by the largest amount in nearly five years.

Source: L.A. Times - Business | 24 Jun 2009 | 1:10 pm

Economic Report: Durable-goods orders rise 3rd time in four months

Stronger orders for airplanes and machinery translate into a better-than-expected 1.8% increase in durable-goods orders for May, Commerce Department data indicate.

Source: MarketWatch.com - Top Stories | 24 Jun 2009 | 1:09 pm

More signs of life in the property market

The number of homes changing hands continued to edge up during May as low interest rates and recent house price falls tempted buyers back to the market new figures show.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 24 Jun 2009 | 1:07 pm

Surprising Durability In Durable Goods

The report for May’s Durable Goods came in better than expected at +1.8%, and that is still up at +1.1% when you remove transportation from the report.  Even on an ex-Defense orders it was +1.4%.  Dow Jones had a consensus estimate of -0.8% on the headline data.  The Commerce Department data said the seasonal adjustment [...]

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

Ashes to Ashes, Dust to Diamonds

Swiss company Algordanza memorializes deceased loved ones by turning their ashes into a ‘memorial diamond’. Why didn’t I think of that? 

In what they’re calling a ’unique way for the bereaved to remember those who meant so much to them’, Algordanza has developed a process whereby the ashes or hair from a deceased loved one are turned into ‘genuine human diamonds’ that will last forever.

“Recently, a woman in Austin, Texas had a diamond made from her father’s remains,” Jared Parrish, director of sales and marketing for Algordanza, says. “The diamond was set in her engagement ring so her father could still walk with her down the aisle.”

How sweet. I’d sort of like a pendant made out of my dog when he passes so that I’ll be taking him for a walk as long as I live.

“What sets us apart from other companies that offer this service, is that our diamonds are genuine,” Jared Parrish, director of sales and marketing for Algordanza, says. “We do not use any chemical additives which makes these natural, not synthetic diamonds.”

Algordanza chemically draws carbon out from the ashes or hair and compresses it into graphite in a high pressure, high temperature-growth environment. The graphite undergoes the same process leading to rough crystallized diamonds which are then cut and polished.

The company states that while the memorial diamonds are primarily white, they may vary in color depending on the quantity of the element boron within the carbon. Just as no two human beings are alike, no two stones are identical.

If the deceases has a blue aura, will the diamond turn out blue? It’s something to consider if you’re going to be wearing the thing forever.

Add another C to color, cut, clarity, and carat. Now we have Creepy as well. But as for the Capitalism of it all, you have to hand it to them - they’ve got the emotional angle covered in what might be the ultimate in recycling. These will probably sell quite well, don’t you think?

Image Credit: Stephend9, Flickr

Source: Business Pundit | 24 Jun 2009 | 12:40 pm

World markets steady ahead of key Fed statement (AP)

AP - World stock markets rose modestly Wednesday as investors looked for direction from the U.S. Federal Reserve's policy statement due later in the day.

Source: Yahoo! News: Stock Markets News | 24 Jun 2009 | 12:29 pm

Rite Aid, No New Surprises (RAD)

Rite Aid Corp. (NYSE: RAD) is getting a bit of a boost after earnings, despite there being no major success nor a major turnaround in the near future.  The drug store chain posted narrower losses after its activities in closing stores and cutting costs.  The real reason for the interest is that there are a [...]

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

Excessive speculation found in wheat market

WASHINGTON (Reuters) - Commodity index traders had snapped up more than 200,000 wheat contracts by mid-2008 that helped fuel last year's record jump in prices, which ended up raising costs for both industry and consumers, according to a year-long bipartisan Senate probe.
Source: Reuters: Business News | 24 Jun 2009 | 12:16 pm

Ford announces third price rise this year

Ford announced its third price increase this year, bringing the total average rise to 12.75 per cent, as Britain's biggest car seller seeks to prop up its bottom line amid plummeting demand for vehicles and a weakening pound.
Source: Latest Business News from Times Online | 24 Jun 2009 | 12:15 pm

Citi to boost employees' base pay by up to 50 percent: report

(Reuters) - Citigroup Inc intends to raise employees' base salaries by as much as 50 percent this year to offset smaller annual bonuses, the New York Times said, citing people with direct knowledge of the plan.
Source: Reuters: Business News | 24 Jun 2009 | 12:12 pm

Tories eye bank regulation reform

The Bank of England would regain main responsibility for regulating big banks under Conservative plans, the BBC learns.
Source: BBC News | Business | World Edition | 24 Jun 2009 | 12:08 pm

China rebuffs US and EU over trade attack

China has fought back after the United States and the European Union joined forces to complain about its unfair trade practices.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 24 Jun 2009 | 12:06 pm

Fears of big bank problems return

Betting against the banks is back in fashion.
Source: Business and financial news - CNNMoney.com | 24 Jun 2009 | 11:45 am

How Investors Justify Their Decisions

Source: Business Pundit | 24 Jun 2009 | 11:45 am

Opening Bell: 06.24.09

Citigroup Has Plan To Fatten Salaries (NYT)
Pandit's people can expect a raise in base pay by as much as 50 percent this year in order to-- see if you can guess where this is going-- offset smaller bonuses. Under this scenario, according to the Times, "most Citigroup employees will make as much money as they did in 2008, although some might earn more and others less," so get excited for one of those three outcomes, though not so much the last.

Union Calls on Morgan to Reverse Raises for Top Earners (WSJ)
"We urge you to return base salaries to their previous levels and ... reward executives for long-term value creation, not just showing up for work."

Memphis Is Site Of Jobs's Liver Transplant (WSJ)
Now that we've identified The Methodist University Hospital Transplant Institute it's up to one of you to create some sort of bus tour, which would probably be pretty popular. ("This is the cafeteria where Jobs's jello was prepared and up ahead we'll show you the room in which he got hooked up to a catheter. Not one of those used ones they're always advertising on CNBC but the Rolls Royce of catheters. This is Steve Jobs we're talking about, after all.")

NYSE Loses Trades Fastest in a Year and Nasdaq Isn't the Winner (Bloomberg)
"...a record low 30.2 percent of May's trades, data compiled by Bloomberg show. That's down 2.8 points from February for the worst three months since June 2008. The beneficiary wasn't Nasdaq OMX Group Inc., the Big Board's main rival for 38 years. It was Direct Edge Holdings LLC and Bats Exchange Inc., which more than doubled their combined share since August to 22.8 percent."

New York Times Considers Paid Access To Mobile News (Bloomberg)
Since someone, let's call it the NYT, is desperate for cash anyway they can get it and Gretchen Morgenson's trick turning days are over.

Allen Stanford detention hearing set for Thursday (Reuters)
Hopefully he'll threaten to punch a reporter in the mouth outside the courthouse.

Margaret Brennan Jumps from CNBC to Bloomberg (TVNewser)
Insiders say she's being named an anchor, which is nice.

JPMorgan Is On Top Of The World, RBS Not So Much (Reuters)
Rankings by British magazine The Banker somewhat suspect, given Bank of America and Citi's spots at numbers two and three for "strongest."

Sponsored Topics: Steve Jobs - CNBC - Bank of America - The New York Times Company - Allen Stanford
Source: Dealbreaker | 24 Jun 2009 | 11:40 am

China buys Addax for £4.4bn to tap Iraqi oil

China's stateowned company Sinopec agrees to buy Londonlisted oil explorer Addax Petroleum.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 24 Jun 2009 | 11:39 am

Oil dips under $69 on higher gasoline stocks

LONDON (Reuters) - Oil dropped to under $69 a barrel on Wednesday, falling back after U.S. industry data showed gasoline reservoirs swelled unexpectedly.
Source: Reuters: Business News | 24 Jun 2009 | 11:39 am

Rail engineering workers plan two weekend strikes

Rail engineering workers will stage two 48-hour strikes in a row over jobs, in the latest sign of worker unrest amid the recession.


Source: Latest Business News from Times Online | 24 Jun 2009 | 11:38 am

EU rules 'could cut pensions'

Pensioners could receive less income when they buy an annuity with their pension savings after new EU rules come into force.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 24 Jun 2009 | 11:35 am

ECB lends record €442 billion to commercial banks

The European Central Bank said today that it lent a record €442.24 billion at 1 per cent in one-year funds to commercial banks.


Source: Latest Business News from Times Online | 24 Jun 2009 | 11:30 am

Top 10 Analyst Upgrades and Downgrades (ADTN, ADS, BA, LFC, DB, EMC, FCX, FSYS, WFR, RVBD)

These are the top ten analyst calls of upgrades, downgrades, and initiations we have seen from Wall Street early this Wednesday morning with more than two hours until the market opens: ADTRAN (ADTN) Started as Buy at Auriga. Alliance Data (ADS) Cut to Neutral at JPMorgan. Boeing (BA) Cut to Underperform at Oppenheimer. China Life Insurance Co. Ltd. (LFC) [...]

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Source: 24/7 Wall Street | 24 Jun 2009 | 11:25 am

CIA turns to Wall St for new breed of experts

The name's Bond. US Treasury Bond. Slightly flippant perhaps but not as foolish as it might seem.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 24 Jun 2009 | 11:13 am

European stocks firm before US rate decision (AFP)

AFP - Europe's main stock markets firmed on Wednesday amid expectations that the US Federal Reserve will keep rates historicaly low and on signs that recession may be ending in major economies.

Source: Yahoo! News: Stock Markets News | 24 Jun 2009 | 11:09 am

U.S. mortgage applications climb from 7-month low (Reuters)

Reuters - U.S. mortgage applications climbed last week from a seven-month low, the Mortgage Bankers Association said on Wednesday, adding to emerging signs that the three-year housing market collapse may be abating.

Source: Yahoo! News: Business | 24 Jun 2009 | 11:07 am

U.S. mortgage applications climb from 7-month low

NEW YORK (Reuters) - U.S. mortgage applications climbed last week from a seven-month low, the Mortgage Bankers Association said on Wednesday, adding to emerging signs that the three-year housing market collapse may be abating.
Source: Reuters: Business News | 24 Jun 2009 | 11:07 am

Blood diamond scheme 'is failing'

The Kimberley Process scheme, which aims to stem the use of diamonds to fund conflict, is failing, a campaign group warns.
Source: BBC News | Business | World Edition | 24 Jun 2009 | 11:03 am

House sales 'continuing to rise'

The number of homes sold in the UK has continued to rise, according to HM Revenue & Customs.
Source: BBC News | Business | World Edition | 24 Jun 2009 | 10:56 am

Why pensions apartheid is here to stay

When I first started to write about financial apartheid in Britain's retirement funding system more than a decade ago I did wonder if I was overegging things.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 24 Jun 2009 | 10:53 am

Khamenei says Iran will not bow to pressure

Ayatollah Ali Khamenei, Iran's supreme leader, has told parliamentarians the regime will not bow to pressure over the presidential election, urging them co-operate with Mahmoud Ahmadi-Nejad's government
Source: Financial Times - US homepage | 24 Jun 2009 | 10:48 am

Ford raises prices for third time

Carmaker Ford blames the weakness of sterling against the euro for its third price rise in the UK this year.
Source: BBC News | Business | World Edition | 24 Jun 2009 | 10:45 am

Barclays to give its name to New York subway stop

Barclays will give its name to a New York subway stop in a 4m £2.4m deal with the city's cashstrapped transport authority.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 24 Jun 2009 | 10:36 am

Apple's Jobs has "excellent prognosis"

SAN FRANCISCO (Reuters) - Apple Inc chief executive Steve Jobs underwent a liver transplant at a Tennessee hospital and has "an excellent prognosis", the hospital that performed the operation confirmed on Tuesday.
Source: Reuters: Business News | 24 Jun 2009 | 10:26 am

Could Banks Have To Close To Solve Severe Problems?

One of the most respected financial newsletters in the country is predicting that the federal government may have to call a “bank holiday” like the one that FDR mandated during the Depression. According to MarketWatch, The Harry Schultz Letter is saying that balance sheet problems at banks are getting worse and not better  and ”widespread nationalization could [...]

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Source: 24/7 Wall Street | 24 Jun 2009 | 10:25 am

Anglo up amid deal speculation

Anglo American was among the top blue chip risers today amid takeover speculation.


Source: Latest Business News from Times Online | 24 Jun 2009 | 10:17 am

OECD says recession 'near bottom'

The Organisation for Economic Cooperation and Development says the pace of the global downturn is moderating.
Source: BBC News | Business | World Edition | 24 Jun 2009 | 10:14 am

Record lending to eurozone banks

The European Central Bank has lent a record 442.24bn euros of loans to eurozone banks hit by the financial crisis.
Source: BBC News | Business | World Edition | 24 Jun 2009 | 10:13 am

UK economy to shrink by 4.3% this year: OECD

Britain’s economy will shrink by 4.3 per cent this year, its fastest pace of decline since the Second World War, and stagnate in 2010, the OECD said today.


Source: Latest Business News from Times Online | 24 Jun 2009 | 10:12 am

Bogus Home Appraisals May Derail Real Estate Recovery

A huge number of home value appraisals may be wrong, with most of them being much too high. That is causing banks to back away from mortgages. A house that has been appraised for $400,000 might support a $350,000 home loan. If the bank looks a the property and says it is only worth $300,000 [...]

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

S Africa 'to oppose Anglo deal'

South Africa's government says it will reject any attempts by mining giants Anglo American and Xstrata to merge.
Source: BBC News | Business | World Edition | 24 Jun 2009 | 10:05 am

ECB pumps record €442bn into system

The European Central Bank has pumped in a record €442.2bn into the eurozone banking system in a first-ever offer of unlimited one-year funds as it battles continental Europe's severe recession
Source: Financial Times - US homepage | 24 Jun 2009 | 10:05 am

China’s Goal To Become World’s Largest Economy Back On Track

China’s drive to become the world’s largest economy appears to be back on track again. The Organization for Economic Cooperation and Development raised its forecast for GDP growth in the world most populous country to 7.7% for this year. The agency’s estimate in March was for a 6.3% expansion. The improvement indicates that China’s $585 billion [...]

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Source: 24/7 Wall Street | 24 Jun 2009 | 9:57 am

Beware of 'capital guarantees' says Which?

Investments that promise to protect people's capital are often far riskier than they appear to be a consumer group warned today.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 24 Jun 2009 | 9:45 am

The Boston Globe Will Stay Open, For Now (NYT)

The New York Times (NYT) and the largest union at The Boston Globe have reached an agreement that will almost certainly keep the paper operating, but that could change sometime next year. The Times reports that the Guild, which represents 700 employees at the Globe, has agreed to pay cuts of almost 6% and changes in [...]

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Source: 24/7 Wall Street | 24 Jun 2009 | 9:34 am

Mortgages: 'Fixed rates could reach 6pc within weeks'

The average cost of a twoyear fixedrate mortgage has broken through the 5pc barrier for the first time since January and could soon reach 6pc.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 24 Jun 2009 | 9:33 am

Citigroup (C): Raises For The Elite

John Mack of Morgan Stanley (MS) made sure that he had a large base salary for this year, even though his firm nearly fell apart last year. The management of Citigroup (C) also wants to do something for its “best” employees. According to a number of media reports, the bank plans to give its senior [...]

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

Bus profits boost for Stagecoach

Transport group Stagecoach reports growth in profits, helped by a strong performance from its bus division.
Source: BBC News | Business | World Edition | 24 Jun 2009 | 9:20 am

China rejects US and EU trade charges

China rejected claims by the US and the European Union that its export quotas on raw materials were contrary to World Trade Organisation rules, saying the curbs were put in place to protect the environment
Source: Financial Times - US homepage | 24 Jun 2009 | 9:05 am

Huntsman Thrashes The Banks

Apollo Management’s Hexion Specialty Chemicals offered $6 billion to buy chemical company Huntsman (HUN) in July 2007, a bid which would have given stockholders $27.25 a share. Over the course of the next year, as fear about the deal not closing grew, Huntsman (HUN) shares fell below $11 last July. Apollo had begun to back [...]

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Source: 24/7 Wall Street | 24 Jun 2009 | 8:59 am

Savills warns of 'drag on recovery' as land prices plummet

The cost of development land has plummeted by almost 60 per cent since its 2004 high, research from Savills has revealed.


Source: Latest Business News from Times Online | 24 Jun 2009 | 8:58 am

U.S. recession to bottom out this year: OECD

WASHINGTON (Reuters) - A severe U.S. recession will bottom out this year, but any recovery will be weak due to anemic markets and shrunken consumer wealth, the Organization for Economic Cooperation and Development said on Wednesday.
Source: Reuters: Business News | 24 Jun 2009 | 8:47 am

OECD sees strongest outlook since 2007

The Organisation for Economic Co-operation and Development has revised its World Economic Outlook upwards for the first time in two years, as its latest review concludes that the global economic slide is nearing a bottom
Source: Financial Times - US homepage | 24 Jun 2009 | 8:41 am

U.S. recession to bottom out this year: OECD (Reuters)

Reuters - A severe U.S. recession will bottom out this year, but any recovery will be weak due to anemic markets and shrunken consumer wealth, the Organization for Economic Cooperation and Development said on Wednesday.
Source: Yahoo! News: Business | 24 Jun 2009 | 8:37 am

Stagecoach rail profits fall as economy weakens

Stagecoach, the rail and bus operator, saw profits at its British rail franchise fall as the faltering economy hit passenger growth, particularly at its flagship South West Trains franchise operating from Waterloo.


Source: Latest Business News from Times Online | 24 Jun 2009 | 8:20 am

Inchcape cuts costs as sales remain weak

Inchcape, the car dealer, reported a sharp fall in sales over the past five months, but said that trading in Britain had improved after unprecedented falls.


Source: Latest Business News from Times Online | 24 Jun 2009 | 8:13 am

Kesa slumps to £81m loss as recession bites

Kesa Electricals, the owner of the Comet chain, swung to a £81.8 million full year loss today as consumers bought fewer electrical goods amid the recession and warned that it did not expect any recovery this year.


Source: Latest Business News from Times Online | 24 Jun 2009 | 7:48 am

Australian stocks: Market closes marginally higher

MELBOURNE - The Australian share market closed marginally higher amid directionless trading ahead of the US Federal Reserve's monetary outlook meeting in the United States. The benchmark S&P/ASX200 index was up 10.1 points, or...
Source: New Zealand Herald - Business | 24 Jun 2009 | 7:23 am

NY Times reaches deal with Boston unions

New York Times and labour union at Boston Globe have removed an obstacle to the sale of the paper by reaching a settlement on a 5.94 per cent salary cut
Source: Financial Times - US homepage | 24 Jun 2009 | 7:02 am

Korean Air bucks trends amid industry turbulence

The carrier is spending big and in ways that are raising eyebrows in hopes of a steep post-recession takeoff

Slammed by the worst travel slump in decades, the world's largest airlines have been grounding flights, slashing cabin services and pulling out first-class seats.

Source: L.A. Times - Business | 24 Jun 2009 | 7:00 am

Where celebrities dish -- relaxed, uncensored -- for hours

Kevin Pollak's online talk show is free of broadcast TV's constraints. It has a rock-bottom budget and brings in top stars such as Jon Hamm, and ratings are no big deal. ...
Source: RSS feed - channel BNPaperBusiness | 24 Jun 2009 | 7:00 am

Where celebrities dish -- relaxed, uncensored -- for hours

Kevin Pollak's online talk show is free of broadcast TV's constraints. It has a rock-bottom budget and brings in top stars such as Jon Hamm, and ratings are no big deal.

Kevin Pollak's live online talk show is supposed to run for two hours, but tonight it's going long again -- way long. That doesn't bother Pollak: He wants his guest to keep talking.

Source: L.A. Times - Business | 24 Jun 2009 | 7:00 am

SEIU borrows business' anti-union tactics to fend off a rival

The Service Employees International Union alleges that the upstart National Union of Healthcare Workers is intimidating and misleading workers.

For years, the powerful Service Employees International Union has played a lead role in the campaign for a landmark federal law that would allow workers to join a labor organization simply by signing petitions.

Source: L.A. Times - Business | 24 Jun 2009 | 7:00 am

China's export restrictions are target of U.S. complaint to WTO

The complaint says China restricts exports of raw materials through quotas, duties and other barriers. It is the U.S.' first WTO filing since Obama promised aggressive action in his campaign.

In filing its first major complaint of unfair trade practices by accusing China of restricting competitors' access to raw materials, the Obama administration raised hopes among U.S. manufacturers and unions that it would move aggressively to defend their interests in the global economy.

Source: L.A. Times - Business | 24 Jun 2009 | 7:00 am

Sales of previously owned homes in U.S. fall in May

Last month was better than April, as usual, but sales nationwide fell 3.6% from a year earlier, despite low prices and tax incentives. The West bucks the trend with an 8.7% increase.

Sales of previously owned homes in the U.S. continued in May to fall below levels of a year earlier, despite lower prices and tax incentives for buyers, according to figures released by a trade group Tuesday.

Source: L.A. Times - Business | 24 Jun 2009 | 7:00 am

Long Beach rocket launch venture files for bankruptcy

Sea Launch fires satellites into space from a floating platform at sea and a land facility in Kazakhstan. Its owners include Boeing as well as Russian, Norwegian and Ukrainian partners. ...
Source: RSS feed - channel BNPaperBusiness | 24 Jun 2009 | 7:00 am

Nikki Finke's Deadline Hollywood Daily is sold to Mail.com

Finke, the blog's owner and writer-editor, will get a seven-figure sum for the sale plus millions over the life of a five-year contract as well as a portion of the site's ad revenue, a source says. ...
Source: RSS feed - channel BNPaperBusiness | 24 Jun 2009 | 7:00 am

Boeing 787 Dreamliner's first flight delayed

Structural flaws are found where the wings attach. Delivery is postponed indefinitely, too. Boeing Co. said Tuesday...
Source: RSS feed - channel BNPaperBusiness | 24 Jun 2009 | 7:00 am

TJX reaches settlement with states on data theft

The parent company of retailers T.J. Maxx and Marshall's will pay $9.75 million in a settlement with multiple states related to a massive data theft that exposed tens of millions of payment card numbers...
Source: RSS feed - channel BNPaperBusiness | 24 Jun 2009 | 7:00 am

Oracle beats Wall Street forecasts despite lower earnings

The software maker sees fiscal fourth-quarter profit fall 7% and sales decline 5%. It blames the drops on the effects of a stronger U.S. dollar. ...
Source: RSS feed - channel BNPaperBusiness | 24 Jun 2009 | 7:00 am

Cable boss Malone to pay $1.4 million penalty

WASHINGTON -- Cable television boss John Malone will pay a $1.4 million penalty, after authorities said on today that he did not follow government rules on reporting major stock purchases over a three-year...
Source: RSS feed - channel BNPaperBusiness | 24 Jun 2009 | 7:00 am

NZ stocks: Leading shares lead market down

The New Zealand sharemarket slipped today, following on from yesterday's 1.2 per cent decline. On a day in which a survey showed a rise in consumer confidence brokers said investor confidence was lacking. The benchmark NZSX-50...
Source: New Zealand Herald - Business | 24 Jun 2009 | 6:10 am

Currency: Dollar climbs over US64c

The New Zealand dollar traded in a narrow range during its domestic session ahead of the US Federal Reserve's policy announcement tomorrow. The NZ dollar had risen more than 1-1/2c overnight against the greenback, which was heavily...
Source: New Zealand Herald - Business | 24 Jun 2009 | 5:34 am

Under siege Jetstar announces new services

New domestic airline Jetstar launched a daily service between Wellington and Christchurch today, following a horror start to operations two weeks ago. The daily Wellington-Christchurch route marked the "full realisation...
Source: New Zealand Herald - Business | 24 Jun 2009 | 4:54 am

Citigroup revamps pay structure

Citigroup is revamping its compensation system – raising salaries and reducing bonuses for top bankers – in an effort to persuade its best performers to stay with the troubled bank
Source: Financial Times - US homepage | 24 Jun 2009 | 4:23 am

Does Carol Bartz Have What Yahoo Needs?

CAROL BARTZ COULD BE YAHOO!'S last, best hope.

After her two predecessors failed in recent years to counter Google 's conquest of Yahoo! 's once-dominant position in Internet search, or to win over investors, new CEO Bartz brings strong software-engineering and management skills to the job. At her previous post atop Autodesk , she remade the business, sharply boosting margins, earnings and revenues and increasing the share price nearly tenfold.

Bartz, 60, is a sharp operator with a sharp tongue. She's famous for dropping the f-word during conference calls with analysts and investors. (She brought down the house at a recent conference with her opening: "Do you want me to say something naughty now?") More important, however, her first major initiatives at Yahoo! suggest where she's headed. She's recruited Timothy Morse, a proven cost-cutter from chip designer Altera, as her chief financial officer. That followed Bartz's slashing Yahoo!'s workforce by about 675 people, or 5%, in April. Coupled with the 1,450 jobs eliminated just before her arrival in January, the total reductions could save $400 million or more a year, by one estimate.

Although she declined to speak one-on-one with Barron's and isn't expected to detail her strategy until her first analyst session in the fall, Bartz is likely to try to improve Yahoo!'s operating efficiency and profitability.

Says John Chambers, chief executive of Cisco Systems, who's known Bartz for about 15 years (she's a member of his board): "She is remarkably direct. She listens and brings an ability to outline a vision and instills confidence and trust and a sense of the future." Chambers recommended her for the spot. "She has a tough hand to play out [at Yahoo!], and if I were to bet on a person to play that hand it would be Carol. She always gets results," he says.

If she does play her hand right, Yahoo! (YHOO) will be a more tightly focused, profitable and faster-growing business that can either go it alone or sell itself, most likely to previous suitor Microsoft (MSFT), which has lagged behind both Google (GOOG) and Yahoo! in its Internet search business.

For investors willing to put down an early bet, Yahoo! shares are cheap. They have the lowest multiple among their large-capitalization peers. The company's enterprise value (market value plus debt) is just 5.7 times its 2009 Ebitda (earnings before interest, taxes, depreciation and amortization), compared with Google at 10.9 times and Amazon (AMZN) at 20.6 times. Citicorp analyst Mark Mahaney, who upgraded his rating of Yahoo! to Buy last week, thinks the shares are worth 21 each, versus 15.61 now, a 35% premium.

As Chambers suggests, Bartz has been dealt a tough hand. Yahoo! has steadily lost market share to Google, whose model of so-called paid search -- or sponsored links to Websites that appear when users type words in the search engine -- has outstripped Yahoo!'s, which relies more on banner ads and video. Repeated attempts to change this operating model haven't helped much.

In February of last year, Microsoft offered 31 a share and later reportedly raised the bid to 33. Yahoo! co-founder and CEO Jerry Yang and his board rejected the bids. That, coupled with the stock market's swoon and Google's continued strength, took the stock down below 10 in November 2008. At about the same time, sharp-elbowed shareholder-activist Carl Icahn started buying shares and began to pressure the company to do something about the stock price.

Yahoo! reported 2008 earnings of $424.3 million, or 29 cents a share, down from $660 million, or 47 cents a share, a year earlier. Last year's revenue hit $7.2 billion, up from $6.97 billion. Analysts expect Yahoo! to earn $498 million in 2009, or 35 cents a share on revenues of about $4.73 billion. Amid all this, Internet advertising has gone very soft as key markets -- such as automotive, financial and real estate -- got hammered. Yahoo! posted a $303.4 million loss in the December quarter of 2008 on revenues of $1.8 billion.

The Street will learn more about Yahoo!'s financial state this Thursday, when Bartz oversees her first annual meeting.

BASED ON HER BACKGROUND, which includes stints at Sun Microsystems and Digital Equipment, Bartz seems a solid pick to lead Yahoo! During her 14-year tenure as CEO of Autodesk, she turned a loosely organized PC-software maker into a tightly focused developer of computer-aided-design software used by engineers and architects. She is credited with increasing annual revenues fivefold to $1.52 billion and market capitalization from $1.3 billion to $4.78 billion by 2006, when she chose to retire from the CEO role. Perhaps most important, Bartz, who graduated with an honors degree in computer science from the University of Wisconsin, has proved she can run an engineering-centric software concern -- albeit one whose market cap is just 22% of Yahoo!'s.

In contrast to Bartz, Yahoo! co-founder Yang is a genius at software but has been criticized for his lack of management focus and financial skills. Yang's predecessor, Terry Semel, was a successful leader at Warner Brothers but had no technology or Internet background.

Bartz can be expected to bring more organization. She recently conceded that Yang, who had been known to show up for meetings 45 minutes late, may not have set the right tone at a maturing dot-com that needed to sharpen its execution. "[Yahoo!] needed some structure, and I'm actually quite good at that," Bartz told attendees at The Wall Street Journal's D: All Things Digital conference in May. She also said Yang showed her a corporate organizational chart that resembled a "Dilbert cartoon." Her response: "'Oh my God, you need some management here.'"

Among Bartz's primary objectives are cleaning up the redundant legacy software codes inside Yahoo! that stymie innovation and prevent nimble execution of new products and services across the Website. The company is built on a hodgepodge of different platforms of code. For example, Yahoo! uses more than 30 software base codes in its front page alone, making it more complicated than necessary to engineer features like social-networking elements that keep Yahoo! users glued to the site. A new, more interactive, front page in test stage will be launched before the end of the year.

Other changes in technology should help Bartz with one of her pet projects: making it easier for advertisers to buy ads from Yahoo! using its Website, a task she says is now far too difficult. The CEO is also very aware that Yahoo! Mail, the largest free e-mail site in the U.S. and a key driver of traffic, needs to be improved right away. She has also committed to investing in a global software program so products and services can be rolled out simultaneously in different countries. If Bartz can fix the engineering culture, then she can help Yahoo! retain its solid position on the Web. If she doesn't, look for Facebook, Twitter and the rest of the social-networking upstarts to start overtaking the company.

Bartz is also fixated on reducing duplicate product managers and tearing down mini-fiefdoms resulting from many years of bolting on Internet acquisitions during the company's hyper-growth phase. Because the success of a division or department is judged by its Internet traffic, overprotective managers are sometimes reluctant to cooperate on larger initiatives for fear of losing that traffic.

But organic traffic growth is driven by innovation. Already, there are signs of better cooperation. Mint.com, a personal-finance management site, recently launched a module on the Yahoo! Website that took only five weeks to conceive and install. "They were great to deal with," Mint.com CEO Aaron Patzer says.

Citi's Mahaney also points out that the CEO has already begun to shed divisions that aren't central to the company's strategy, such as online-communities pioneer GeoCities, which it purchased in 1999 for $5 billion, and Jumpcut, a video service. Mahaney suggests that more operations could be dropped or sold, such as Yahoo! Personals, which IAC (IACI) Chief Executive Barry Diller has expressed interest in buying. "We are taking a very hard look at the portfolio," Bartz says.

IT'S NOT AS IF YAHOO! DOESN'T have strengths. Today the $7.2 billion-in-revenue company provides search, communications services like free e-mail and instant messaging, e-commerce, media and tools such as maps. It generates 88% of its revenue from marketing services, which include various forms of advertising on its site and in partnership with other sites. The rest of its revenues come from fees for subscription services such as personals.

After a long decline, its market share in Internet search seems to have stabilized at about 20% behind Google at 60%, and well ahead of Microsoft's MSN.com and AOL (see chart). While Yahoo! isn't likely to catch Google in search, it is critical that Yahoo! at least maintain its 20% market share, especially as Microsoft redoubles its efforts with its new Bing search feature, which has made a very strong start. (See this week's Tech Trader column.)

Overall advertising started to rebound in the March quarter of this year with earnings of $118.7 million, or 8 cents a share, which was largely on target despite a weak market for display ads. Analysts are looking for June-quarter earnings of eight cents a share, compared with 10 cents a year ago. Revenues of $1.14 billion are expected for the second quarter, which would be down 15% from a year ago.

Despite a perception that Yahoo! has suffered from brain drain and has recently lagged in innovation, Bernstein Research analyst Jeffrey Lindsay says the company's engineering talent is still among the best in the business. The trick will be to add employees where needed while still reducing overall payroll, especially product managers, he says. He thinks Bartz can cut as many as 3,000 jobs and advises investors to watch this number closely in coming months. Bartz says she is just trying to get "the right number of people on the bus."

Citi's Mahaney believes more cost-reductions are coming with the addition of CFO Morse, a General Electric alumnus who wielded a sharp pencil at Altera. Under Morse, Altera's operating margins increased to 31% from 23% over five quarters.

Yahoo! still has great traffic. More people spend more time on Yahoo! than any other Internet site. Monetizing that traffic and its well-known brand is the problem.

If she wants to keep Yahoo! independent or as a strong partner, Bartz needs to find ways to generate revenue from all those users who visit the site to check scores on Yahoo! Sports and stocks on Yahoo! Finance. But if it were that easy, someone already would have figured that out.

"She has the gravitas," says Tyler Goldman, chief executive of Buzz Media, which owns celebrity-news Websites. "But they are very behind in creating innovative advertising, and they need a clear mandate from her."

Generating new ad revenue isn't easy, but there are many Web-content providers who would kill for Yahoo!'s traffic. Bartz needs to fetch higher ad margins by increasing and improving content around prized properties like sports, e-mail and finance. Better content enhances the possibilities for social networking, which is where more and more people are spending their time on the Internet these days.

Goldman thinks buying content -- so long as it's at the right price -- rather than building it is the best bet. A good example: Yahoo!'s acquisition of Rival.com, a college-sports recruiting Website.

Based purely on volume, Yahoo! already sells more display, or banner, ads than anyone else. Bartz needs to find a way to launch more lucrative and effective "targeted" ads. To do that, Yahoo! must create more engaging ads, making them more meaningful and interactive, says Goldman. "Right now you could say they are selling billboards on the highway," he says.

LURKING NEARBY IS MICROSOFT, whose initial offer set off the events that prompted Bartz's arrival. Activist Icahn, who owns 75.6 million shares, or 5%, and controls two other seats on the board, would rather not wait for a turnaround that may or may not come. Bartz, however, says she isn't intimidated by the pressure to sell the company. (She referred to Icahn jokingly at the D confab as her "buddy Carl.") And she's made it clear that she didn't come out of retirement just to repackage Yahoo! for sale. The straight shooter says she told Icahn that if he doesn't like her approach, Yahoo! can find another CEO. "I said, basically, 'You know, Carl, you hired me, so fire me,' " Bartz said at the conference.

"You can't say that you are never going to sell," Bartz says, but she would clearly prefer to try turning the company around.

Microsoft, meantime, is obsessed with overtaking Google because the newcomer has the money, talent and market position to be No. 1 in the next generation of software -- delivered as a service. Google's relationship with users through its search engine is a direct pipeline for selling next-generation software services. Those relationships via the Google Website are likely to transfer to the mobile Web, which is the computing and communications platform of the future.

Microsoft CEO Steve Balmer reportedly spoke with Bartz earlier this year, though there's been no disclosure of what they discussed. Despite Bartz's comments, most observers believe that a combination of the two companies is the only way either can make a run at Google in search. If it does come to that, added Bartz at D, Microsoft would need to offer "boatloads" of cash, something it may prefer not to do.

How much is a boatload? Citi's Mahaney values Yahoo!'s core business -- not including its Internet investments in Japan and China -- at $15 a share based on a slightly higher enterprise-value/Ebitda ratio. On top of that, Mahaney thinks the Asian investments are worth $6 a share. Adding a premium on the $21 price could move it to the mid-20s in a takeover -- still below Microsoft's initial $31 offer -- but much higher than its current level.

So whether Bartz is able to unleash the potential in Yahoo!'s existing business as an independent entity or fixes what she can before selling to Microsoft, investors win. It's just a matter of how much.

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 | 24 Jun 2009 | 4:00 am

The Tax Implications of Foreclosures (The Tax Guy)

Going through a foreclosure on your principal residence is stressful enough, but there are tax implications too. While some are fairly harmless, others can be pretty bad.
Here's what you need to know:

Foreclosure Tax Basics

A foreclosure transaction occurs when a mortgage lender repossesses a borrower’s property and then sells it to pay off the debt. In most cases, however, a foreclosure will only happen when the mortgage debt exceeds the property's fair market value, or FMV. In this situation, the federal income tax rules treat the foreclosure as a sale for the FMV amount.

Therefore, a tax gain will result if the property’s FMV exceeds its tax basis. (The tax basis of a principal residence usually equals the original cost of the property, plus the cost of any improvements.) On the other hand, a tax loss will result if the property’s FMV is less than the tax basis.

If a mortgage lender also forgives some or all of the debt against your property in conjunction with or after the foreclosure transaction, you have cancellation of debt (COD) income. That income is taxable unless an exception applies.

Remember: Just because your property is foreclosed doesn’t necessarily mean the lender will forgive any of the unpaid mortgage balance (the so-called deficiency). When there is no forgiveness, there is no COD income. That said, mortgage lenders in these tough economic times sometimes will forgive all or part of the deficiency, so COD income can be fairly common these days.

Don't Forget the Home Sale Gain Exclusion Break
Another thing to consider is whether or not you qualify for the federal home sale gain exclusion break, which allows an unmarried person to exclude (pay no tax on) a gain of up to $250,000 while married joint filers can exclude up to a $500,000 gain. To qualify, you generally must have: (1) owned the home for at least two years during the five-year period ending on the foreclosure date and (2) used the home as your principal residence for at least two years during the five-year period ending on that date.

Here are some examples of foreclosed principal residence scenarios to illustrate how the tax rules work.

Foreclosure With Tax Gain

Example: Say your home is foreclosed when its FMV is $325,000 and its tax basis is $275,000. There’s a $250,000 first mortgage and a second of $180,000. So the total debt equals $430,000.

Assume the entire $250,000 first mortgage and $75,000 of the second get paid off when the lenders sell the property. That leaves an unpaid balance of $105,000 ($430,000 – $325,000). You scrape together $25,000 to pay the balance down to $80,000, and the second mortgage lender forgives the rest.

Here are the tax results:

* The foreclosure triggers a $50,000 tax gain ($325,000 FMV - $275,000 basis = $50,000 gain). For federal income tax purposes, you can probably exclude (pay no tax on) the gain thanks to the home sale gain exclusion break. (State income tax results may vary.)

* The $80,000 forgiven by the second mortgage lender is COD income. It’s taxable unless an exception applies. See my earlier article for the exceptions that may apply to this situation.

Foreclosure With Tax Loss

It’s also quite possible to have a principal residence foreclosure where the FMV of the property is less than its tax basis. In that case, you’ll have a tax loss instead of a gain.

Example: Say the FMV of your principal residence is $300,000 when it’s foreclosed, and the property’s tax basis is $390,000. There’s a $250,000 first mortgage and a second of $175,000, for total debt of $425,000.

The full $250,000 first mortgage and $50,000 of the second get paid off when the lenders sell the property. That leaves an unpaid balance of $125,000 ($425,000 – $300,000). You scrape up enough to pay the balance down to $60,000, and the second mortgage lender forgives the rest.

The tax results are as follows.

* The foreclosure triggers a $90,000 tax loss ($300,000 FMV - $390,000 basis = $90,000 loss). Unfortunately, the loss is considered a nondeductible personal expense for federal income tax purposes (and usually for state income tax purposes, too).

* The $60,000 forgiven by the second mortgage lender is COD income. It’s taxable unless an exception applies. Once again, see my earlier article for the exceptions mostly likely to be available.

The Bottom Line

Probably the most important thing to understand about a principal residence foreclosure is that the mortgage lender will not necessarily forgive any of the unpaid balance that remains after the property is sold. However, in the current environment, some forgiveness would not be unusual. Also, keep in mind that you may not know for quite a while after the foreclosure whether anything will be forgiven.

Tax-wise, the most important thing to understand is that a foreclosure can potentially result in a taxable gain, and it might result in some taxable COD income, too.

Fortunately, with a principal residence foreclosure, an otherwise-taxable gain can often be excluded for federal purposes thanks to the home sale gain exclusion break (state income tax results can vary). Also, some or all of the COD income may be tax-free thanks to favorable tax-law exceptions. However when no exception applies, the COD income is fully taxable.

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 | 24 Jun 2009 | 4:00 am

Equities Aim for Gains Before Fed (Market Update)

News at a Glance

• Fed Day: Policy statement due at 2:15 p.m.
• Futures Advance: Stocks aim toward higher open.
• Housing Update: New home sales due out 10 a.m.
• Oracle Beats: Firm tops Q4 estimates on support.

The Lowdown

With all eyes on the Federal Reserve, traders have turns cautiously optimistic.

Stocks looked to open a bit higher Wednesday, as traders awaited the Fed's latest statement on monetary policy. Shortly before 9 a.m., Dow, Nasdaq and S&P 500 futures were trading above fair value.

The Fed is widely expected to leave the federal funds rate at 0.00% to 0.25%, though traders will be looking for changes in the statement's language that could suggest a policy shift down the road. Recent inflation data suggest inflation is firmly in check, reducing the likelihood of a near-term policy shift.

The Fed could also announce changes to its lending programs, which have helped keep financials afloat during the downturn.

In finance, Citigroup (C) said it would lift base pay for some of its employees by as much as 50%, CNBC reported. The change is designed not to increase overall compensation but to shift the model away from bonuses, which critics say promote risky behavior.

On the Nymex, energy prices dipped ahead of the crude inventories report. By 6:58 a.m., crude traded down 40 cents at $68.84 a barrel.

World markets were broadly higher. In Asia, Japan's Nikkei picked up 0.4%, and Hong Kong's Hang Seng rose 2.0%. In Europe, the U.K.'s FTSE picked up 0.6% in afternoon trading.

Corporate News

• Oracle (ORCL) posted a 7% drop in fourth-quarter profit, but the firm still topped analysts' estimates on support contract sales. The firm earned $1.89 billion, or 38 cents a share, up from $2.04 billion, or 39 cents a share, in the year-ago period. Excluding one-time charges, the firm earn 46 cents a share, two cents above Wall Street estimates.
• JPMorgan Chase (JPM) was named the strongest bank in a ranking of financial firms published in The Banker magazine. JPMorgan had ranked fourth strongest last year. Meanwhile, Royal Bank of Scotland (RBS) posted the largest loss ($59.3 billion) of any bank last year.
• IBM (IBM) tapped Elias Mendoza to be its new head of mergers and acquisitions, the firm said. Mendoza, who had overseen M&A for IBM in Asia, takes over for David Johnson, who had been wooed away by Dell (DELL).

The Economy

• The May report on durable goods orders, a measure of demand, is scheduled to be released at 8:30 a.m. by the Commerce Department. In April, orders rose 1.9%. Economists expect a May decline of 0.9%.
• The May reading of the annual rate of new home sales is scheduled to be released at 10 a.m. by the Commerce Department. In April, the annual rate stood at 352,000 sales. For May, economists expect an increase to an annual rate of 360,000 sales.
• The crude inventories report for last week is scheduled to be released at 10:30 a.m. by the Energy Department. In the prior week, inventories remained above the upper limit of the average range for this point in the year.
• The Federal Open Market Committee of the Federal Reserve is scheduled to release its statement on monetary policy at 2:15 p.m. The Fed is widely expected to leave the federal funds rate at 0.00% to 0.25%. Recent price index data suggest core inflation remains in check, leaving the Fed less likely to change its language on inflation or drop any substantial new hints about a policy change. Still, pundits, analysts and economists will comb the statement for clues as to the Fed's thinking.

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Source: SmartMoney.com | 24 Jun 2009 | 4:00 am

5 Companies With Understated Earnings (Screens)

In crime movies, investigators sometimes ask a suspect to tell the same story twice, and listen for discrepancies between the two versions. Stock investors can do something similar by comparing two measures of how much money companies make: earnings and free cash flow. The results aren’t likely to uncover foul play, but they might help predict stock returns.

Free cash flow is simply the money a company puts in the till each quarter. Earnings are how much it would have put in the till if not for, say, the purchase of a new factory. In earnings accounting, the factory’s cost gets broken into small quarterly charges to be deducted over the factory’s projected life. While that might seem complicated, investors tend to fixate on earnings because the measure smoothes the effects of big, sporadic investments and thus makes it easier to tell whether companies are making more money from one year to the next. Lenders prefer to watch free cash flow, since it gives a better sense of financial strength.

Over long time periods, the two measures tend to revert to each other because they track more or less the same thing using different timing. Therein lays a clue to stock performance. When a company’s paper earnings are puny but its free cash flow is strong, it could be a sign that earnings are temporarily depressed and due to rise. Since stock investors tend to shun companies with poor earnings but flock to ones with strong earnings, a company with understated earnings relative to its free cash flow might be poised to produce generous stock returns.

University of Michigan professor Richard Sloan published a landmark study of the matter in 1996. He found that companies whose earnings were understated relative to their free cash flow returned 10 percentage points a year more than those whose earnings were overstated. Dozens of follow-up studies published in recent years have continued to document this “accrual anomaly,” as it’s called. (“Accrual” is an accounting term for those earnings excuses that cause the measure to differ from free cash flow.)

Stock investors can use the accrual anomaly in two ways. The first is to pay attention to the difference between earnings and free cash flow for the companies they invest in. When a company consistently reports stellar earnings but weak free cash flow, investors ought to be wary. The second way is to run a stock screen for companies with more free cash flow than earnings. Such companies might be understating their prosperity at the moment, making their shares temporarily cheap.

Note that while earnings are listed on companies’ financial tables, free cash flow isn’t. Some finance web sites and stock-screening programs list the measure, including SmartMoney.com and its screener. Investors can also calculate free cash flow on their own with a bit of hunting through financial tables, but no tricky math. Start with earnings (found on the income statement), add depreciation and amortization (income statement), subtract capital expenditures (cash flow statement) and subtract any change in working capital (balance sheet—it’s the net of current assets and current liabilities).

Easier still, have a look at the five recent screen survivors below. All produced far more free cash than earnings over the past year, have low share prices relative to their free cash flow and pay decent dividends. Genuine Parts (GPC) and Pitney Bowes (PBI) are up 25% and 16%, respectively, since this column recommended them in March for their meaty dividends. Home Depot (HD) is perhaps an odd stock to embrace during a housing downturn, but a secure 3.8% yield adds appeal and some analysts believe even a muted housing recovery could double the company’s profits. Eli Lilly (LLY) boasts growing sales despite lax consumer spending, since drugs aren’t especially sensitive to the economy. Finally, Illinois Tool Works (ITW), a roll-up of more than 800 small industrial businesses that make everything from welding equipment to refrigerators, has reported soft sales of late but is using the downturn to buy struggling firms on the cheap.