Rio workers face jail as China gathers evidence Four Rio Tinto workers detained in China over espionage and bribery claims are facing nearly a year and a half in jail while authorities gather evidence against them. Source: Latest Business News from Times Online | 10 Jul 2009 | 12:02 pm Bovis scraps dividend to fund land purchases Bovis Homes, one of Britain's biggest housebuilders, announced that it would scrap its interim dividend in 2009 amid more challenging trading conditions. Source: Latest Business News from Times Online | 10 Jul 2009 | 11:44 am European stocks down ahead of expected US retreat (AP) AP - European stock markets fell Friday ahead of an expected retreat on Wall Street as investors await more direction from the U.S. second-quarter earnings reporting season. Source: Yahoo! News: Stock Markets News | 10 Jul 2009 | 11:42 am G8 to commit $20bn for food security The G8 summit will pledge $20bn over three years, $5bn more than initially expected, to boost agricultural investment and fight hunger Source: Financial Times - US homepage | 10 Jul 2009 | 11:41 am Stock futures point to lower Wall Street open (AP) AP - The stock market headed toward a lower start Friday as investor anxiety about the economy increases. Source: Yahoo! News: Stock Markets News | 10 Jul 2009 | 11:36 am Anglo American names new chairman Anglo American, which recently rejected an approach from rival Xstrata, appoints Sir John Parker as chairman. Source: BBC News | Business | World Edition | 10 Jul 2009 | 11:36 am Wallbridge Mining Defines Large IP Target on Rogers Creek Porphyry Copper-Gold Property TORONTO, July 10 /PRNewswire-FirstCall/ - Wallbridge Mining Company Limited (TSX: WM, FWB: WC7) announced today that a large Induced Polarization chargeability anomaly has been... Source: RSS feed - channel BNewsBusiness | 10 Jul 2009 | 11:30 am Securities, futures regulators to police OTC derivatives (Reuters) Reuters - Treasury Secretary Timothy Geithner is set to propose on Friday giving securities and futures regulators authority to police the over-the-counter derivatives market, according to a document obtained by Reuters. Source: Yahoo! News: Business | 10 Jul 2009 | 11:28 am Securities, futures regulators to police OTC derivatives (Reuters) Reuters - Treasury Secretary Timothy Geithner is set to propose on Friday giving securities and futures regulators authority to police the over-the-counter derivatives market, according to a document obtained by Reuters. Source: Yahoo! News: Stock Markets News | 10 Jul 2009 | 11:28 am Protect yourself from a credit card backlash There's plenty to like about the credit card reforms President Obama signed into law this May. Source: Business and financial news - CNNMoney.com | 10 Jul 2009 | 11:25 am Top Analyst Upgrades (MT, BBT, EVVV, GHL, WFR, NZ, PBR, SY, STI) These are the top pre-market analyst upgrades and positive research calls we have seen early this Friday morning with more than two hours until the market opens for trading: Arcelor Mittal (MT) Raised to Hold at Citigroup. BB&T Corp. (BBT) Raised to Market Perform at FBR. ev3 Inc. (EVVV) Started as Outperform at Baird. Greenhill (GHL) Started as Outperform [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jul 2009 | 11:24 am Stock futures fall as Chevron warning sparks jitters (Reuters) Reuters - U.S. stock index futures pointed to a lower open on Friday after Chevron Corp warned about its second-quarter earnings, raising the specter of a weaker-than-expected second-half economic recovery and anemic corporate profits. Source: Yahoo! News: Business | 10 Jul 2009 | 11:20 am Stock futures fall as Chevron warning sparks jitters NEW YORK (Reuters) - U.S. stock index futures pointed to a lower open on Friday after Chevron Corp warned about its second-quarter earnings, raising the specter of a weaker-than-expected second-half economic recovery and anemic corporate profits. Source: Reuters: Business News | 10 Jul 2009 | 11:20 am Stock futures fall as Chevron warning sparks jitters (Reuters) Reuters - U.S. stock index futures pointed to a lower open on Friday after Chevron Corp warned about its second-quarter earnings, raising the specter of a weaker-than-expected second-half economic recovery and anemic corporate profits. Source: Yahoo! News: Stock Markets News | 10 Jul 2009 | 11:20 am G8 summit tackles food supplies Leaders of G8 nations reportedly agree a $15bn effort to boost agriculture in the developing world at their summit in Italy. Source: BBC News | Business | World Edition | 10 Jul 2009 | 11:20 am Gruebel: UBS can't comply with U.S. request on secret accounts BANGALORE (Reuters) - UBS AG Chief Executive Oswald Gruebel sent a memorandum to the bank's top executives on Thursday saying the bank could not comply with a U.S. government request to disclose the identity of 52,000 secret account holders, a source familiar with the situation told Reuters. Source: Reuters: Business News | 10 Jul 2009 | 11:18 am China exec probed for leaking price strategy to Rio (Reuters) Reuters - A Chinese steel executive detained along with four Rio Tinto employees is under investigation for leaking China's "bottom line" in iron ore price negotiations, a source with knowledge of the probe said on Friday. Source: Yahoo! News: Business | 10 Jul 2009 | 11:16 am China exec probed for leaking price strategy to Rio CANBERRA/BEIJING (Reuters) - A Chinese steel executive detained along with four Rio Tinto employees is under investigation for leaking China's "bottom line" in iron ore price negotiations,... Source: RSS feed - channel BNewsBusiness | 10 Jul 2009 | 11:16 am China exec probed for leaking price strategy to Rio CANBERRA/BEIJING (Reuters) - A Chinese steel executive detained along with four Rio Tinto employees is under investigation for leaking China's "bottom line" in iron ore price negotiations, a source with knowledge of the probe said on Friday. Source: Reuters: Business News | 10 Jul 2009 | 11:16 am Geithner to crack down on derivatives Read full story for latest details. Source: Business and financial news - CNNMoney.com | 10 Jul 2009 | 11:13 am Stocks set to open lower U.S. stocks were poised to open slightly lower ahead of government reports on international trade and the University of Michigan consumer sentiment report. Source: Business and financial news - CNNMoney.com | 10 Jul 2009 | 11:10 am Toys R Us subsidiary completes note offering Toys R Us Inc. said Friday that one of its subsidiaries has completed an offering of $950 million in senior unsecured notes due 2017. The privately held toy retailer said that Toys R Us... Source: RSS feed - channel BNewsBusiness | 10 Jul 2009 | 11:09 am GM on cusp of exiting bankruptcy A leaner General Motors is close to starting a new life under government ownership after a judge denied an 11th-hour request Thursday to block the automaker's quick exit from bankruptcy. Source: Business and financial news - CNNMoney.com | 10 Jul 2009 | 11:09 am Foreclosure Rates Continue Rising and Housing Prices Continue Falling NEW YORK, July 10 /PRNewswire/ -- href="http://www.foreclosuredataonline.com/">ForeclosureDataOnline.com reports more dark days ahead for the housing market and for... Source: RSS feed - channel BNewsBusiness | 10 Jul 2009 | 11:05 am Banks could shortchange taxpayers The Treasury Department is at risk of short-changing taxpayers by not collecting enough from banks trying to get out from under the government's thumb, according to a panel that watches over the federal bailout program. Source: Business and financial news - CNNMoney.com | 10 Jul 2009 | 11:04 am German lawmakers approve 'bad bank' scheme A German bill enabling the creation of "bad banks" to help commercial and state-owned banks recover from the financial crisis cleared its final hurdle Friday with a vote in parliament's... Source: RSS feed - channel BNewsBusiness | 10 Jul 2009 | 11:00 am Earnings Outlook: IBM may keep profits steady despite sales decline The latest round of tech-sector earnings is set to begin in full force next week, with IBM Corp. set to deliver its second-quarter results with a report that could set the tone for the rest of the year for the tech sector. Source: MarketWatch.com - Top Stories | 10 Jul 2009 | 11:00 am Phoenix Marketing International Research Shows Steep Decline in Millionaires in U.S. Hawaii Maintains Lead in Millionaires per Population RHINEBECK, N.Y., July 10 /PRNewswire/ -- The Phoenix Affluent Marketing Service, a Source: RSS feed - channel BNewsBusiness | 10 Jul 2009 | 11:00 am Calamos Asset Management, Inc. Announces Second Quarter 2009 Investor Conference Call NAPERVILLE, Ill., July 10 /PRNewswire-FirstCall/ -- Calamos Asset Management, Inc. will announce earnings for the second quarter of 2009 after the U.S. financial markets close on Source: RSS feed - channel BNewsBusiness | 10 Jul 2009 | 11:00 am Class Action Against Old Republic National Title Insurance Company Directed To Proceed By Court PHILADELPHIA, July 10 /PRNewswire/ -- Class Counsel for the Plaintiffs in the Old Republic National Title Insurance Company class action suit announced the following: Source: RSS feed - channel BNewsBusiness | 10 Jul 2009 | 11:00 am Stock futures point to lower Wall Street open Markets around the world are down Friday as investors are deciding to sell amid the uncertainty about upcoming earnings reports and what they'll say about the economy. They're also... Source: RSS feed - channel BNewsBusiness | 10 Jul 2009 | 10:59 am China posts gain in monthly exports Shipments rose 7.5 per cent in June from May as Asia’s second largest economy generated its highest monthly exports so far this year while data from South Korea, Japan, the Philippines and India also showed positive momentum Source: Financial Times - US homepage | 10 Jul 2009 | 10:57 am AIG may seek millions in bonus payouts Read full story for latest details. Source: Business and financial news - CNNMoney.com | 10 Jul 2009 | 10:57 am Factory prices fall at fastest pace since 2001 The price of British-made goods fell at the sharpest pace in 8 years in June, putting further downward pressure on inflation. Source: Latest Business News from Times Online | 10 Jul 2009 | 10:56 am Less is more Diamond capital Antwerp deals with the downturn Source: BBC News | Business | World Edition | 10 Jul 2009 | 10:54 am Professional Sharks Source: Business Pundit | 10 Jul 2009 | 10:49 am UBS calls on governments to settle tax dispute UBS has found itself in an untenable position ahead of a court hearing next week, caught between U.S. demands that it release details on 52,000 clients and the Swiss government’s insistence that doing so would be illegal. Source: MarketWatch.com - Top Stories | 10 Jul 2009 | 10:41 am Prices charged by UK manufacturers unexpectedly falls in June The prices Britain's manufacturers charged for their goods fell unexpectedly in June underlining the pricing pressure on a key part of the economy. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jul 2009 | 10:40 am Hired! Take a pay cut...get a job Lower pay. Less responsibility. It's a step down, but for some determined workers, it could be a stepping stone to a better career. Source: Business and financial news - CNNMoney.com | 10 Jul 2009 | 10:36 am Declining confidence boosts dollar and yen The dollar and the yen advanced on Friday as rising risk aversion boosted haven demand for both currencies.Analysts said worries over the health of the global economy and concerns over the ongoing corporate... Source: RSS feed - channel BNPaperBusiness | 10 Jul 2009 | 10:34 am Russia region threatens to seize ArcelorMittal mines MOSCOW/YEKATERINBURG (Reuters) - Russia's Kemerovo region has notified ArcelorMittal that it will seize two of the world's largest steel maker's coal mines if production levels do not increase, the Siberian region said in a statement. Source: Reuters: Business News | 10 Jul 2009 | 10:32 am UPDATE 1-Caledon in advanced talks with two suitors -source LONDON, July 10 (Reuters) - Caledon Resources Plc , the coking coal company, is in advanced takeover talks with two possible buyers from China and India, a person familiar with the matter said on Friday,... Source: RSS feed - channel BNewsBusiness | 10 Jul 2009 | 10:31 am Earnings Outlook: Google seen posting growth, but at slower pace Despite the troubled economy and sagging prices paid for the search giant’s online advertising, Wall Street expects Google Inc. to issue an earnings report next Thursday showing profit and sales gains for the second quarter ended in June. Source: MarketWatch.com - Top Stories | 10 Jul 2009 | 10:30 am Crude retreats below $60 a barrel Oil retreated below the $60 a barrel mark on Friday as crude's recent weakness slump continued unabated. A mildly bullish mid-term outlook from the International Energy Agency did little to lift sentiment... Source: RSS feed - channel BNPaperBusiness | 10 Jul 2009 | 10:29 am Bourses lower on weak energy stocks European markets looked set to end their fourth-consecutive week in the red, as investors shifted into defensives in a choppy morning's trading on Friday.Household goods companies, retailers, and media... Source: RSS feed - channel BNPaperBusiness | 10 Jul 2009 | 10:27 am Good luck cashing those California IOUs Californians will have fewer places to redeem IOUs issued by the cash-strapped state after Friday. Source: Business and financial news - CNNMoney.com | 10 Jul 2009 | 10:22 am Chinese property prices pick up Chinese property prices rose in June for the first time in seven months but demand for Chinese goods remain weak. Source: BBC News | Business | World Edition | 10 Jul 2009 | 10:21 am The Chinese Economic Rebound May Have To Wait China’s exports fell again in June, this time by 21% according to the Xinhua News Agency. The news means that goods and services being sent abroad by the world’s most populous nation are picking up only modestly since earlier this year. China’s central government is in a race that it looks more and more likely to [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jul 2009 | 10:20 am Infineon to sell $1 billion of discounted shares Infineon Technologies AG, Europe’s second-largest chip company, announces a discounted sale of stock, its second move this week to ease balance sheet concerns. Source: MarketWatch.com - Top Stories | 10 Jul 2009 | 10:17 am Kroenke buys more Arsenal shares Arsenal director Stan Kroenke increases his shareholding in the London football club, raising his stake to 28.58%. Source: BBC News | Business | World Edition | 10 Jul 2009 | 10:14 am Oil demand forecast to rise in 2010 The Interational Energy Agency IEA expects demand to increase in 2010 even as crude look set for its steepest weekly drop since January. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jul 2009 | 10:13 am U.K. farm show folds, but some ag investors upbeat Bad weather and disease, the bane of farmers since the dawn of agriculture, are at least partly to blame for the demise of Britain’s most prestigious agricultural exhibition. Source: MarketWatch.com - Top Stories | 10 Jul 2009 | 10:13 am Day trading returns as investors look to benefit from the stock market volatility Stockbrokers report bumper trading volumes from investors. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jul 2009 | 10:12 am Trading California IOUs On The Open Market The SEC says that companies holding California IOUs can trade them like stocks or bonds by handing them over to a broker. According to the agency, “The staff of the SEC has expressed its belief that California’s recently issued IOUs are ’securities’ under federal securities law.” That means they will be traded the same way [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jul 2009 | 10:09 am Factory gate prices in steep fall The cost of goods leaving UK factories falls at the fastest annual rate for eight years as demand remains weak. Source: BBC News | Business | World Edition | 10 Jul 2009 | 10:02 am Earnings Outlook: Intel expected to post 24% sales decline Intel Corp. is expected to post a sharp drop in sales and earnings when it reports second-quarter results next week, underscoring the broad economic slump that continues to weigh down the chip industry. Source: MarketWatch.com - Top Stories | 10 Jul 2009 | 10:00 am Troubled Homeowners Slashing Prices Analysts who thinks that the housing market may rebound this summer better think again. Home sales have been slow and now there is evidence that homeowners are having so little success moving their residences that they are cutting asking prices at an alarming rate. Housing website Trulia.com reports that “the price of nearly one in four U.S. [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jul 2009 | 9:58 am Europe Markets: European shares weaken again, drugmakers pressure European shares declined for the sixth time in seven sessions on Friday, with pharmaceuticals some of the worst performers. Source: MarketWatch.com - Top Stories | 10 Jul 2009 | 9:54 am Anglo names chairman to lead Xstrata defense LONDON (Reuters) - Anglo American Plc appointed veteran industrialist John Parker as chairman on Friday, moving to bolster its leadership as it seeks to fend off an unwanted merger proposal by rival Xstrata Plc . Source: Reuters: Business News | 10 Jul 2009 | 9:49 am Indications: U.S. stock futures down before confidence data U.S. stock futures declined Friday as worries over earnings and the economy were back in the spotlight ahead of data on the trade gap and consumer confidence. Source: MarketWatch.com - Top Stories | 10 Jul 2009 | 9:49 am Anglo names chairman to lead Xstrata defense (Reuters) Reuters - Anglo American Plc appointed veteran industrialist John Parker as chairman on Friday, moving to bolster its leadership as it seeks to fend off an unwanted merger proposal by rival Xstrata Plc . Source: Yahoo! News: Business | 10 Jul 2009 | 9:47 am Nigeria rebel 'accepts amnesty' Nigerian militant leader Henry Okah accepts an amnesty offer - possibly a step towards peace in the oil-rich Niger Delta. Source: BBC News | Business | World Edition | 10 Jul 2009 | 9:43 am US Cries Foul On TARP Warrants The Congressional Oversight Panel which keeps track of the effectiveness of the TARP program claims that the government has gotten much too little for the warrants it received as part of the loans that it gave a number of banks. According to Reuters, the committee charged that “The U.S. Treasury Department allowed 11 smaller banks to repurchase [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jul 2009 | 9:39 am S Korea eyes strong recovery South Korea's economy appears to have recorded its fastest quarterly growth for five and a half years in the second quarter, according to estimates released by the Bank of Korea on Friday as it published... Source: RSS feed - channel BNPaperBusiness | 10 Jul 2009 | 9:38 am Asian shares slip; Japan shipping shares falter Asian shares erased early gains and finished Friday’s session mostly in the red, with Japanese shipping stocks foundering on concerns about lower freight rates, but several companies made strong trading debuts in China. Source: MarketWatch.com - Top Stories | 10 Jul 2009 | 9:38 am Share tips: buy M&S sell WPP More share tips compiled by Hargreaves Lansdown. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jul 2009 | 9:35 am Judge refuses to delay sale of GM A judge rejects a last-minute request to delay the sale of General Motors clearing the way for it to emerge from bankruptcy. Source: BBC News | Business | World Edition | 10 Jul 2009 | 9:32 am IEA sees global oil demand bouncing back in 2010 LONDON (Reuters) - Global oil demand will bounce back by 1.7 percent, or 1.4 million barrels per day (bpd), year-on-year in 2010, led by rising consumption in emerging economies, the International Energy Agency said on Friday. Source: Reuters: Business News | 10 Jul 2009 | 9:30 am London stocks down at open (AFP) AFP - Stocks in London were weaker at the start of trade on Friday as commodity prices beat a retreat. Source: Yahoo! News: Stock Markets News | 10 Jul 2009 | 9:14 am China economy set to show second-quarter rebound The Chinese economy likely rebounded strongly in the three months through June 30 after hitting a bottom in the previous quarter, thanks to improving domestic demand. Source: MarketWatch.com - Top Stories | 10 Jul 2009 | 9:13 am UBS (UBS) Tells IRS It Won’t Get 52,000 Client Names UBS (UBS) told the IRS and Justice Department to go to hell. The agencies want the names of 52,000 customers who may have evaded taxes in transactions with the big Swiss bank. According to The New York Times, “the Swiss government said that it would block any move by UBS, Switzerland’s largest bank and a bulwark [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jul 2009 | 9:07 am Infosys quarterly profits up 17 per cent Infosys Technologies, India's second-biggest software services exporter, reported on Friday a 17 per cent increase in its first-quarter profits as it exploited new markets and added 27 new clients, including... Source: RSS feed - channel BNPaperBusiness | 10 Jul 2009 | 8:49 am AIG (AIG) Needs To Pay Big Bonuses AIG (AIG) wants to pay a number of its “key” employees as much as $235 million. Most of the bonuses are meant to retain these people. The Washington Post reports that the reason behind the payments, according to AIG is “we needed to confront the fact that many of our employees, perhaps the majority, knew that [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jul 2009 | 8:49 am John Lewis blames Andy Murray for sales fall John Lewis, the department store chain, today blamed Andy Murray and the heat wave for a dip in last week's sales. Source: Latest Business News from Times Online | 10 Jul 2009 | 8:46 am Man cleared of using Twitter to cause a financial panic An appeals court in Guatemala City says there is not enough evidence to try a man accused of using micro-blog Twitter to cause a financial panic. Source: BBC News | Business | World Edition | 10 Jul 2009 | 8:45 am Anglo American picks new chairman Anglo American named Sir John Parker as its new chairman in a movethat seems designed aiming in a move to reassure shareholders that the mining group has a strong independent future after its the company’s emphatic rejection of a n ambitious merger offer from rival Xstrata Source: Financial Times - US homepage | 10 Jul 2009 | 8:33 am Anglo American picks new chairman Anglo American on Friday named Sir John Parker as its new chairman in a signal that the international mining group believes it has a strong independent future after its emphatic rejection of a merger offer... Source: RSS feed - channel BNPaperBusiness | 10 Jul 2009 | 8:33 am Chinese debuts hit trading limit The first two companies to go public in China since a moratorium on new listings was imposed last September saw a huge rise on their stock market debut in Shenzhen as a new share suspension system failed... Source: RSS feed - channel BNPaperBusiness | 10 Jul 2009 | 8:30 am China accuses detained Rio workers of bribery Rio Tinto today expressed "surprise" at claims made by China's state media that four of the Anglo Australian mining giant's employees bribed local workers during annual iron ore supply contract talks. Source: Latest Business News from Times Online | 10 Jul 2009 | 8:25 am Singapore ships Recession means vessels stay idle for longer in port Source: BBC News | Business | World Edition | 10 Jul 2009 | 8:18 am Media Digest 7/10/2009 Reuters, WSJ, NYTimes, FT, Bloomberg Reuters:   Pandit bought time at Citigroup (C) with a management reshuffle. Reuters:   Obama’s healthcare and climate plans are running into resistance. Reuters:   AIG (AIG) will pay more executive bonuses in July. Reuters:   The new GM will exit Chapter 11 today. Reuters:   The SEC and CFTC will police derivatives markets. Reuters:   UBS (UBS) will not comply with a US request to [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jul 2009 | 8:02 am Anglo chairman throws weight behind CEO Anglo American today confirmed that Sir John Parker will become the mining giant’s new chairman. Source: Latest Business News from Times Online | 10 Jul 2009 | 7:40 am Australia tries to limit damage over detention of Rio Tinto staff in China Australia's trade minister will meet with Chinese officials in an attempt to limit the diplomatic damage caused by the detention of four staff from the mining giant Rio Tinto. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jul 2009 | 7:39 am FTSE back at two-month lows London equities were unable to hold momentum on Friday as a stubborn lack of clarity on the prospects of an economic rebound hit resource stocks. The FTSE 100 fell 27 points to 4,131.4, a loss of 0.7 per... Source: RSS feed - channel BNPaperBusiness | 10 Jul 2009 | 7:33 am Asia Markets And Europe Open 7/10/2009 Markets in Asis were slightly lower. The Nikkei fell a fraction to 9,287. The Hang Seng was off .2% to 17,769. The Shanghai Composite was down .3% to 3,114. At the open in Europe, the FTSE was off .6% to 4,1,34. The Dax was down ..7% to 4,598. The CAC 40 dropped .6% to 3,008. Data from Reuters and MarketWatch. Douglas [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall Street | 10 Jul 2009 | 7:27 am Rio employee accused of bribery China has accused an Australian Rio Tinto executive of bribing staff from Chinese steel companies during iron ore negotiations this year, according to the Australian foreign ministry. "As understood from... Source: RSS feed - channel BNPaperBusiness | 10 Jul 2009 | 7:26 am Rio employee accused of bribery China has accused an Australian Rio Tinto executive of bribing staff from Chinese steel companies during iron ore negotiations this year, according to Stephen Smith, the Australian foreign ministerthe The Chinese foreign ministry accused a Rio Tinto employee detained by the Shanghai State Security Bureau of stealing state secrets for another country and harming China’s economic security Source: Financial Times - US homepage | 10 Jul 2009 | 7:26 am SEC, CFTC to police OTC derivatives: document WASHINGTON (Reuters) - U.S. Treasury Secretary Timothy Geithner is set to propose on Friday giving securities and futures regulators authority to police the over-the-counter derivatives market, according to a document obtained by Reuters. Source: Reuters: Business News | 10 Jul 2009 | 7:12 am Aussie stocks: Market closes positive PERTH - The Australian share market closed in positive territory on light trading volumes, driven by gains in the materials sector on the back of stronger commodity prices. The benchmark S&P/ASX200 index was up 30.8 points, or... Source: New Zealand Herald - Business | 10 Jul 2009 | 7:02 am China criticises dollar Dai Bingguo who is standing in for the Chinese president Hu Jintao at the G8 meetings raised questions over the dominant role of the dollar as the world's reserve currency. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jul 2009 | 7:01 am Billy Mays pitches from beyond the grave Two new commercials he filmed before his June 28 death will debut soon, and some older ads will continue airing. Even in death, Billy Mays' powers of persuasion will live on. Source: L.A. Times - Business | 10 Jul 2009 | 7:00 am Stocks climb on Alcoa quarterly results Firm's loss is less than expected. The broader market also gains, but so-called defensive stocks lose ground. Stocks edged higher Thursday... Source: RSS feed - channel BNPaperBusiness | 10 Jul 2009 | 7:00 am Lions Gate nominates biggest shareholder to board in anti-Icahn move Mark Rachesky, a former associate of activist investor Carl Icahn, holds 19.8% of the movie and TV studio's common stock and is a strong supporter of management. Icahn has threatened a proxy war. Lions Gate Entertainment Corp. has nominated its largest shareholder, Mark H. Rachesky, to its 12-member board as a defensive measure against activist investor Carl Icahn, who has threatened to wage a proxy war against the movie and television studio. Rachesky, a former associate of Icahn's, would replace board member Mark Amin. Source: L.A. Times - Business | 10 Jul 2009 | 7:00 am California IOUs to be shunned by big banks after today Bank of America and other big institutions plan to enforce a cutoff, making it harder to cash vouchers. To protect IOU holders from third-party speculators, the SEC defines the vouchers as securities. People holding California state IOUs -- including taxpayers, vendors and local governments -- will soon have a tougher time redeeming them, as most major banks are standing firm on a vow not to cash the vouchers after today. Source: L.A. Times - Business | 10 Jul 2009 | 7:00 am Retailers report weak June sales Hardly any sector is exempt as discounters, department stores and apparel chains report steep declines and fail to meet Wall Street expectations. Lingering worries about the economy and unemployment put summer shopping sprees on hold last month, leading to worse-than-expected sales declines at many of the nation's retailers and raising fears about the back-to-school season ahead. Source: L.A. Times - Business | 10 Jul 2009 | 7:00 am L.A. County property value drops for first time in 13 years About $1 billion in value was lost last fiscal year. But neighboring counties fared worse. For the first time in 13 years, the assessed value of all property in Los Angeles County has declined , according to a report released Thursday by the county assessor's office. Source: L.A. Times - Business | 10 Jul 2009 | 7:00 am Stocks climb on Alcoa quarterly results Firm's loss is less than expected. The broader market also gains, but so-called defensive stocks lose ground. Stocks edged higher Thursday as better-than-expected results from aluminum maker Alcoa prompted some investors to put money into shares of companies that stand to benefit if a recovery takes hold. Source: L.A. Times - Business | 10 Jul 2009 | 7:00 am Internet users heavily into cloud computing, most unknowingly Those who put photos on Facebook, send messages via Gmail or play Club Penguin are accessing programs and software files stored far away in cavernous rooms containing thousands of computers. Google Inc. made waves in the tech world this week when it announced plans to release an operating system called Google Chrome OS that would encourage wider use of something called cloud computing. Source: L.A. Times - Business | 10 Jul 2009 | 7:00 am General Motors' image could keep the brakes on sales Turning around consumers' perception of the automaker as it emerges from bankruptcy protection poses a huge challenge. Less than six weeks after filing for protection from its creditors, General Motors Corp. is expected to emerge from bankruptcy today as a leaner, greener company but saddled with doubts as to whether it can turn a profit for its new owners, the American public. Source: L.A. Times - Business | 10 Jul 2009 | 7:00 am NZ stocks: Market closes down The New Zealand sharemarket started the day slightly ahead and ended it slightly lower. The unspectacular trading came after stocks in the United States edged higher as investors bought beaten-down technology and commodity shares,... Source: New Zealand Herald - Business | 10 Jul 2009 | 6:19 am Bank of England indicates an end to quantitative easing London's money markets were left shuddering after the Bank of England gave its first firm indication that it may bring an end to quantitative easing. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jul 2009 | 5:47 am Prince's Trust launches invest and give scheme The Prince's Trust has joined forces with the City to launch an investment fund which makes taxfriendly donations to charity. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jul 2009 | 5:37 am 10 reasons to buy shares The manager of Foreign & Colonial Investment Trust gives 10 reasons why investors should have faith in shares. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 10 Jul 2009 | 5:31 am Currency: Dollar little changed The New Zealand dollar was little changed today, reflecting a hesitancy about the direction of both the global economy and financial markets. By 5pm the NZ dollar was buying US62.96c from US62.99c at 8am. It was US62.76c at 5pm... Source: New Zealand Herald - Business | 10 Jul 2009 | 5:20 am "New GM" ready to exit bankruptcy DETROIT (Reuters) - General Motors on Friday prepared to exit bankruptcy with the message that a leaner and meaner automaker ready to win back American consumers and pay back taxpayers has emerged from its failure. Source: Reuters: Business News | 10 Jul 2009 | 4:13 am "New GM" ready to exit bankruptcy (Reuters) Reuters - General Motors on Friday prepared to exit bankruptcy with the message that a leaner and meaner automaker ready to win back American consumers and pay back taxpayers has emerged from its failure. Source: Yahoo! News: Business | 10 Jul 2009 | 4:13 am The New Family Haulers This year, a record wave of recession-struck families are expected to drive, rather than fly, on their summer vacation. But they won’t be in the wagons of yore or even the minivans and SUVs of the gas-guzzling era. Instead, crossovers, a broad class of vehicles that are generally sleeker and sportier (and less of a soccer-parent stigma) than their family-car brethren, are taking over the road. Many come loaded with kid-friendly options—like third-row seating and fancy entertainment and safety systems—and get slightly better mileage. And because they’re built more like cars, with a lighter, road-hugging “unibody” construction, says Edmunds.com analyst Jessica Caldwell, their handling and stability are superior to most SUVs and vans. The shift for the Game Boy–and–gummy bear set is fairly new but growing. According to J.D. Power & Associates, minivans and large SUVs each comprise less than 5 percent of the overall car market, with the former down from a peak of 8 percent in 2000. Crossovers, with 60-plus contenders in the field, have risen to more than 20 percent. Nonetheless, times are bleak in auto land, and even crossovers face a rough road. While most start under $30,000, the tab can quickly escalate beyond $40,000 with a few extra features. While bargains and incentives have dominated the market thusfar this year, those deals will become more scarce as the leaner, meaner automakers produce fewer cars for the 2010 model year. We didn’t have time to take a full-fledged driving vacation (blame our editor), but we did take our toddler out for weekend spins in three different kinds of crossovers: a luxury “tourer,” a classic sporty model and a uniquely designed new version. We start by securing our daughter’s car seat into one of the ritziest family shuttles: the Mercedes-Benz R-Class, a mix of wagon, crossover and minivan that has been marketed as a “Grand Sports Tourer.” Sure, we’re seduced by the understated interior (leather-and-wood trim, elegant curved armrests), and extras like the rear-seat DVD system and “heat-reflecting” panorama sunroof. Plus, its low center of gravity—and German engineering—gives it the most precise, carlike feel of any crossover we drive. But we can’t help thinking that, with a starting price over $48,000, we want more. Like many crossovers, its sloping roofline steals interior cabin space; the third row, in particular, has virtually no legroom for adults. And although the diesel edition we drive proves both responsive and powerful (after a short initial lag), it’s rated at only 20 mpg—25 percent better than the conventional R-Class, but that’s not saying much, since the diesel option costs an additional $1,500. Overall, a tough sell in this market. 3 Family Haulers
Crossover	Base Price	Comment
Ford Flex SEL	$36,445	This rolling den comes with a middle-row fridge, but pickup can be sluggish.
Mercedes-Benz R320 Bluetec	55,375	A diesel engine gives it a slight mileage edge, but third row is tight.
Mazda CX-9 Touring AWD	35,745	Performance feels sporty, but fuel economy is on the low side.

Like many parents under-whelmed with the milquetoast driving manners of minivans, we’re anxious to try a more performance-oriented crossover like the Mazda CX-9. We especially like how its peppy six-cylinder engine, linked to an automatic transmission, can also be shifted manually; it’s a rare and welcome tinge of Jeff Gordon in a car that also boasts generous legroom, cargo space ample enough for a portable crib, stroller and suitcases—and a backseat video game docking station. (Note to gamers: The $1,400 add-on works only with Nintendo’s Game Boy Advance.)

With our own precious cargo in tow, we appreciate that all that perkiness comes with advanced air bags and electronic controls to help prevent rollovers. However, the blind-spot warning system, which beeps and flashes an alert in the side mirrors when it detects a car, is available only in the pricey Grand Touring edition. And it didn’t work for us in heavy rain; a Mazda spokesperson acknowledges it has some weather limitations.

But when it comes to roominess and comfort, the retro-looking Ford Flex wins hands down, as our weekend run to Wal-Mart soon confirms. While its grooved side panels and boxy design strike some as goofy, its stretched profile creates plenty of interior legroom and headroom—an effect enhanced by the four-panel glass roof ($1,495 extra). Folding down the back seat is a snap, giving us even more space for all our bags and boxes.

The plush cabin also features a bevy of toys: a voice-activated phone and media-player system, a “smart” navigation unit that pinpoints nearby gas stations with the cheapest fuel, and a DVD player mounted in the front headrests (available only in the pricier editions). Perhaps the Flex’s most unique option? A top-loading mini-fridge tucked between the middle-row seats. Granted, the ability to chill snacks has never been high on our automotive wish list, but we happily store our ice cream for the ride home and imagine the refreshing possibilities for the summer vacation ahead.

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.

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

1. “It’s good to be king—but my reign may be coming to an end.”

Since launching the iPod in 2001, Apple has been the undisputed leader in digital music players, owning 70 percent of the market. What has set the iPod apart is not only its hip, user-friendly design but also its companion iTunes music store, the first online audio megamart, offering an ever-expanding catalog of songs for purchase at the click of a mouse. This two-pronged approach has given Apple a huge lead over competitors; so far the company has sold over 120 million iPods and more than 4 billion songs on iTunes. But the iPod’s days at the top may be numbered.

At issue is Apple’s proprietary format, which up until recently has made iTunespurchased music incompatible with other non-iPod MP3 players. According to Chris Crotty, former senior analyst for consumer electronics at iSuppli, such closed systems either move toward compatibility or get surpassed by the competition. Apple has seen the writing on the wall—in January 2009, it unveiled its plan to make it easier for consumers to recode music into the more standard MP3 format. Good idea, according to the experts. “Over time the market prefers open systems,” Crotty says.

2. “Customer service is a privilege, not a right.”

Customer service isn’t what it used to be. According to Ross Rubin, director of industry analysis at the NPD Group, companies across the board are pushing “more self-service” to cut costs. But even so, he says, Apple is “pretty aggressive in terms of the consumer electronics industry.” IPod buyers, for example, get just one call to customer service during the first 90 days of ownership; each one after that will cost you. (If you want more phone time, the AppleCare Protection Plan offers unlimited calls for two years and doubles the one-year warranty.)

So where to turn for free help with your sputtering iPod? You can always visit an Apple Store—if you happen to live near one and don’t mind the wait. But the Web is the real mother lode of information. For starters, Apple’s site offers tons of troubleshooting advice and some quick-and-dirty DIYs. But for more-complex problems, the company has, in effect, outsourced customer service—to its own customers. Sites like iLounge.com and iPoding.com offer tutorials and bulletin boards where users answer one another’s questions and explain tricky repairs. And you get to come back as many times as you want.

3. “If you drop me, I’m toast.”

You’ve seen the ads—hip, young people exuberantly dancing with iPod in hand. But the reality is that the device is delicate. Apple’s edgy designs “tend to be more attractive, but also more fragile” than other players, says industry analyst Rob Enderle.

At the heart of the iPod Classic, for example, is a tiny hard drive that can stop working if it’s dropped or even knocked around. (Fortunately, the Touch, Nano, and Shuffle all use flash drives, which are more resilient.) But it’s not only the hard drive that needs careful handling—the screens on these players have been a source of trouble as well. Apple admits some of its Nano iPod screens were faulty, causing them to crack and scratch too easily, but claims the problem affected “less than 1 percent.” Patrick Destvet, a New York City psychologist, says it isn’t just a Nano problem; the color screen on his new 30- gigabyte iPod Video was scratched up after a month, making it hard to see anything on the device. “Coming from Apple, I didn’t expect this,” Destvet says.

To protect your iPod, invest in a padded case. Apple sells many, including a leather shell; other good covers include the iSkin Claro and Speck Products’ ArmorSkin sleeves. Visit store.apple.com for the best selection.

4. “When it comes to sharing music, we’re still not as flexible as you might think.”

Apple makes it very easy to load your iPod with music—iTunes software is free to anybody who wants it. But once you’ve filled your player with 40,000 songs, it’s not so easy to get them off again. Despite loosening copyright restrictions, Apple doesn’t let you move music from your iPod to another computer or other electronic devices, even though it would be legal to do so.

Fortunately, there are ways to circumvent Apple’s roadblock through third-party software that allows you to move music from your iPod back to any computer. Among the options, both Mac and PC users can download the affordable Music Rescue from www.kennettnet.co.uk; PC users can save a few bucks with iGadget, (www.ipodsoft.com). After downloading the software, you’ll be asked to plug in your iPod so the software can pull the music from your player and save it in your iTunes folder.

5. “My battery life is pathetic.”

The new iPod boasts a robust battery life of more than 20 hours. But if you look at the fine print, Apple admits on its website that “battery life and number of charge cycles vary by use and settings.” The company also warns consumers that you can recharge a battery only so many times before it must be replaced. According to The Rough Guide to iPods, the magic number is 500, depending on use. But according to Enderle, the typical iPod lasts an average of only 300 charges—and it doesn’t matter whether the battery is empty or not when it’s charged. “A cycle is a cycle,” he says.

For a few years Apple simply refused to recognize the problem and recommended that users buy a new player if the battery died. Only after a public outcry—and a class-action lawsuit—did the company develop a battery-replacement program. Now you can send back your ailing iPod and get another for roughly $60, plus shipping. Most likely, you’ll receive a comparable used or refurbished unit.

Better to extend the life of the battery you have. Do this by regularly updating your iPod’s software. Check Apple’s website for the latest version; you can download a free upgrade there. Minimize charging to when the battery is almost drained. And don’t charge your iPod in its protective case, where it can overheat and diminish the battery’s capacity.

6. “I’m destroying your hearing.”

A major selling point of digital music players is that you can tune out the world around you for hours at a time. But as you crank up your iPod to drown out ambient noise, you could be damaging your ears. According to a study by the American Speech-Language-Hearing Association, at full volume an iPod can generate up to 120 decibels, equal to the sound of a jet plane taking off. At that level you’ll begin sustaining permanent hearing loss or tinnitus after just 5 to 10 minutes. The issue is serious enough that a maximum volume setting now comes standard on all new iPods.

“Noise-induced hearing loss is easy to ignore until it’s too late,” says Pam Mason, an audiologist at the ASLHA. Extended listening at 80 to 85 decibels is safe, according to Mason. Roughly speaking, that means you should turn it down if you can’t hear someone talking normally three feet away from you or if the people around you can hear your music. It also helps to invest in a good pair of noisecanceling or noise-isolating earphones. Both types block out ambient sound so you needn’t jack up the volume as high.

7. “I’m out of date before I’m out of the box.”

In the fall of 2005, small-business owner Peter Quinones wanted to replace his iPod but kept hearing Apple was about to come out with an improved model. “I was in a holding pattern,” the Miami resident says. “You don’t want to buy something and find out a week later there’s a new product.” So Quinones waited six months, then bought a video iPod instead of the Nano he’d been considering. His new player worked with the charging cradle in his Mercedes; the Nano wouldn’t have.

All consumer tech companies have shortened their product cycles, adding innovative new features to maintain their competitive edge. But with the iPod, Apple seems to be churning out new versions at an unprecedented rate.

“It can be a nuisance for some consumers,” says Susan Kevorkian, an analyst at IDC, since some of the older accessories, such as speakers or docks, aren’t necessarily compatible with the newer models. Fortunately, Apple has now standardized the docks for the iPod, meaning future models should still work with the one you buy today.

8. “I’ve sparked a crime wave.”

You know a product is popular when it becomes a favorite target of thieves. In New York City, an increase in crime on the subways has been blamed on the iPod, as folks sporting the telltale white earphones are being ripped off in record numbers. But iPod crime isn’t isolated to urban areas. A number of college and high school campuses have experienced a rash of thefts, leading some schools to ban the device. A spokesperson for the Broward County school board in Florida says that district recently restricted the use of iPods and other electronic devices, citing theft and peer pressure to own these items as distractions to learning.

A spokesperson for the Law Enforcement Alliance of America says the iPod is a favorite among thieves because “it’s easy to conceal, it has turnover value on the street, and people are willing to buy one on the black market.” Not to mention, they’re easy to spot: “The white headphones are a giveaway,” he says, “just like flashing a fancy watch.” He recommends other earphones and not using your iPod in dicey areas.

9. “We’ll nickel-and-dime you any chance we get.”

Apple’s first fiscal quarter of 2008 was a record-breaker: The company reported new highs for both revenue ($9.6 billion) and earnings ($1.6 billion). Yet even with these impressive financial stats, the company continues to pile on extra fees for owning and maintaining an iPod.

We’re not talking about the burgeoning iPod accessories market, such as stylish cases and portable speaker systems. No, Apple has begun charging for standard equipment it once included with the cost of the player. Why? “It keeps retail prices down and drives sales volume,” Kevorkian says. Early iPod models shipped with a wall charger and a dock. These “extras” are no longer free. Want to connect your video iPod to a TV? You’ll have to buy a cord separately.

Adding insult to injury, should your iPod conk out after the warranty expires, you could end up paying as much to get it fixed as it would cost you to buy a new one—for example, the standard fee for repairs on a Nano is roughly $20 less than the cost of a new one—and that doesn’t include shipping.

10. “Once you go iPod, you’re locked in for life.”

One of the reasons Apple has been able to dominate the digital music player market until now is that while the iPod can play songs from a variety of sources, music bought online at the iTunes store can be used only on an iPod. That’s because the company developed its own format for songs, called Protected AAC, instead of using the widely compatible MP3. Crotty points out that while basic AAC is an open format, the digital rights management software Apple lays over it—called, ahem, “Fair Play”—renders it incompatible with other players. No other company is legally allowed to make a device that can play songs in Apple’s format.

The company claims AAC has many advantages over MP3, but the format also serves as the lock on the iPod’s closed door—which could lead to its downfall. “They’ve set themselves up as Apple and the iPod versus the rest of the MP3 market,” Crotty says. “Customers may get upset that they can’t move their purchased music.” The tide is already turning in Europe, which, he adds, “doesn’t accept a closed system as a business practice”: The French government passed a law in 2006 forcing Apple to allow music on the iTunes store to work on competitors’ players.

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.

10 Deals on Trips to the Casino (Deal of the Day)

As the recession weighs on consumer-oriented businesses, many vendors are stepping up their efforts to draw in customers over the summer – including the gambling industry, which is now dangling some of the most colorful lures.

Hotel rooms in Vegas are nearly half off from a year ago, and you can score a room at even a high end hotel like Las Vegas’ Venetian for less than $100 a night. (Regularly, they go for upwards of $250.) It isn’t just room bargains, either: some hotels are offering credits for restaurants, spas and golf outings, as well as free tickets to shows and nightclubs.

The reason is simple: The economic slowdown has put new pressure on the industry. In May, Atlantic City casinos reported $351.3 million in slot machine and table income, a drop of 15.4% compared with last year, according to the New Jersey Casino Control Commission. In Las Vegas, about 400 convention cancellations this year have cost the city more than $100 million in hotel income, Nevada Gov. Jim Gibbons said in a May statement.

For many tourists and convention-goers, the decision to take a trip to a gambling resort is now a higher-stakes game, as they weigh the potential to lose big against the odds of a dream windfall that could ease unexpected debts. That’s part of the reason why casinos have dialed down their prices on hotels and amenities.

Because casino resorts -- which include the hotels, restaurants, shops, shows and other entertainment -- make roughly 70% of their profits from slot machines, lost gambling revenue is particularly painful, says Chris Roberts, director of the School of Hospitality Leadership at DePaul University. “They need bodies there pumping money through those machines,” he says. “They’re hungry to get players back on the floors, and will do just about anything.”

The result: bargain-basement room rates with lots of extras, even for weekend-night stays. In Las Vegas, the average daily hotel rate is $86 -- 44% less than this time last year, according to booking site Orbitz.com. In many cases, consumers can easily save 60%, says Barbara Messing, a spokeswoman for Hotwire’s deals site Travel-Ticker.com. “These are the sort of rates you’d see in Vegas 20 years ago,” she says.

High rollers and frequent gamblers often receive free or heavily-discounted rooms, and casinos are hoping that extending those deals to the broader travel market will entice visitors to spend more at the blackjack table, says Michael McCall, a professor of marketing with Ithaca College in Ithaca, N.Y. “You’ll notice that anything that’s enjoyable and takes you away from the casino, you’ll pay a premium for,” he says. That’s also why many deals include freebies that keep you in the building. (The Venetian Las Vegas, for example, is currently offering more than $100 in restaurant and nightclub credits within the casino and its sister, The Palazzo.)

Many travelers may simply dabble at the tables or forego them altogether, but some problem-gambling groups say recession-stressed consumers should make sure they aren’t getting steered into addictive behavior, encouraged by the money they saved on their accommodations. Steven Burton, the director of The Problem Gamblers Help Network of West Virginia, says anyone headed on a casino trip should set a limit for themselves before departing.

Airfare to a casino getaway still has less to do with the condition of the gambling industry than the destination and the point of departure. However, there are some opportunities to save: Plenty of empty seats mean airlines are offering a slew of last-minute deals to Vegas. Expedia, for example, is offering round-trip flights from New York for as little as $259.

Here’s a selection of deals in Las Vegas, Atlantic City and other casino towns:

Las Vegas Deals

Hard Rock Hotel & Casino
Stay in the new Paradise Tower after its August opening to get 30% off retail, dining and spa services, as well as free entry to the nightclub Wasted Space. Room rates start at $99. To receive the discount, consumers must mention code PTOPEN1 when booking. (No end date specified.)

MGM Grand
Room rates start at $63 a night for a Grand Tower deluxe room with one king bed. Travelers who stay before Feb. 6 will receive $35 in casino credit, 25% off all spa and salon services and two free passes (valid Sunday through Thursday) for use at the nightclubs Studio 54 or Tabu. Or if they book a package including air and three nights through Orbitz.com, they’ll receive two free tickets to "Cirque du Soleil" or "The Lion King."

Planet Hollywood Resort & Casino
Travelers who book the two-or-more-night “Fuel Your Fame” package will get room rates starting at $89 a night for a Hollywood Hip room with a king bed. As part of the package, they’ll also receive a $40 gas credit, $40 in casino credit and one free bottle of liquor, wine or champagne for each night of their stay.

Venetian Las Vegas
Travelers who book a Delta Vacations package by July 31 for travel through Oct. 1 will get airfare and three nights for as little as $332. (Flight from Salt Lake City. From New York, package prices start at $468.) If they use promo code DV10621 at checkout, they’ll save another $50 off package prices. The Venetian is throwing in a $50 casino credit, a $25 credit for the Dos Caminos restaurant, a $30 credit to Zine Noodles Dim Sum, 20% off at Dal Toro restaurant, and free entry and one free drink at the nightclub LAVO, Messing says. The package will also earn travelers 2,500 bonus miles from Delta.

Atlantic City Deals

Bally’s Atlantic City Hotel & Casino
Through Sept. 30, travelers can book the “Country Club Fun” package for $159. The rate includes one night in a deluxe room with a king bed (regularly $149 and up) and $100 credit for the Atlantic City Country Club.

Showboat Atlantic City
Tourists who book the “Quick Retreat” one-night package before Aug. 31 receive rates as low as $199. The deal includes a deluxe room with a king bed (regularly $119 and up), a $150 spa credit for Vive Day Spa and Salon, and a room-service breakfast.

Trump Plaza
Guests who stay before Sept. 3 can book the “Beach Bar Package,” which starts at $159 per night. They’ll get a deluxe room with a king bed (regularly $139 and up), free admission for two to the Trump Beach Bar, plus a $20 food credit and two free drinks at the bar.

Deals in Other Cities

Mohegan Sun (Uncasville, Conn.)
Travelers who book reservations two weeks prior to their stay will save $50 off the nightly rate. (Regularly, starts at $199 for a room with a king bed.) They must mention the promotion code TADV09 when booking. (No end date specified.)

Sky City Hotel (Acoma, N.M.)
Guests can pay $45 for the Summer Day Getaway package, which includes a room with a king bed (regularly $95 and up), breakfast, a casino credit and a gift. (No end date specified.)

Spa Resort Casino (Palm Springs, Calif.)
Through Sept. 13, guests who book the “Paradise Nights Package” will receive room rates of $85 a night (regularly $89 and up), two free dinner buffet tickets and a $25 casino credit.

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.

PetSmart: A Barking Buy

NO MATTER HOW LEAN THE ECONOMY MAY BE, FIDO and Kitty are still getting plenty of treats.

American households with one or more pets -- some 63% of all households -- are on track to spend $45 billion this year on their cohabitants from the animal kingdom, up 5% from 2008, according to the American Pet Products Association. While some pet owners are scaling back, the overwhelming majority aren't: Some 81% are either increasing or maintaining their expenditures on pets, says WSL Strategic Retail, a marketing consulting firm.

That's purr-ific news for PetSmart (PETM), the nation's largest pet-supplies retailer. With more than 1,100 stores in 47 states, it has been posting some of the best sales and earnings growth in the entire retail sector. For the most recent quarter, ended May third, earnings popped 16%, and double-digit gains could well continue through 2010. Wall Street, however, appears not to have noticed. PetSmart's shares haven't kept pace with the big rally that started in March and trade at just 14 times expected earnings for next year, below the broad market's multiple of 16. Result: The stock is practically barking to be bought.

CONSUMER SPENDING ON PETS has nearly doubled during the past dozen years or so, much as Barron's had predicted ("Well, Aren't You the Cat's Meow?," April 1, 1996). The trend has been helped by two powerful demographic forces -- baby boomers becoming empty nesters, and younger couples delaying having children.

These folks and others have been pampering their pets with the best foods and toys, essentially treating them as children. Industry experts call it the "humanizing" of pets.

The phenomenon is most evident in the growth of high-end dried foods for dogs and cats. Unlike the mass-market versions, where chicken and fish in the ingredients list can mean ground-up chicken feet and chopped fish heads, today's expensive premium foods are mostly organic, with prime cuts of meat and the most expensive grains. The prices are primo, too: ZiwiPeak dog food from New Zealand costs $110 for 11 pounds, about the same as wild lake trout or a good skirt steak from your local supermarket.

Such dry foods are the largest part of the pet business, rising 12% in the first quarter and accounting for roughly 40% of industry sales. But because margins in food are relatively low, PetSmart (which four years ago morphed its name from PetsMart) is using its noggin and focusing on more profitable lines.

That includes everything from orthopedic beds and fancy collars to disposable dog diapers, pet-food cookbooks, over-the-counter veterinary medicines and such services as pet boarding, grooming and training. Its animal stylists now wash, blow-dry, clip, brush and beautify about 20,000 pets every day, and its 1,500 accredited trainers help train nearly 380,000 dogs every year.

In PetSmart's most recent quarter, sales at stores open at least a year were up a respectable 4%, only slightly below the average of the past six years. And the company expects same-store sales to continue rising in low single digits for the remainder of this year.

"Pets are on everybody's radar screen," says Philip Francis, PetSmart's chief executive. "We had a good first quarter and we see a good year. Competition in this business is increasing, but so are our sales and margins."

He isn't kidding about the competition, and that is one thing that worries the Street. Lured by the strong demand, Wal-Mart (WMT), Target (TGT) and Costco (COST) all are increasing shelf space devoted to pets. Bed Bath & Beyond (BBBY), Home Depot (HD), and even motorcycle maker Harley Davidson (HOG) plan to offer pet foods, clothing, shampoos, toys and other specialty pet products.

Still, PetSmart controls a striking 13% of the market, offers far more products than the interlopers and is entering battle on strong financial footing. With its forward-looking free cash flow yield of 12%, it has room to buy back stock, boost its low dividend yield (1.84%) and fund acquisitions.

Christopher Horvers, a senior retail analyst at JPMorgan looks for '09 earnings of least $1.55, up from $1.52 last year, and then rise another 13% in 2010. "Pet-

Smart is the best operator in this space, and the stock is a good buy," he says, adding that he looks for the shares to rise 29%, to 28, within 12 months or so.

With numbers like that, investors could do a lot worse than let things go to the dogs.

The Bottom Line
Thanks to the improved profit margins, strong cash flow and an unmatched array of products, PetSmart's stock could climb by 29% during the next year or so.

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.

5 Contrarian Investment Ideas (On the Street)

There's nothing better than being smarter than the market. Anyone who put cash to work in equities in early March, when stocks were notching a 12-year low, looks like a genius today. The contrarians on equities at the time -- those who were greedy for stocks when others were fearful of them -- have done very well for themselves. The Dow Jones Industrial Average and broader S&P 500 are up 25% and 30%, respectively, since that terrifying second week of March.

Make no mistake: Market timing is not an investing strategy (unless you have a crystal ball), but zigging when the rest of the world is zagging most certainly is. After all, the whole point of investing is to find assets that are mispriced -- to go against the grain of the market's conventional wisdom -- and profit from its miscalculations.

See our 5 contrarian investment ideas

The rally in stocks appears to have petered out recently. And the corporate bond market looks ready to take a breather, too. Oil prices are tanking; the dollar is in the dumps (or as one investor put it to us, "cash is trash"); and interest rates are so low that savings accounts, CDs and money-market mutual funds can't generate anything but the most pitiful returns.

But it's at times like these, when nothing seems to be working, that contrarian ideas can be the best ideas. With that in mind SmartMoney surveyed market professionals to suss out their favorite out-of-favor ideas. Here, then, is a look at five contrarian picks for your portfolio.

The Dollar: Don't Diss the U.S. Dollar -- Yet

As the U.S. government goes hat in hand to borrow money to help pay for its unprecedented deficits, the rest of the world -- also known as our creditors -- is understandably worried. The forecasted recovery in the U.S. economy looks to be tepid at best, and with short-term interest rates targeted at essentially zero, a massive bout of whiplash inflation seems inevitable.

That's the conventional thinking on the dollar anyway, which investors are dumping in droves. The U.S. Dollar Index, which measures the greenback against a basket of major currencies, is off 10% from its 52-week high set in early March.

Long term the dollar looks to have plenty of challenges, but short term it looks good to Brett D'Arcy, director of investment research at CBIZ Financial Solutions (CBZ), a Cleveland-based financial-services firm. "While we do believe in the threat of inflation domestically, which is not good for the dollar, we think the overriding theme is that the U.S. will come out of this global recession better and faster than the rest of the world," he says. "And there will come a time in the next six to nine months that the Fed will raise interest rates. Both of those are very dollar-strengthening."

Health Care: Healthier Than It Looks

Health-care stocks are defensive: They're supposed to hold up better when the rest of the market falls ill. That's certainly been the case over the last 52 weeks: The health care sector might have lost 17% during that time, according to Capital IQ, but only one sector -- consumer staples -- performed better (down 15%). Meanwhile, the broad market lost 30%.

But now that the market's appetite for risk has returned with a vengeance, defensive stocks have fallen out of favor. Indeed, on Thursday analysts at Bank of America-Merrill Lynch (BAC) warned clients that health care stocks have become a value trap, which is a way of saying: Sure, they look cheap, but they'll probably underperform. And then, of course, there's the overhang of the Obama administration's proposed health care reform.

Doug Roberts, chief investment strategist at Channel Capital Research, a Shrewsbury, N.J., investment management firm, disagrees. "Everyone says health care is going to lag because it's defensive," Roberts says. "But the recession isn't over yet."

Even more important to Roberts, the health-care sector's gross margins are "huge." At 40%, they're second only to telecommunications' gross margins, according to Capital IQ, second only to telecommunications -- and far ahead of every other major sector of the S&P. And as far as health-care reform goes? "The only thing that could be a problem is if they create a Canadian-style system," says Roberts, "but I don't think that is in the cards."

Municipal Bonds: Stimulus Projects Boost Prospects

California is facing a whopping $24 billion budget crisis. New York State is grappling with an unprecedented $13 billion budget gap. Hawaii is furloughing state employees to save money, Idaho cut aid to public schools and other states are initiating taxes on everything from candy to alcohol to cellphone ring tones. In total, states are facing a budget gap of $121 billion in the coming fiscal year, according to the National Conference of State Legislatures.

The fiscal nightmare playing out in towns, cities and states across the country hardly makes municipal bonds look like a good bet these days. Just don't tell that to Bill Walsh, president of Hennion & Walsh, an investment manager in Parsippany, N.J. "No one is saying buy municipals right now, but historically the default rate is nominal, it's nothing," he says. Also, don't forget that the Obama administration is almost certainly going to raise taxes -- and munis are tax free, a huge plus, he says. Then there's all that stimulus money going into building infrastructure -- yet another boon for munis.

However, a great deal of due diligence is in order before jumping into munis, Walsh says. Muni default rates are low, but some of them still do go bust. Walsh says stick with single issue, general obligation bonds for essential things like sewers, sewage treatment and water. Munis are also relatively complicated for the average investor. "You can pick them yourself but for the most part you need an advisor," Walsh says.

Junk Bonds: Feeding Investors’ Appetite for Risk

When stocks go up, bonds are supposed to go down -- and vice versa. That's why one of the stranger things to come out of the recent equity rally is that corporate bonds have gone gangbusters, too.

Risky,  high-yield corporate debt (bonds issued by companies with less-than-stellar credit quality, or junk bonds) have shot up 30% since the S&P 500 bottomed in March. With corporate earnings expected to plunge another 35% to 40% in the second quarter alone, according to Thomson Reuters, this high-risk bond rally really seems rather overdone.

But that hasn't dissuaded Joe Clark, managing partner of Financial Enhancement Group of Anderson, Ind., from buying more of HYG, the iShares iBoxx $ High Yield Corporate Bond (HYG) exchange-traded fund. "I really believe that you will see debt produce returns this year like stocks do in a normal year," Clark says. "We were worried that as a lot of this debt was issued this year that you would see corporate bonds really get hit. And it's been the exact opposite." The market's appetite for this stuff seems insatiable at the moment, he says, and until it's sated investors should go with the returns.

Blackstone Group: "Brains, Bucks and Culture"

It's a distant memory today, but in the summer of 2007 private-equity shops were the undisputed Masters of the Universe. Cheap credit and cash-rich corporate balance sheets made private equity-led leveraged buyouts a booming business -- and a seemingly endless money machine for these outfits. Naturally that caused great excitement when private-equity big shot Blackstone Group (BX) went public in June 2007 at $30 a share. But woe unto those investors who jumped on the bandwagon back then. Blackstone's shares are off 75% since going public (and were down nearly 90% as recently as February).

So what's to like about Blackstone? "They have the brains, the bucks and the culture," says Karl Mills, president of Jurika, Mills & Keifer, and manager of the Counterpoint Select Fund (CPFSX). "They went public at the top of the market. That was brilliant."

Meanwhile, while the rest of Wall Street is going through an identity crisis trying to sort through all the recent shotgun mergers, acquisitions and bankruptcies, Blackstone's culture remains fiercely focused and unchanged, Mills says. And finally, there's the bucks: "They're sitting on a war chest of about $27 billion in cash, they have a thriving asset management business, a growing mergers and acquisition business, and they took no TARP money," Mills says. The bottom line? Blackstone is poised to scoop up tons of distressed assets (commercial real estate, for example) at fire-sale prices.

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AIG to pay more executive bonuses July 15: source

SEC calls for Calif. IOUs treated as securities (AP)

Health care reform won't be cheap

Does the economy need more?

It is time to reintroduce a licence to thrill in the classroom

Partners’ profits down by tenth at Allen & Overy law firm

Banks start loosening mortgage restrictions

Game, set and match to televised sport online

E-procurement champion fights for action

Cook Islands tax dodge closed

Write-Offs: 07.09.09

$$$ Citadel Sues Former Workers Who Started Firm That Hired Sergey "Dancing Feet" Aleynikov [Chicago Business]

$$$ City whizkid/Deutsche Bank employee 'was completely normal' just hours before jumping to his death from roof-top restaurant [Daily Mail]

$$$ Analyst Says AIG's Equity May Vanish [Dealbook]

$$$ Bernard Madoff "is doing OK," said lawyer Ira Sorkin [TDB]

$$$ "We are embarrassed and disappointed by our 2008 performance, and we feel an obligation to you to turn this around," wrote Mr. Feinberg. "But we just don't know when and how much pain we must take before that happens." [WSJ]

Presented By:

Auckland vistor numbers plunge 8pc in new stats

Chevron says Q2 hit by U.S. refining, weak dollar

Tribe plans to spend $80m on luxury hotel

GM cleared to exit bankruptcy

Analyst Aggarwal Sees Signs of Amazon's Margin Expansion

Bernard Madoff: No appeal against 150year sentence

Fed warns on Congressional scrutiny

NZ Shares: Early gains by local market

Lloyd’s of London plans strategic revamp

Govt could back Air NZ flights to Cooks by up to $1m

Over 15,000 Going After Bernie's Remains

The count is now set for what will be the world's largest game of Hungry, Hungry Hippos. A total of over 15,400 claims made it in by the July 2nd deadline to get a piece of what is left of King Ponzi's empire.

15,400 File Claims in Madoff Ponzi Scheme [NYT]

The Dow Jones industrials' moves since Lehman fall (AP)

How the major stock indexes fared on Thursday (AP)

How the major stock indexes fared on Thursday (AP)

Treasurys fall as investors return to stock market (AP)

Lawyers back watchdog's stance

Fed Not Buying What The White House Is Selling

Team Fed is truly out in force today. In addition to Elizabeth Duke's warning to TARP banks, and Fed Vice Chairman Donald Kohn's caution on reduced Fed independence, Minneapolis Fed president Gary Stern gave the least ambiguous message that the White House is on the wrong path as he addressed the administration's plans to handle the too-big-to-fail issue.

"While regulatory reform is appropriate at this juncture, the Treasury proposal fails to come to grips with" the danger posed by the failure of a large firm, Stern, 64, said today in the text of what may be his final speech as a policy maker. The plan "will leave the financial system susceptible to future bouts of resource misallocation and serious instability,"

To eliminate any confusion arising from what he meant by Treasury's proposal failing, Stern added

"There is little reason to think that these steps will, individually or collectively, succeed in reining in" the too- big-to-fail problem,

One can only hope that this is the beginning of the 'Save the Beard' campaign from Team Fed as they ratchet up their efforts to keep the White House's chief narcoleptic right where he is.

Stern Says Financial Plan Opens Way for 'Instability' [Bloomberg]

Portales's Peabody Says McQuade Will Be Citibank `Fix-It Guy'

Putting A Price On Adultery

Did South Carolina Gov. Mark Sanford consider the cost of his affair? Photo illustration by Lindsay Powell from images by Davis Turner/Getty Images and iStockPhoto

Why do politicians even bother having affairs? Every time another one hangs his head and apologizes to the citizens of the great city/state of Anywhere, USA, we all loudly wonder what he could possibly have been thinking. Didn't he know he'll get caught, put his family through hell, exhaust all of us with the details and jeopardize his career? The costs are so great, how could the affair possibly be worth it?

These questions assume that cheating is a choice -- and a rational one at that, with the chooser considering potential costs and benefits. You know who loves rational decisions like this? Economists.

I've been working on story that asks if economics can add to our understanding of extramarital affairs. I put a shout out on the interwebs that I was looking for people who have had affairs and had considered economic calculations. I figured I'd get two or three responses. I exceeded my inbox quota (which, granted, is way too small.)

Many of you described rational financial considerations. You ended affairs, avoided affairs or left marriages because you were protecting your own economic interests. Then there were those of you who described huge financial costs that made carrying on an affair seem deeply irrational. Hotels, airfare, cell phone contracts and apartments. One philandering CEO in New York City told me:

As JP Morgan said about owning a yacht, if you have to ask how much it costs, you can't afford to own one.

Karen Krebsbach described a three-year affair with a married man in Caracas, Venezuela, that seemed to work against her financial interests. She says the money stuff was complicated thanks to cultural and international differences:

Since I was presumably the more "wealthy" partner, I was expected to come up with a great deal of the financial support of our dates, including when we traveled.

When I put the question of economics and affairs to economist Simon Johnson of Baseline Scenario fame, he wondered about effects of a recession on the frequency of affairs:

People have less cash, but more time on their hands. Also, business travel is down and junkets frowned upon (doesn't a lot of this sort of thing start on trips)? But domestic pressures over money are higher (and maybe a spouse loses a job...). Which way does it go?

That's a question for you, I think.

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Treasury Seeks 'Plan C'

The U.S. Treasury is working on "Plan C" for saving the U.S. economy, reports the Washington Post:

Informally known as Plan C, the internal project is focused on vexing problems such as the distressed commercial real estate markets, the high rate of delinquencies among homeowners, and the struggles of community and regional banks, said government sources familiar with the effort.

Part of the mission is assessing which firms are the most vulnerable and trying to decipher what assets these companies hold and whether they pose a danger to the wider financial system. Plan C is a small-scale, relatively informal approach to a problem the administration hopes to address in the long term by empowering the Federal Reserve to oversee systemic risk.

Officials tell the post this is a sign of the government moving into a new phase of the recovery, one in which it acts preemptively.

Bonus: Simon Johnson on commercial real estate asking for a bailout.

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Lenny Dykstra Tells His Side Of The Story

Since Jim Cramer won't defend (and take the blame for) Lenny Dykstra's run of bad luck, Nails will just have to do it himself. He did so this afternoon. One thing you can be sure of: LD is not alone. Tons of awesome dudes have gone bankrupt and then pulled themselves out it to do great things. Unfortunately, slavery has already been abolished, so we're going to have to come up with something even better for our main man.

Although I am saddened and a bit embarrassed that I had no choice but to resort to this action, at least I am in good company. . . .

Two of our greatest presidents, Thomas Jefferson (filed several times) and Abraham Lincoln, were able to restructure their lives through bankruptcy and went on to do great things such as helping to establish the University of Virginia and abolishing slavery.

Ulysses S. Grant went bankrupt after leaving office when a partner in an investment-banking venture swindled him. (I can certainly identify with this one.)

William McKinley filed for protection while serving as Ohio's governor in 1893. He was in debt to the tune of $130,000 (an insurmountable sum in those days!) before some friends eventually helped to bail him out. Three years later, he occupied a desk in the Oval Office.

Other prominent men who made the list and later went on to huge successes:

- Mark Twain

- Donald Trump (2 timer)

- Henry Ford

- William Crapo Durant (founder of GM)

- Walt Disney (up to bat several times)

- Burt Reynolds

- H.J. Heinz

- Milton Hershey

- P.T. Barnum

- Lenny K. Dykstra (coming soon!)

Ulrich Says China Savings Rate Is Up to 40% of GDP

Lenny Dykstra: Pretty Sure Donald Trump Has Filed For Bankruptcy Six Times

And you people are on his ass for just one? Also, WaMu apparently caused Nails to lose $38 million.

ABB Raised to `Buy' at Citigroup

News Corp firestorm over phone allegations

Virgin America plans shake-up

DryShips Plays Acquirer (DRYS)

Fed Governor Encourages Firms To Love TARP Just A Little Bit Longer

As the White House tries to get its story straight about whether or not it misread the severity of the recession, Federal Reserve Governor Elizabeth Duke threw out a word of caution to the banks still in TARP jail at risk of confusing a multi-trillion dollar sugar high with better economic conditions. After reiterating the party line of 'things aren't completely falling apart but that's about it', Duke provided some food for thought for the remaining bailout boys looking to rid themselves of government's death grip.

"If you have already received TARP capital, consider holding it in reserve for a little longer, at least until conditions are more favorable," Duke said. "Once you repay the TARP investment, it likely will not be available again."

It will be heading back out the door to pay the mortgages of the unemployed.

Fed's Duke Says U.S. Economy Is Stabilizing at a Low Level [Bloomberg]

Weak retail sales in June raise worries (AP)

AP - After yet another weak month, retailers are preparing to fight for their share of crucial back-to-school shopping. But they may have to keep discounting to keep consumers coming in, given escalating job uncertainty.

Ruth Madoff Hiding Out On Long Island?

Sponsored Topics: Long Island - Bronx - NEW YORK - United States - Business and Economy
Source: Dealbreaker | 9 Jul 2009 | 7:58 pm

Legal Roundtable Addresses Corporate Directors' Accountability

Lenny Dykstra Recommends Private Planes

We honestly did not mean to make this Lenny Dykstra Day but the glory that is Nails demands it. This next one, brought to our attention by one of your own, is a track from LD's greatest hits, wherein Big D makes the modest suggestion that your quality of life would improve immensely by flying private. The fact that his Gulfstream II was impounded in February makes it a bit bittersweet, but, as previously stated, LD is not bankrupt and will make it back. Since he was let go of his gig at TheStreet.com by faux friend Jim Cramer, (pictured above with Nails in happier times), we are putting it out there that there is a columnist gig for Len here at DB. I know we make the offer to a lot of people, usually jokingly, but after reading this contribution to literature we are dead serious. This will be a paid position, and perks are included but not limited to all the dip LD could ever desire.

Private Jets Take Hassle Out of Flying

12/02/08 - 09:21 AM EST

Lenny Dykstra

I know that I don't have to tell any baseball fans this, but I thoroughly enjoyed my time playing in the major leagues. In fact, I loved every second of it. Who wouldn't?

But like many professional athletes, I had to adjust to life after the major leagues. You've read about how some athletes find this to be a horrible struggle, out of the limelight, not really sure of how to spend their days.

I was lucky in that I had businesses that I set up for myself, and after I trusted a broker who lost $1.6 million of my hard-earned money, I learned how to handle my own investments. I was fulfilled away from the field. But I will tell you that even with minding my businesses and my investments, I had a few shocks to adjust to.

One of them was taking a commercial flight.

Flashback to Latin America's dark past

Lenny Dykstra: "I'm Not Bankrupt"

"I filed for Chapter Eleven. That's reorganization. That's not bankruptcy." Do you see the distinction? Also, Nails tells CNBC's Jane Wells, "I'm still making money in the stock market."

Earlier: Is Jim Cramer Trying To Keep Lenny Dykstra's Bankrupcty Hush-Hush?

Why You Can't Trust The New Job-Loss Numbers

The pink line is misleading. Click for a larger version.

 

The Department of Labor released its weekly unemployment insurance claims report today, which says there were 565,000 new jobless claims the week ending July 4. But that's not the actual number of jobless claims -- it's the seasonally adjusted number. Actual jobless claims for that week were 577,506.

Welcome to one of the weirder corners of labor statistics.

There are really two ways of looking at today's report. Everyday folks can look at it to try and find out how many new people claimed joblessness in the past week. But what Labor Department researchers want to see is whether the economy is going along as they predict it should in any given month. Their predictions follow seasonal trends. For example, the unadjusted number of claims always spikes in January, since temporary holiday workers are laid off at the end of each holiday shopping binge.

The Labor Department adjusts the jobless claim numbers based on those patterns. Any variation on top of that is what's unpredictable. The more the jobless numbers change week-to-week after seasonal trends are factored in, the more unpredictable the job market. In a perfect world, the pink line on the chart above, for the adjusted number, would be flat -- the Labor Department would be able to predict any factors affecting claims and account for them.

Of course, we're not in that world, and the recession has made the job market markedly unpredictable. As you can see from the chart below, adjusted jobless claims are way up from last year.

Note the gap between last year and this year. (Numbers are seasonally adjusted.)

 

Here's the deal with today's numbers: the Department of Labor is still using the old formula. It factors in the typical pattern for July, when auto companies lay off workers and retool their factories to build cars for the next model year. This year, so many auto plants closed earlier that there are far fewer July auto layoffs. But the department's formula still factors them in -- it expects those layoffs to happen. Department researchers know the problem exists, and they've been telling reporters not to make too much of today's figures.

Economists generally use the weekly numbers to get a bead on the monthly jobs report -- the one that just clocked in at 9.5 percent unemployment. Now, writes economist Ian Shepherdson, the weekly data will be "meaningless" for the next few weeks. As a result, it will be hard to know if jobless claims are actually going down because the recession is easing or because the formulas can't account for the recession.

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House Considers Bill To Protect Auto Dealers

The House of Representatives is considering a bill to reverse the closings of Chrysler dealerships and block GM from closing over 2,000 more. The bill, known as The Automobile Dealer Economic Rights Restoration Act of 2009, has already cleared the House Appropriations Committee. From Bloomberg:

"I don't think Chrysler or GM has been able to demonstrate there is savings associated with fewer dealerships, since the dealers themselves bear the cost of operating their dealerships with little help from the manufacturers," said Representative Steve LaTourette, an Ohio Republican who sponsored the amendment. "It's the most un-American thing for the government to help force you out of business."

GM spokesman Greg Martin said the amendment would "nullify" bankruptcy court-approved plans to pare the company's dealer network and "put our long-term viability at risk." He said GM intends to close about 2400 dealerships in October 2010, leaving the company with between 3500 and 3800 outlets.

General Motors is expected to exit from bankruptcy proceedings as early as tomorrow. The entire House will likely take up the bill next week. It will then move on to the Senate.

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Broadcom drops hostile bid for Emulex

Retirement Will Become a Thing of the Past

Will we work our entire lives? The Economist’s The End of Retirement addresses this question. It discusses how demography in rich countries will affect the way corporations and governments react to retirement:

WHEN Otto von Bismarck introduced the first pension for workers over 70 in 1889, the life expectancy of a Prussian was 45…(By) 1935, when America set up its Social Security system, the official pension age was 65—three years beyond the lifespan of the typical American. State-sponsored retirement was designed to be a brief sunset to life, for a few hardy souls.

Can governments make sure this inevitable adjustment goes smoothly? In the recent past some policies have bordered on the demographically insane—for instance “job-creation” schemes that encourage older workers to take early retirement. Many things that make sense anyway, such as making benefits more portable, encouraging immigration, promoting private saving or reforming health care, make even more sense now. Banning mandatory retirement ages in the private sector (as America has done) looks sensible, as does creating conditions in which people can retire more gradually. Above all, the retirement ages for state pensions need to be put back. Recent increases to 67 or 68 are doing no more than compensate for the likely rise in life expectancy: 70 would be a better figure. So far only Denmark has taken the radical step of indexing the pensionable age to life expectancy.

More.

The article mentions how some corporations have worked around their bias against older employees. In Japan, for example, some big companies re-employ staff after retirement, but in different, lower-paying positions. Wal-Mart and McDonald’s hire retirees “because their customers find them friendlier and more helpful.” The author adds that when the overall labor force starts declining around 2020, employers will have no choice but to hire pensioners.

If The Economist’s model is actually the case, then there’s no point in accepting retirement as a concept anymore. The old model, which involves working really hard, saving up, and then enjoying the fruits of your labor, doesn’t make sense if you have to work into your 70s and 80s anyway. Why work hard in your youth if there’s no retirement? So you can quasi-support yourself while working part-time at McDonald’s?

If The Economist is right, then our society’s concept of work could radically change in the next decade or so. I’m not sure that it’s for the better.

U.K. paper accused of phone tapping

Michigan finds job hope in clean energy

Accountants are the new cool kids

Economy needs more stimulus money

Market springs up for California IOUs

Mass. loses big bucks on film tax breaks

Ecuador seeks credit for conservation

Retail sales continue steep decline

Retail's Down, But Not Piggy Banks

In Greater Chicago, hot items. Apripom via Planet Money Flickr pool

 

Climbing unemployment and unseasonably cool weather are being blamed for low sales numbers at the nation's retailers. Worried about keeping their jobs, people aren't rushing out for shorts and swimsuits that suddenly don't seem so crucial.

According to the Goldman Sachs Retail Composite Index, industry sales fell 6.7 percent in June. Luxury stores were hit particularly hard -- Neiman Marcus reported a 20.8 percent drop and Nordstrom sales fell 10 percent. But even discount stores weren't spared a hit. Sales at Costco fell 6 percent, Target 6.2 percent and Kohl's 5.6 percent.

One area of the retail sector that is seeing growth -- sales of piggy banks and other coin saving gadgets. David Mauer, CEO of EB brands, says his company is having trouble keeping its digital coin counting jar on shelves. The product sold out in the fourth quarter of 2008, and Mauer says he hasn't seen a slow down yet. The company sells different models of the jar, but Mauer says the $10 to $15 models are most popular.

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Cecala Sees U.S. 30-Year Mortgage Rates Falling Below 5%

Can Food Spending Stimulate the Economy?

The federal government is ramping up the food stamp program by $20 billion. Now known as the Supplemental Nutrition Assistance Program, the expansion amounts to about 13 percent. This increased spending is hoped to stimulate the economy, but who will it really benefit?

Emory University finance and economics professor told NPR:

“This injection of funds ends up being spent on food, and that has a multiplier effect through the economy. As more people are employed in grocery stores, more people are employed to make the food, more people are employed to grow the food as a result of that stimulus.”

Will Increased Food Spending Really Help the Economy?

Economists say that every dollar spent on food will create a ‘multiplier effect’ resulting in $1.50 to $2 in stimulus. Experts, including Mark Zandi, chief economist with Moody’s Economy.com, agree that while it is difficult to measure the effectiveness of the plan, the food stamp increase is a good way to nudge the economy.

I’m no expert. But it doesn’t make a whole lot of sense to me.

• People receiving food stamps are presumably getting enough to eat, whether the food they consume is purchased with the federal benefits they receive, picked up at a food bank, or purchased with cash.
• I’m not saying increasing the benefit won’t make lives easier, but will increased spending really create jobs?
• With a limited food budget, there’s not much room for convenience foods. If you’ve only got a few bucks, you’re going to opt for the dry beans versus the cans. And forget about prepared chili.
• More to spend on food means more convenience foods. Therefore, forget the beans - go for the chili. Does the processing of convenience foods create more jobs? Maybe. 
• I wonder if instead of stimulating the entire food industry, there are certain large companies that stand to benefit from this particular stimulus.
• I also wonder how much better off we’d be if we taught people to grow some of their own food. But that wouldn’t stimulate the economy. Or would it? Seed sellers, home improvement stores, and natural food cookbooks would surely benefit.

On the other hand, maybe given more money to spend on food, people will actually eat more, and the whole scenario will play out as the economists predict. Either way we’ll probably be fatter. Then we can spend our money on healthcare. And that’ll create jobs too.

Image Credit: KitAy, Flickr

Beemer Sees U.S. Consumers Shifting to Lower-Priced Stores

Merkle Sees U.S. Auto Industry Recovery as of 4th Quarter

UBS's Hatheway Sees Gradual Fed Rate Increases After Mid-2010

Milligan Calls U.S. Treasury Toxic Asset Program Too Small

Study: Reminding Consumers about Savings Makes Them More Likely to Buy

The results of this study may seem obvious, but they’re a good reminder of how customers buy, especially during recessions. From the Chicago Journal of Consumer Research:

When we choose to spend $10 more than usual for a bottle of wine, we’ll have $10 less to spend on an appetizer, a dessert, or ten songs on iTunes. That’s known as the “opportunity cost” of that choice. A new study in the Journal of Consumer Research looks at the benefit of drawing consumers’ attention to opportunity costs.

According to the authors, IKEA employed this cueing strategy brilliantly in an ad campaign showing an unhappy woman next to an expensive custom cabinet containing one pair of shoes opposite a modestly priced IKEA cabinet
overflowing with shoes. “Given that consumers who bring to mind opportunity costs become more price
sensitive, manufacturers of less-expensive brands interested in increasing price sensitivity may promote their products more effectively by reminding consumers to consider the opportunity costs,” the authors write.

New jobless claims at lowest level since January

From Stimulus To Climate Change, Modest Returns

Recessions have a miserable tendency to curb everyone's ambitions. Four examples:

President Obama's $787 billion economic stimulus plan may not be big enough to offset the loss in jobs, and in any case a disproportionate share of its transit spending is going to rural areas instead of the major metropolitan areas at the heart of the American economy.

California, facing a $26.3 billion deficit, is struggling to pay for all the punishment its lawmakers (and citizen lawmakers) want meted out to criminals. It has turned loose dozens of parole violators with less than 60 days left on their terms.

The U.S. Treasury is dialing back its Public Private Investment Program -- PPIP -- from a possible $1 trillion effort to vacuum toxic assets (uh, Legacy Assets) off bank balance sheets. It'll now be more of $30 billion program, mostly due to lack of market interest now that the banking system isn't quite at death's door. Among the major players to bail was bond giant PIMCO, with very little in the way of explanation.

At the G8 summit in L'Aquila, Italy, negotiations over combating climate change led to UN Secretary General Ban Ki-moon blasted rich nations for not providing enough incentive and support to emerging nations like China. Currency analyst Marc Chandler notes there's been no particular progress on any of the debate about whether the dollar should remain the global reserve currency. "The G8 draft indicates support for a 'stable' and 'well-functioning' international monetary system," he writes. Sounds like a plan.

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7 Essential Items For Any Executive Desktop

This is not a list of executive toys, gadgets or gimmicks, just top of the range products that will not only help you do your job better, but make you look good while you’re doing it. All items outlined below are made from the finest materials, with absolutely no expense spared. Quality like this does not come cheap, but it’s worth investing in the best if you want to promote an impeccable corporate image to colleagues and competitors alike.

1. Kiki James Classic Bridle Journal

If organization is the key to success, then this top of the line personalized journals, handcrafted in the UK from the finest Italian bridle leather, will surely unlock riches beyond your wildest dreams. The colour-contrasting red ribbon completes a stylish, yet timeless look.

2. Montblanc Meisterstück Pen

From Caran d’Ache to Visconti, Cartier, OMAS and Graf von Faber-Castel, there are many companies which make writing instruments suitable for top executives. There is one company, however, founded in 1906, which still stands head-and-shoulders above the rest: Montblanc. Their pens are timeless, sophisticated and of superlative quality. The Meisterstück, with 18k gold nib and rhodium-plated inlay, is perhaps the most classic of all.

3. Pen Pot by Barnes & Noble

Handmade from Italian leather, this pen pot will perfectly compliment your journal. The pot’s interior is also soft leather that’s not only extremely tactile, but also particularly protective of pens.

4. Antique Silver Photo Frame

No executive desktop would be complete without some kind of family photograph. Nothing will make your photo shine brighter than a solid silver frame, preferably one that’s antique. The frame in the image above was made by Henry Miller of Birmingham in 1932 and has a blue-velvet backing.

5. Executive Brass Name Bar

Sadly, in this modern age of open-plan offices and hot desking, name bars seem to be going the way of leather desk pads: towards the dustbin that is. Nevertheless, nothing screams authority and status more than an inscribed, brass-plated name bar, mounted on solid hardwood.

6. HP EliteBook 8730w Mobile Workstation

Every company employee, from the well-oiled CEO to the oily intern, needs his or her own computer. The HP EliteBook 8730w Mobile Workstation is one of the few suitable for a top executive. With Windows Vista Business, an Intel Core 2 Extreme Processor X9100 and a vast array of security software pre-installed, this machine will not let you, or your company down.

7. Sage Brown Desktop Business Cardholder

Executives tend to display business cards on their desks, but most just stack them in an unsightly pile or spread them out on some saucer or other. Why not present them properly, in a designated business cardholder? Sage Brown’s cardholder is made from indulgent crocodile-effect leather, with a calf leather base and burnt orange lining.

AIG in talks to sell big Alico unit to MetLife: report (Reuters)

Reuters - American International Group Inc has resumed talks to sell its American Life Insurance Co unit to MetLife Inc in a transaction that could help the stricken insurer raise more than $15 billion, the Financial Times said.

Size Matters

European stocks rebound (AFP)

AFP - Europe's main stock markets rallied Thursday on bargain hunting after recent volatile trade, but London investors were cautious ahead of an interest rate decision from the Bank of England, traders said.