Say It To Lloyd Blankfein's Face

Geoffrey Raymond, who needs no introduction, will be displaying his latest, "Big Lloyd 3 (The Root)," during lunch today in the alley behind 85 Broad. As usual he's looking for random passersby to annotate the canvas but if you can't make it out to touch what appears to be LB post-stroke-- facial sag which will undoubtedly please Matt Taibbi-- the artist invites DB readers to impart words of wisdom for the little guy at this time to be added this afternoon. Also! Dying to have a piece of that hot Goldman CEO ass all to yourself? Raymond is releasing the first two editions of a line of posters. $225 (seriously) will get you 100 signed copies of the above, or $100 unsigned. A line of Red Geithners is available as well.

Sponsored Topics: Matt Taibbi - Lloyd Blankfein - Goldman Sachs - Health - Rolling Stone
Source: Dealbreaker | 6 Jul 2009 | 2:08 pm

Israel Stocks: Israel stocks drop; UBS downbeat on TA-25

Israel stocks fell sharply and broadly on Monday led by weakness in real estate -- Africa-Israel fell double digits -- the financial issues and technology, and as UBS was downbeat on the blue chips for the next 12 months.

Source: MarketWatch.com - Top Stories | 6 Jul 2009 | 1:09 pm

FSA to triple fines and dock pay for market abuse

Companies guilty of the biggest financial offences could be fined as much as £50 million after the Financial Services Authority (FSA) today announced a step change in the size of penalties it wants to mete out.


Source: Latest Business News from Times Online | 6 Jul 2009 | 1:07 pm

EMC boosts offer for Data Domain to $2.1 billion

EMC Corp. on Monday raised its offer to buy Data Domain Inc. by more than 11% to $2.1 billion, topping a proposal by rival bidder NetApp.

Source: MarketWatch.com - Top Stories | 6 Jul 2009 | 1:05 pm

NewsWatch: Stock futures point lower, oil continues to slide

U.S. stock-market futures drop following the holiday weekend, with oil prices falling sharply as hopes for an economic rebound continue to sag.

Source: MarketWatch.com - Top Stories | 6 Jul 2009 | 1:00 pm

BA staff reject cost-cutting plan

A meeting of BA workers rejects the airline's plans to reduce costs by cutting thousands of jobs and freezing pay.
Source: BBC News | Business | World Edition | 6 Jul 2009 | 12:57 pm

Fiat signs deal for Chinese joint venture with GAC

Italian carmaker Fiat SpA says it will form a 50-50 joint venture with Guangzhou Automobile Group (GAC) to produce cars and engines for the Chinese market from 2011.

Source: MarketWatch.com - Top Stories | 6 Jul 2009 | 12:55 pm

Economic gloom drags on Wall St

US stocks looked set for a bruising start to the week as investors returned to their desks after the long independence day weekend
Source: Financial Times - US homepage | 6 Jul 2009 | 12:54 pm

Yingli Secures New Credit Facilities, Further Complicates Structure (YGE)

Yingli Green Energy Holding Company Limited (NYSE: YGE) is seeing shares get clipped a bit this morning.  Some may be on weak energy prices taking the hot air out of alternative energy and some may be from the weak market indications.  But the company has announced two credit facilities, with principal amounts of $100 million [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 6 Jul 2009 | 12:52 pm

Metals Stocks: Gold falls to two-week low on oil, dollar

Gold futures drop to their lowest level in two weeks as tumbling oil prices and a stronger dollar curbed the metal’s appeal as an inflation hedge and an alternative investment.

Source: MarketWatch.com - Top Stories | 6 Jul 2009 | 12:52 pm

Price of oil near five-week low

The price of oil is hovers around $64 a barrel on expectations a global recovery could take longer than previously thought.
Source: BBC News | Business | World Edition | 6 Jul 2009 | 12:49 pm

Wall Street set to fall on recovery caution, oil

NEW YORK (Reuters) - Wall Street was poised to fall nearly 1 percent at the open on Monday, weighed by worries about the potential strength and timing of an economic recovery as a slump in oil prices was set to pressure energy shares.
Source: Reuters: Business News | 6 Jul 2009 | 12:47 pm

Wall Street set to fall on recovery caution, oil (Reuters)

Reuters - Wall Street was poised to fall nearly 1 percent at the open on Monday, weighed by worries about the potential strength and timing of an economic recovery as a slump in oil prices was set to pressure energy shares.

Source: Yahoo! News: Stock Markets News | 6 Jul 2009 | 12:47 pm

Wall Street set to fall on recovery caution, oil (Reuters)

Reuters - Wall Street was poised to fall nearly 1 percent at the open on Monday, weighed by worries about the potential strength and timing of an economic recovery as a slump in oil prices was set to pressure energy shares.

Source: Yahoo! News: Business | 6 Jul 2009 | 12:47 pm

World Bank tells G8: 2009 remains dangerous year

GENEVA (Reuters) - The Group of Eight nations should not presume a global economic recovery is near, World Bank President Robert Zoellick said in a letter to G8 host Italian Prime Minister Silvio Berlusconi obtained by Reuters on Monday.
Source: Reuters: Business News | 6 Jul 2009 | 12:46 pm

MG Rover in fraud investigation

The Serious Fraud Office is to investigate the collapse of MG Rover in 2005, the business secretary has confirmed.
Source: BBC News | Business | World Edition | 6 Jul 2009 | 12:42 pm

FundWatch: Investors flock to high yield -- perhaps too late

NEW YORK (MarketWatch) -- High-yield bond funds are enjoying a bumper year, with returns above 20%. But while investors are pouring billions in of dollars, it's likely they've missed the best returns.

Source: MarketWatch.com - Top Stories | 6 Jul 2009 | 12:42 pm

EMC raises offer for Data Domain to $33.50

BOSTON (Reuters) - EMC Corp boosted its bid to buy specialty storage maker Data Domain Inc by more than 10 percent to $33.50 per share, raising the stakes in a bidding war with rival NetApp Inc. .
Source: Reuters: Business News | 6 Jul 2009 | 12:41 pm

EMC raises offer for Data Domain to $33.50 (Reuters)

Reuters - EMC Corp boosted its bid to buy specialty storage maker Data Domain Inc by more than 10 percent to $33.50 per share, raising the stakes in a bidding war with rival NetApp Inc. .
Source: Yahoo! News: Business | 6 Jul 2009 | 12:41 pm

The end of free checking

Source: Business and financial news - CNNMoney.com | 6 Jul 2009 | 12:37 pm

World stocks drop as oil falls below $64 a barrel (AP)

AP - World stock markets fell as oil prices slumped below $64 a barrel Monday amid concerns that any recovery in the global economy will be a long, hard slog following disappointing U.S. jobs data last week.

Source: Yahoo! News: Stock Markets News | 6 Jul 2009 | 12:36 pm

Stock futures lower amid recession worries (AP)

AP - The stock market headed for another pullback Monday as investors around the world grow pessimistic about the economic recovery.

Source: Yahoo! News: Stock Markets News | 6 Jul 2009 | 12:36 pm

Futures Movers: Oil futures tumble 4% as recovery worries escalate

Crude-oil futures tumble to a five-week low in electronic trading, back below $64 a barrel and extending last week’s retreat.

Source: MarketWatch.com - Top Stories | 6 Jul 2009 | 12:36 pm

GM bankruptcy plan approved

General Motors' plan to emerge from bankruptcy, with a lot of help from the federal government, has been approved by a federal judge.
Source: Business and financial news - CNNMoney.com | 6 Jul 2009 | 12:31 pm

FTSE 100 falls 1.33% (AFP)

AFP - The FTSE 100 slid in midday trade on Monday following a sharp sell-off in Tokyo as investors took profits ahead of US corporate earnings results due this week.

Source: Yahoo! News: Stock Markets News | 6 Jul 2009 | 12:29 pm

Netscape founder launches $300M fund

Ben Horowitz was toiling as an unheralded product strategist at Netscape Communications when he opened a scathing e-mail from his boss, Marc Andreessen. It was the winter of 1996; Netscape's public offering, several months earlier, had ignited the dotcom craze, and co-founder Andreessen had just appeared on Time's cover, sitting on a throne, feet bare -- the very portrait of a cocky 24-year-old tech wunderkind.
Source: Business and financial news - CNNMoney.com | 6 Jul 2009 | 12:28 pm

Oil hits 5-week low

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 6 Jul 2009 | 12:28 pm

Media plots its survival in Sun Valley

Source: Business and financial news - CNNMoney.com | 6 Jul 2009 | 12:28 pm

Markets disapprove India's expansionary budget

Indian stocks and the rupee tumbled on Monday after Finance Minister Pranab Mukherjee presented an expansionary budget with a major spending thrust on areas such as farm and rural development, defense and infrastructure.

Source: MarketWatch.com - Top Stories | 6 Jul 2009 | 12:28 pm

Obama’s Paygo Is Good Rhetoric, Awful Policy

John Tamny of RealClearMarkets Perhaps in an effort to shore up his budgetary bona fides during a period of reckless spending, President Obama recently announced his goal to put the federal government on a budgetary diet. As Obama put it, under his plan “Congress can only spend a dollar if it saves a dollar elsewhere.” At first [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 6 Jul 2009 | 12:24 pm

Before the Bell: LDK Solar, Symantec, Royal Dutch Shell in focus

U.S. stock futures pointed to an opening fall on Monday after a three-day break, with worries about the economy still at the forefront following Thursday’s disappointing jobs report.

Source: MarketWatch.com - Top Stories | 6 Jul 2009 | 12:24 pm

Opening Bell: 07.06.09

A Goldman Trading Scandal? (Reuters)
Matthew Goldstein: "While most in the US were celebrating the 4th of July, a Russian immigrant living in New Jersey was being held on federal charges of stealing top-secret computer trading codes from a major New York-based financial institution--that sources say is none other than Goldman Sachs.

The allegations, if true, are big news because the codes the accused man, Sergey Aleynikov, tried to steal is the secret code to unlocking Goldman's automated stocks and commodities trading businesses. Federal authorities allege the computer codes and related-trading files that Aleynikov uploaded to a German-based website help this major "financial institution" generate millions of dollars in profits each year."

Seven U.S. Banks Seized in Busiest Year for Closures Since 1992 (Bloomberg)
SheBair's had her hands full.

GM Asset Sale Gets Judge's Nod (WSJ)
So that's exciting.

Capital Fund CEO Aguilar Killed in Gliding Accident But Don't Worry, Your $ Is Safe (Bloomberg)
"The firm has gone through several crises in the past and we want to reassure our investors that this terrible event will not interrupt CFM's high level of service or impact its ability to provide outstanding long-term investment returns," the e- mailed letter to investors dated yesterday said. "Jean-Pierre has assembled a terrific team, where all individuals are important but none, not even himself, are critical."

Ryanair wants passengers to STAND UP during flights (Daily Mail)
Ryanair estimates it would be able to pack in 30 percent more passengers while slashing costs by 20 percent. No word on how this will be affected.

SEC May Reinstate Rules For Short-Selling (NYT)
"You want some sort of a dampener in periods like the fourth quarter of last year," Joseph M. Mecane, the chief administrative officer for United States markets at the NYSE said, "and let the stock breathe a bit."

Mob Scene For Jacko Funeral (NYP)
Up to 1 million "Jackophiles" expected to hit up the Staples Center memorial, tickets for which were selling for up to $20,000 on eBay late last night.

Biden: "We Misread How Bad The Economy Was" (ABC)

Sponsored Topics: United States - Goldman Sachs - New Jersey - Business - New York Stock Exchange
Source: Dealbreaker | 6 Jul 2009 | 12:20 pm

Samsung sees strong earnings, shares jump

SEOUL (Reuters) - South Korea's Samsung Electronics , the world's top maker of memory chips and flat screen TVs, forecast second-quarter earnings well above market estimates, driving its shares up more than 4 percent on Monday.
Source: Reuters: Business News | 6 Jul 2009 | 12:07 pm

Ten Proposals for Getting out of the Crisis and for a New Global Balance

AIX-EN-PROVENCE, France, July 6 /PRNewswire/ -- - 9th Economic Meeting in Aix-en-Provence - Final Statement From the Circle of Economists
Source: RSS feed - channel BNewsBusiness | 6 Jul 2009 | 12:00 pm

FSA to triple fines against City wrongdoers

The City regulator is trying to give teeth to its claim that City firms should be 'very frightened' of it.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 6 Jul 2009 | 11:57 am

Prius tops Japan's car sale chart

Toyota's Prius has become the first hybrid car to outsell all other vehicles in Japan, latest industry figures show.
Source: BBC News | Business | World Edition | 6 Jul 2009 | 11:56 am

Rio sells American food packaging assets for $1.2 billion

SYDNEY (Reuters) - Global miner Rio Tinto further improved its cash position on Monday by agreeing to sell its Americas food packaging business for $1.2 billion, and analysts said they expected more asset sales to follow soon.
Source: Reuters: Business News | 6 Jul 2009 | 11:55 am

Rio sells American food packaging assets for $1.2 billion (Reuters)

Reuters - Global miner Rio Tinto further improved its cash position on Monday by agreeing to sell its Americas food packaging business for $1.2 billion, and analysts said they expected more asset sales to follow soon.

Source: Yahoo! News: Business | 6 Jul 2009 | 11:55 am

PepsiCo, Pepsi Bottling to invest $1B in Russia

Soft drink and snack maker PepsiCo Inc. said Monday it will team up with its largest bottler, Pepsi Bottling Group, to invest $1 billion in Russia over three years. PepsiCo called it...
Source: RSS feed - channel BNewsBusiness | 6 Jul 2009 | 11:54 am

Indications: Stock futures point lower, oil continues to slide

U.S. stock-market futures drop following the holiday weekend, with oil prices falling sharply as hopes for an economic rebound continue to sag.

Source: MarketWatch.com - Top Stories | 6 Jul 2009 | 11:50 am

Mountain Province Diamonds and De Beers Canada Enter into Revised and Restated Gahcho Kue Joint Venture Agreement

Mountain Province Gains Control over Share of Marketing Rights Shares Issued and Outstanding: 60,097,746 TSX: MPV AMEX: MDM TORONTO and...
Source: RSS feed - channel BNewsBusiness | 6 Jul 2009 | 11:48 am

Frost & Sullivan Awards Johnson Controls for Market Leadership

MOUNTAIN VIEW, Calif., July 6 /PRNewswire/ -- Based on its recent analysis of the building automation system (BAS) controls industry, Frost & Sullivan recognizes Johnson...
Source: RSS feed - channel BNewsBusiness | 6 Jul 2009 | 11:45 am

Sign Irony

Source: Business Pundit | 6 Jul 2009 | 11:42 am

Will Bernanke keep his job?

In the next six months, President Obama faces one of his biggest and most important decisions about the economy.
Source: Business and financial news - CNNMoney.com | 6 Jul 2009 | 11:36 am

Top Analyst Upgrades (BEN, KLAC, NVLS, LRCX, JWN, OSK, STX, WDC, S)

These are the top analyst upgrades and positive research calls from Wall Street this Monday morning with about two hours until the market opens: Franklin Resources (BEN) Raised to Overweight at JPMorgan. KLA-Tencor (KLAC), Novellus Systems (NVLS) and Lam Research (LRCX) were all three Raised to Neutral from Underperform at Credit Suisse. Nordstrom (JWN) Raised to Neutral and [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 6 Jul 2009 | 11:35 am

Top Analyst Downgrades (CTXS, DSCO, EV, FII, FPL, RAX)

These are this Monday’s top pre-market analyst downgrades and cautious research calls from Wall Street with more than two hours until the market opens: Citrix Systems (CTXS) Cut to Perform at Oppenheimer. Discovery Labs (DSCO) Cut to Underperform at Jefferies. Eaton Vance (EV) Cut to Underweight at JPMorgan. Federated Investors (FII) Cut to Underweight at JPMorgan. FPL Group (FPL) Cut [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 6 Jul 2009 | 11:31 am

FTI Consulting Hires New Senior Managing Director David Haas

Key Appointment Further Strengthens FTI's Forensic and Litigation Consulting Expertise WEST PALM BEACH, Fla., July 6 /PRNewswire-FirstCall/ -- FTI Consulting, Inc. (NYSE:...
Source: RSS feed - channel BNewsBusiness | 6 Jul 2009 | 11:30 am

Alliance Data Schedules Second-Quarter Earnings Conference Call for July 22, 2009

DALLAS, July 6 /PRNewswire-FirstCall/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data,...
Source: RSS feed - channel BNewsBusiness | 6 Jul 2009 | 11:30 am

City wrongdoers face bigger fines

The Financial Services Authority wants to impose much bigger fines on firms or individuals for financial wrongdoing.
Source: BBC News | Business | World Edition | 6 Jul 2009 | 11:28 am

Rio Tinto sells packaging assets for $1.2bn

Rio Tinto has agreed to sell part of its Alcan packaging unit to Bemis of the US for $1.2bn in cash and shares, the latest move by the the Anglo-Australian miner to pay down debt
Source: Financial Times - US homepage | 6 Jul 2009 | 11:25 am

China says 140 dead in Xinjiang unrest

Around 140 people were killed in a riot in Urumqi, the capital of China's largely-Muslim western-most region of Xinjiang, as Beijing responded to the most severe ethnic unrest since protests in Tibet last March by blocking internet sites and blaming 'outside forces'
Source: Financial Times - US homepage | 6 Jul 2009 | 11:15 am

US STOCKS-Futures point to lower open on oil, recovery jitters

* Futures down: S&P 9.70 pts, Dow 87 pts, Nasdaq 12 pts
Source: RSS feed - channel BNewsBusiness | 6 Jul 2009 | 11:15 am

Samsung sees strong earnings, shares jump

SEOUL (Reuters) - South Korea's Samsung Electronics , the world's top maker of memory chips and flat screen TVs, forecast second-quarter earnings well above market estimates, driving its...
Source: RSS feed - channel BNewsBusiness | 6 Jul 2009 | 11:12 am

"Brave" post-Lehman M&A rewarded by market: study (Reuters)

Reuters - Stock markets rewarded companies such as Johnson & Johnson and Cisco who were brave enough to make acquisitions in the months after Lehman Brothers' collapse, a study released on Monday showed.

Source: Yahoo! News: Stock Markets News | 6 Jul 2009 | 11:12 am

"Brave" post-Lehman M&A rewarded by market: study

LONDON (Reuters) - Stock markets rewarded companies such as Johnson & Johnson and Cisco who were brave enough to make acquisitions in the months after Lehman Brothers' collapse, a...
Source: RSS feed - channel BNewsBusiness | 6 Jul 2009 | 11:12 am

"Brave" post-Lehman M&A rewarded by market: study

LONDON (Reuters) - Stock markets rewarded companies such as Johnson & Johnson and Cisco who were brave enough to make acquisitions in the months after Lehman Brothers' collapse, a study released on Monday showed.
Source: Reuters: Business News | 6 Jul 2009 | 11:12 am

"Brave" post-Lehman M&A rewarded by market: study (Reuters)

Reuters - Stock markets rewarded companies such as Johnson & Johnson and Cisco who were brave enough to make acquisitions in the months after Lehman Brothers' collapse, a study released on Monday showed.

Source: Yahoo! News: Business | 6 Jul 2009 | 11:12 am

Dr. Bernard W. Sweeney of the Stroud Water Research Center to Lead the Freshwater Surveillance Group for the International Barcode of Life Project

AVONDALE, Pa., July 6 /PRNewswire-USNewswire/ -- The International Barcode of Life (iBOL) project, which hopes to assemble a DNA sequence library of the world's species...
Source: RSS feed - channel BNewsBusiness | 6 Jul 2009 | 11:10 am

Stocks set to open lower

U.S. stocks were poised for a lower open Monday after General Motors' bankruptcy plan received a federal judge's approval, and at the start of a week that will kick off second-quarter corporate financial reporting.
Source: Business and financial news - CNNMoney.com | 6 Jul 2009 | 10:51 am

Scrappage scheme helps car orders

The UK's car scrappage scheme is having a "positive impact", carmakers say, with the annual rate of decline in sales slowing.
Source: BBC News | Business | World Edition | 6 Jul 2009 | 10:49 am

Porsche denies report more bidders for VW package

FRANKFURT (Reuters) - Porsche on Monday denied a newspaper report which said five more potential bidders have emerged for a Porsche-owned derivatives package which controls around 20 percent of Volkswagen voting shares.
Source: Reuters: Business News | 6 Jul 2009 | 10:49 am

The great 'output gap' masks the real threat of inflation

Edward Hadas argues that the socalled 'output gap' is masking the real threat of inflation.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 6 Jul 2009 | 10:47 am

India outlines growth challenge

India's government unveils its annual budget, saying the "first challenge" is to return to 9% annual growth "at the earliest".
Source: BBC News | Business | World Edition | 6 Jul 2009 | 10:45 am

Indian budget disappoints investors

India outlined measures to speed infrastructure development and unveiled increased spending for farmers and the poor in its first budget since Prime Minister Manmohan Singh's government was re-elected in May
Source: Financial Times - US homepage | 6 Jul 2009 | 10:45 am

Phorm shares fall as BT opts out

Shares in the online ad firm Phorm have fallen after BT said it had no immediate plans to use the service that tracks online behaviour.
Source: BBC News | Business | World Edition | 6 Jul 2009 | 10:44 am

Best deals: interest rates on savings accounts rise

Competition in the easy access savings account market is hotting up.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 6 Jul 2009 | 10:43 am

Oil falls to around $64 a barrel

LONDON (Reuters) - Oil fell to around $64 a barrel on Monday and touched a five-week low, pressured by doubts over the prospects for a global economic recovery.
Source: Reuters: Business News | 6 Jul 2009 | 10:35 am

Obama and Medvedev start summit

US president Barack Obama landed in Moscow for a summit with Russian leaders at which both sides hope to "reset" relations that soured under previous US administrations
Source: Financial Times - US homepage | 6 Jul 2009 | 10:33 am

Tenants fall behind on rent

Letting agents are reporting seeing a rise in the number of tenants struggling to pay their rent as unemployment rises research showed today.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 6 Jul 2009 | 10:33 am

Are you prepared for the July 31 selfassessment tax deadline?

For 10m taxpayers there is one black cloud on the horizon the July 31 tax deadline.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 6 Jul 2009 | 10:25 am

China launches yuan trade scheme

China begins a trial scheme that allows trade with its neighbours to be settled with its own currency, the yuan.
Source: BBC News | Business | World Edition | 6 Jul 2009 | 10:25 am

The Fed's $1 trillion hangover

Business legend Jack Welch has already hailed Ben Bernanke as "a national hero" for the Federal Reserve chief's aggressive moves to pump up the economy, but Bernanke's work is not nearly finished. One of the factors that will influence the decision whether to reappoint him when his term ends in January is the nature of the next task facing him or his successor: to wean the economy off the $1 trillion of new money created by the Fed when disaster loomed last fall.
Source: Business and financial news - CNNMoney.com | 6 Jul 2009 | 10:21 am

Don't pay a price for your life crisis

My family has learned the hard way why you can't ignore finances while dealing with the emotions that surround a life-changing event like job loss or the death of a loved one.
Source: Business and financial news - CNNMoney.com | 6 Jul 2009 | 10:20 am

Will health reform chase employers away?

It is one of the touchiest issues in the health care debate: Would a government-run health plan upend the employer-based health insurance system used by 160 million Americans?
Source: Business and financial news - CNNMoney.com | 6 Jul 2009 | 10:20 am

New car registrations 'boosted by scrappage scheme' says SMMT

The slump in new car registrations slowed to an annual fall of 15.7 per cent in June after the Government’s scrappage scheme boosted demand for vehicles.


Source: Latest Business News from Times Online | 6 Jul 2009 | 10:18 am

Phorm shares tumble after BT says it has no immediate plans to use technology

The controversial online advertising group is under pressure as BT says it has no immediate plans to use the company's software.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 6 Jul 2009 | 10:14 am

GM, Finally Restructured, May Not Be Saved

GM’s most valuable assets have finally been sold to a company controlled by the federal government. A judge approved the transaction early today. The “new GM” should be out of bankruptcy court and fully operating in a few weeks. GM may be free of most of its credit and labor obligations but it still has a [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 6 Jul 2009 | 10:11 am

Best Buy (BBY) Goes “Green”, Wastes Money

Best Buy (BBY) has decided that people want “green” products, or it has decided that it looks good to sell them. It may take awhile to find out if the move is simply one to get good PR. The big consumer electronics store chain may be getting too far afield from its main line of products, [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 6 Jul 2009 | 9:58 am

Rio Tinto sells US packaging assets for $1.2bn$

Rio Tinto is selling its packaging businesses in the US for $1.2 billion ($£739 million), in an attempt to raise cash and cut its debt.


Source: Latest Business News from Times Online | 6 Jul 2009 | 9:56 am

Mandelson presses SFO to probe MG Rover collapse

Lord Mandelson, the Business Secretary, has asked the Serious Fraud Office (SFO) to investigate the collapse of MG Rover, the Midlands carmaker, four years ago.


Source: Latest Business News from Times Online | 6 Jul 2009 | 9:50 am

China’s Political Battle to Buy Strategic Interests Around The Globe

China is in the midst of something just short of a global buying spree of crude reserves, metal and mining companies, tech concerns, and manufacturing operations. It would be easy to say that the effort will lose its momentum when the economy of the world’s most populous nation hits a wall as the Japanese did [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 6 Jul 2009 | 9:43 am

Oil price fall sends FTSE lower

A slump in oil prices, triggered by doubts over a global economic recovery, hit the FTSE today to drag it below 4,200 for the first time since late April.


Source: Latest Business News from Times Online | 6 Jul 2009 | 9:35 am

The Five Growth Biotech Names To Watch Right Now

Alnylam (Nasdaq: ALNY) leads a short list of some of the fastest-growing biotech stocks where analyst estimate revisions continue to rise. BioHealth Investor began by analyzing 171 stocks in the biotech sector based on revenue growth over the trailing four quarters, identifying 30 stocks in the sector with better than 50 percent revenue growth over the past 12 [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 6 Jul 2009 | 9:27 am

From The UK: A Warning For The Airlines In America

British Airways has announced it will cut its capital spending this year by another 20% to 580 million pounds. It is in the process of negotiating with its unions to significantly reduce jobs.  Sharp drops in premium class fliers, a large source of profits, are pressuring the airline financially. The importance of this news is that [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 6 Jul 2009 | 9:04 am

GM bankruptcy plan gains approval

A US judge approves bankruptcy plans for car giant GM, allowing it to transfer profitable assets to a new government-backed firm.
Source: BBC News | Business | World Edition | 6 Jul 2009 | 9:01 am

GM's state rescue approved by bankruptcy judge

The sale of General Motors (GM), the bankrupt US car making giant, to the US Government has been approved by a judge.


Source: Latest Business News from Times Online | 6 Jul 2009 | 8:51 am

Judge approves plan to sell GM assets

A US judge approved the sale of General Motors' assets to a new company in a move that that could allow the carmaker to exit from bankruptcy as soon as this week
Source: Financial Times - US homepage | 6 Jul 2009 | 8:45 am

Car scrappage scheme puts brake on plunge in new UK car sales

The Government's scrappage scheme has almost halved the decline in new UK car sales figures released today show.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 6 Jul 2009 | 8:44 am

Coffee Republic shares suspended as collapse looms

Coffee Republic today suspended its shares "pending clarification" of its financial position as administrators prepared to swoop on its UK business.


Source: Latest Business News from Times Online | 6 Jul 2009 | 8:33 am

FTSE 100 slides as energy producers weigh on the index

The FTSE 100 Index of bluechip companies weakened on Monday morning as commodity producers came under pressure.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 6 Jul 2009 | 8:14 am

Australian stocks: Energy, mining sectors force market down

MELBOURNE - The Australian share market closed lower on Monday, dragged down by weakness in the mining and energy sector as investors waited for companies in the United States to start reporting their financial results. At the...
Source: New Zealand Herald - Business | 6 Jul 2009 | 8:03 am

Media Digest 7/6/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

Reuters:   Small banks are worried that new regulations will hurt their earnings. Reuters:   A judge approved the sale of GM assets. Reuters:   Rio Tinto (RTP) sold its food packaging assets for $1.2 billion. Reuters:   The UN reports that the recession has pushed 90 million more people into extreme poverty. Reuters:   More bidders are showing an interest in a stake [...]

[[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Source: 24/7 Wall Street | 6 Jul 2009 | 8:01 am

China officials call for displacing dollar, in time

BEIJING (Reuters) - The financial crisis has laid bare defects in the dollar-led global economy and the world should look to displace the U.S. currency, even if that will take many years, Chinese officials said in comments published on Monday.
Source: Reuters: Business News | 6 Jul 2009 | 7:58 am

JJB confirms £50m rights issue amid loan storm

JJB Sports today confirmed that it is planning to raise at least £50 million in new capital to fund a turnaround of the leisure chain.


Source: Latest Business News from Times Online | 6 Jul 2009 | 7:56 am

Video game players take a shot at being frugal

Fans are devoting more time to playing, but many are buying used titles or renting them, a study finds. The trend has been a boon to such retailers as GameStop and GameFly. ...
Source: RSS feed - channel BNPaperBusiness | 6 Jul 2009 | 7:00 am

Earnings reports may reveal economic recovery's strength

Uncertain about how strong the second half of the year will be, Wall Street is hoping companies provide clues as to whether the market's spring rally was justified. ...
Source: RSS feed - channel BNPaperBusiness | 6 Jul 2009 | 7:00 am

John Wooden's still Coach, even in the investment game

The former UCLA basketball great's principles apply to life and building a nest egg for retirement. John Wooden can still identify the...
Source: RSS feed - channel BNPaperBusiness | 6 Jul 2009 | 7:00 am

Despair flows as fields go dry and unemployment rises

San Joaquin Valley farms are laying off workers and letting fields lie fallow as their water ration falls. Water...
Source: RSS feed - channel BNPaperBusiness | 6 Jul 2009 | 7:00 am

Despair flows as fields go dry and unemployment rises

San Joaquin Valley farms are laying off workers and letting fields lie fallow as their water ration falls.

Water built the semi-arid San Joaquin Valley into an agricultural powerhouse. Drought and irrigation battles now threaten to turn huge swaths of it into a dust bowl.

Source: L.A. Times - Business | 6 Jul 2009 | 7:00 am

Jackson's estate could be a thriller of a profit machine

The singer's valuable share of a music catalog including songs by the Beatles and careful management of his image in the future could expand the vast fortune he leaves behind. ...
Source: RSS feed - channel BNPaperBusiness | 6 Jul 2009 | 7:00 am

John Wooden's still Coach, even in the investment game

The former UCLA basketball great's principles apply to life and building a nest egg for retirement.

John Wooden can still identify the worst step he ever took in his retirement planning.

Source: L.A. Times - Business | 6 Jul 2009 | 7:00 am

Foreigners warm up to 'Ice Age' sequel

'Dawn of the Dinosaurs' takes in $148 million at the box office over a five-day period outside the U.S. and Canada, where it opens with $67.5 million. ...
Source: RSS feed - channel BNPaperBusiness | 6 Jul 2009 | 7:00 am

California solar-power subsidy program approaches its limit

A bill seeks to quadruple the amount of electricity consumers with roof panels may sell. The solar industry pushes to pass it. PG & E, Southern California Edison and San Diego Gas & Electric oppose

Lis Sines of Hermosa Beach loves watching her electric meter run backward.

Source: L.A. Times - Business | 6 Jul 2009 | 7:00 am

'New' GM gets the go-ahead

Judge OKs a sale of the assets, clearing the way for troubled automaker's bankruptcy to end. A federal bankruptcy...
Source: RSS feed - channel BNPaperBusiness | 6 Jul 2009 | 7:00 am

Jackson's estate could be a thriller of a profit machine

The singer's valuable share of a music catalog including songs by the Beatles and careful management of his image in the future could expand the vast fortune he leaves behind.

Michael Jackson was one of the most famous people on Earth and also one of the most famously broke. Many who crossed paths with the performer in the final years of his life -- business advisors, lawyers, a Tennessee art dealer and even a Bahraini sheik -- accused him of skipping out on bills. Jackson came within days of losing Neverland Ranch to a foreclosure auction last year, and he died owing more than $400 million to various financial institutions.

Source: L.A. Times - Business | 6 Jul 2009 | 7:00 am

'New' GM gets the go-ahead

Judge OKs a sale of the assets, clearing the way for troubled automaker's bankruptcy to end.

A federal bankruptcy judge has cleared the way for a sale of the bulk of General Motors Corp.'s assets to a new entity, opening the door for the troubled automaker to emerge from Chapter 11 early this week.

Source: L.A. Times - Business | 6 Jul 2009 | 7:00 am

Best Buy takes electric vehicles for a spin

The electronics chain starts selling scooters, bikes and Segways alongside refrigerators and video games, hoping to get in on the emerging technology.

Customers who walk into some California Best Buy stores for a cellphone might walk out with an electric vehicle. At least that's the thinking behind a test being conducted by the nation's largest consumer electronics retailer.

Source: L.A. Times - Business | 6 Jul 2009 | 7:00 am

China's elderly will overwhelm the nation

The one-child rule imposed 30 years ago has created too few young people to support the quickly expanding aging population. ...
Source: RSS feed - channel BNPaperBusiness | 6 Jul 2009 | 7:00 am

China's elderly will overwhelm the nation

The one-child rule imposed 30 years ago has created too few young people to support the quickly expanding aging population.

For three decades China's one-child policy helped power this nation's economic rise. With fewer mouths to feed, families saved. Poverty fell. Living standards improved.

Source: L.A. Times - Business | 6 Jul 2009 | 7:00 am

California solar-power subsidy program approaches its limit

A bill seeks to quadruple the amount of electricity consumers with roof panels may sell. The solar industry pushes to pass it. PG & E, Southern California Edison and San Diego Gas & Electric...
Source: RSS feed - channel BNPaperBusiness | 6 Jul 2009 | 7:00 am

Debt-heavy Univision survives the punches, at least for now

The Spanish-language broadcaster has blunted blows dealt by the economic recession and the company's legal battle with programming giant Grupo Televisa, but stopgap measures aren't solutions.

When Spanish-language broadcasting giant Univision Communications Inc. was sold for $13.7 billion three years ago, the highly leveraged deal was, in the words of one veteran banker, "priced for perfection."

Source: L.A. Times - Business | 6 Jul 2009 | 7:00 am

Best Buy takes electric vehicles for a spin

The electronics chain starts selling scooters, bikes and Segways alongside refrigerators and video games, hoping to get in on the emerging technology. ...
Source: RSS feed - channel BNPaperBusiness | 6 Jul 2009 | 7:00 am

Judge approves sale of GM assets (Reuters)

Reuters - A U.S. judge on Sunday approved General Motors Corp's bankruptcy sale in a move that will allow the company's most profitable assets to exit bankruptcy protection under government ownership.

Source: Yahoo! News: Business | 6 Jul 2009 | 6:43 am

Judge approves sale of GM assets

NEW YORK/BANGALORE (Reuters) - A U.S. judge on Sunday approved General Motors Corp's bankruptcy sale in a move that will allow the company's most profitable assets to exit bankruptcy protection under government ownership.
Source: Reuters: Business News | 6 Jul 2009 | 6:43 am

Car scrappage scheme halts sharp decline in new UK car sales

The Government's scrappage scheme has almost halved the decline in new UK car sales figures released today will show.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 6 Jul 2009 | 6:38 am

G8 shifts focus from food aid to farming

US, Japan, Europe and Canada connect food security closely with economic growth and social progress as well as political stability in major scheme against global hunger
Source: Financial Times - US homepage | 6 Jul 2009 | 6:33 am

NZ stocks: Market suffers slight drop

The New Zealand sharemarket edged lower on light volume today. The United States market was closed on Friday and futures contracts indicated a weak performance when it opened for the new week. The benchmark NZSX-50 index closed...
Source: New Zealand Herald - Business | 6 Jul 2009 | 6:26 am

Currency: Quiet start to week for dollar

The New Zealand dollar traded in a narrow range today in a quiet start to the week. The July 4 holiday in the United States at the weekend, the start of winter school holidays here and a quiet local business and economic news calendar...
Source: New Zealand Herald - Business | 6 Jul 2009 | 5:22 am

NZ workers feeling pinch of Aussie job losses

SYDNEY - New Zealand-born workers in Australia are among the worst hit by job losses as the global financial crisis bites, new research shows. Research published in The Australian newspaper said the number of New Zealanders employed...
Source: New Zealand Herald - Business | 6 Jul 2009 | 5:09 am

US lurching towards 'debt explosion' with longterm interest rates on course to double

The US economy is lurching towards crisis with longterm interest rates on course to double crippling the country's ability to pay its debts and potentially plunging it into another recession according to a study by the US's own central bank
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 6 Jul 2009 | 4:44 am

Auckland needs more houses, different story elsewhere: ANZ

Demand could push up house prices and rents in Auckland, but areas outside the main centres have an overhang of supply, the ANZ bank says. ANZ said anecdotes and talk of a shortage of housing were widespread, and it felt it needed...
Source: New Zealand Herald - Business | 6 Jul 2009 | 4:30 am

Google unveils NZ real estate site

Global tech giant Google has unveiled its latest weapon to take over all aspects of the internet, with today's launch of a New Zealand real estate mapping service . Real estate agents, f
Source: New Zealand Herald - Business | 6 Jul 2009 | 4:00 am

How to Score Group Discounts With Strangers (Deal of the Day)

Whether you're looking for a great price on a new car or a haircut, there is strength in numbers.

Many retailers will lower their rates or prices for larger groups of customers, especially during a recession. Men's Wearhouse (MW), for example, will knock $20 off per person in a group rental, and American Airlines (AMR) will lower fares by as much as 15% for a group of 10 traveling from the same city. The logic: These businesses would rather sell one thing to 10 people than 10 things to one person because more unique customers increase the probability of repeat business.

Businesses worried about slumping sales and continued cutbacks in consumer spending are more amenable to offering group discounts, says Shweta Oza, an assistant professor of marketing at the University of Miami. “You're enticing them by bringing them in more business, which they're hurting for in today's economy,” she says.

You don't have to shop with nine other people at all times to take advantage of these rates. You can form your own buying group to get deals on the items and services you want, and in some cases, you never have to meet your fellow shoppers. “Group discounts have been around for ages, but people are realizing that they don't need to leave organizing them to big affinity groups, like their employer or AARP,” says Steven Cohen, a for-hire consultant who helps clients negotiate for better deals. In most cases, all you need are a few friends — the magic number is 10, but even a few will do for pricier purchases.

Thanks to the web, even shoppers going it alone can take advantage of group discounts. Try these four sites to exercise your collective shopping power:

Freelancers Union: A free national membership organization for independent contractors, Freelancers Union has the collective buying power to offer its members deals on a wide variety of services and products, including health insurance and office supplies, through partner companies. Members can save 15% on 1-800-Flowers orders and 10% off new T-Mobile (DT) activations, among other deals.

Groupon.com: An offshoot of collective-action site ThePoint.com (see below), Groupon offers a shot at a daily promotion from a local business in each of 10 major cities, including Dallas, Detroit and San Francisco. A recent deal in New York offered a $25 gift certificate to wine-and-cheese bar Casellula for $10 — a 60% discount. The catch: Customers only got the reduced price if at least 29 other people opted in within a 24-hour window (with eight hours remaining, 543 people had signed on). Groupon won't charge your credit card unless that collective buying power is achieved, and you can adjust or cancel your order while the deal is on the table.

ThePoint.com: Browse the site's “Group Discounts” channel for deal opportunities, or post your own to attract like-minded consumers. A sampling of what's currently available: a Chicago contractor promises a 43% discount on light installation if 20 consumers sign up by the end of July, and a Boston sailboat captain is offering half-price ticket pairs for a two-hour cruise if three people join.

Twangu: Users of social networking site Facebook can download this free application which allows you to set up new group buys, or join an existing group. You stipulate how much you're willing to pay for a given item, including shipping, and after five days the service sends out the bid to vendors who may compete for your group's business. A new listing is collecting consumers who want to buy a Nintendo Wii for $200.

Consumers in large groups with a common goal don't have to go online to find group deals. They can use their collective purchasing power in person at local retailers, many of which may be willing to bargain even if they don't advertise those kinds of deals. Once you have your group, here's how to negotiate:

• Ask for a manager. Generally, they have the most leeway to offer discounts and can tell you if there's a group discount policy already in place, Oza says.

• Plan ahead. Don't expect to walk into a hair salon with nine others and negotiate a group discount on the spot. Allow a few days to come to the deal, and give the business time to prepare. (For example, that salon might need to find time to handle a party of 10, and a retailer arranging a bulk purchase may need to special-order the products.)

• Bring in new customers. Businesses may be more likely to work with you if most members of your group aren't already customers, says Robin Walker, a Chicago-based image consultant who routinely arranges group discounts for her clients. “A business doesn't want to give their existing customers a discount,” she says. “It cannibalizes their client base.”

• Maintain some perspective. How many people you need will depend on the business you approach and what you're buying, Cohen says. A big-box electronics retailer might not be moved to give five people discounts on iPods, but the store may be more agreeable if the desired item is a washer-dryer combo. On the other hand, a local mom-and-pop electronics shop could be thrilled with five new customers who only want to play their MP3s, he says.

• Think beyond cash. Not every group deal amounts to a discount. A restaurant manager might not give you 10% off for bringing in a party, but they may throw in two free trays of appetizers, Oza says.

• Detail your group. “Retailers know the value of a given client,” Walker says. So if your group is likely to make more purchases in the future, letting the seller know can only help you. For example, Walker recently talked a cigar shop into offering her clients an informational seminar and store discount by identifying them as professional men who wanted to make informed buying choices that would impress business associates. The shop knew it had a good reason to keep these people coming back to the store.

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 | 6 Jul 2009 | 4:00 am

Jobs Number Indicates a Slow Recovery Ahead

Last week's disappointing unemployment report made one thing perfectly clear: Any glimmers of hope that the economy is going to recover soon will have to remain mere glimmers for now. Even our most optimistic pundits don't expect robust improvements in employment or the economy anytime soon.

Employers cut 467,000 jobs in June, a steep increase from 345,000 jobs in May, according to the Labor Department's report on Thursday. That boosted the June unemployment rate to 9.5% from 9.4% the previous month. A small silver lining: Unemployment was expected to hit 9.6% for the month. But to market experts, that's little consolation.

"The patient is improving, but remains on massive life support," says Morgan Keegan economist Donald Ratajczak. "How anyone can say the recovery has begun when job losses per month remain higher than the highest monthly job losses in each of the two previous recessions is beyond me," he wrote in a June 29 research report.

Economic Policy Institute economist Heidi Shierholz put it more starkly: “This is the only recession since the Great Depression to wipe out all jobs growth from the previous business cycle, a devastating benchmark for the workers of this country and a testament to both the enormity of the current crisis and to the extreme weakness of jobs growth from 2000-07,” she wrote in a report Thursday.

Normally bullish economist Ed Yardeni, founder of Yardeni Research, said that even though global consumption could well pick up, the U.S. is heading toward a jobless recovery. "It’s really hard to see any sector where the prospects for employment aren’t either grim or dim," he wrote June 29. "I certainly can’t make a compelling argument for positive employment surprises in manufacturing, construction, retailing, and finance. Even government isn’t likely to be the employer of last resort given the sorry state of state and local finances."

However, many pundits believe that the worst of the worst is past. Stuart Hoffman, chief economist at PNC, said the recent barrage of economic indicators and data "paint a picture of a gradually healing economy that is in the loosening grip of a major recession." In his July 1 report, he pointed to a pickup in manufacturing last month, the sixth consecutive boost to the ISM Manufacturing Index.

Those positive gains in manufacturing bode well, but it may take a while for it to have a real impact on the economy, says Barry Knapp, head of U.S. equity portfolio strategy at Barclays Capital. "The sector likely to show the most momentum, manufacturing, is in a lull between the end of inventory liquidation and the production ramp-up," he wrote in a June 29 note. "So, while we continue to believe the recession ended in May, we may have to wait until later in 3Q09 before the macro indicators begin providing positive surprises once again, thereby driving stock prices higher."

Real quarterly profit growth remains a critical indicator. But the highly anticipated second quarter earnings reports, which kick off when Alcoa (AA) reports on Wednesday, won’t provide much clarity, says Doug Roberts, chief investment strategist at Channel Capital Research. The absence of fundamental growth and easy year-to-year comparisons to the woeful figures from last year will likely make the coming crop of earnings a less reliable way to diagnose a recovery, he says in his July Market Commentary.

"Understand that this is no ordinary bear market," says Roberts. "I continue to recommend being prepared for the worst with the possibility of being pleasantly surprised. It is far better than the reverse scenario."

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 | 6 Jul 2009 | 4:00 am

Cash for Gadgets

In good times, you just threw stuff out. But in a recession, consumer interest in both buying and selling used electronics and other goods is thriving, with a whopping 63% of thrift and consignment stores reporting an increase in revenue this year. For those of us who don't have time to create an eBay (EBAY) listing, respond to all the auction queries and ship the item, there are easier ways.

Online Buyback Services. With these services, sellers complete a short questionnaire about their gizmo's condition and receive a value estimate and a prepaid postage label for mailing the item. Once the company inspects the device, it responds with a firm offer and a check. Of course, these services pay a fraction of what you'd get for selling the same device on eBay: A used second-generation 32GB iPod Touch fetches about $300 on the auction site, while the buyback services offer $70 to $210. Trade-in values vary widely from one site to another, so compare offers beforehand.

Of the major buyback sites, Gazelle.com may have the most convenient service. It sends a free, postage-paid box and will arrange to return your item if you're unhappy with the post-inspection offer. CExchange.com and EZtradein.com sometimes offer more cash but won’t send a box or return the item for free. And BuyMyTronics.com buys damaged goods the others may not accept; for example, it'll buy your cracked-screen iPod Touch for $44.

EBay Middlemen. There are thousands of eBay “trading assistants” who will auction items for a cut of the sale. Some will even retrieve it from a seller's home or mail a check.

Again, it’ll cost you. National franchise iSold It charges commissions ranging from 33% to 40% of the sale price, for example. Locate an eBay-screened middleman in your town at ebaytradingassistant.com/directory.

Trade-in Guarantees. For an upfront fee, you can lock in your trade-in value. Several retailers and web sites offer this, but TechForward.com is the only major seller that deals with most electronics (not iPhones) no matter where they were purchased. The site sells buyback contracts that offer a guaranteed 20% to 50% of what you paid. Its fee: $20 on a digital camera, $150 for a large flat-screen TV includes a prepaid mailing label and shipping materials. A Garmin Nuvi GPS, purchased in fall 2007 for $800 would yield $160 today if you had paid $20 for the guarantee. Note that if you lose or break the item, TechForward won't buy it or refund the fee.

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 | 6 Jul 2009 | 4:00 am

Kraft's Growth Plan: Q&A With CEO Rosenfeld

Successful, polished and media-trained within an inch of their lives, corporate executives rarely surprise. But when we meet Irene Rosenfeld, CEO of Kraft Foods (KFT), she manages to shock us: Before she took the top job three years ago, she says, the amount of cheese in the flagship macaroni and cheese had dropped dramatically. Bad idea (we could have told her that). As a money-saving experiment, it was failing miserably. One of Rosenfeld's first moves? Restore the cheese content to its original level; the product in the blue box is once again “the cheesiest” — and now the price is higher too.

Tales like this have become hallmarks of the restructuring Rosenfeld began when she took charge at the $37 billion food company. She promised to revive flagging brands where she could and sell the ones she couldn't; Kraft has since jettisoned products like flavored-water Fruit2O, Veryfine juices and Post cereals. Among the brands the company retained — household names like Oscar Mayer, Jell-O and Nabisco — Rosenfeld has focused on updating the products to reflect the trend toward natural foods (see: cherry-pomegranate “Immunity” Crystal Light). Kraft is expanding internationally, too, with a recent acquisition of LU Biscuits, formerly owned by Danone. Even in weak economic times, results have been strong: Profits were up 10 percent in the first quarter of 2009.

But the challenges facing Kraft when Rosenfeld took over certainly haven't gone away. The stock is down 25 percent in the past year — better than the 38 percent drop in the broad market, but nothing to crow about. Some commodity prices are still high, and while Kraft was able to raise prices in 2008, further hikes will be tough for consumers to swallow. The weak dollar has taken its toll on revenue, which was down 6.4 percent in the first quarter. And shoppers are reaching for private-label and store brands in record numbers; private-label products have been growing four times as fast as branded products, according to the Private Label Manufacturers Association. Persuading customers to pay up for brand-name food gets even harder in a recession, says Morningstar analyst Erin Swanson. “It's a real threat, and it's worse today than it was a year ago.”

In other words, even though people are eating in these days, it's going to take more than a mac 'n' cheese makeover to keep Kraft on America's tables. We traveled to the Kraft campus in the Chicago suburbs to ask Rosenfeld about the private-label threat, revamping brands without destroying their traditional appeal and the growing push for more food-safety regulation.

With fewer people dining out, Kraft seems to be one of the few companies that could benefit from this recession.

This economic environment is as difficult for Kraft as it is for most other companies, but people have to eat. Food is a staple. As consumers are starting to eat at home more, we are finding that it benefits our business disproportionately, because when they come home, they come home to Kraft.

They're also coming home to private-label food and store brands.

In the current economic environment, we will see private labels continue to grow. Our focus is to ensure that it's not growing at our expense. Last year's results and this year's so far show we're holding our own.

Last year, when commodity prices went through the roof, you were able to raise your prices to compensate. How long will consumers put up with it?

We've got most of the price increases behind us. But it was a very significant factor in 2008, and frankly, it was the first time in a very long time we were able to pass along the high input costs.

What made last year so special?

For a long time, our brands didn't command the increase. We had sacrificed quality. When I came back in 2006, only about 44 percent of our products were preferred to the competition. Now that's up to 65 percent.

Impressive. Give me an example.

We had significant share losses in salad dressing for almost a decade. Then we reformulated the dressings with natural ingredients, took out the preservatives, made the packaging more contemporary, improved the advertising. Last year for the first time, we began to see that share performance turn around.

If you're not going to raise prices, and people can eat only a finite amount of food, where will growth come from?

We look at it as “share of stomach.” Our categories are growing because we're seeing consumers shift from eating restaurant pizza to eating frozen pizzas at home. And we're expanding into adjacent categories. We're continuing to innovate on Oreo, for example — new flavors, different package sizes, Oreo sticks and Oreo wafers. But we're also introducing things like Oreo Cakesters, which is a soft, cakey version. That allows us to compete in a whole other usage occasion.

Do you worry about competition among brands? If grilled cheese and soup isn't just lunch but dinner also, does that hurt, say, the frozen-pizza business?

The share of lunch meals or dinner meals that grilled cheese represents is a fraction of the overall servings. We have ample room to grow without cannibalizing our other dinners. We're reframing. We just launched a Planters nut bar, for example, which is one of the first snack bars targeted to men.

The Planters nut bar is for men?

Peanuts in particular and nuts in general happen to have a strong male usage profile. So the object for us is to leverage that, to capitalize on the sweet and salty properties of a nut. And at the same time, we can benefit from the trends toward grab-and-go.

Women don't want that?

We chose to target our Planters brand to men, and we are finding it's working.

For a company with such a long history, how do you maintain the legacy without getting out-of-date?

We're always looking at the formulation and the presentation of the products. A number of our packages have graphics that feel fresher, more natural, more contemporary. Triscuits, for example, are loaded with whole grains, and the ability to make the packaging itself as wholesome and natural as what's inside is a big opportunity for us.

A few years ago, it would have been hard to imagine goji berry Jell-O.

When you see the products now, it looks totally natural.

Other companies have modernized through acquisition, like Unilever buying Ben & Jerry's or Coke buying Odwalla.

In 2007 we bought LU biscuits, but that was to give us another category to compete in internationally. And it's an opportunity to compete in upper-mainstream biscuits in the U.S.

Are you still shopping?

We'll continue to look, specifically at opportunities to expand in developing markets, but I feel quite comfortable with the portfolio we have today.

Food safety must be a huge concern. Would you support more regulation, or a stronger Food and Drug Administration or U.S. Department of Agriculture?

We've been helping the agencies to decide what the appropriate regulatory position ought to be, and we will continue to be an important partner to any of the government agencies.

Do you support more staff, a bigger budget and tighter regulation?

I do. There's no question that we are suffering from the fact that the FDA was particularly hard hit over the last few years. I'm delighted that President Obama has made it a clear priority of his administration.

I have to ask: Are there products you keep around for their nostalgia value? I'm thinking, particularly, of Cheez Whiz.

In the U.S. it's not a particularly popular brand, but it's a huge product up in Canada, and that's why it's here. There is no nostalgia in our strategy.

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 | 6 Jul 2009 | 4:00 am

Stocks Head Toward Sharply Lower Open (Market Update)

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 | 6 Jul 2009 | 4:00 am

Auckland Airport defers new charges due to tough economic times

Auckland International Airport is deferring some signalled price increases because of the tough economic climate. International and domestic landing fees were due to increase 2.5 per cent and the Passenger Service Charge (PSC)...
Source: New Zealand Herald - Business | 6 Jul 2009 | 3:30 am

Protesters killed in Honduras

Ousted president seeks reinstatement, but interim government barred his plane from landing
Source: Financial Times - US homepage | 6 Jul 2009 | 3:19 am

Reserve Bank keeps up mortgage rate pressure on banks

The Reserve Bank has again raised concerns at the level of interest banks are charging on floating rate mortgages. In an analysis of interest rate margins made public today, the Reserve Bank said the pricing of floating rate mortgages...
Source: New Zealand Herald - Business | 6 Jul 2009 | 1:30 am

Numis goes back to the future in new era of stockbroking

There was a time when the City was a tight-knit market serviced by a number of middling-sized broking partnerships, often dominated by key individuals. Then came the Big Bang and a Square Mile full of huge investment banks, often American, where traditional broking was only one strand of business. Now there are signs that parts of the market, at least, are reverting to this earlier model.


Source: Latest Business News from Times Online | 6 Jul 2009 | 12:00 am

Make state-run banks invest in renewable energy, urges ex-BP chief Lord Browne

State-controlled banks such as Royal Bank of Scotland and Lloyds Banking Group should be forced to invest in renewable energy schemes, helping to kickstart a transition to a lower-carbon economy, Lord Browne of Madingley writes today.
Source: Latest Business News from Times Online | 6 Jul 2009 | 12:00 am

Telstra signs 3G deal with Vodafone

TelstraClear is set to offer mobile services via Vodafone, ending the possibility of a move to Telecom's new XT network. The Australian-owned telco has signed a three-year deal with Vodafone saying it would begin offering 3G mobile...
Source: New Zealand Herald - Business | 5 Jul 2009 | 11:00 pm

Wall Street gears up to trade California IOUs

Amid the vacation rentals and used cars for sale, browsers of the website Craigslist will now find a unique offer: for California IOUs.
Source: Financial Times - US homepage | 5 Jul 2009 | 10:33 pm

Securitisation reinvented to cut costs

Investment banks, including Goldman Sachs and Barclays Capital, are inventing schemes to reduce the capital cost of risky assets on banks' balance sheets, in the latest sign that financial market innovation is far from dead
Source: Financial Times - US homepage | 5 Jul 2009 | 10:31 pm

House-price stability on the way back

The drop in house values slowed in the year to June, says QV Valuations, though its latest survey shows mixed opinions where the market will go over the coming months.
Source: New Zealand Herald - Business | 5 Jul 2009 | 10:30 pm

'Ice Age' red-hot overseas, ties 'Transformers' at home as July 4 slows down box office

Source: L.A. Times - Business | 5 Jul 2009 | 7:29 pm

Investors' focus shifts to 2Q earnings reports (AP)

AP - Investors, whose optimism was recently shaken by surprisingly weak economic data, are now hoping companies can provide some clues about a recovery.
Source: Yahoo! News: Stock Markets News | 5 Jul 2009 | 6:05 pm

As retailers cut back cities confront 'ghostboxes' (AP)

AP - Hundreds of anxious shoppers watched as city officials used power saws to cut 2-by-4s during Home Depot Inc.'s ribbon-cutting ceremony for its 102,700-square-foot building center in Bismarck. Less than three years later, the home improvement retailer shuttered the underperforming store, leaving a big orange empty eyesore on the outskirts of town.

Source: Yahoo! News: Business | 5 Jul 2009 | 5:15 pm