No Discount Prices Here

Government confirms £340m loan for Airbus The Government has confirmed that it will lend Airbus £340 million to develop its A350 XWB, half the amount that the company had sought. Source: Latest Business News from Times Online | 14 Aug 2009 | 5:27 am Branson complains about BA tie-up Sir Richard Branson has called on the US government to refuse British Airways permission to agree ticket schedules and prices with American Airlines. Source: BBC News | Business | World Edition | 14 Aug 2009 | 4:39 am Government to loan Airbus £340m The government is to give plane manufacturer Airbus up to £340m in loans, securing 5,000 jobs in the UK. Source: BBC News | Business | World Edition | 14 Aug 2009 | 4:37 am Allied Carpets store closures cost 850 jobs About 850 jobs have been lost with the closure of 142 Allied Carpets outlets by administrators after potential buyers of the business shied away from taking the bulk of it in the current retailing slump. Source: Latest Business News from Times Online | 14 Aug 2009 | 4:36 am Allied Carpets to lose 850 jobs Allied Carpets is to make 850 people redundant after going into administration, and closing 142 stores. Source: BBC News | Business | World Edition | 14 Aug 2009 | 4:28 am UK repossessions eased in spring UK repossessions fell 10% in the second quarter of the year compared with the previous three months, lenders say. Source: BBC News | Business | World Edition | 14 Aug 2009 | 4:25 am Exxon Japan group Jan-June exports rise 20 pct TOKYO, Aug 14 (Reuters) - Exxon Mobil Japan group refiner TonenGeneral Sekiyu KK said on Friday its middle distillate exports rose 20 percent in the January-June period from a year earlier, keeping a... Source: RSS feed - channel BNewsBusiness | 14 Aug 2009 | 4:24 am Swatch profit fell 28%, shares rise on outlook Shares of Swatch jump more than 10% after the world’s largest watch maker posts a 28% drop in first-half profit but says sales “show signs of recovery. Source: MarketWatch.com - Top Stories | 14 Aug 2009 | 4:24 am John Lewis sales slip as shoppers prefer sun Sales at John Lewis department stores dropped significantly during the first week of August as the retailer’s strong performance in July proved unsustainable in the warmer weather. Source: Latest Business News from Times Online | 14 Aug 2009 | 4:16 am TABLE-Thai Exxon unit Q2 net profit down 39 pct BANGKOK, Aug 14 (Reuters) - Three months to June 30, 2009 Source: RSS feed - channel BNewsBusiness | 14 Aug 2009 | 4:16 am A Strange New World: A Bidding War For An Airline Airline analysts are worried that some US carriers will have to make huge cost cuts or face Chapter 11 filings later this year. The rising cost of jet fuel and precipitous dive in passenger traffic are causing huge losses among most of the industry’s leaders. This  makes the bidding war for Frontier Airways especially strange. Southwest [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 14 Aug 2009 | 4:15 am INTERVIEW-Fujifilm sees 2009/10 digicam sales exceeding target TOKYO, Aug 14 (Reuters) - Japan's Fujifilm Holdings Corp said it now aims for 120 billion yen ($1.3 billion) in sales in its digital camera operations in the current business year, rather than its original... Source: RSS feed - channel BNewsBusiness | 14 Aug 2009 | 4:13 am Stocks set to tumble U.S. stocks were headed for a weak opening Friday ahead of economic reports on consumer prices and industrial production. Source: Business and financial news - CNNMoney.com | 14 Aug 2009 | 4:11 am Indications: Stock index futures signal flat start for Wall St. U.S. stock index futures lower in choppy trade Friday as investors await data on July consumer price inflation and industrial production. Source: MarketWatch.com - Top Stories | 14 Aug 2009 | 4:08 am Home Sellers Cut Asking Prices By $27.8 Billion The housing market is recovering and then it isn’t. New data from Trulia says that Americans cut the prices on their homes by an aggregate of $27.8 billion in the year ending August 1. The media home price dropped more than 15% to $174,100 in the second quarter. It should come as no surprise that Nevada and [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 14 Aug 2009 | 4:05 am Colonial Bank on 'brink of collapse' Southern regional bank Colonial Bank is on the verge of failure, a federal judge said in granting a request made by Bank of America to freeze Colonial's assets. Source: Business and financial news - CNNMoney.com | 14 Aug 2009 | 4:04 am 'The uncertainty of repossession is still hanging over us' James Cousins has been living under the threat of repossession since the beginning of the year. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Aug 2009 | 4:03 am Repossession: the help schemes available to struggling borrowers The Government has launched a range of initiatives to help people who are struggling with their mortgages stay in their homes. Below are details of the main schemes. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Aug 2009 | 4:03 am Chuck Jaffe: Cold calls deserve an icy response Cold calling has been a staple of the brokerage and investment business for decades. But there’s a big difference between the guy who is trying to earn an introduction and find a potential financial-planning client for life and the guy who is just pumping a sale. Source: MarketWatch.com - Top Stories | 14 Aug 2009 | 4:03 am Earnings Outlook: H-P expected to benefit from services, PCs Wall Street expects Hewlett-Packard Co. to report modestly positive results for its third fiscal quarter next week, though a recent run-up on the tech giant’s stock suggests that investors may be baking in stronger numbers. Source: MarketWatch.com - Top Stories | 14 Aug 2009 | 4:00 am Singapore TT to buy eircom within week -report DUBLIN, Aug 14 (Reuters) - Indebted Irish telecoms company eircom will be sold off to suitor Singapore Technologies Telemedia by the end of next week, the Irish Independent newspaper reported on Friday... Source: RSS feed - channel BNewsBusiness | 14 Aug 2009 | 3:58 am CIT, clothing maker Scherr settle: report (Reuters) - CIT Group Inc , the cash-strapped corporate lender struggling to avoid bankruptcy, made an out-of-court settlement with apparel maker Scherr Inc that sued to end its relationship with the company, the New York Post said. Source: Reuters: Business News | 14 Aug 2009 | 3:53 am CIT, clothing maker Scherr settle: report (Reuters) Reuters - CIT Group Inc , the cash-strapped corporate lender struggling to avoid bankruptcy, made an out-of-court settlement with apparel maker Scherr Inc that sued to end its relationship with the company, the New York Post said. Source: Yahoo! News: Business | 14 Aug 2009 | 3:53 am CIT, clothing maker Scherr settle: report (Reuters) - CIT Group Inc , the cash-strapped corporate lender struggling to avoid bankruptcy, made an out-of-court settlement with apparel maker Scherr Inc that sued to end its... Source: RSS feed - channel BNewsBusiness | 14 Aug 2009 | 3:53 am Odds are 622m-1, but lottery players travel to Italy in hope Italy's record lottery jackpot hits 138.9m euros (£119m), after hopeful players from across Europe were disappointed. Source: BBC News | Business | World Edition | 14 Aug 2009 | 3:52 am Summit held on Diageo job losses A major summit on saving two closure-threatened Diageo plants in the west of Scotland will take place in Glasgow later. Source: BBC News | Business | World Edition | 14 Aug 2009 | 3:51 am Repossessions fall 10% after pressure on banks Home repossessions fell in the second quarter of the year and cases of arrears levelled off as lenders responded to government pressure to show more forbearance to homeowners in difficulty. Source: Latest Business News from Times Online | 14 Aug 2009 | 3:51 am GM says no deal with Magna yet on Opel sale (Reuters) Reuters - General Motors' top negotiator for the sale of its European business took issue on Friday with assertions that Opel suitor Magna (MGa.TO) had struck a deal in principle on a contract for the deal. Source: Yahoo! News: Business | 14 Aug 2009 | 3:50 am GM says no deal with Magna yet on Opel sale FRANKFURT (Reuters) - General Motors' top negotiator for the sale of its European business took issue on Friday with assertions that Opel suitor Magna had struck a deal in principle on a contract for the deal. Source: Reuters: Business News | 14 Aug 2009 | 3:50 am No Recovery For Video Games Just when it looked like consumer spending might pick up, one of the hottest retail sectors, at least a year ago, video games, fell apart. In July, the industry had a 29% drop in revenue to $849 million, according to the NPD Group. Hardware sales dropped 37% to $281 million. Microsoft (MSFT) was the only company [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 14 Aug 2009 | 3:47 am Michael Jackson lifts profits at Chrysalis The music publisher says that while the singer's sudden death has boosted profits dead artists are now worth less in an age of downloads. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Aug 2009 | 3:40 am TAM Reached a Net Income of R$ 788.9 Million in 2Q09 SAO PAULO, Aug. 14 /PRNewswire-FirstCall/ -- (BOVESPA: TAMM4, NYSE: TAM) TAM presents the results of the 2nd quarter 2009 (2Q09). Operational and financial data, except where... Source: RSS feed - channel BNewsBusiness | 14 Aug 2009 | 3:36 am Hong Kong emerges from recession The economy of Hong Kong emerges from recession, posting growth of 3.3% in the three months from April to June. Source: BBC News | Business | World Edition | 14 Aug 2009 | 3:34 am Obama's openness a broken promise? The Obama administration pledged unprecedented transparency in its accounting of the $700 billion bank and auto bailouts (TARP) and the $787.2 billion Recovery Act. A lot of information has been made public but there are some key details where the transparency falls far short. Source: Business and financial news - CNNMoney.com | 14 Aug 2009 | 3:34 am PBG confirms CEO sold 1.8 pct stake at PLN 220/shr WARSAW, Aug 14 (Reuters) - The chief executive and largest shareholder of Polish builder PBG completed the planned sale of a 1.8-percent stake on Friday for 57 million zlotys ($19.8 million), or 220 zlotys... Source: RSS feed - channel BNewsBusiness | 14 Aug 2009 | 3:31 am German construction co. Hochtief net profit falls German construction company and airport operator Hochtief AG said Friday that second quarter net profit fell 6 percent but that the order backlog increased to an all-time high despite the... Source: RSS feed - channel BNewsBusiness | 14 Aug 2009 | 3:31 am Hochtief 2Q net profit falls 6 pct German construction company and airport operator Hochtief AG said Friday that second quarter net profit fell 6 percent but that the order backlog increased to an all-time high despite the... Source: RSS feed - channel BNewsBusiness | 14 Aug 2009 | 3:30 am Euro area prices fell 0.7 pct in year to July Prices in the 16 countries that use the euro fell on an annual basis for the second straight month in July and by more than previously anticipated, official figures showed Friday. The... Source: RSS feed - channel BNewsBusiness | 14 Aug 2009 | 3:29 am Volt vs. Prius: What's the better deal? The Volt may get 230 mpg. GM says it will cost only 40 cents to fuel up the car from a household outlet. But it still may not be worth it to buy one. Source: Business and financial news - CNNMoney.com | 14 Aug 2009 | 3:27 am Stock futures point to mixed Wall St open (Reuters) Reuters - Stock index futures pointed to a mixed start on Wall Street on Friday ahead of U.S. CPI figures and earnings news from Abercrombie & Fitch and JC Penney . Source: Yahoo! News: Business | 14 Aug 2009 | 3:24 am Stock futures point to mixed Wall St open (Reuters) - Stock index futures pointed to a mixed start on Wall Street on Friday ahead of U.S. CPI figures and earnings news from Abercrombie & Fitch and JC Penney . Source: Reuters: Business News | 14 Aug 2009 | 3:24 am Stock futures point to mixed Wall St open (Reuters) Reuters - Stock index futures pointed to a mixed start on Wall Street on Friday ahead of U.S. CPI figures and earnings news from Abercrombie & Fitch and JC Penney . Source: Yahoo! News: Stock Markets News | 14 Aug 2009 | 3:24 am California to end IOUs on Sept. 4 California will have enough cash to stop issuing IOUs on Sept. 4, almost one month earlier than expected, the state controller said Thursday. That's also the date when people and companies can redeem their IOUs with the state treasurer. Source: Business and financial news - CNNMoney.com | 14 Aug 2009 | 3:20 am Asian markets gain amid signs recession easing (AP) AP - Most major Asian markets advanced Friday with commodity stocks rising amid more signs the world economy is emerging from a deep recession. European shares traded higher. Source: Yahoo! News: Stock Markets News | 14 Aug 2009 | 3:19 am The Failures Of Alternative Energy It was a bad sign when T Boone Pickens gave up, at least partially, on building a  mammoth wind farm in Texas. The process was not only going to be expensive; the ability to get the energy from the windmills to large population centers would be complicated by flaws in the electric grid. Wind energy [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 14 Aug 2009 | 3:05 am Man Group sells remaining stake in MF Global Man Group, the London-listed hedge fund manager, announced today that it had sold its remaining stake in MF Global, the brokerage, to Nomura International for an initial sum of $112 million ($£68 million). Source: Latest Business News from Times Online | 14 Aug 2009 | 3:03 am Use your mobile to call up a bargain Price comparison applications on mobiles can save buyers a lot of the legwork when looking for the best price. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Aug 2009 | 3:00 am London Markets: British Land shares shine in upbeat London Property firms climbed in London on Friday, with British Land one of the strongest performers after a news report said that it could be a takeover target. Source: MarketWatch.com - Top Stories | 14 Aug 2009 | 2:59 am Chrysalis lifted on Michael Jackson sales surge Chrysalis, the music publisher, said that the boom in sales of Michael Jackson hits recorded in the 1980s will help boost its profits, adding to the success of newer acts on the company’s books including Bat For Lashes and Gossip. Source: Latest Business News from Times Online | 14 Aug 2009 | 2:56 am Buffett's Berkshire: Oops! Read full story for latest details. Source: Business and financial news - CNNMoney.com | 14 Aug 2009 | 2:52 am The Fates Conspire Against The Housing Market Two pieces of information came into the market today, both about the trouble housing situation. The foreclosure filings and the interest rates on 30-year fixed rate mortgages affect the housing market in different but disturbing ways. RealtyTrac released its monthly data on the state of foreclosures. They rose 7% in July from June to 360,149. The [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 14 Aug 2009 | 2:52 am Hochtief considers infrastructure stake sale FRANKFURT, Aug 14 - Hochtief, Germany's largest construction company, reported earnings that beat investor expectations and said it would consider selling shares in the unit that runs airports and other... Source: RSS feed - channel BNPaperBusiness | 14 Aug 2009 | 2:44 am European data drives world stocks to 10-mth high LONDON (Reuters) - World stocks hit 10-month highs for a second day running on Friday after euro zone growth data in the previous session and positive earnings from the world's largest retailer also boosted sentiment. Source: Reuters: Business News | 14 Aug 2009 | 2:40 am European data drives world stocks to 10-mth high (Reuters) Reuters - World stocks hit 10-month highs for a second day running on Friday after euro zone growth data in the previous session and positive earnings from the world's largest retailer also boosted sentiment. Source: Yahoo! News: Stock Markets News | 14 Aug 2009 | 2:40 am Porsche shares jump after agreeing Volkswagen deal Shares in Germany’s Porsche SE surge after Volkswagen agrees to buy a 42% stake in its core sports car business. Source: MarketWatch.com - Top Stories | 14 Aug 2009 | 2:25 am Jack Vettriano: 'I've gone from handmedowns to Armani' Jack Vettriano's painting The Singing Butler is one of the most reproduced in the world. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Aug 2009 | 2:23 am Italian tax authority to investigate Agnelli finances The Italian tax authority has opened an inquiry into allegations that members of the Agnelli family which controls Fiat are holding undeclared funds abroad. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Aug 2009 | 2:20 am Bid speculation lifts property group shares Property stocks were at the top of the FTSE 100 on Friday, with persistent talk linking the sector with bid interest from Asia. "Rumours are swirling about a massive 10bn move for British Land from an... Source: RSS feed - channel BNPaperBusiness | 14 Aug 2009 | 2:20 am Media Digest 8/14/2009 Reuters, WSJ, NYTimes, FT, Bloomberg Reuters:   The Chinese are learning the problem of easy access to credit cards. Reuters:   The US recovery is still slow while France and Germany are rebounding. Reuters:   UBS (UBS) clients in America may face criminal charges. Reuters:   Buffett of Berkshire Hathaway (BRK.A) defended its valuation of derivatives. Reuters:   Retail sales fell and joblessness claims rose. Reuters:   An active-matrix organic light-emitting [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 14 Aug 2009 | 2:08 am British Land shares soar on growing bid fever Shares in British Land continued to rise today, putting pressure on the FTSE 100 property company to clarify its position amid reports that it could face a bid worth up to £10 billion. Source: Latest Business News from Times Online | 14 Aug 2009 | 2:08 am Europe Markets: European shares head toward third day of gains European shares advanced on Friday, in what could be the third straight day of gains, as investors showed further confidence the economic backdrop will improve. Source: MarketWatch.com - Top Stories | 14 Aug 2009 | 2:03 am Currencies: Aussie dollar up on higher rate talk Australian dollar jumps against the U.S. dollar on hawkish comments from Reserve Bank of Australia governor Glenn Stevens. Source: MarketWatch.com - Top Stories | 14 Aug 2009 | 2:01 am Investors are ignoring the 'anaemic' growth facing the US Investors have still not woken up to the prospect that the US economy the world's largest faces years of 'anaemic' growth as Americans tighten their belts a leading analyst has warned. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Aug 2009 | 1:57 am China Merchants Bank to raise up to $2.6 billion China Merchants Bank Co. says its board has approved a plan to raise up to 18 billion yuan ($2.64 billion) via a rights issue as part of an effort to improve its capital adequacy ratio and support business growth. Source: MarketWatch.com - Top Stories | 14 Aug 2009 | 1:56 am UBS tax deal seen involving big accounts (Reuters) Reuters - A landmark settlement that will spare UBS a lengthy and damaging U.S. tax trial is set to be signed next week and will involve the disclosure of the biggest holders of secret Swiss accounts. Source: Yahoo! News: Business | 14 Aug 2009 | 1:52 am UBS tax deal seen involving big accounts ZURICH (Reuters) - A landmark settlement that will spare UBS a lengthy and damaging U.S. tax trial is set to be signed next week and will involve the disclosure of the biggest holders of secret Swiss accounts. Source: Reuters: Business News | 14 Aug 2009 | 1:52 am Rio Tintoowned Welsh smelter to close with loss of 390 jobs Anglesey Aluminium coowned by mining giant Rio Tinto is set to close its Welsh smelter next month with the loss of 390 jobs. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Aug 2009 | 1:40 am Futures Movers: Crude-oil prices up, but slip below $71 a barrel Crude-oil prices are higher but run into resistance above $71 as Chinese stocks decline and U.S. stock futures turn lower. Source: MarketWatch.com - Top Stories | 14 Aug 2009 | 1:37 am ThyssenKrupp warns on wider full-year loss FRANKFURT, Aug 14 - ThyssenKrupp, Germany's biggest steelmaker, gave a gloomier outlook for its full-year loss after posting a third-quarter loss that lagged market estimates."We expect the pretax loss... Source: RSS feed - channel BNPaperBusiness | 14 Aug 2009 | 1:33 am London stocks edge higher at open (AFP) AFP - London stocks were up at the start of trade on Friday as investors awaited more economic data from the United States. Source: Yahoo! News: Stock Markets News | 14 Aug 2009 | 1:31 am Video game sales fall in the US Sales of video games and consoles fall in the US for the fifth consecutive month as the downturn hits consumers. Source: BBC News | Business | World Edition | 14 Aug 2009 | 1:28 am Asia Markets And Europe Open 8/14/2009 Markets in Asia were mixed. The Nikkei rose .8% to 10,597. The Hang Seng fell .7% to 20,724. China Life (LFC) fell over 2%. The Shanghai Composite traded down 3% to 3,047. At the open in Europe, the FTSE rose .3% to 4,769. The Dax rose .1% to 5,407. The CAC 40 rose .7% to 3,539. Data from Reuters and [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 14 Aug 2009 | 1:27 am Swatch suffers sales slump Swatch Group, the maker of watches from handmade Breguets to the ubiquitous Swatch, highlighted the impact of the global economic slowdown with sharply falling sales and earnings in the first half. Group... Source: RSS feed - channel BNPaperBusiness | 14 Aug 2009 | 1:27 am Man Group sells last of MF Global stake Man Group, the hedge fund manager, has struck a deal to sell its remaining 18.4 per cent stake in MF Global, the derivatives brokerage it spun off in 2007.Man Group said late on Thursday it had reached... Source: RSS feed - channel BNPaperBusiness | 14 Aug 2009 | 1:25 am British Land shares jump on bid interest from world's richest families Property company's shares jump sharply on news that a foreign consortium is plotting a bid for one of the UK's biggest landlords. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Aug 2009 | 1:20 am Chrysalis' Jackson songs 'surge' Entertainment group Chrysalis says it has seen an "extraordinary surge" in Michael Jackson sales in its latest trading update. Source: BBC News | Business | World Edition | 14 Aug 2009 | 1:05 am Video game industry sees U.S. sales fall 29% in July Several titles due out over the next several months could provide a boost. Some firms are holding off on releasing certain games amid the economy's woes. ... Source: RSS feed - channel BNPaperBusiness | 14 Aug 2009 | 1:00 am Amgen osteoporosis drug denosumab wins a vote of confidence from FDA panel The experimental drug benefits patients being treated for osteoporosis, advisory panel says. But it does not recommend it for preventive use. The FDA is due to decide in October. Biotech leader Amgen Inc. cleared a major hurdle in its push to win approval for its experimental osteoporosis drug from the Food and Drug Administration. Source: L.A. Times - Business | 14 Aug 2009 | 1:00 am Barneys New York brings warehouse sale to L.A. Convention Center The warehouse event, which was held for the last 14 years in a hangar at the Santa Monica Airport, moves to downtown Los Angeles. Each season that the semiannual Barneys New York Warehouse Sale comes to the Los Angeles area, it poses several philosophical questions: Source: L.A. Times - Business | 14 Aug 2009 | 1:00 am Video game industry sees U.S. sales fall 29% in July Several titles due out over the next several months could provide a boost. Some firms are holding off on releasing certain games amid the economy's woes. The video game industry experienced a stomach-churning 29% drop in U.S. sales in July, its third-worst year-over-year slide since January 1995, when NPD Group Inc. first began tracking sales data. Source: L.A. Times - Business | 14 Aug 2009 | 1:00 am Firms' concerns freeze 'oil city' hopes in Venezuela Soledad residents await realization of President Hugo Chavez's plan for a huge complex and the jobs it would create. But financial terms and doubts about the socialist government prompt delays. Like nearly everyone else in this sleepy fishing town, unemployed former soldier Miguel Fernandez is eagerly anticipating the massive "oil city" that President Hugo Chavez has promised to build here on the banks of the Orinoco River. Source: L.A. Times - Business | 14 Aug 2009 | 1:00 am 3 big retail chains' earnings reflect a hard slog Wal-Mart, Nordstrom and American Apparel report mixed second-quarter results. Nearly all U.S. retail sectors suffered in July. ... Source: RSS feed - channel BNPaperBusiness | 14 Aug 2009 | 1:00 am Samsung camera keeps vanity in focus The DualView camera, due to hit stores next month, features view screens on the front and back. The idea is to simplify taking self-portraits for social networking sites. Think of it as the digital camera for the lonely. Source: L.A. Times - Business | 14 Aug 2009 | 1:00 am Warner Bros. delaying providing movies to Redbox The studio will not provide movies to kiosk operator Redbox until 28 days after they go on sale. It also seeks a better deal with Netflix. Warner Bros. is setting its sights on Redbox and Netflix amid the latest sign that consumers are abandoning retail DVD stores in favor of the fast-growing rental kiosks and mail subscription companies. Source: L.A. Times - Business | 14 Aug 2009 | 1:00 am Stocks climb to 2009 highs on economic optimism Hope that the U.S. will continue to improve extends a rally for a second day. The Dow gains 36 points. Investors... Source: RSS feed - channel BNPaperBusiness | 14 Aug 2009 | 1:00 am 'Clunker' dealers who require payback agreements are targeted by consumer groups Some dealers, trying to guarantee that they'll receive 'cash for clunkers' rebates, apparently are forcing buyers to sign agreements despite a government advisory that such contracts are not required. Consumer advocates want federal officials to crack down on auto dealers that they contend are taking advantage of car buyers participating in the government's "cash for clunkers" program. Source: L.A. Times - Business | 14 Aug 2009 | 1:00 am Family politics behind Hyatt's going public? The global hotel chain has a sterling balance sheet and no need to raise cash. If it weren't for family politics,... Source: RSS feed - channel BNPaperBusiness | 14 Aug 2009 | 1:00 am 'Clunker' dealers who require payback agreements are targeted by consumer groups Some dealers, trying to guarantee that they'll receive 'cash for clunkers' rebates, apparently are forcing buyers to sign agreements despite a government advisory that such contracts are not required... Source: RSS feed - channel BNPaperBusiness | 14 Aug 2009 | 1:00 am 3 big retail chains' earnings reflect a hard slog Wal-Mart, Nordstrom and American Apparel report mixed second-quarter results. Nearly all U.S. retail sectors suffered in July. Three major retailers reported quarterly earnings Thursday, with mixed results that underscored the continued problems plaguing the economy. Source: L.A. Times - Business | 14 Aug 2009 | 1:00 am Sugar price increases put food makers on alert Big companies warn of a shortage and ask the U.S. to ease import quotas. Domestic sugar producers say there's plenty available and that raising quotas could drive them out of business. The price of sugar on world markets has soared this year, prompting a coalition of the nation's largest food manufacturers to warn of a pending shortage and to ask the Agriculture Department to ease quotas on imports. Source: L.A. Times - Business | 14 Aug 2009 | 1:00 am Bottled water sales see a drought Amid the recession, thrifty consumers have rediscovered another source for their third-favorite drink: the tap. The recession has finally answered the question that centuries of philosophers could not: The glass is half-empty. Source: L.A. Times - Business | 14 Aug 2009 | 1:00 am Allied Carpets' administrators shut 142 stores 850 jobs lost Administrators said the recession had made investors nervous about buying the bulk of the stores. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Aug 2009 | 12:52 am Market closes higher Contact Energy shares closed higher even after the company reported a 50.4 per cent fall in annual profit, as investors continue to bet companies will be able to move on from a hard year. An unchanged final dividend of 17c per... Source: New Zealand Herald - Business | 14 Aug 2009 | 12:52 am Shock rate cut for South Africa South Africa's central bank unexpectedly cuts its lending rate from 7.5% to a four-year low of 7%. Source: BBC News | Business | World Edition | 14 Aug 2009 | 12:14 am Recovery boosts currency The New Zealand dollar rose today as evidence that the economy is improving mounted and as the Australian dollar rose to an 11-month high. By 5pm the NZ dollar was US67.87c from US67.28c at 5pm yesterday. The high of US68.26c today... Source: New Zealand Herald - Business | 13 Aug 2009 | 11:35 pm More U.S. home sellers cutting prices: survey NEW YORK (Reuters) - One in four U.S. homes for sale on August 1 had their prices marked down at least once since landing on the market, data compiled by real estate website Trulia.com showed on Friday. Source: Reuters: Business News | 13 Aug 2009 | 11:21 pm Las Vegas Sands wins $3.3bn debt deal Las Vegas Sands, the casino operator controlled by billionaire Sheldon Adelson, has received a much-needed boost after its bankers allowed it to spin off its Macao operations as they agreed to amend a $3.3bn credit facility Source: Financial Times - US homepage | 13 Aug 2009 | 11:17 pm 2Q profits at Wal-Mart and Kohl's beat forecasts (AP) AP - Retailers are waking up to something a bit scary — all that penny-pinching and fixation on necessities may not be going away. It could be the new reality. Source: Yahoo! News: Business | 13 Aug 2009 | 10:25 pm Contact Energy looks to move on from hard year Seeking to move on from a hard year, Contact Energy says it has started to increase customer numbers again after losing some support in a row over directors' fees. The company today reported a 50.4 per cent fall in net profit to... Source: New Zealand Herald - Business | 13 Aug 2009 | 10:00 pm Is Timber an Overhyped Investment? U.S. TIMBERLAND MAY BE ONE OF THE WORLD'S most overvalued asset classes. Timberland is a rarity because prices have risen steadily since the mid-1990s, with Southern timber properties more than doubling to around $1,700 an acre, even as the price of logs, lumber and other forest products scrapes multiyear lows. Last year, when almost all investment categories declined in value and the U.S. stock market fell about 35%, timberland prices rose 9%, atop a 17% gain in 2007. In the first half of 2009, prices are down 0.5%, according to the National Council of Real Estate Investment Fiduciaries, or NCREIF, which tracks the timber market. Timber prices could be vulnerable to a decline of as much as 50% in coming years. That likely would sting a group of real-estate investment trusts focused on timber, including Plum Creek Timber (PCL) and Potlatch (PCH), as well as Weyerhaeuser (WY), the forest-products company whose most valuable asset is two million acres of prime forest in the Pacific Northwest. Plum Creek, whose shares are flat this year, at 34, is expected to generate most of its 2009 profits from land sales, prompting analysts at Off Wall Street Consulting to write in a recent report that the company "increasingly looks like a self-liquidating entity rather than an ongoing business concern." Plum Creek currently pays a dividend of $1.68 a share, and Potlatch, $2.04. Both dividends could be vulnerable because they're not generated from operations. Rayonier (RYN), another timber REIT, is in better shape because it has a more diversified business mix. Credit Suisse analyst Chip Dillon downgraded Weyerhaeuser last week to Underperform from Neutral, citing its ongoing losses, a low dividend yield of less than 1% and potential tax and other hurdles if it tries to convert into a tax-advantaged REIT in the next two years. Weyerhaeuser, whose shares have moved up to 37 from 28 amid a rally in commodity stocks, is expected to lose about $2 a share this year. Dillon pegs "peak earnings" at about $4.45 a share in 2013. If timber prices crash, the biggest losers could be university endowments and other institutional investors that plowed an estimated $40 billion into timber investments in the past decade as part of a major shift toward so-called alternative investments. The private market for timber is even more inflated than the timber values embedded in public REITs. Plum Creek, for instance, is valued at about $1,100 an acre, versus an average national private-market price of $1,800 an acre, according to NCREIF. "If you look at income per acre, you're earning about a 1% return. A bank will pay you 2% or 3%," says Dillon. "The price of timberland is up two times in 10 years, while the income stream has gone down." Dillon thinks timberland prices may decline as timber-investment-management organizations, or TIMOs, which hold millions of timber acres on behalf of institutional investors, begin to sell holdings in the next several years. Their funds hit predetermined liquidation dates, often eight to 10 years after inception. IT'S TOUGH TO ASSESS THE STATE OF THE U.S. timber market because it is illiquid. It has gotten even harder to gauge the market lately because there have been no significant transactions since the global financial crisis erupted last fall. It is rumored that some sizable deals were shopped in late 2008 but were pulled from the market because of big gaps between what sellers wanted and what buyers would pay. On Plum Creek's earnings conference call in late July, CEO Rick Holley ventured that timber prices were down 10% from their peak. That could be an optimistic assessment. Some small sales have been made at what Dillon considers inflated prices as TIMOs bought timberland from Plum Creek and other sellers. His view, in a recent note: TIMOs are "hustling to 'put money to work' in funds they created just before the financial crisis in order to avoid refunding these monies to fund investors" and thus getting lower management fees. Small sales at inflated prices also help maintain the value of existing timber holdings, but do a disservice to investors in the timber funds. In the past decade, timber has migrated from the hands of long-time corporate holders such as International Paper (IP) and Boise Cascade to TIMOs, as forest-products companies sought to rid themselves of low-return assets, bolster their balance sheets and showcase hidden assets. Forest-products stocks generally have been terrible performers in the stock market for two decades. International Paper has rallied to 19 from 4 but remains below where it traded in 1989. Despite its impressive land holdings, Weyerhaeuser, at 37, is only slightly higher than it was 20 years ago. Corporate owners found ready buyers in the TIMOs as timber became a hot asset class. Early investors such as the Harvard University endowment racked up big returns. Yet Harvard sold its U.S. timber holdings four years ago to Hancock Timber Resource Group, the largest of the TIMOs, with about $8 billion of timber assets under management. Hancock Timber executives weren't available to comment. Timber has been hailed as an ideal investment for university endowments and other institutions because of strong historical returns, a low correlation with stocks and bonds, its renewable nature and supposed benefit as an inflation hedge. Bulls like to say timber "grows while you sleep" and isn't a depleting resource, unlike oil wells or copper mines. Oscar Schafer, managing partner at O.S.S. Capital Management in New York and a member of the Barron's Roundtable, outlined the bear case for timber in our Midyear Roundtable in June ("Too Far, Too Fast," June 15). He said timber's "seductive investment pitch" doesn't make sense today. "The reality is the underlying cash flow is highly dependent on cyclical industries like housing, paper and newspapers," he said. "It is also tough to hedge inflation when you are buying at an inflated price. This is the greater-fool theory at work." Compared with the outlook for key commodities such as oil, copper or aluminum, the outlook for most forest products isn't strong. Demand could weaken as the world goes digital and uses less paper. One of timber's great selling points, its renewable nature, also means wood is less likely ever to be in tight supply. "With many of the trees maturing in recent years 'remaining on the stump,' we certainly do not see an immediate log-price jump when lumber markets heat up, as there will be a 'pent up' supply of logs for several years," Dillon wrote. PART OF THE BULL CASE FOR TIMBER is that some land near expanding urban areas can be sold to real-estate developers. That argument, however, is less compelling now, given the weak state of the housing market. "If timber is an inflation hedge, why are log prices at a 25-year low?" Dillon asks. Log prices are around $50 a ton, while lumber recently went for $222 per thousand board feet, half the 2004 high. North American newsprint is near a 20-year low at $450 a ton. In outlining the bear case for Plum Creek in the Midyear Roundtable, Schafer noted it was valued at about 30 times estimated 2010 earnings and nearly 20 times projected pre-tax cash flow. Plum Creek's seven million acres of timberland are now valued at more than $1,100 an acre. He said $600 an acre is a more realistic value, which would translate into a stock price of $15 a share or less. Timberland's tiny yields compare with 7% to 8% yields on commercial real estate for an all-cash buyer and similar returns on real-estate investment trusts. Why should timberland return so much less? Most of the reported returns on timberland in recent years came from appreciation, not log sales. In the future, the timber market could see a shift in assets toward REITs and away from TIMOs. "We do not see sufficient benefits of having a private and illiquid interest in a multiyear timber fund versus having a highly liquid investment in a diversified timber portfolio owned through shares in a publicly traded timber REIT," Dillon wrote. He thinks the TIMO model also is in trouble because endowments and other institutions increasingly prize liquidity. Dillon thinks Plum Creek, in particular, ought to consider cutting its dividend, both to husband cash for potential acquisitions in coming years and deal with debt maturities in 2011 and 2012. Plum Creek CEO Holley said on the recent conference call that the current dividend is "important" to both the company and shareholders and could be increased in the future. Timber is one of those overhyped investments whose supposed virtues don't hold up well under closer scrutiny. It is hard to find an asset that has appreciated so much, even as the products created from it are so weak. This doesn't bode well for private holders of timber and investors in timber REITs. For those seeking commodity investments and inflation hedges, look elsewhere. The Bottom Line Early investors in timberland, such as university endowments, earned big returns. Those who invest today in timberland, and timber companies and REITs, are likely to see big losses. 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 | 13 Aug 2009 | 10:00 pm 6 Tips for Discounts on Theater Tickets (Deal of the Day) The recession may have roiled Wall Street and thumped the media, but there is at least one street in Manhattan where the neon lights are still bright. Theater box office sales for the 2008-09 season, which ended in May, brought in $943 million, up slightly from $938 million in the previous season, according to the Broadway League, a theater trade association. Attendance dropped just 1%. The secret: a longstanding tradition of deep theater discounts that have kept shows affordable even when consumers are cutting back. These deals extend beyond New York. Savvy theatergoers across of the country can easily save 50% off the cost of tickets, if not more. Here’s how to pay less to see a show: Check with the venue At The Rio in Las Vegas, headliner magicians Penn & Teller aren’t the only ones making things disappear. The casino knocks 25% off the $75 show tickets when you call its ticket booking line and mention code PTIN2. Many theaters also give discounts to consumers who sign up for their email newsletters or connect with them on social networking sites. The Denver Center for the Performing Arts recently offered its Facebook fans $5 tickets to see “Girls Only: The Secret Comedy of Women” (regularly $29). Visit same-day discount booths The worst-kept secret for cheap theater tickets is also one of your more reliable options, thanks to the economic downturn. “We sell almost every show in Vegas,” says Mitch Francis, the president and chief executive of TIX Corporation (TIX), which operates Las Vegas-based Tix4Tonight. Tickets to most shows are sold for half their box-office prices. In New York, there’s TKTS; in Boston, BosTix, and in San Francisco, Tix Bay Area. Some booth locations offer better deals than others. In New York, the TKTS booths in South Street Seaport and downtown Brooklyn sell matinee tickets for the next day’s show, but the Times Square booth sells them only for the performance that day. Their lines are shorter, too. Gamble on ticket lotteries Many shows let consumers submit their names for same-day ticket lotteries of prime seats. The musical "Wicked" (playing on Broadway, in San Francisco and in select cities on tour) holds daily raffles of front-row seats (regularly $75 and up, depending on the city) for just $25 in a daily ticket lottery. “You really do have to play the odds,” says Ken Davenport, a Broadway producer whose shows have included “Speed the Plow” and Will Ferrell’s “You’re Welcome, America.” You’re more likely to win on a Tuesday night than on more popular Wednesday matinees and weekend showings. Become a patron Avid theatergoers might consider a paid membership to an arts group. New York TDF members pay an annual $30 fee in exchange for discounts of up to 70% off tickets to a variety of live productions. Another option: seat-filling services, which pass along free tickets from producers who want their houses to appear full. Play-by-Play and Theater Extras charge $99 a year. Buy online “Why wait in line when you can go online?” Davenport says. Using the Internet, you can easily save 50%, he says. For example, buy one ticket for "Shrek the Musical" at TheaterMania.com, and you can get up to three more for half the price. Or look up box office coupon codes at BroadwayBox.com. A quick search revealed that using code 44SEA at checkout on TicketMaster.com can yield up to $30 off tickets to "The Little Mermaid" on Broadway through Aug. 30. Go through your wallet Like concert tickets, discounted theater seats are a perk for many credit cards. Alumni associations, unions, professional organizations and other membership groups also offer deals. The Regional Transportation Commission of Southern Nevada offers 30% off "Blue Man Group" tickets to members of its free Club Ride Commuter Services program, which helps people find carpools and other environmentally friendly ways to commute. And graduates of John Jay College in New York are entitled to discounts of 50% for Broadway and off-Broadway productions when they book through an affiliated ticket site. 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 | 13 Aug 2009 | 10:00 pm 3 Clunker Traps Car Buyers Should Avoid (Consumer Action) The government’s CARs program (better known as “Cash for Clunkers”) has been a huge success for manufacturers and dealers. Barely six days after its launch on July 24, the program had exhausted the $1 billion initially earmarked for reimbursements by the government and needed a refill. Nearly one million new cars were sold in July – a level not reached since August 2008 and up 16% from sales in June. Hundreds of thousands of gas-guzzling clunkers have been replaced with shiny new vehicles. Dealers have seen business pick up. Manufacturers are increasing production to meet a demand they haven’t experienced in years. But how about clunker owners? Not all of them are getting the great deals they had hoped the program would provide. Here are three common traps that car buyers have been encountering under the Cash for Clunkers program – and how to avoid them. 1. Watch out for waivers Fearing the government may not reimburse the $3,500 or $4,500 credits extended to buyers under the program, some dealers are putting buyers on the hook for that money. They’re asking buyers to sign waivers or purchase agreements, which stipulate that if the dealer doesn’t get reimbursed, the buyer will pay back the credit or return the new car. Some states’ industry associations, like the Minnesota Automobile Dealers Association and the Illinois Automobile Dealers Association, have published sample agreements (here and here) for their members’ convenience. Watch out: The Department of Transportation explicitly states that buyers are under no obligation to sign such agreements. Rosemary Shahan, president of Consumers for Auto Reliability and Safety, a Sacramento, Calif.-based advocacy group, says an increasing number of recent buyers are reporting that dealers are demanding they sign such agreements, trying to collect money from the buyers because of denied reimbursements and, in some cases, threatening to repossess new cars if the buyers refuse to pay. Pete Sander, president of the Illinois Automobile Dealers Association, says dealers are concerned with delays in reimbursements and rejected applications, most of which are caused by clerical errors. “The concern is we’re not getting applications approved in a timely manner,” he says. “Why put dealers on the hook?” The Minnesota Automobile Dealers Association did not return calls seeking comment. The National Association of Automobile Dealers, or NADA, said in an email that it has raised these issues with the National Highway Traffic Safety Administration. 2. Know your clunker’s trade-in value Check your car’s trade-in value before you head to the dealership, and make sure a new car fits with your wallet and lifestyle. “If your car is worth close to the $3,500 or $4,500 cap, you’re almost always better off trading it in and buying a cheaper used car,” says Joe Ridout, a spokesman for San Francisco-based advocacy group Consumer Action. New cars lose as much as 30% of their value the minute you drive them off the lot. Buy a used car that’s still under warranty – say, a 2006 or 2007 model – and you’ll have let someone else pay for that depreciation. 3. Don’t forget to negotiate Just because the government is giving you $3,500 or $4,500 for your clunker doesn’t mean you should let the dealer keep the full difference between your car’s manufacturer’s suggested retail price, or MSRP, and the invoice price. In other words: Negotiate. Cash for Clunkers has taken some negotiating power away from car buyers. According to pricing data received from more than half of the nation’s dealerships, auto data aggregator Edmunds.com found that shoppers have been getting less of a discount since the start of the program. For example, the average discount on a new Ford (F) Escape after the Clunkers program began has slipped to 5.2% off the MSRP, compared with 5.7% before the program got underway. Consumers are paying an average $261 more. A new Dodge Caliber sold for an average price of $17,368 before Clunkers, 11.7% off MSRP, compared with an average $19,181 after the program’s start, a discount of just 3.8%. 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 | 13 Aug 2009 | 10:00 pm What's Next for Retailers? (On the Street) If the consumer is the key to the recovery then the most recent retail sales data and retailer earnings reports are disquieting, indeed. Retail sales fell 0.1% last month, the Commerce Department said, when economists expected them to rise. Meanwhile, the Labor Department said new jobless claims rose when economists expected them to fall. And, perhaps even more important, sales at Wal-Mart (WMT), the world's biggest retailer, fell during its fiscal second quarter – yet another metric that fell short of expectations. If better sales and an improved jobs picture are the keys to increased consumer spending -- especially heading into the teeth of the critical back-to-school shopping season -- then the latest news hardly bolsters the case for retail stocks, especially at these levels. If anything, the data undermines the remarkable run in retail shares since the market bottomed back in early March. The S&P Retail index is up a massive 60% since that time, beating the broader market by a full 10 percentage points over the same period. Now that run-up is even harder to justify. July's retail sales were a "real clunker," says Richard Moody, chief economist and director of research at Forward Capital, an Oakton, Va.-based real estate investment company. Furthermore, core retail sales, which exclude autos, have now dropped for five straight months, he says, and given the weak labor market, consumer spending looks to be tepid at best over the coming quarters. Translation: It looks like the red-hot retail rally is poised for a pullback. True, the run-up isn't being driven by the same voracious appetite for risk that we've seen in other speculative investments, such as small-cap stocks, junk bonds or emerging markets. Rather, it's a rational bet that all the cost cutting and inventory paring retailers are doing today will spring load margins and boost earnings when sales start to grow again, says Brett D'Arcy, director of investments research at CBIZ Financial Solutions (CBZ), a Cleveland financial services firm. "All the retailers reporting better-than-expected earnings is a result of cost cutting, but they aren't necessarily low-quality earnings. They have to get their costs in line. If consumers get a little optimism, they'll go back to spending and that could unleash pent-up demand," says D'Arcy. Brian Sozzi, an analyst with Wall Street Securities, is less optimistic. He says current stock valuations for the sector are in many cases a result of wishful thinking. Too many retail stocks have gone too far, too fast, trading at valuations that just aren't supported by the fundamentals, he says. Specialty retailers Abercrombie & Fitch (ANF) and American Eagle Outfitters (AEO), for example, are trading at 21 times next year's earnings, despite not showing any sign of a sales turnaround. Both those names are more than twice as expensive as their own five-year averages, according to Thomson Reuters, as well as pricier than the consumer discretionary sector, which carries a forward P/E of nearly 18, according to Yardeni Research. The S&P itself goes for 17 times forward earnings. (See chart below for July same-sales and P/Es of some major retailers.) "You're seeing these stocks trade on the expectation that the fourth quarter [the all-important holiday selling season] will be the big turnaround," Sozzi says. "I would expect some pullback in retail because I think back-to-school is going to be disappointing, and that doesn't bode well for the holidays." Sozzi projects that consumers will remain skittish well into 2010. He sees the personal savings rate steadily climbing to 10% next year, more than double what it is now. "We've seen the retailers do a pretty darn good job of reining in costs and running much tighter and leaner ships," says Matthew Kaufler, co-manager at Federated Clover's All Cap Value investment portfolio. "That's all fine and good. But here's the rub: At some point they are all going to want to grow again, and if retail sales remain weak, they will have to cut prices to gain market share. That will hurt margins." If retailers get into markdown wars with each other in order to boost market share, well, so much for any sales boost finding its way down to their bottom lines. Retailers, says Kaufler, are "scared to death" about unemployment and personal savings picture heading into the holidays. He expects a broad-based pullback in the consumer discretionary sector over the next 60 days. So while retail stocks could have some more upside left in them, most appear priced for more spending and less savings --- something the latest readings on the economy don't support.
Retailer	July Same-Store Sales (% change)	Forward P/E
Source: Thomson Reuters
Abercrombie & Fitch	-28.0	22.0
Aeropostale	6.0	11.0
American Eagle Outfitters	-11.0	20.0
Gap	-8.0	13.5
J.C. Penney	-12.3	24.0
Kohl's	0.4	17.0
Limited	-7.0	14.5
Macy's	-10.7	14.0
Nordstrom	-6.9	18.0
Ross Stores	4.0	18.5
Saks	-16.3	N/A
Target	-6.5	13.0
TJX Cos.	4.0	14.0
Wal -Mart	N/A	13.0

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 Restaurants Won't Tell You (10 Things)

1. “It’s more about the flash and flair than the filet mignon.”

As any restaurateur will tell you, going out to eat is never just about the food; it’s about the overall experience. At legendary Aureole Las Vegas, for example, spandex-clad “wine angels” climb up and retrieve bottles from a 42-foot-tall spirits tower. The thinking behind the spectacle: “Anything that gets patrons’ attention will get them to spend,” says restaurant designer Mark Stech-Novak.

Indeed, facing tough economic headwinds, restaurants are working every available angle to maximize profits. Even fast-food outlets get into the game, setting up a high-stimulation environment for customers—“it encourages faster turnover,” says Stephani Robson, senior lecturer at the Cornell School of Hotel Administration. “Specifically, the use of bright light, bright colors, upbeat music, and seating that does not encourage lolling.”

Although seemingly innocent, even menus are rigged. “We list the item that makes the most profit first so it catches your eye,” says restaurant consultant Linda Lipsky, “and bury the highest-cost item in the middle.”

2. “Eating here could make you sick.”

The 2006 E. coli outbreak that started at a New Jersey Taco Bell and sickened more than 60 people was likely the fault of contaminated lettuce. But food-borne illness isn’t the only cause for concern: In a separate December incident, several hundred people in Indianapolis got sick after eating at an Olive Garden where three employees tested positive for the highly contagious norovirus. (Olive Garden says that the source of the outbreak has yet to be determined.)

“You don’t call out [sick] unless you’re on your deathbed,” says freelance chef Leah Grossman. Indeed, according to a recent study, 58 percent of salaried New York City restaurant workers reported going to work when sick; the number is even higher for those without benefits. “A lot of poor, transient people work in restaurants,” says Peter Francis, coauthor of industry exposé How to Burn Down the House. “They’re not giving up the $100 they’d make in a shift because they’re sick.”

How can you protect yourself? Check inspection results, which are often posted online by local departments of public health. Or just visit the restroom; it “tells you everything you need to know about a restaurant,” Francis says.

3. “Our markups are ridiculous.”

It’s no secret that restaurants enjoy huge markups on certain items: Coffee, tea, and sodas, for example, typically cost restaurants 15 to 20 cents per serving, and pasta, which costs pennies, can be dressed up with more expensive fare and sold for $25 a dish or more. At a fine-dining restaurant, the average cost of food is 38 to 42 percent of the menu price, says Kevin Moll, CEO and president of National Food Service Advisors. In other words, most restaurants are making roughly 60 percent on anything they serve.

It’s not all gravy, though. Restaurants keep only 4 cents of every dollar spent by a customer, says Hudson Riehle, vice president of research and information services at the National Restaurant Association. The remainder of the money, he says, is divided between food and beverage purchases, payroll, occupancy, and other overhead costs.

Given the slim profit margin, many restaurants rely on savvy pricing to create the illusion of value. Putting a chicken dish on the menu for $21 will make a $15 pasta dish, where the restaurant is making a big profit, seem like a bargain, says Gregg Rapp, owner of consulting firm MenuTechnologies.net. So how can customers get the best value? Often the real deals are some of the most expensive items on the menu. A dish like prime rib, for example, gives you the most bang for your buck, says Rapp, since it costs the restaurant over half the menu price to prepare it.

4. “Big Brother is watching you . . . eat.”

No one likes having their every move scrutinized, but that may be just what’s happening at your favorite restaurant. Cameras are popping up everywhere, from four-star eateries to the place where you grab your lunchtime sandwich. At historic Randy’s Steakhouse in Frisco, Tex., where checks average $45 to $50 per person, coowner Don Burks has installed 12 cameras around the premises. Of those, two pick up activity in the dining rooms and two are aimed at the bar. “We’ve had customers stand on chairs to try to take out a camera,” Burks says. “But the cameras aren’t even pointed at them; they’re pointed at the wine rack.” Their primary purpose: deterring employee theft.

At some restaurants, however, the cameras are indeed trained on the tables. At New York City’s four-star Daniel, for example, four closed-circuit cameras monitor the dining rooms, offering a bird’s-eye view of every plate. “It’s about maintaining a quality of service,” says Daniel spokesperson Georgette Farkas. “With the cameras the chef can tell when each course needs to be plated and served.” So much for that romantic dinner for two.

5. “There’s something fishy about our seafood.”

Even when you pay top dollar for a seafood dish, you might not get what you’re expecting. About 70 percent of the time, for example, those Maryland crab cakes on the menu weren’t made using crabs from the Chesapeake Bay, says James Anderson, chairman of the Department of Environmental and Natural Resource Economics at the University of Rhode Island. Because of high demand, crabs are often from other eastern states or imported from Thailand and Vietnam. (Look closely at the menu: “Maryland-style” crab is the giveaway.) It’s a matter of opinion about whether that means poorer-quality crabs, says Lynn Fegley, biologist for the Maryland Department of Natural Resources. But it certainly smacks of false advertising.

There’s also the problem of outright substitution—inexpensive fish, such as pollack, getting passed off as something pricier, like cod. How widespread is the problem? In 2006 the Daytona Beach News-Journal sent fish samples to a lab to prove that 4 out of 10 local restaurants were pawning a cheaper fish as grouper. The same lab also checked seafood from 24 U.S. cities and found that, overall, consumers have less than a 50/50 shot at being served the fish they ordered.

What can you do? Ask where the fish comes from. “If they’re not sure if the fish is from Alaska or Asia, I order the beef,” Anderson says.

6. “Reservation? What reservation?”

When Timothy Dillon, 34, showed up at new Chicago trattoria Terragusto for his friend’s birthday, he wasn’t expecting a wait. He’d made a reservation for four, then called the day of to confirm and add one more. The restaurant told him no problem, but when the party showed up, they were met with a long wait. “After almost an hour of standing by the bar being ignored, we ended up leaving for another restaurant,” Dillon says. Terragusto says it was its first week open: “We were probably working out a lot of glitches,” says a spokesperson.

As Dillon discovered, a reservation isn’t a guarantee. “Overbooking is almost a necessary evil,” says John Fischer, associate professor of table service at the Culinary Institute of America. Restaurants calculate their average noshow percentage for any given night, then overbook the restaurant by that much, hoping it will come out even. How to avoid Dillon’s fate? It’s considered poor taste to offer a tip before you’re seated, Fischer says, so if it’s your first time, inquire politely after 15 minutes. But go ahead and slip the manager or maître d’ $10 or $20 on the way out; it should ensure you’re seated promptly next time.

7. “Our specials are anything but.”

“I’m very careful about ordering my food,” says Rick Manson, owner of Chef Rick’s restaurant in Santa Maria, Calif. If he orders oysters, Manson says, he’ll offer multiple dishes on the menu that use oysters, “to make sure I use every one of them.” Nonetheless, countless variables can leave surplus ingredients at the end of the day—which often become tomorrow’s special. “It could be the chef legitimately wants to try out something new,” says Stephen Zagor, founder of consulting firm Hospitality & Culinary Resources. “But it could also be something nearing the end of its shelf life that needs to get out of the kitchen.”

How can you tell a good special from a bad one? Watch out for “an expensive item used in a way that’s minimizing its flavor,” Zagor says, such as a lamb chop that’s been cut, braised, and put into a dish where it’s a supporting player. Pastas, stews, and soups containing expensive meats are also suspect. “There’s an old saying in the restaurant industry,” says David A. Holmes, VP and director of Out East Restaurant Consultants. “‘Sauce and gravy cover up a lot of mistakes.’”

8. “There’s no such thing as too much butter.”

Think that salmon fillet you ordered for dinner is good for you? Think again. Many restaurants load even their healthiest fare with butter and other calorie-heavy add-ons. Restaurant meals average 1,000 to 1,500 calories, says Milton Stokes, a registered dietitian and spokesperson for the American Dietetic Association. That’s roughly two thirds of the daily average calories recommended by the USDA. And according to a recent study, women who eat out five times a week consume an average of 290 additional calories per day.

While most Americans assume that fast food is the worst offender, similar fare at casual sit-down restaurants can be even more caloric. The classic burger at Ruby Tuesday, for example, has a whopping 1,013 calories and 71 grams of fat. The McDonald’s Big Mac, with its 540 calories and 29 grams of fat, seems downright diet-worthy by comparison. “We butter our hamburger buns,” says Julie Reid, recently retired vice president of culinary and beverage for Ruby Tuesday, “so we tell people if they’re looking to cut calories, they shouldn’t eat the bun.” If that sounds less than appetizing, try splitting an entrée with someone, or order an appetizer instead of a main dish.

9. “Nice tip—too bad your waiter won’t get it.”

Just because you tip your waitress 10 bucks, it doesn’t mean she’s going home with that money. More than likely, she’ll have to pass on some of it to the people who helped her serve you: The bartender might get $2, and the busboy $3 to $5. It’s called a tip pool, and it’s becoming standard practice in many restaurants. “It happens often that if someone leaves a voluntary tip [for their server], a significant portion of that money is going to other people,” Zagor says.

According to federal law, only employees who customarily receive tips—waitstaff, hosts, bartenders, and bussers—can participate in the tip pool. But sometimes management takes a cut. In 2006 waitstaff from the Hilltop Steak House in Saugus, Mass., won $2.5 million in damages after complaining that managers dipped into their tips.

Mandatory gratuities are also divvied up. At high-end restaurants such as New York City’s Per Se and Napa Valley’s French Laundry, both owned by chef Thomas Keller, the practice is called service compris. “The 20 percent service charge is clearly stated on the menu, and it’s equally divided among the staff,” says a spokesperson for both restaurants. While the tip pool is designed to foster a team environment among workers, for customers it means something else entirely—that your gratuity isn’t specifically rewarding the waiter or sommelier who provided you with exemplary service.

10. “You might not want to eat here on a Monday.”

If you think that Monday, when restaurants tend not to be crowded, is a great time to eat out, think again. “You’re being served all of the weekend’s leftovers,” says Francis, coauthor of How to Burn Down the House. Most kitchens prepare food on a first-in, firstout basis, meaning whatever is oldest gets served first. It’s a way to ensure that everything on the menu is as fresh as possible.

The system works great most days, but it can run into a little glitch over the weekend. Distributors typically take Sunday off and make their last deliveries Saturday morning—which means that by Monday, any food not used over the weekend could be three to four days old. And it will be served before the same ingredients arriving in Monday’s delivery.

What to do if you wish to dine out on a Monday? Ignore your instincts and go to a place that’s perpetually crowded. “If you are open 24/7 and busy all the time,” says New York–based chef Lucia Calvete, “all your ingredients are fresh all the time.”

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.

House prices keep rising, up 1pc in July

Retail sales up-is the recession over?

Retail sales fall, new jobless claims rise

Private equity struggling to keep debt and banks at bay

2degrees' figures don't gel in mobile war

Groser leaves for Asian trade summit

Ministerial salaries may be cut if Conservatives are elected

Bank of America ends arbitration of card disputes

Stella performance puts sparkle into Belgian beer

Asda ready to fight on all fronts as rival supermarkets expand national footprint

Finance firms downgraded by Standard & Poor's

US sees quick victory in Afghanistan

'Bank sledging' is back says ANZ National boss

Visteon seeks to end retiree benefits (AP)

TV ratings shake-up challenges Nielsen

Write-Offs: 08.13.09

$$$ Unfinished Business for Wall Street's 'Death Panel' [David Weidner]

$$$ Report: Having Chicks on Your Board Is Bad for Your Stock [CWS]

$$$ The Latest Threat To Goldman's Brand [Cityfile]

$$$ Citadel to Cut Equity Stake in E*Trade [Dealbook]

$$$ The Bernie Madoff Dining Index [Eater]

12 Economic Bubbles That May Burst

What’s the next big bubble? Green energy? Gun sales? Food? Nobody knows for sure.

Based on our research, 12 new bubbles already show potential to make and ruin investors. The markets listed below range from bubble-in-the-making to ready to pop:

1. Gun sales

Anticipating anti-gun legislation, certain Americans are snapping up guns to hoard, collect, or safekeep. Some are even stockpiling for investment purposes.

According a gun buyer mentioned in this Wall Street Journal article, a collection of “assault weapons” could triple in value if the federal government re-enacts a ban on their sale. Background checks on potential gun buyers increased by 27% in the past year, according to the article.

Some guns have already appreciated. For example, European-made AK-47s doubled in price between September-December 2008. For savvy buyers, the right to bear arms is also bearing fruit. The question is: When’s this bubble going to burst?

7. Option ARMs

Starting in May 2009, option adjustable rate mortgages (ARMs) have been causing “more delinquencies and foreclosures than subprime mortgages,” according to a Wall Street Journal article written in July.

Option ARMs allow homeowners to pay partial interest on their home loans for a predetermined period of time. In some cases, the unpaid amount of interest is added to the loan’s principal. Once the partial interest window expired, homeowners are left with potentially unaffordable payments.

Combine that will falling property values, and you see yet another loan-inspired disaster. According to the Wall Street Journal,

As of April, 36.9% of Pick-A-Pay loans were at least 60 days past due, while 19% were in foreclosure. In contrast, 33.9% of subprime loans were delinquent, with 14.5% of those loans in foreclosure.

Option ARMs are concentrated in California, Florida, and other hard-hit housing regions, writes the WSJ. Wells Fargo, J.P. Morgan Chase, and the FDIC’s insurance fund hold a large proportion of option ARMs, so a burst bubble will hit them especially hard.

It’s just a matter of time.

3. Cap & Trade

In September, the Senate will vote on the American Clean Energy and Security Act, which should really be called the Clean Energy Securitization Act. The act will create a cap-and-trade market that will create new derivative-friendly asset classes, according to this Christian Science Monitor article.

The government will, if the act passes, activate a market for carbon allowances and carbon offsets. The former are permits allowing companies to pollute; the latter, pollution permits that require companies to offset their carbon emissions elsewhere.

That, writes Mother Jones reporter Rachel Morris, is just the beginning. Once permits hit the market, financial experts will convert them in derivatives with names like “offset futures” and “allowance swaps.”

Bubblemania will ensue if the government shies away from regulation and enables the same kind of chaotic, over-the-counter system that enabled the mortgage-backed securities crisis.

The financial industry is currently lobbying for minimal regulation. If the bill goes through in September, and the government steps back from applying regulation, subprime carbon might not be too far away.

4. Incandescent Light Bulbs (EU)

A pending EU-wide ban on incandescent (traditional) light bulbs is causing consumers to hoard the soon-to-be unlawful products. Manufacturers are enjoying massive sales as a result.

The Spiegel article covering this bright bubble news didn’t mention anything about people hoarding for investment purposes, as they are for guns, but that certainly remains an option. The bubble will burst in September, when stores no longer sell incandescent lighting, and it will really burst when CFL (compact fluorescent lightbulb) technology improves enough to make people toss out their old incandescent.

5. China

Chinese stock markets have been surging, fed by easy credit from government-linked banks. The Shanghai Composite rose 16% in July alone. Banks extended $1.1 trillion in new loans during the first six months of 2009.

What’s more, a Chinese company enjoyed the biggest global IPO of the year. China State Construction Engineering Corp. raised $7.3bn in one day. The Shanghai Composite Index dropped 5% as a result: Investors feared that the same speculation that had increased CSCEC’s stock value by 56% was also overheating the market.

Unfortunately, China’s economy remains export-driven. The numbers are a smokescreen. The Chinese government is powerful enough to “make the right numbers appear” if it thinks the country’s economy needs stimulating, according to Contrarian Edge’s Vitaliy Katsenelson. “(T)he government is more than willing to artificially stimulate the economy, in the hopes of buying time until the global system restabilizes,” he says.

China is experiencing “asset bubbles that look like economic growth,” writes Bloomberg’s William Pesek. Will China’s market manipulation survive the recession, as the government has planned, or will the bubbles all burst?

6. Gold

To many investors, “quantitative easing” is synonymous with “buy gold as fast as you can!”

The problem is that more money in the mint doesn’t necessarily mean inflation. What if the Fed printed less money than was lost in the financial crisis? What if consumer demand remains low and producers can’t increase their prices? Or if, after banks recapitalize, there isn’t any extra money left? Or electronic money messes up the whole notion of quantitative easing?

Gold will spike when in inflation hits, but if there’s no inflation, speculators will be left empty-handed. Then again, if–as some goldbugs claim–the dollar weakens further, global financial systems collapse, and governments fail, it’ll be nice to have some bullion on hand.

7. Higher Education

Elite schools like Harvard and Yale have frozen some faculty salaries. What gives? It’s a widespread endowment dry-up, according to The New York Times’ Steven M. Davidoff. He explains that in recent years, endowments and tuition hikes have enabled universities to expand buildings, programs, and faculty, as well as increase salaries.

With the economic crash, however, endowments have shriveled. The Harvard endowment, on which certain parts of the university heavily rely, used to enjoy handsome portfolio returns: Its private equity portfolio gained 28% during the past decade. Now, it is facing more than 30% losses, according to Davidoff’s calculations. He estimates that up to 40% of Harvard’s assets are illiquid, meaning that it will have to aggressively raise donations or increase its liquid returns to fund itself and its private equity obligations.

“This results in a spiraling decline in Harvard’s liquid assets as each year they go lower to meet these needs and more and more assets become tied up in private equity,” writes Davidoff. Ouch. Overdependence on endowments and private equity is bursting the higher education bubble, especially at the top tiers.

8. Trustafarianism

Photo By Charles Sykes / Rex

Bubbles can be cultural, too. Just ask the hipsters featured in this New York Times article, who freeze in shock after being informed that full-time jobs last eight hours a day. For many, the parental bailout is a bubble that has either deflated or burst.

9. Alternative Energy

The next decade marks the rising of a Brave Green World. Governments are limiting carbon emissions and pushing large alternative energy subsidies. Peak oil makes the search for alternative energy sources more pressing. Cap-and-trade, if it passes, will create a new market for energy-related derivatives, enabling speculation and asset price inflation.

“There must be significant government involvement designed to focus energy and capital on the specific industry — and clearly that’s already happening,” writes Jeff Brady in this NPR article.

A few pieces still have to fall in place for a bubble to form. These include a massive update of the national energy grid, as well as a new source of credit for green ventures, according to Brady. He says that a grid update is in the works. A new source of credit, in my opinion, is just a matter of time. When that happens, brace yourself for the green market overvaluation—err, revolution.

10. Junk Bonds

In late July, average junk bond yields fell into the single digits for the first time in more than a year, according to the LA Times’ Tom Petruno. The KDP Investment Advisors’ index, which covers 100 junk issues, hit a high of nearly 18% returns last December, Petruno reports. Record bond defaults haven’t deterred investors from loading up on the risky bonds, but they have returns on their sides. Petruno says that “the average junk fund is up 27.2%.”

Those returns out-entice the prospect of massive defaults, which are bound to occur eventually. 42% of junk bond issuers have “highly leveraged balance sheets—much more than in previous years,” according to this CNNMoney article. It’s a good time to be in junk bonds—if you can get out before the bubble bursts.

11. ETFs

Vanguard’s John Bogle calls exchange-traded funds (ETFs) a “disaster waiting to happen.” The reason? Short-term traders are using ETFs to pursue short-term gains, according to this Seeking Alpha article. Passive investors try to jump on the bandwagon by buying into high-performing ETFs, not realizing that they chasing performance could spell speculative doom to their savings accounts. They’re good for long-term investing, Bogle says, but only if you use them right.

Bogle isn’t the only one wary of the ETF craze. The genre is facing oversupply to the point of redundancy. Early ETFs tracked “only the broadest indexes,” according Safe Haven’s Tyler Mordy.

Things have changed. “The first ETFs…were rather difficult to push around, and so not much given to speculative excess,” write William J. Bernstein of Efficient Frontier. He cites a “mind-boggling” variety of new ETFs—the HealthShares Infectious Disease Index is one example of how specialized the breed has become—as evidence that a new bubble may be on its way. “With each new wave of yet-more-improbable products, the danger grows,” he writes.

“Do we really need nine ETFs that essentially track the same thing?” Asks HS Dent’s Charles Sizemore. He says that specific supply and demand conditions created previous high returns. These returns caused competitors to enter the market, increasing supply, but diminishing the very returns that drove them into the market in the first place. At that point, “weaker competitors and products leave the market. We would expect there to be some kind of shakeout in the ETF sector in the months or years ahead.”

12. Food

Peak oil is so passé. Peak grain, on the other hand, could be the next big thing. Consider these facts:

-The planet doesn’t have enough high-quality arable land to keep up with the growing population. (The world has already consumed more grains than farmers produced during five of the past six years, according to this IPS article.)

-The UN expects 12 billion people to inhabit the world by the end of the century.

It’s a simple supply and demand equation. Big demand for food and water, but little supply, means that prices will increase. It’s just a matter of finding the right agricultural niche to invest in. Right?

Not so fast. A bubble needs more than just supply and demand to foment. In 2008, a commodities bubble came and went. An increase in oil prices—caused by speculation, no less—drove up transportation prices, which in turn drove up food prices. Investors went on an agriculture/commodities binge, only to find their returns destroyed by falling prices, courtesy of the financial crisis.

This short, dramatic spike was of limited significance. A more sustained food bubble could be a ways off, especially if the government starts regulating commodities speculation. Look for persistent news of food shortages, rumors that you can make money by investing in agricultural stocks based on those shortages, and increasing food prices. At that point, a bigger bubble could be in the making.

Apple board to discuss Schmidt replacement: report

If He Lied About This, What Else Might He Have Lied About (Ken Lewis)?

I bet a lot of you probably thought Hank Paulson, like Charlie Gasparino, was busy penning the definitive book on this crisis. So busy in fact, that he didn't have time address questions regarding being in bed with Goldman while Treasury Secretary. Well think again, fools, 'cause we were straight up lied to. Heidi Moore reports:

Daily Intel has confirmed that Paulson's memoirs are being written by Michael Carroll, an award-winning financial journalist who until recently was the editor of Institutional Investor.

Carroll is known as a talented wordsmith, a writer with a literary bent and a penchant for the more vivid portrayals of Wall Street's personalities when they had the kind of swagger and importance that's often missing from today's armies of besuited bankers filing into Wal-Mart megabanks. He is often skeptical and more than a little cutting in his metaphors; in December 2007, as the credit crisis was settling in, he compared Wall Street's refusal to bend to reality to the hubris of Norma Desmond, the fictional star of Sunset Boulevard. We attempted to contact him for this story, but like Paulson, Carroll doesn't use e-mail. Wouldn't matter, anyway: According to Paulson's office, Carroll is busy writing and unavailable to comment.

I know this looks bad, but so long as we don't find out he had someone else write the lyrics to his latest album, it's something we're prepared to forgive.

Ortel Says GE Has Towering Debt; Nenner on Stocks: Audio

Gheit Urges U.S. to Use More Natural Gas: Audio

Greedy French, Germans Hoard Secret Recession Killing Plans

First of all, what the hell is France doing emerging from recession anything other than 4 years too late? Who authorized that waiver?

Second, Germany is not allowed to prosper at the expense of the rest of Europe again ever. What part of that memo was unclear, exactly?

Germany and France achieved a shock return to economic growth in the second quarter of the year, ending their recessions earlier than many policymakers and economists expected, but failed to drag the euro zone with them.

German gross domestic product rose by 0.3 percent in the second quarter, bringing an end to the country's deepest recession since World War Two.

French GDP also grew by 0.3 percent in the second quarter. The consensus in a Reuters poll of economists had predicted a 0.3 percent quarterly contraction in both countries.

How was it done?

Kidnap executives and hold them for ransom (pay hikes). Note: If German, talk about "bossnapping," but do nothing. Last thing we need is another Simon Wiesenthal snooping around here). Still even the French shouldn't do too much gloating as they totally stole the idea from the Americans:

Cash for Clunkers. Germany's two-fer, keeping autoworkers busyworked and and consumers spending like the missiles are already flying. What better way to perpetual motion the system than using taxpayer dollars to subsidize the purchase by taxpayers of taxpayer dollar produced automobiles?

"Invest in Green." (That is, make everything more expensive to bring the relative cost of "going green" in line with the umwelt schmutzig alternatives and create thousands of busywork jobs for unskilled labor installing government certified insulation panels).

Brilliant!

Germany and France Exit Recession [Reuters]

Claims of oil market exploitation undermined

Stocks manage to extend gains to 2nd day (AP)

AP - Focused on an economic recovery, investors shook off disappointing news and kept Wall Street's summer rally going.

How the major stock indexes fared on Thursday (AP)

Blackstone (BX) Chief Makes $702 Million

Koreatown works on business, diversity

Ford raises output as "clunker" sales surge

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

Merrill ramps up recruitment programme

Where Do You Get Off?

[via BI]
Things took a decidedly ugly turn today when Erin Burnett stuck pins in a "Vikram doll" in some sort of voodoo hex, spell, whatever. I don't know if this was an attempt on CNBC's part to actively take down Citi (how do you think they eliminated Bear?) or just some sick joke, but listen toots: Vickles exists for tickles, and, when he's been keeping up the weight, squeezing in such away that he emits the most adorable elfin' giggle. Not for this shit.

Newly elected Democrats waver on health plan

Good luck finding a stimulus loan

California Ending Program Of IOUs

No more messages like this. (mileena/Flickr/Creative Commons)

By Caitlin Kenney

California will stop issuing IOUs on Sept. 4, a month earlier than expected. The state started paying private businesses, local governments and individual taxpayers with the registered warrants back in July to help deal with a massive budget shortfall. It has doled out almost $2 billion in warrants since then.

The decision to end the warrants came today after state officials and Governor Schwarzenegger decided the IOUs were no longer needed under the new state budget. The spending plan allows California to borrow the money needed to cover its daily expenses. State Controller John Chiang says it's likely California will need to borrow $10.5 billion in the coming year, with $2 billion of that coming from local governments.

"The State of California owes a debt of gratitude to the thousands of individuals and businesses that were forced to bear the brunt of the state's chronic fiscal mismanagement," Chiang said. "Along with short-term loans that are routinely obtained in the fall, this spending plan should provide sufficient cash to meet all of California's payment obligations through the fiscal year."

California's largest banks stopped accepting the IOUs last month, leaving thousands of creditors looking for other banks to honor them.

» E-Mail This     » Add to Del.icio.us

What a bailed out banker is worth

Ginnie Mae top exec leaving for private sector job (AP)

Ad campaign boosts health care reform

Falling Retail, Rising Job Loss Leads To Record Treasury Auction

By Laura Conaway

When investors feel skittish, the way they did after news that retail sales fell in July and job loss rose last week, they run for safe bets like U.S. Treasury bonds. Demand for 30-year Treasurys led to a record $15 billion auction today.

Investors stand to make less off bonds they buy in a heated auction, yet they bought them anyway. If you pay more for a bond -- say, $97 for a $100 bond instead of $96 -- then your yield when the bond matures is $3, not $4.

Before today, yields had begun to climb again as investors became more willing to take on the risk (and potential reward) of buying stocks. The news about falling retail sales and rising job loss was particularly nervous-making, since consumer spending accounts for nearly 70 percent of the economy.

So who was taking the deal on Treasuries today? Bloomberg reports that indirect bidders, which includes foreign central banks, bought 48.1 percent of them.

» E-Mail This     » Add to Del.icio.us

End-of-life care is a touchy subject

Retail sales fall, new jobless claims rise (Reuters)

Reuters - Americans shopped less in July and more signed up for jobless benefits last week in a double dose of bad news for the U.S. economy just a day after the Federal Reserve said it saw a leveling out of the slump.

Retail sales fall amidst optimism

My wife is an investing wimp

DeParle Says Obama Open to Health Cooperatives: Video

Bloomberg's Elliot Says 4.9% of NYC Works In Restaurants: Audio

Edwards Sees No Signs of Improving U.S. Retail Sales: Audio

Economists cautious on global outlook

Bigger paychecks on a comeback

Steve Cohen Is Ready To Laugh About TrannyGate (With Charlie Gasparino, Before He Kills Him)

Sort of, though it could be a trap. Let's back the Zamboni up for a sec. If you asked us yesterday whether or not we thought enough time had passed that Papa Bear would be cool with you bringing up the whole on-site sex change operation that went down at SAC a couple years back, we would've said say, well, that depends on whether or not you're cool with having your junk placed in a deep fryer. If yes, proceed. Charlie Gasparino is apparently more than okay with the idea of having a crispy drumstick, which would explain his eagerness to broach the subject last night (in addition to the booze, obviously).

We're told by the Campagnola's moles we're now friends with after introductions by the local yokel were made that Chaz was dining and doing deals at the restaurant last night, like he does, as was Big Poppa, with, among others, Bo Dietl (for reasons unknown but possibly to see if he could get an in with Stephen Baldwin, who played BD in One Tough Cop: The Bo Dietl Story). Gaspo being "friends" with Dietl, went over to say hello. He wasn't planning on interrupting Stevie, who was feasting on a piece of veal, but Bo nudged the Big Guy and asked "Hey Steve, you know Charlie, right?" As you're aware, Chazza is not generally starstruck, he being a big ball of gas himself, but in that moment, he could barely speak. Sensing that this would be his one chance to tell the BG something he'd been dying to get off his chest, CG pulled it together and said, "I gotta tell ya, the best scoop I ever had was that story about your traders feeding each other da hormone pills."

Prechter Says Stocks Still Over-Valued: Audio

Buffett Suffers Weapons Of Financial Destruction Fallout

Warren Buffett's Berkshire Hathaway Inc. underestimated the risks of falling stock prices to its billions of dollars of derivatives bets, yet still believes it is valuing the contracts fairly.

Noooo, get out!

Berkshire revealed its error in a June 26 letter to the U.S. Securities and Exchange Commission, one of several pieces of correspondence with the regulator about the company's annual report, and made public on Thursday.

We tend to think that these options get overblown, and that the oracle deserves a bit of room on these issues. Seriously, the guy could slip a sexually suggestive comment into a cub scout dinner and no one would even notice. What could a few harmless options do? What more could you want from a finance guy?

Jeffrey Epstein, put your hand down!

Solar energy gains ground in Florida

China backtracks on PC software filters

Italy opens tax inquiry over Agnelli estate

On the Web, content is king

Cadets Peddle Custom Baby Bedding, Get Fortune’s Attention

When the baby bedding business is booming, you have to wonder how bad the economy really is. Babybedding.com, the website of baby linen manufacturer Carousel Designs, was featured in the August 2009 issue of Fortune Small Business.  As part of the magazine’s makeover series Babybeddingcom will receive  a complete business strategy consult from the Fortune team.

Fortune Small Business generally chooses makeover subjects that are high potential companies with at least one million dollars in annual gross revenues. Carousel Designs has that and more. Jonathan Hartley bought the family business from his parents in 2007 and then hired former West Point classmate, Allan Sicat, to be the company’s President. Drawing on their rigorous West Point training and subsequent business experience Hartley and Sicat have set out to help transform the company into an Internet success story.

Hartley and Sicat hope the Fortune makeover will help them build the brand awareness and stronger operational framework they’ll need to go up against the big names in baby bedding - like Pottery Barn Kids. Currently they leverage advanced search engine marketing techniques and innovations such as “Design Your Own Custom Crib Bedding” feature to grow the business.

The magazine enlisted three of the top business minds in the country, free of charge to consult on these matters. For the makeover, the experts toured the Carousel Designs’ factory and held discovery sessions before imparting insights and advice in the areas of brand marketing, finance, operations and customer loyalty programs.

“It was invaluable to spend the day with experts hand picked by Fortune Small Business,” said Mr. Sicat. “We hope to apply many of the ideas drawn from the makeover in the coming year.”

In addition to valuable consulting services, Carousel Designs received feature-length coverage in the August 2009 Fortune Small Business, available at newsstands and bookstores this month, as well as on CNNMoney.com. And that’s something money can never buy.

Image Credit: www.babybedding.com

In Wal-Mart Nation, Shrinking Inventory, Cheap Burgers Lead To Profits

By Laura Conaway

What's for supper. (Wal-Mart)

Wal-Mart's reporting it beat expectations for the second quarter by managing shrinking its inventory (a theme of the day) and by selling cheap food and flat-screen TVs.

From Bloomberg:

The chain also attracted more customers, helped by price reductions on its Sam's Choice Black Angus beef patties, baked beans and flat- panel televisions to lure consumers grappling with shrinking paychecks and the worst unemployment since the Great Depression.

Wal-Mart pulled in a profit of $3.44 billion last quarter. A retail consultant, Craig Johnson of Customer Growth Partners, told Bloomberg TV, "They are providing great value to the consumer, but the consumer is very stressed these days." You can say that again.

» E-Mail This     » Add to Del.icio.us

Presented By:

Light The Arrows!

How'd you like to get this on your "360 Review?":

Citigroup "did not manage its business in such a manner as to provide the level of service and security necessary for any security broker and the plaintiff to attract and/or retain clients," he wrote. The bank was "unstable, mismanaged and not a secure place for" his clients, "as can be seen from the value of defendant's stock today."

Ah, hindsight is 20-20. Nay?

Sure, this missive issued from a member of the Plaintiff's bar, but you just have to like an article that manages to cut Castle Vikula's supply line, lay a devastating siege and begin tunneling under the north wall all in about three sentences.

Nice.

Citigroup Sued Over Signing-Bonus Loans by Broker [Bloomberg]

Eurozone data raise hopes for recovery

Brock on Roads, Glover on Steel: Audio (Correct)

Nothing Can Stop The Greenlight Baby Making Machine

"For the month of July, Greenlight Capital Qualified, L.P. returned 3.3% (net). Greenlight Capital Qualified, L.P. has returned 23.7% for the year-to-date. The partnership is approximately 87% long and 57% short."

Earlier: Performance Stats: The Greenlight Unit

Madoff Was Begrudingly Banging Woman On The Side?

That's what his former secretary, Liza Minelli doppelgänger Eleanor Squillari seems to be implying! When asked about the matter of her boss getting down with Sheryl Weinstein, whose upcoming book promises an "intimate" look at the Madoff package, the administrative assistant recalled that "Weinstein would often call Madoff and that he would roll his eyes and then they would go and meet at a hotel." Meouch bitch. And yet: nice try. But we're not fooled, sister. Conclusive evidenced is yet to prove whether or not Bernie was doing Sheryl out of charity, but I got the distinct impression during her interview with Vanity Fair that Liza wanted a piece of Big B herself, despite attempts to convince us that she wasn't into the on-the-job ass grabbing, and girlfriend is just jealous. Of course, the only way to settle this is an in-depth account of every single one of his sexploits over the last 100 years, up to and including whatever tail is currently being slayed on the inside.

Clinton shows US support in Liberia visit (AP)

AP - U.S. Secretary of State Hillary Rodham Clinton offered strong support Thursday for embattled Liberian President Ellen Johnson-Sirleaf, and held up herself and President Barack Obama as models of political fence-mending.

Warning over US cash-for-clunkers scheme

Buffett's Berkshire: We goofed on derivative risks (Reuters)

Reuters - Warren Buffett's Berkshire Hathaway Inc (BRKa.N)(BRKb.N) underestimated the risks of falling stock prices to its billions of dollars of derivatives bets, yet still believes it is valuing the contracts fairly.

Buffett's Berkshire: We goofed on derivative risks (Reuters)

Reuters - Warren Buffett's Berkshire Hathaway Inc (BRKa.N)(BRKb.N) underestimated the risks of falling stock prices to its billions of dollars of derivatives bets, yet still believes it is valuing the contracts fairly.

DR Horton Cut to `Sell’ at Citigroup: Audio

Feldman Sees Little Improvement for U.S. Retail Sales: Audio

Sirius XM Catches S&P Upgrade (SIRI)

Shepherdson Sees U.S. Household Debt Over 30% of GDP: Audio

FTSE 100 shares up on France, Germany data (AFP)

AFP - London stocks climbed higher on Thursday after new data showed France and Germany have emerged from recession and the 16-nation eurozone economy shrank by less than expected in the second quarter.

Inventories Falling As Businesses Stop Stockpiling Stuff

The ratio of inventory to sales has been falling. Click to enlarge.(Source: Department of Commerce/ U.S. Census Bureau)

By Laura Conaway

In trying to become profitable again, businesses have been cutting workers, and they're cutting inventory, too.

The Census Bureau and the Commerce Department report today that inventories fell by 1.1 percent in June, a little less than the 1.2 percent drop in May and .2 more than economists expected. Inventories are down 9.8 percent from June 2008, as manufacturers and wholesalers stop stockpiling goods for customers who aren't showing up.

Sales rose .9 percent after being flat in May -- that's down 18 percent from a year ago.

» E-Mail This     » Add to Del.icio.us

Secondary Offerings Run At Market Flood Rates (MPEL, GSIC, AWK, GLDD, YSI, TBBK, HMPR, SBCF, CADE, UMPQ)

Can Someone Unify These Healthcare Protesters?

JetBlue Launches “All You Can Fly” Pass

JetBlue Airways announced the $599 “All You Can Jet” pass yesterday, which allows you to fly anywhere, as many times as you want, between Sept. 8-Oct. 8. TradingMarkets has more:

JetBlue Airways announced on Wednesday that it is offering a special unlimited travel pass priced at USD599, which will allow passengers to travel to any of the carrier’s international and domestic destinations
as often as they choose in a set period.

Pass holders will have access to every available seat on every available flight. Members will also receive 35 TrueBlue points for every All-You-Can-Jet pass purchased.

JetBlue has more information on the pass here. It sounds like a great deal for anyone planning three or more flights during the designated period.

New Job Loss Claims Creep Upward After Weeks Of Falling

Economists consider a healthy range to be 300,000 to 350,000 new claims. (Source: Department of Labor)

By Laura Conaway

New claims for unemployment insurance rose last week to 558,000, from 554,000 the week before, the Department of Labor reports. Heading into Thursday morning's report, analysts expected new claims to drop to 545,000. They had fallen for six straight weeks.

The four-week moving average, often a more reliable barometer, climbed by 8,500 to 565,000 -- significantly more than the average weekly decline of 6,077 from April 25 to July 25. The figures for July are clouded because of problems with the Department of Labor's formula for calculating new claims. The DOL takes seasonal factors into account, and this year the usual summer layoffs in the auto industry happened in the spring. The DOL says its formula should now be back on track.

Today's report also shows that the number of people on regular unemployment benefits fell to 6.2 million from 6.35 million the week before.

As of July 25, another 2.8 million people were receiving Emergency Unemployment Compensation, a federally funded program that allows for 33 additional weeks of benefits in high-unemployment states. The average job search now lasts 25.1 weeks. The category of those out work longer than 27 weeks was the only duration to show a marked increase.

The overall unemployment rate ticked downward in July, to 9.4 percent from 9.5 percent. President Obama and many economists say they expect the rate to climb again, reaching 10 percent at some point this year. That's because people are still losing jobs, though at a slower pace, and companies have not yet started hiring.

On Wednesday, the Bureau of Labor Statistics released the monthly Job Openings and Labor Turnover Survey, or JOLTS. It showed that as of June 30, job openings were little changed at 2.6 million. The hires rate stood at 2.9 percent, the lowest point since the BLS started tracking it in December 2000.

» E-Mail This     » Add to Del.icio.us

Inside Windows Vista

France, Germany Quit This Recession Thing. Plus: No Sugar For America!

By Laura Conaway

Call it a mighty .3 percent. France and Germany report their economies were each growing by that much between April and June. Feast on the headline: "France and Germany Exit Recession." The overall eurozone economy was still contracting, a .1 percent. Last quarter, the U.S. economy was shrinking at a pace of 1 percent.

The FDIC has forced Citigroup to hire external consultants who'll decide whether management, including CEO Vikram Pandit, is up to the task.

Foreclosures hit a new record in July, up 7 percent from the month before and 32 percent from this time last year. Real estate agents report that in the second quarter, 63 percent of sales involved distressed homes -- meaning the owners were in foreclosure or at risk of it.

The Commerce Department says retail sales fell by .1 percent in July. Economists in a Thomson Reuter survey said they'd expected a gain of .7 percent. Auto sales rose by 2.4 percent, its biggest jump in six months and owing largely to the Cash for Clunkers program.

Almost 5 million of America's most polluting cars got left out of Cash for Clunkers, the L.A. Times reports. That's because the classic car lobby persuaded the government to exclude cars made before 1984. Collectors didn't want to see them destroyed, and auto parts dealers didn't want to lose their business.

And major food companies have warned the U.S. Agriculture Department that the nation could run out of sugar (WSJ, sub. req'd.) if it doesn't ease up on import restrictions. The food co's also threatened to jack up prices and lay off workers.

» E-Mail This     » Add to Del.icio.us