Honda pins recovery hopes on green cars

Honda today raised its full-year profit forecast on hopes “green” stimulus efforts around the world will push consumers to offload old vehicles in favour of nimbler, more efficient models.


Source: Latest Business News from Times Online | 29 Jul 2009 | 6:46 am

Microsoft and Yahoo unveil tie-up

Tech giants Yahoo and Microsoft announce an internet search deal to help the two companies take on chief rival Google.
Source: BBC News | Business | World Edition | 29 Jul 2009 | 6:12 am

Microsoft and Yahoo agree search deal

Microsoftand Yahoo agreed on Wednesday to an online alliance that could create a more formidable rival to Google in the search business
Source: Financial Times - US homepage | 29 Jul 2009 | 6:07 am

Stocks set to pull back

U.S. stocks were poised to slip at Wednesday's open, as investors prepared to back off after pushing Wall Street higher over the past few weeks.
Source: Business and financial news - CNNMoney.com | 29 Jul 2009 | 6:06 am

Time Warner profit beats forecast but revenue misses (Reuters)

Reuters - Time Warner Inc's quarterly revenue fell a steeper-than-expected 9 percent due to the slump in advertising spending and DVD sales, but cost cuts helped profit beat Wall Street forecasts.

Source: Yahoo! News: Business | 29 Jul 2009 | 6:05 am

Stay-at-home Britain boosts Cadbury's profits

Britons reaching for chocolate to cheer them up in the downturn helped Cadbury to triple its net profit and raise its forecast for the year.


Source: Latest Business News from Times Online | 29 Jul 2009 | 6:03 am

Time Warner profit falls, but beats forecasts

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 29 Jul 2009 | 6:03 am

Details Of Microsoft (MSFT) Deal With Yahoo! (YHOO) Released: Too Complex To Work

The partnership between Yahoo! (YHOO) and Microsoft (MSFT) to integrate their search operations is even more complicated than was rumored. It is so complicated, as a matter of fact, that the execution risks will be tremendous for two companies with radically different cultures. The transaction is made more obtuse by the fact that Yahoo! and Microsoft [...]

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Source: 24/7 Wall Street | 29 Jul 2009 | 6:01 am

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 29 Jul 2009 | 6:01 am

Sprint loss widens but loses fewer customers (Reuters)

Reuters - Sprint Nextel Corp posted a wider quarterly loss but fewer customers defected from the No 3 U.S. mobile service, which started selling Palm Inc's popular Pre phone in early June.
Source: Yahoo! News: Business | 29 Jul 2009 | 5:59 am

Stock futures point to lower Wall Street open (AP)

AP - Stock index futures pointed toward a lower start on Wall Street Wednesday as investors grow increasingly wary about the economic recovery.

Source: Yahoo! News: Stock Markets News | 29 Jul 2009 | 5:57 am

Time Warner affirms outlook; quarterly net off 34%

Time Warner, the world’s largest media company, reports a 34% drop in second-quarter profit and affirms its outlook for adjusted earnings for the full year.

Source: MarketWatch.com - Top Stories | 29 Jul 2009 | 5:56 am

Indications: U.S. futures lower before orders data, Beige Book

U.S. stock futures slip Wednesda ahead of the release of a Federal Reserve report on the state of the economy.

Source: MarketWatch.com - Top Stories | 29 Jul 2009 | 5:56 am

Microsoft and Yahoo agree on ad partnership: source (Reuters)

Reuters - Microsoft Corp and Yahoo Inc have agreed to an online search and advertising partnership, in an attempt to rival Google Inc, that will be announced within 24 hours, a source familiar with the situation said on Tuesday.

Source: Yahoo! News: Business | 29 Jul 2009 | 5:55 am

Top 10 Analyst Upgrades and Downgrades (AFL, CPB, ECL, ISIS, MGM, NE, NSC, PERY, TER, WDC)

These are the ten top Wall Street analyst calls with upgrades, downgrades, and initiations we have this Wednesday morning: Aflac (AFL) Cut to Hold from Buy at Citigroup. Campbell Soup (CPB) Raised to Sector Perform at RBC. Ecolab (ECL) Cut to Neutral at JPMorgan. Isis Pharmaceuticals (ISIS) Started as Buy at Cantor Fitzgerald. MGM Mirage (MGM) Cut to Neutral at [...]

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Source: 24/7 Wall Street | 29 Jul 2009 | 5:53 am

Obama wants 500,000 mortgages fixed by Nov.

Loan servicers will "significantly" increase the pace of mortgage modifications under the Obama foreclosure prevention program, the Treasury Department said Tuesday.
Source: Business and financial news - CNNMoney.com | 29 Jul 2009 | 5:51 am

Portugal signs Sao Tome euro deal

Portugal and Sao Tome sign an agreement aimed at pegging the African island nation's currency to the euro.
Source: BBC News | Business | World Edition | 29 Jul 2009 | 5:47 am

Sprint Nextel posts wider quarterly loss

Sprint Nextel posts a wider-than-forecast second-quarter loss as the nation’s No. 3 wireless carrier suffered a further outflow of customers.

Source: MarketWatch.com - Top Stories | 29 Jul 2009 | 5:46 am

Microsoft and Yahoo agree on ad partnership: source

SEATTLE (Reuters) - Microsoft Corp and Yahoo Inc have agreed to an online search and advertising partnership, in an attempt to rival Google Inc, that will be announced within 24 hours, a source familiar with the situation said on Tuesday.
Source: Reuters: Business News | 29 Jul 2009 | 5:44 am

Time Warner profit beats forecast but rev misses

NEW YORK (Reuters) - Time Warner Inc's quarterly revenue fell a steeper-than-expected 9 percent due to the slump in advertising spending and DVD sales, but cost cuts helped profit beat Wall Street forecasts.
Source: Reuters: Business News | 29 Jul 2009 | 5:43 am

EU examines Latvia bank bail-out

European Union regulators investigate the rescue of Latvia's second biggest bank - JSC Parex Banka.
Source: BBC News | Business | World Edition | 29 Jul 2009 | 5:43 am

Oil falls below $66 after inventories rise

LONDON (Reuters) - Oil fell below $66 a barrel on Wednesday after U.S. data showed an unexpected rise in crude inventories and triggered a second day of selling.
Source: Reuters: Business News | 29 Jul 2009 | 5:41 am

BG to miss production target as profits plunge

Shares in BG Group fell sharply this morning after the gas giant reported that its debt doubled to £2 billion, profits plunged 31 per cent and it would miss annual production targets.


Source: Latest Business News from Times Online | 29 Jul 2009 | 5:40 am

Europe Markets: Chemicals, autos lead Europe after earnings flood

European shares gain ground on Wednesday, led by automakers and chemicals producers after well-received updates from Akzo Nobel, Bayer and PSA Peugeot Citroen.

Source: MarketWatch.com - Top Stories | 29 Jul 2009 | 5:39 am

Palm Pre helps stanch losses at Sprint

Source: Business and financial news - CNNMoney.com | 29 Jul 2009 | 5:36 am

Time Warner second-quarter profit falls

Time Warner’s second quarter net profit fell due to double-digit percentage declines in print and online advertising, but edged well ahead of expectations
Source: Financial Times - US homepage | 29 Jul 2009 | 5:35 am

Get a green card - for a half million

The little-known EB-5 visa program offers international investors a deal: Put up $500,000 for a project that creates 10 jobs and get a green card in return. Here's a look 5 projects funded through the program.
Source: Business and financial news - CNNMoney.com | 29 Jul 2009 | 5:32 am

Should fat be taxed like tobacco?

Health care costs keep growing fatter in part because Americans are, too.
Source: Business and financial news - CNNMoney.com | 29 Jul 2009 | 5:32 am

Futures off as investors pause, commodities drag (Reuters)

Reuters - Stock index futures slipped on Wednesday as investors paused to gauge if the recent market run-up will be sustained, while a drop in commodity prices looked set to weigh on shares of natural resource companies.

Source: Yahoo! News: Business | 29 Jul 2009 | 5:31 am

Futures off as investors pause, commodities drag

NEW YORK (Reuters) - Stock index futures slipped on Wednesday as investors paused to gauge if the recent market run-up will be sustained, while a drop in commodity prices looked set to weigh on shares of natural resource companies.
Source: Reuters: Business News | 29 Jul 2009 | 5:31 am

Futures off as investors pause, commodities drag (Reuters)

Reuters - Stock index futures slipped on Wednesday as investors paused to gauge if the recent market run-up will be sustained, while a drop in commodity prices looked set to weigh on shares of natural resource companies.

Source: Yahoo! News: Stock Markets News | 29 Jul 2009 | 5:31 am

Score a job after being a stay-at-home mom

Li Graham is plenty busy. As a mother of 6-year-old triplets and a 2-year-old, her hands - let alone her mini-van, laundry basket, and grocery cart - are more than full. Yet Graham, 49, who has spent the past six years at home after 18 years working in the business side of the publishing industry, craves the satisfaction she felt as a professional - not to mention the financial benefits.
Source: Business and financial news - CNNMoney.com | 29 Jul 2009 | 5:30 am

Blount International, Inc. Conference Call

PORTLAND, Ore., July 29 /PRNewswire-FirstCall/ -- Blount International, Inc. (NYSE: BLT) Blount International, Inc. will release 2nd Quarter 2009 earnings Wednesday morning,...
Source: RSS feed - channel BNewsBusiness | 29 Jul 2009 | 5:30 am

Duane Reade Holdings, Inc. Reports Second Quarter Results

~ Second Quarter Adjusted FIFO EBITDA Increases 6.3% to $26.5 Million ~ ~ Total Same-Store Sales Increases 1.7% ~ ~ Second Quarter Operating Income Improves to $1.2 Million ~ ...
Source: RSS feed - channel BNewsBusiness | 29 Jul 2009 | 5:30 am

Rollins, Inc. Reports Second Quarter 2009 Financial Results

13th Consecutive Quarter of Improved Earnings Results ATLANTA, July 29 /PRNewswire-FirstCall/ -- Rollins, Inc. (NYSE: ROL), a premier North American consumer and commercial
Source: RSS feed - channel BNewsBusiness | 29 Jul 2009 | 5:30 am

FTI Consulting Expands International Arbitration Group With Key Hire

WEST PALM BEACH, Fla., July 29 /PRNewswire-FirstCall/ -- FTI Consulting, Inc. (NYSE: FCN), the global business advisory firm dedicated to helping organizations protect and...
Source: RSS feed - channel BNewsBusiness | 29 Jul 2009 | 5:30 am

Consolidated Graphics Will Hold a Conference Call to Discuss the Company's First Quarter Financial Results

HOUSTON, July 29 /PRNewswire-FirstCall/ -- Consolidated Graphics, Inc. (NYSE: CGX) today announced that it will hold a conference call on Wednesday, August 5, 2009 to discuss the
Source: RSS feed - channel BNewsBusiness | 29 Jul 2009 | 5:30 am

Popular Extends Expiration Date of Exchange Offer

SAN JUAN, Puerto Rico, July 29 /PRNewswire-FirstCall/ -- Popular, Inc. (the "Corporation") (Nasdaq: BPOP) today announced that it has...
Source: RSS feed - channel BNewsBusiness | 29 Jul 2009 | 5:30 am

Sprint loss widens but customer losses narrow

NEW YORK (Reuters) - Sprint Nextel Corp posted a wider quarterly loss on Wednesday but fewer customers defected from the No 3 U.S. mobile service, which started selling Palm Inc's popular Pre phone during the quarter.
Source: Reuters: Business News | 29 Jul 2009 | 5:29 am

Japan's carmakers stay in black, PSA swings to red

TOKYO/PARIS (Reuters) - Japanese carmakers Honda and Nissan unexpectedly clung to profits in the first quarter and either raised or stuck to their full-year forecasts, while France's Peugeot swung to a loss.
Source: Reuters: Business News | 29 Jul 2009 | 5:28 am

Profiting on the ashes of fallen banks

Cleaning up after bank failures is one chore you won't hear bankers complaining about.
Source: Business and financial news - CNNMoney.com | 29 Jul 2009 | 5:27 am

WellPoint posts 7.6% decline in quarterly profit

WellPoint posted a 7.6% decline in second-quarter profit as the health-insurance giant's results are hurt by investment losses and lower enrollment tied to higher U.S. unemployment.

Source: MarketWatch.com - Top Stories | 29 Jul 2009 | 5:21 am

Brookstone Announces Second Quarter and Year-to-Date 2009 Financial Results

MERRIMACK, N.H., July 29 /PRNewswire/ -- Innovative product development company and specialty lifestyle retailer Brookstone, Inc. today announced financial results for the second
Source: RSS feed - channel BNewsBusiness | 29 Jul 2009 | 5:16 am

UPDATE 1-China Pacific hires CICC, banks for HK IPO -sources

* CICC to be lead underwriter for potential $3.5 bln HK IPO
Source: RSS feed - channel BNewsBusiness | 29 Jul 2009 | 5:15 am

Marine Products Corporation Reports 2009 Second Quarter Financial Results

ATLANTA, July 29 /PRNewswire-FirstCall/ -- Marine Products Corporation (NYSE: MPX) announced its unaudited results for the quarter ended June 30, 2009. Marine Products is a...
Source: RSS feed - channel BNewsBusiness | 29 Jul 2009 | 5:15 am

Some Signs Mean Business

Source: Business Pundit | 29 Jul 2009 | 5:14 am

Mortgage applications drop on refinance weakness

Mortgage applications fall 6.3% last week from the prior week on lower refinancing demand, the latest data from the Mortgage Bankers Association show. It snaps a three-week streak during which there had been greater activity in mortgage applications.

Source: MarketWatch.com - Top Stories | 29 Jul 2009 | 5:14 am

Daimler sees earnings improvement after loss

FRANKFURT (Reuters) - Daimler expects a gradual improvement in the group's operating profitability in the course of this year, it said on Wednesday, after it beat expectations for an even worse second-quarter operating loss.
Source: Reuters: Business News | 29 Jul 2009 | 5:11 am

Daimler sees earnings improvement after loss

FRANKFURT (Reuters) - Daimler expects a gradual improvement in the group's operating profitability in the course of this year, it said on Wednesday, after it beat expectations for an even...
Source: RSS feed - channel BNewsBusiness | 29 Jul 2009 | 5:08 am

Nurses speak out about future of medicine

Source: Business and financial news - CNNMoney.com | 29 Jul 2009 | 5:08 am

BA scraps the short-haul sandwich

British Airways is to scrap free meals, except breakfast, on its short-haul flights in a bid to save £22m a year.
Source: BBC News | Business | World Edition | 29 Jul 2009 | 5:07 am

European stocks up after solid earnings (AP)

AP - European stock markets rose Wednesday after generally positive corporate earnings from leading industrial companies, though a sharp drop in Chinese stocks and an expected retreat at the open in the U.S. capped the gains.

Source: Yahoo! News: Stock Markets News | 29 Jul 2009 | 5:06 am

'I ditched my Porsche when I started easyJet. I've had a Smart Car ever since'

Sir Stelios HajiIoannou who founded budget airline easyJet thinks his lifestyle needs to reflect the values of his business.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 Jul 2009 | 5:03 am

WellPoint net falls, but results top estimates (Reuters)

Reuters - Health insurer WellPoint Inc posted a 7.6 percent drop in net income on Wednesday, but the results topped analysts' forecasts as its programs for the elderly improved their performance.
Source: Yahoo! News: Business | 29 Jul 2009 | 5:01 am

WellPoint net falls, but results top estimates

NEW YORK (Reuters) - Health insurer WellPoint Inc posted a 7.6 percent drop in net income on Wednesday, but the results topped analysts' forecasts as its programs for the elderly improved their performance.
Source: Reuters: Business News | 29 Jul 2009 | 5:01 am

Woes continue for world carmakers

Carmakers Peugeot Citroen, Daimler and Nissan report substantial losses in the face of continuing sales falls.
Source: BBC News | Business | World Edition | 29 Jul 2009 | 4:54 am

Nomura posts profit as Lehman deal pays off

TOKYO (Reuters) - Nomura Holdings Inc posted its first profit in six quarters in a sign Japan's largest brokerage has started to leverage its acquisition of Lehman Brothers' assets to bolster its global presence.
Source: Reuters: Business News | 29 Jul 2009 | 4:52 am

American Air aims for alliance approval by October

TOKYO (Reuters) - American Airlines expects to win U.S. approval by October to form an alliance with British Airways and Spain's Iberia , and it is pinning its hopes on intra-alliance competition and global partnerships to help it survive, an executive said on Wednesday.
Source: Reuters: Business News | 29 Jul 2009 | 4:52 am

Gender pay gap 'not being closed'

Failure to tackle stereotypes in schools is contributing to women's pay not catching up with men's, a report says.
Source: BBC News | Business | World Edition | 29 Jul 2009 | 4:46 am

Is high frequency trading a good or bad thing?

Prices in financial markets always balance supply and demand. But when the price changes themselves influence the supply and demand some odd things happen.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 Jul 2009 | 4:40 am

China's IPO market isn't working

Money is too cheap stocks are too expensive.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 Jul 2009 | 4:38 am

Mobile music for teens who top up

Orange has launched a service offering music streamed for free to any handset on its pay-as-you-go network.
Source: BBC News | Business | World Edition | 29 Jul 2009 | 4:37 am

Why Bernanke must ignore Congress

After two years of pumping money into the financial system to keep the economy afloat, Fed Chairman Ben Bernanke will have to reverse the process or risk an opposite problem: inflation. After much anticipation, he announced in July the Fed's "exit strategy" from its vast intervention, declaring it will happen "in a smooth and timely manner." It's reassuring that Fed officials are aware of the inflation risk, but their program is unlikely to succeed. Much research shows that it takes about two years for anti-inflation policy to work. That means the Fed needs to start now and stick with it.
Source: Business and financial news - CNNMoney.com | 29 Jul 2009 | 4:37 am

Santander UK brands cushion loss

The UK arm of Spanish bank group Santander - including Abbey and Alliance & Leicester - sees revenues up 20% in the first half of 2009.
Source: BBC News | Business | World Edition | 29 Jul 2009 | 4:32 am

Asian stocks fall on bubble fears

Asian stocks fell on Wednesday amid growing worries that the recent rally was creating a bubble with Shanghai's market falling 5pc as the world's biggest IPO this year started trading in China.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 Jul 2009 | 4:27 am

Santander net slips 4% as foreign units limit fall

Banco Santander, Spain’s largest bank, on Wednesday reported a smaller-than-forecast 4% second-quarter profit drop, as the company’s international profile helped it escape the double-digit unemployment rate in its home country.

Source: MarketWatch.com - Top Stories | 29 Jul 2009 | 4:26 am

Time Warner (TWX) Affirms Outlook As Publishing Unit Post A Loss

The good news from Time Warner (TWX) is that it affirmed its earnings outlook for the year. The bad news is that it is losing more revenue at its publishing unit, Time, Inc. where sales dropped 22% and that AOL operating income is dropping quickly. For the quarter, revenues declined 9% from the same period in 2008 to $6.8 billion. [...]

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Source: 24/7 Wall Street | 29 Jul 2009 | 4:25 am

China stocks fall on bubble fears

China's main stock index posts its biggest one-day decline this year due to fears that the market is overheating.
Source: BBC News | Business | World Edition | 29 Jul 2009 | 4:17 am

Mortgage approvals 'on the rise'

Signs of a further pick-up in the housing market during the summer are shown in figures from the Bank of England.
Source: BBC News | Business | World Edition | 29 Jul 2009 | 4:11 am

Geithner: A Promise To China He May Not Keep

Treasury Secretary Tim Geithner made the Chinese a promise he may not be able to keep. He told a delegation of mainland leaders that the US would address its deficit once the economy has recovered. The Chinese are worried about the value of American debt as the US piles up greater and greater deficits. Geithner’s problem [...]

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Source: 24/7 Wall Street | 29 Jul 2009 | 4:10 am

Europe churn higher as investors digest results (AFP)

AFP - Europe's main stock markets rose Wednesday, after a mixed showing earlier in Asia and overnight in New York as investors examined the latest barrage of company earnings news.

Source: Yahoo! News: Stock Markets News | 29 Jul 2009 | 3:57 am

More Signs The Government Mortgage Recovery Plan Is Flawed

The plan to keep people in their homes when they cannot make their current monthly mortgage payments has run into a raft of problems. The most obvious is that homeowners with underwater mortgages will often abandon their houses, even if the costs to stay in them are lowered. Many people are willing to turn their [...]

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Source: 24/7 Wall Street | 29 Jul 2009 | 3:54 am

Abbey bucks the financial gloom as its mortgage lending soars

Abbey the Spanishowned bank that has bought Alliance & Leicester and Bradford & Bingley reaps the benefits from its prudent lending.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 Jul 2009 | 3:53 am

Mortgage approvals hit highest level in a year

Mortgage approvals in June hit their highest level in more than a year further boosting hopes that the worst of the downturn in the housing market is over.


Source: Latest Business News from Times Online | 29 Jul 2009 | 3:45 am

Shanghai sell-off leads Asia markets lower

The benchmark Shanghai Composite Index falls 5% to close at 3,266.43 on disappointing Chinese corporate profits, and falling commodity prices leading to wider selling throughout Asia Wedensday.

Source: MarketWatch.com - Top Stories | 29 Jul 2009 | 3:45 am

Mortgage approvals rise for fifth month

The number of mortgages approved for house purchase rose for the fifth month in a row during June to the highest figure for more than a year.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 Jul 2009 | 3:32 am

SAP raises margin forecast as profit edges higher

German business software giant SAP reports a 3.7% rise in second-quarter net profit and lifts its margin forecast for the year.

Source: MarketWatch.com - Top Stories | 29 Jul 2009 | 3:28 am

Rexam axes dividend amid investor cash plea

Rexam, Europe's biggest maker of cans for beer and soft drinks, today cancelled its interim dividend after unveiling a £351 million cash call aimed at avoiding a downgrade in its credit rating to junk status.


Source: Latest Business News from Times Online | 29 Jul 2009 | 3:11 am

Signal From Honda (HMC): Global Auto Business Recovering

The automotive industry has been one of the most troubled worldwide over the last two years. High gas prices and low consumer spending have conspired to kill off demand for cars and light trucks. The American market, which produced over 16 million vehicles sales four years ago, may only support 1o million this year. The US market [...]

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Source: 24/7 Wall Street | 29 Jul 2009 | 3:03 am

Largest share flotation in 16 months soars in China (AFP)

AFP - China State Construction Engineering Group shares soared nearly 60 percent at their Shanghai debut Wednesday, as investors jumped at the world's largest stock offering in 16 months.

Source: Yahoo! News: Stock Markets News | 29 Jul 2009 | 2:53 am

Cracks In China Economic Foundation, Shanghai Down 5%

The two main indexes of Chinese stocks, the Hang Seng and Shanghai Composite, have moved almost straight up this year. The Shanghai Composite is higher by more than 80%. A sharp drop in Shanghai, 5% in one day, is a reminder that the $585 billion stimulus package the central government has put together has become counter-productive [...]

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Source: 24/7 Wall Street | 29 Jul 2009 | 2:47 am

Santander profits leap 30% amid lending rise

Spain's Santander, which owns Abbey, Alliance & Leicester and part of Bradford & Bingley (B&B) in the UK, has beaten the gloom with a 30 per cent jump in profit in the first half of the year.


Source: Latest Business News from Times Online | 29 Jul 2009 | 2:42 am

BMW to pull out of Formula One

BMW is to withdraw from Formula One at the end of the season.
Source: Latest Business News from Times Online | 29 Jul 2009 | 2:38 am

Microsoft and Yahoo close to search deal

Microsoft appears to have finally locked up rival Yahoo in a longawaited internet search deal aimed at narrowing Google's lead.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 Jul 2009 | 2:19 am

BAA losses triple on growing pension deficit

Losses at BAA's London airports more than tripled to £545 million in the first six months after the airport operator's pension scheme was revalued downwards.


Source: Latest Business News from Times Online | 29 Jul 2009 | 2:09 am

Media Digest 7/29/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

Reuters:   China and the US vowed close ties to bring the economy out of recession. Reuters:   Microsoft (MSFT) and Yahoo! (YHOO) are close to a search deal. Reuters:   The Senate may drop a public health care option. Reuters:   Honda (HMC) posted a profit and raised forecasts. Reuters:   An executive pay bill was approved by a House committee. Reuters:   AMR (AMR) [...]

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Source: 24/7 Wall Street | 29 Jul 2009 | 1:59 am

Yahoo! and Microsoft to seal deal to rival Google

Microsoft and Yahoo! have finally agreed an online search and advertising partnership in a bid to rival Google.


Source: Latest Business News from Times Online | 29 Jul 2009 | 1:38 am

Stocks flat at open (AFP)

AFP - The London stock market was flat at the start of trade on Wednesday.

Source: Yahoo! News: Stock Markets News | 29 Jul 2009 | 1:36 am

Rexam unveils £351m rights issue as it falls to firsthalf loss

Rexam the drinks can maker unveiled a 4for11 rights issue to raise £350.7m to protect its credit rating as it reported a £30m firsthalf pretax loss.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 Jul 2009 | 1:29 am

BAA slumps to loss as air travel shrinks

The owner of Heathrow Gatwick and Stansted airports highlights the dire impact of the recession on air travel.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 Jul 2009 | 1:27 am

Asia Markets And Europe Open 7/29/2009 Shanghai Off 5%

Asian markets were mixed with Chinese markets falling sharply. The Nikkei rose .3% to 10,113. Honda (HMC) posted good earnings. Sony (SNE) posts next week. The Hang Seng was down 3.1% to 19,960. The Shanghai Composite dropped 5% to 3,266. At the open in Europe, the FTSE was down .2% to 4,522. The Dax rose .1% to 5,178. The [...]

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Source: 24/7 Wall Street | 29 Jul 2009 | 1:26 am

Aussie market run ends

MELBOURNE - The Australian share market has snapped a 11 trading day bull run, closing down more than half a per cent amid profit-taking in the resources sector. The benchmark S&P/ASX200 index closed down 26.7 points, or 0.64 per...
Source: New Zealand Herald - Business | 29 Jul 2009 | 1:14 am

Cadbury gets sales boost from Wispa chocolate buttons

Cadbury reported strong gains in British chocolate sales with customers snapping up new varieties like giant chocolate buttons and the relaunched 1980s favourite Wispa.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 Jul 2009 | 1:12 am

Viacom profit falls 32%

The media company is hit by lower sales of TV advertising, movie DVDs and its video game 'Rock Band.'

Viacom Inc. generated static in the second quarter, with profit plunging 32% because of softer sales of TV advertising, its "Rock Band" video game and movie DVDs. The company's Paramount Pictures film studio lost money.

Source: L.A. Times - Business | 29 Jul 2009 | 1:00 am

House panel endorses bill giving shareholders more input on executive pay

The 'Say-on-Pay' measure would require annual votes on executive compensation, but the votes would be nonbinding.

A House panel voted Tuesday to give shareholders more input on the size of compensation packages awarded to top corporate executives.

Source: L.A. Times - Business | 29 Jul 2009 | 1:00 am

Apple bars Google Voice app from iTunes store

Users of Google's new software can consolidate phone numbers and make cheap international calls.

Google Inc.'s hot new software enables users to make cheap international calls, consolidate multiple phone numbers into one voice mail account and get e-mailed transcripts of their voice messages.

Source: L.A. Times - Business | 29 Jul 2009 | 1:00 am

U.S., China end talks with smiles but no progress on climate change

President Obama is pushing for an agreement by December, but China resists committing to limits on greenhouse gas emissions. Chinese officials also express deep concern over the U.S. budget deficit.

Relations between the United States and China are getting cozier as their battle against the global recession has drawn them closer together. But things aren't quite so warm when it comes to some hot-button topics, particularly climate change.

Source: L.A. Times - Business | 29 Jul 2009 | 1:00 am

Product secrecy and a worker's death

A suicide in China has trained a spotlight on Apple and pressure-filled factories.

Sun Danyong was the mild-mannered son of a potato-farming family in an impoverished corner of south-central China.

Source: L.A. Times - Business | 29 Jul 2009 | 1:00 am

Sprint Nextel to buy Virgin Mobile USA

The $483-million deal is expected to further limit consumer choices for prepaid cellphone service.

Sprint Nextel Corp. said Tuesday that it was buying Virgin Mobile USA Inc. for $483 million, further narrowing the range of consumer choices for prepaid cellphone service.

Source: L.A. Times - Business | 29 Jul 2009 | 1:00 am

Home prices may be stabilizing, market tracker shows

The S & P/Case-Shiller index of prices in 20 major cities rose in May over its April level for the first time since 2006. Analysts say it's too early to declare that the free fall in prices is over.

Another sign emerged that the nation's struggling housing market may be nearing its bottom as a widely followed national home-price index posted its first gain in nearly three years.

Source: L.A. Times - Business | 29 Jul 2009 | 1:00 am

DreamWorks Animation posts 7% lower profit

The studio attributed the poor second-quarter results to weak ticket sells overseas for 'Monsters vs. Aliens.' On the bright side, its TV shows performed well.

Television shows were up and international box office was down for DreamWorks Animation in the second quarter, as the studio reported a 7% drop in both revenue and net income driven by poor overseas ticket sales for its latest film, "Monsters vs. Aliens."

Source: L.A. Times - Business | 29 Jul 2009 | 1:00 am

Redstone family feud airs in court

A nephew of Sumner Redstone is suing his father and the Viacom chairman for millions.

As if a tough earnings report for Viacom Inc. and the looming debt issues of National Amusements Inc. weren't enough of a headache for Sumner Redstone this week, he's also dealing with the latest legal fight involving his fractious family.

Source: L.A. Times - Business | 29 Jul 2009 | 1:00 am

Bank of America makes a move away from neighborhood branches

BofA could close up to 10% of its branches as it works to cut costs. Executives say customers won't be affected as the bank increases its online and mobile offerings.

A decade ago, big banks and thrifts began closing branches in the belief that clicks would replace bricks as customers moved their business online.

Source: L.A. Times - Business | 29 Jul 2009 | 1:00 am

Madoff: I'm surprised I wasn't caught sooner

Bernard Madoff, the financier convicted of Wall Street's biggest investment fraud, was surprised his $65 billion Ponzi scheme was not uncovered sooner, he told lawyers in his first interview since entering prison.$


Source: Latest Business News from Times Online | 29 Jul 2009 | 12:37 am

'We've been hurting' says Fonterra boss

Fonterra directors say a 10c/kg milksolids boost in added-value earnings has been wiped by a fall of 10c/kg in the commodity milkpowder price, so it is keeping the forecast total payout at $4.55/kg for this season. The NZ dollar's...
Source: New Zealand Herald - Business | 29 Jul 2009 | 12:30 am

NZ market falls after big gains

After rising for the previous 11 trading days, the New Zealand sharemarket took a breather today. This was in line with trends in foreign markets and brokers said it was a mixed market with selected stocks still attracting buyers. The...
Source: New Zealand Herald - Business | 29 Jul 2009 | 12:15 am

NZ dollar mixed on domestic news

The New Zealand dollar was mixed today as the market took note of a strong business confidence survey and nervously awaited Fonterra's latest payout projection. The NZ dollar was US65.85c at 5pm from US65.90c at the same time yesterday....
Source: New Zealand Herald - Business | 28 Jul 2009 | 11:30 pm

Fisher & Paykel workers return to 40hr week

Fisher & Paykel Appliances said 350 refrigeration assembly workers in Auckland will return to a 40-hour week. The company paid tribute to both the Government and the Engineering, Printing and Manufacturers Union for supporting...
Source: New Zealand Herald - Business | 28 Jul 2009 | 10:47 pm

Confidence keeps rising in bank survey

Business confidence has jumped with the National Bank Business Outlook survey for July recording its highest level since March 2002. Overall, a net 19 per cent of respondents expect an improvement in business conditions in the...
Source: New Zealand Herald - Business | 28 Jul 2009 | 10:21 pm

3 Stocks for a Rebounding Economy (Screens)

U.S. stocks have soared since March on signs the recession is abating. Either that, or the recession is abating because stocks have soared since March. It's difficult to tell growth from froth when the former is measured chiefly in terms of how much consumers spend. The past decade, after all, produced a flood of consumer spending, but it was paid for by asset bubbles (two for stocks, one for houses) and a rise in borrowing, even while household incomes shrank after inflation.

Supposing recovery has truly begun, though, stock investors might want to identify companies that are poised to regain the most. These are companies that: 1) were making good money before the recession, unlike, say, Ford (F); 2) saw sales plunge as a direct result of the recession, unlike thriving Apple (AAPL); 3) have had only modest stock recoveries this year, unlike, again, Apple; and 4) haven't issued new stock so liberally that each outstanding share is now vastly diluted in value, as have several big, troubled banks. I recently searched for just such attributes while keeping an eye out for dividends but not requiring them. Below are three companies that turned up.

Boeing

It's possible, I suppose, that the world has discovered a better means of long-distance passenger travel than the jumbo jet, and that no one has told me yet. If that's not the case, though, Boeing (BA) seems underpriced. The company carries a lower stock market value today than at the end of 1996, even though sales and profits have about tripled since then. Even a 4% dividend yield hasn't enticed stock buyers to lift shares higher than their current price of nine times forecast 2009 earnings. True, the company's next-generation, fuel-efficient Dreamliner was supposed to be in the air two years ago, but Boeing is busy manufacturing more than just excuses. Sales of existing planes and military hardware are expected to increase 11% this year. As for the Delayliner, it's still two years ahead of Airbus's competing model.

DuPont

DuPont (DD) sells industrial chemicals, electronic innards, construction materials and more in 70 countries. Since many of its wares are primary goods used by manufacturers, it should be among the first companies to show signs of improvement during a broad expansion. Last week the company reported a 61% plunge in second-quarter profit on double-digit sales declines in most product categories. Management reckons third-quarter sales will fall short of year-ago levels, too, and that growth will resume in the fourth quarter. Shareholders collect a meaty 5.5% dividend while they wait. Payments will likely take up the bulk of this year's depressed profit, but look more affordable relative to early forecasts for next year, which call for 15% growth in earnings per share.

Carnival

Perhaps the economy is a long way from producing a leisure boom. Sales for Carnival (CCL), a cruise operator, are forecast to fall 11% this year. But trends are starting to look a bit less ugly. According to Wedbush Morgan, an investment bank, prices for cruises booked for the third quarter, while still 15% lower than nine months ago, have increased over the past 10 weeks. At the very least, that suggests that those so inclined should book cruises soon. At most, it warrants a purchase of the stock. Carnival carries an ambitious debt load, but a manageable one. Investors no longer need worry about management suspending the dividend; it did so last fall. The shares sell for less than 14 times earnings, and Carnival, while producing nothing near a banner year, is doing better than expected. Earnings per share have beaten forecasts in its past three quarters by an average of 35%.

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

Source: SmartMoney.com | 28 Jul 2009 | 10:00 pm

The Great Car Maintenance Upsell

Got a tale of an overzealous repairman? You’re not alone. With the recession crimping profits, repair shops are under growing pressure to sell extra services that critics say probably aren’t necessary—everything from “decarbonization” to transmission fluid “flushes” that, at the end of the day, can inflate your bill by hundreds of dollars.

The sales push is happening because drivers aren’t just putting off new-car purchases; they’re also scaling back on service appointments. According to market-research firm IMR, the $133 billion car-repair and maintenance industry saw declines last year in almost every category, with basic maintenance down almost 10 percent. To make up for lost revenue, the greasy-overalls brigade is scrambling. “They’re pushing to do things earlier and more frequently,” says Philip Reed, an auto-repair expert with Edmunds.com.

Ask Ken Massey. A veteran grease monkey who has worked on his own vehicles since the days when tail fins ruled the road, he was a bit leery when he stopped by a local car dealer to replace a blown fuse in his Chevy Cavalier and was told that, by the way, his transmission had sprung a leak. Fix it on the spot, the “service adviser” urged, and it would cost only $325. But Massey, a retired engineer in Indianapolis, wasn’t buying it; the transmission had no leak he could see. “I think they got a little greedy,” he says.

Of course, shops that go too far in upselling services risk a backlash and loss of business. They lose their AAA seal of approval, for example, if they don’t score above 90 percent on annual customer-satisfaction surveys. But with car upkeep these days requiring technicians to get advanced training in computers and electronics, even dedicated gearheads have trouble staying current enough to know whether they’re being overserviced.

In an era when your shop may charge you $100 just to plug the car into a diagnostic machine to learn why the “check engine” light came on, we looked into the science of auto maintenance.

The Tune-Up

In the old days, cars used to need an oil change and maintenance check every 3,000 miles. But parts are now built to last longer, says James Grey, president of AAA Car Care, and it’s usually not necessary to get your car checked as frequently. Still, many garages promote seasonal tune-up packages that include dozens of extraneous items—think wiper blades, timing belts and coolant mix. Says Grey, “The industry has designed maintenance schedules according to its needs instead of car owners’.”

That oil change? Turns out every 5,000 miles is often enough. New oil has chemicals that eat away the catalytic converter, says Donny Seyfer, a Colorado-based certified master technician, and changing oil too often can damage that pricey part.

Another common upsell is to recommend “turning” the brake rotors when you get a new set of brake pads. But unless the rotors are visibly damaged, owners should skip it, says Reed of Edmunds.com, since the process involves shaving off metal and could ultimately reduce their performance and lifespan. Still, experts say, sometimes being proactive—changing your brake pads before the rotors are damaged—can prevent an expensive brake overhaul further down the road.

Engine & Transmission Maintenance

When Ryan Endres of Madison, Wis., saw the “check engine” light flash in his 2000 Isuzu Amigo, he figured it might be a cracked intake manifold, a recurring problem with his SUV. In reality, so much sludge had built up in the engine that he needed it “decarbonized,” a process that cleans the intake valves with a solvent.

While it was the right fix for his car, decarbonization is being pitched by more shops to generally boost performance and mileage. But critics say the gains are minimal, and even carmakers don’t recommend it as a routine service item. “Unless the vehicle has over 150,000 miles, it’s probably unnecessary,” says Andrew Markel, a repair-industry specialist.

Another popular pitch: fluid flushes. Shops may tell you your transmission fluid needs replacing, more frequently than manufacturers suggest. Aamco for one, recommends its “Power Purge” flush every 24,000 miles, but Ford doesn’t advise it for any of its models, and Toyota recently urged its dealers to scale back on such “supplemental” services. An Aamco spokesperson acknowledges that its fluid-change intervals aren’t the same
as manufacturers’ but says that its time frame “will maximize the life of the transmission.”

Tires

Tires might seem like the last thing you’d want to skimp on—a blowout, after all, can be deadly. But all tires have to meet the same federal safety standards, and drivers can save big bucks with a second-tier brand. Goodyear, for instance, has two “associate” lines—Republic and Fierce—that are essentially Goodyear tires with hand-me-down technology. True, says Goodyear spokesperson Jim Davis, they aren’t constructed with the “latest and greatest” features, like Kevlar lining (the material used in body armor) and “volcanic sand” (for grittier traction). Still, they can cost up to 50 percent less.

Tiremakers have just begun promoting new “low-rolling-resistance” models they say can save fuel. Michelin says its Energy Saver All-Season tire, though pricier than other tires, delivers 8 percent better gas mileage.

Whichever tires you use, don’t get sucked into filling them up with nitrogen—an increasingly common practice—instead of air (cost: up to $3 per tire). Though some studies suggest it helps tires last longer, the carmakers don’t recommend it. “What will it do for your tires?” asks Grey. “Nothing."

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

Source: SmartMoney.com | 28 Jul 2009 | 10:00 pm

Futures Down Before Fed Data (Market Update)

News at a Glance

• Futures Dip: Traders await Fed's Beige Book.
• Earnings Due: Time Warner exceeds; COP, GD on tap.
• Deal Works: Microsoft and Yahoo on verge of partnership.
• Oil Sags: Crude falls below $66 a barrel.

The Lowdown

Wednesday's session may begin on a downbeat.

Futures slumped before a key economic report from the Federal Reserve. Shortly after 7 a.m., Dow, Nasdaq and S&P 500 futures were trading below fair value.

The Fed is scheduled to release its Beige Book, a qualitative report on regional economic conditions, at 2 p.m. The Beige Book comes two days before the Commerce Department is scheduled to release its advanced reading on the second-quarter gross domestic product. Taken together, these reports should offer traders a sense of how the economy is performing on the local and national levels.

In corporate earnings, Time Warner (TWX) beat expectations and affirmed its full-year guidance, but said lower revenues for publishing, AOL and filmed entertainment more than offset growth for the networks segment. ConocoPhillips (COP), General Dynamics (GD), Medco Health Solutions (MHS), and Visa (V) are among the other companies scheduled to report Wednesday.

In Europe shares were higher Wednesday after positive reports from Peugeot Citroen (PEUGY), Akzo Nobel (AKZOY) and Bayer (BAYRY). Asian markets were mixed after the Japanese Finance Ministry raised its assessment of the nation's economic health and Chinese corporations reported disappointing profits.

Oil prices fell before the release of petroleum inventories data. By 7:17 a.m., crude was trading down $1.48 at $65.75 a barrel.

Stocks finished mostly lower Tuesday after a dip in consumer confidence.

Corporate News

• Time Warner earned $519 million, or 43 cents a share, in the second quarter, down from $792 million, or 66 cents a share, a year ago. Adjusted earnings were 45 cents a share. Time Warner was expected to earn 37 cents a share. RELEASE
• Microsoft (MSFT) and Yahoo (YHOO) are on the verge of finalizing an Internet search partnership, The Wall Street Journal reported, citing anonymous sources. An agreement, could be closed as soon as Wednesday and would seek to incorporate the Bing search engine into Yahoo sites. The deal is designed to give the combined companies enough power to take on rival search giant Google (GOOG).
• IBM (IBM) plans to acquire SPSS (SPSS) for about $1.2 billion in cash, the two companies announced Tuesday. SPSS, which provides software and services to help companies analyze and forecast trends in consumer behavior, will help IBM deepen its resources in the consolidating business-analytics arena.
• American Airlines (AMR) hopes to win approval by October to form an alliance with British Airways (BAIRY) and Spain's Iberia Airlines (IBLA), Reuters reported Wednesday, citing anonymous sources. The carriers have reportedly applied for U.S. government antitrust immunity in hopes that the international partnerships will provide a cushion against the global economic downturn. BA and American had an antitrust immunity application rejected in 2001 over concerns that the combined companies would control too much traffic through London's Heathrow.

The Economy

• Durable goods orders data for June are scheduled to be released by the Commerce Department at 8:30 a.m. Durable goods orders are expected to haven fallen 0.6%, compared to a decline of 1.8% in May. Excluding transportation, durable goods are expected to have remained level, compared to an increase of 1.1% in May.
• The Energy Department is scheduled to release its crude inventories report for the week ending July 24 at 10:30 a.m. Inventories fell by 1.8 million barrels in the week ending July 10, but remained above the upper boundary of the average range for this point in the year.
• The Beige Book report on regional economic conditions is scheduled to be released by the Federal Reserve at 2 p.m. The report, which is published eight times a year, is based on anecdotal data from banks, economists, market experts and other sources.

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

Source: SmartMoney.com | 28 Jul 2009 | 10:00 pm

Aref Karim: A Trend Is His Friend

AREF KARIM HAS ALWAYS BEEN DRAWN TO ART that's clean and simple: the paintings of Mark Rothko, the poetry of Pablo Neruda, and operas like Giacomo Puccini's La Bohème are among his favorites. He lives in a Zen-inspired home with sleek, clean lines in Weybridge, Surrey -- a semirural hamlet near London. And his Quality Capital Management, a commodity-trading advisor, reflects the same principles of artful efficiency.

His flagship hedge fund, the Global Diversified Program, with $600 million in assets, invests long and short across 80 financial and commodity markets. Although it has struggled this year, the fund's average annual return since its founding in 1995 through June of 2009 is 15.82% -- with just one losing year.

Karim's tactics seek to profit consistently, regardless of what's happening to stocks, interest rates, currencies, or commodities. The program is managed through a trading system he refers to as the Advanced Resource Allocator (or ARA), which continuously rebalances short-term tactical moves aimed at gathering quick profits or acting as hedges against existing positions, and longer-term trend plays that look to make bigger gains.

KARIM'S ALLOCATIONS ARE BASED on risk, or what he defines as "short-term downside volatility." This informs his asset allocation, which in June was spread across 11 different markets. His major macro exposure was in long-term bonds (14%), followed by metals (12%) and energy (11%), along with 9% each allotted to medium-term notes, short-term sovereign rates in major markets around the world, and stock indexes. Large portions of these investments were hedged by short positions generated from his short-term model. This constant fine-tuning is what enables Karim to limit risk while seeking consistent gains.

The weighting of asset classes and markets is constantly adjusted as the firm's ARA interprets market trends to limit risk. During the first week in January, for example, the fund's position in long interest rates fluctuated from below 6% up to about 16%, and currency exposure oscillated between 13% and 22%. The highest allocation at that time was energy, which peaked at 26%.

How ARA constantly recalibrates investments was seen in its long-term short on oil. In early March, after oil had bottomed the previous month, the program started countering the position by overlaying a short-term long exposure to the commodity. This temporarily produced a net-long position. ARA expanded the net-long position until oil hit a short-term peak in early April. When selling again started to push down crude-oil prices, ARA shifted its stance to neutral, and then to a small net-short position.

THE RESULTS OF KARIM'S PROGRAM ranked him fifth in Barron's recent survey of the top 100 hedge funds ["Acing a Stress Test," May 11]. Last year, the fund soared by more than 59%, and his three-year annualized returns through June 2009 were 19.44%. This handily topped the performance of both BarclayHedge's hedge-fund index, which eked out a gain of 0.73%, and the Standard & Poor's 500, which was down 8.22%, over the same three-calendar-year period.

"Our sentiments toward the market conditions are agnostic," explains the 56-year-old Karim, a chartered accountant who worked in the alternative-investment department of the world's biggest sovereign wealth fund, the Abu Dhabi Investment Authority, from 1982 until 1995. "The key to our performance is an investment program that searches for upside volatility while limiting exposure to markets that are trendless or fluctuating lower." And while his aim is always to be in the markets, Karim has no problem building up cash when opportunities are not clear.

As market uncertainty reached its peak in March, generating confusing buy-and-sell signals, his cash position hit 75%. As markets settled down and signal distortions decreased, he lowered his cash to 60%. Normally, it's around 25%, always enabling him to respond to opportunities.

Karim credits his performance to a team of 21 professionals and the development of strong systems, including ARA. "Before we changed our investment approach," he explains, "our previous systematic trend-following program was not making the most of upside volatility, because it employed too many filters, trying to respond to signals in all market conditions. This restricted investments and reduced profit potential." In contrast, ARA is more opportunistic, continuing to effectively manage risk by basing allocation on that primary concern, which has produced remarkable results.

Using the original investment program between the fund's inception in December 1995 through January 2005, annualized returns were a respectable 11.4%. Since the installation of ARA in February 2005 through June 2009, annualized returns have soared to 25.9%.

Last October, short-term rates were already trending lower, when the world confronted a massive liquidity crisis as systemic turmoil expanded and equity markets started to collapse. Using a variety of interest-rate contracts, including euro-dollar futures -- a three-month interest-rate contract that tracks U.S. interbank rates of equivalent maturities -- the program increased a long position established in June 2007 when short-term U.S. interbank rates were at 5.4%. In September 2008, it upped its stake when rates fell to 3.6%. By early November, when rates hit 2.1%, ARA started peeling back exposure, as it saw a deceleration in the downward trend.

At about the same time, ARA recognized a flight to safe currencies. It programmed long dollar positions against the world's major currencies through various positions, including U.S. dollar-index futures contracts -- baskets of currencies versus the U.S. dollar -- which in early September 2008 were indexed at 78.4. By mid-October, ARA had started to reduce this long position -- when the index hit 90, as exchange-rate volatility rose to extreme levels. This move helped the fund avoid the subsequent selloff of the greenback.

By the end of March 2009, after commodity prices collapsed, the program established a long position in many grains, including soybeans, as it saw prices starting to rebound off their lows. At the time, soybeans were at $6.78 per bushel. The rally continued through the end of May, as soybeans hit $10.30. When the program detected signs of the rally breaking down, it started downsizing the fund's exposure.

THE SYSTEM DOESN'T ALWAYS work. The primary reason, Karim explains, is unusually swift market changes, when ARA is unable to detect better investments than the ones the fund is already in. But he argues that such limits also contribute to the system's resilience and robustness over the long run.

A bad bet came earlier this year with 10-year U.S Treasury bonds. The fund had profited from a long position as deflationary worries at the end of '08 sent investors rushing to lock in rates, sending bond prices higher. By December, when he increased his long exposure, Treasury-bond prices were at 125.

However, the huge build-up in government spending to finance big bailouts and stimulus packages transformed fears of deflation into inflation worries. By early February, the bond price had dropped to 118. "The collapse occurred so fast that our system couldn't respond; it was unable to redirect resources to a superior position," Karim says.

The fund has not performed well during the first half of this year, down 14% through June. The key reason: extreme volatility across virtually all markets, which were ultimately trendless. Karim did profit in energy and commodities. But he got hit harder by his financial exposure.

With many suggesting that the worst of economic and investor fears are over, it is unlikely that we will see a repeat of the eccentric market behavior of the past six months. And Karim feels today's sidewise movement of markets bode well. "Periods of such indecision usually are followed by breakouts," he explains. And with more than half the fund's assets currently in cash, Karim is well prepared to exploit the next trend, regardless of direction.

ERIC UHLFELDER covers global capital markets from New York.

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

Source: SmartMoney.com | 28 Jul 2009 | 10:00 pm

Tax Holidays Still Worth Celebrating (Deal of the Day)

Rest easy, back-to-school shoppers.

Even as states scramble to get their budgets in order, many still plan to offer summer sales-tax holidays. All 15 states that held summer tax holidays in 2008 will suspend their sales taxes for at least a day this year.

In fact, several states have expanded their holidays. West Virginia doubled the price threshold for its fall holiday on Energy Star products to $5,000, and New Mexico expanded its August coverage on computers and computer accessories to per-item maximums of $1,000 and $500, respectively. (Last year, New Mexico waived the tax only on a single purchase of a computer and accessories worth up to $1,000.) Mississippi will offer a tax holiday for the first time on July 31 and Aug. 1, when the state waives its 7% tax on clothing and footwear worth $100 or less.

Washington, D.C., is the exception. The capital repealed its 2009 summer holiday (a tradition since 2004), which would have waived the 5.75% tax on clothing, footwear and school supplies worth $100 or less. The district cited budgetary concerns and a projected loss of $640,000 in tax revenue over the week-long holiday.

Participating states are betting the sales-tax holidays will generate an economic boost powerful enough to offset the loss in tax revenue, says Richard Ebeling, an economics professor at Northwood University in Midland, Mich. “In the long run, this acts to stabilize the local business economy,” he says. Troubled retailers draw in foot traffic and sales, and consumers catch a break on necessary school supplies. Some states may even see some tax revenue, if the break encourages consumers to add a few items to their shopping lists not covered by the holiday.

For consumers, a sales-tax holiday offers added incentive to hit the mall, but be on the alert for the fine print. Here's how to take advantage of your state's holiday:

Check local participation

Some towns and counties will waive more than the state portion of the sales tax during the holiday, but others will continue to tax items at their standard rate. “You might still have a local sales tax in effect,” says Carol Kokinis-Graves, a senior analyst with the tax advisory firm CCH. Alabama’s Jefferson County -- which includes Birmingham – plans to continue collecting its 2% sales tax; the projected $200,000 in tax revenue taken in during the August holiday could save seven county jobs, the county said in a statement. Check with your state tax commission to see what your area is doing before you decide which local mall to hit.

Mind exemptions

Many states get very specific about their tax-free items, so read up on what's included in the holiday before you hit the mall. For example, Iowa excludes athletic apparel in its definition of clothing and footwear, and North Carolina includes footwear insoles, aprons and disposable diapers.

Hunt for sales

Many retailers are likely to offer discounts to push prices on qualifying items below state thresholds, says J. Craig Shearman, a spokesman for the National Retail Federation, an industry group. But not every price reduction entitles you to tax-free shopping. Some states, including Mississippi, don’t count manufacturers coupons or rebates when assessing an item’s value.

Shop online

Web purchases are covered, as long as the retailer processes the order within the holiday time period.

Mark your calendar with these dates for a sales tax holiday near you: