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Eurozone prices falling further Prices in the eurozone fell in September at a faster rate than they had in August, official figures show. Source: BBC News | Business | World Edition | 30 Sep 2009 | 4:41 am Kraft given deadline for Cadbury bid The US food group has been given six weeks to make an offer for Cadbury or walk away from a proposed £10.2bn offer for the maker of Dairy Milk chocolate and Halls cough sweets Source: Financial Times - US homepage | 30 Sep 2009 | 4:40 am Man Group assets grow for first time in over a year Shares in Man Group, the world's largest listed hedge fund manager, jumped 3 per cent today after its assets under management rose for the first time in more than a year. Source: Latest Business News from Times Online | 30 Sep 2009 | 4:36 am London stocks rise in early trade (AFP) AFP - The leading stock exchange rose in cautious trading on Wednesday, as traders awaited the latest reading on economic growth in the recession-struck United States. Source: Yahoo! News: Stock Markets News | 30 Sep 2009 | 4:35 am Stocks set for early pop U.S. stocks were poised to open higher Wednesday, as investors awaited the latest economic reports, including a reading on employment ahead of the opening bell. Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 4:33 am IMF cuts global-loss forecast to $3.4 trillion The International Monetary Fund on Wednesday cuts its estimate of global bank losses by 15% due to rising asset values, but it warns banks have yet to recognize more than half their expected write-downs. Source: MarketWatch.com - Top Stories | 30 Sep 2009 | 4:32 am Where next for income seekers? Investors looking for income are increasingly going to have to embrace new ideas. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Sep 2009 | 4:23 am Shanghai stocks up before long holiday; Asia mixed Asian markets end mixed, as Shanghai advances on expectations of increased bank lending. Source: MarketWatch.com - Top Stories | 30 Sep 2009 | 4:21 am New Software Steals Money From Bank Accounts A devilishly clever new Trojan horse that works over the internet can hack into bank accounts while people are online and take money without being noticed. According toCNET, “The bank Trojan, dubbed URLzone, has features designed to thwart fraud detection systems which are triggered by unusual transactions.” The new program takes online fraud to a new level. [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 30 Sep 2009 | 4:19 am Tsunami kills more than 100 in Pacific islands At least 100 people are killed in Samoa and American Samoa after a tsunami rips across the South Pacific following an earthquake. Source: MarketWatch.com - Top Stories | 30 Sep 2009 | 4:16 am Chicago's $100 million Olympic bid With help from hometown heroes like the Obamas, Chicago is aggressively lobbying to host the 2016 Summer Olympics. But making the games profitable is not going to be an easy win. Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 4:14 am Marks and Spencer sales improving Sales at Marks and Spencer stabilise, reflecting an improved performance after a tough 18 months for the retailer. Source: BBC News | Business | World Edition | 30 Sep 2009 | 4:13 am Three bills you didn't know were negotiable 1. Your doctor bill Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 4:09 am Man Group shares jump as withdrawals drop sharply Shares in U.K. hedge fund manager Man Group rise nearly 8% after the firm says its assets under management have stabilized in the last few months. Source: MarketWatch.com - Top Stories | 30 Sep 2009 | 4:06 am Banks borrow $109 bln. from ECB in 1-year funds Euro-zone banks borrow 75.241 billion euros ($109.4 billion) from the European Central Bank at the rock-bottom repo rate of 1%. Source: MarketWatch.com - Top Stories | 30 Sep 2009 | 4:05 am Strong Wynn Macau IPO puts pressure on debut, rivals HONG KONG (Reuters) - Las Vegas casino company Wynn Resorts raised $1.63 billion after pricing its Asian IPO at the top of its indicated range, a sign that demand is still strong for certain offerings despite a glut of Asian stock deals. Source: Reuters: Business News | 30 Sep 2009 | 4:04 am Blacks to cut 450 UK jobs and close 89 stores Blacks Leisure, the troubled outdoors retailer, is to close 89 loss-making stores and axe a reported 450 jobs as part of a restructuring plan urged on it by its bank, Lloyds Banking Group. Source: Latest Business News from Times Online | 30 Sep 2009 | 4:04 am Indications: Stock futures rise ahead of jobs data, Chicago PMI Stock futures point Wednesday to opening gains on Wall Street, as European shares rise and investors await data on the U.S. labor market and economic conditions in the Chicago region. Source: MarketWatch.com - Top Stories | 30 Sep 2009 | 4:04 am A Quarter To Remember: US Markets Up 15% The US markets will be up over 15% for the third quarter barring any wild swings up or down in the last day of the period. It is an extraordinary performance since the three major indexes were well up at the end of June. Doomsayers have questioned the upward trend every moment of the rise, and, [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 30 Sep 2009 | 4:02 am Oil rises towards $68 as dollar slips LONDON (Reuters) - Oil rose toward $68 per barrel on Wednesday, buoyed by a fall in the dollar against major currencies at the end of the financial quarter, with the market also awaiting key U.S. oil data later in the day. Source: Reuters: Business News | 30 Sep 2009 | 4:00 am Black cab firm considers job cuts Coventry black cab maker LTI's parent company admits there could be "a number of redundancies". Source: BBC News | Business | World Edition | 30 Sep 2009 | 4:00 am CIT near plan to turn over company to bondholders: sources NEW YORK (Reuters) - CIT Group Inc is nearing a plan that likely would hand the commercial lender over to its bondholders, sources familiar with the matter said on Tuesday. Source: Reuters: Business News | 30 Sep 2009 | 3:57 am When HR asks about your health Don't be surprised if, as open enrollment approaches, your HR department asks you to fill out an online questionnaire covering everything from how often you hit the gym to how often you feel sad. Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 3:57 am Insurers drive FTSE 100 higher London equities rose on Wednesday, with further strong gains for insurance stocks on growing hopes of further bid activity in the sector. Traders continued to bet that there would be further consolidation... Source: RSS feed - channel BNPaperBusiness | 30 Sep 2009 | 3:53 am Stock futures point to higher open (Reuters) Reuters - Stock futures pointed to a higher open on Wall Street on Wednesday, the last day of the third quarter, with investors awaiting GDP and employment data. Source: Yahoo! News: Business | 30 Sep 2009 | 3:53 am Stock futures point to higher open (Reuters) Reuters - Stock futures pointed to a higher open on Wall Street on Wednesday, the last day of the third quarter, with investors awaiting GDP and employment data. Source: Yahoo! News: Stock Markets News | 30 Sep 2009 | 3:53 am Stock futures point to higher open (Reuters) - Stock futures pointed to a higher open on Wall Street on Wednesday, the last day of the third quarter, with investors awaiting GDP and employment data. Source: Reuters: Business News | 30 Sep 2009 | 3:53 am My boss fired me, then 'friended' me Dear Annie: Is there some kind of standard etiquette for deciding whom to "friend" on Facebook? Lately I am finding myself in a couple of different quandaries with this. For one, my old boss, who laid me off from my last job with no warning (and no severance pay), has sent me a friend request. I'm still angry and hurt over the way he handled my termination, but should I accept anyway? Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 3:53 am IMF cuts global debt writedown estimate to $3.4 trillion ISTANBUL (Reuters) - The International Monetary Fund on Wednesday lowered its estimate for global writedowns for banks and other financial institutions to roughly $3.4 trillion but warned that loan losses were set to rise as unemployment and associated delinquencies increase. Source: Reuters: Business News | 30 Sep 2009 | 3:52 am UK Regulators Will Force Kraft (KFT) Decision On Cadbury Many American businesses believe that the UK and EU over-regulate the activities of companies based in those regions. Antitrust laws have been described as particularly overbearing. The times does come, once in a while, when American companies are actually forced to make decisions about their business interests based on the regulations on the other side of the [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 30 Sep 2009 | 3:45 am Toyota issues US safety warning Toyota issues a warning about dangers presented by floor mats interfering with the accelerator pedals of some of its US models. Source: BBC News | Business | World Edition | 30 Sep 2009 | 3:44 am Oil: Iran's trump card Don't look for Iran to throw up the white flag anytime soon. Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 3:41 am UPDATE 1-Care UK rejects approach from Bridgepoint Capital Sept 30 (Reuters) - Care UK Plc said it rejected an unsolicited approach from British private-equity investor Bridgepoint Capital Ltd. Source: RSS feed - channel BNewsBusiness | 30 Sep 2009 | 3:35 am Blacks Leisure to close 89 shops The Blacks Leisure outdoor clothing group, which includes Millets and boardwear brand O'Neill, is to close 89 stores. Source: BBC News | Business | World Edition | 30 Sep 2009 | 3:35 am Is Sequenom Dead? (SQNM) Sequenom Inc. (NASDAQ: SQNM) is becoming a case study on how to run a medical testing products company into the ground.  The diagnostic test maker has more problems other than just the announcement that it fired CEO Harry Stylli and several others after an investigation into the results for its Down syndrome blood test.  This [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 30 Sep 2009 | 3:32 am IMF: Banks Face Another $1.5 Trillion In Writedowns The IMF issued its Global Financial System report and one of the most critical points of its analysis is that banks face another $1.5 trillion in writedowns. That is on top of the $1.3 trillion that they have already taken. “We are on the road to recovery, but this does not mean that risks have [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 30 Sep 2009 | 3:32 am Toyota plans huge U.S. recall for dangerous floormats DETROIT/WASHINGTON (Reuters) - Toyota Motor Corp said it will recall some 3.8 million vehicles in the United States because of the risk that a loose floormat could force down the accelerator, a problem suspected of causing crashes that have killed five people. Source: Reuters: Business News | 30 Sep 2009 | 3:30 am Toyota plans huge U.S. recall for dangerous floormats (Reuters) Reuters - Toyota Motor Corp said it will recall some 3.8 million vehicles in the United States because of the risk that a loose floormat could force down the accelerator, a problem suspected of causing crashes that have killed five people. Source: Yahoo! News: Business | 30 Sep 2009 | 3:30 am Schedule for Release of Results for the Third Quarter of 2009 HONG KONG, Sept. 30 /PRNewswire-FirstCall/ -- Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NYSE: NTE) today announced that it will release its... Source: RSS feed - channel BNewsBusiness | 30 Sep 2009 | 3:25 am IMF sees another wave of bank losses Read full story for latest details. Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 3:22 am Asia markets mixed as US confidence drops (AP) AP - Asian stock markets were mixed Wednesday as a surprise drop in U.S. consumer confidence sowed new doubts about the pace of economic recovery. European shares gained modestly. Source: Yahoo! News: Stock Markets News | 30 Sep 2009 | 3:17 am Recruitment agencies fined £40m Six recruitment agencies are fined a total of almost £40m for price-fixing and boycotting an intermediary company. Source: BBC News | Business | World Edition | 30 Sep 2009 | 3:15 am Economic Report: German unemployment rate drops in September Germany’s unemployment rate edges lower in September, surprising the market which was expecting an increase. Source: MarketWatch.com - Top Stories | 30 Sep 2009 | 3:12 am India's Dabhol shifts to local gas from LNG imports NEW DELHI, Sept 30 (Reuters) - India's biggest power plant, built by U.S. energy firm Enron Corp that collapsed in 2001, on Wednesday switched to using local gas from costlier imported liquefied natural... Source: RSS feed - channel BNewsBusiness | 30 Sep 2009 | 3:07 am FDIC Is Short $100 Billion But Long On Solutions The FDIC has been discussing the idea of banks prepaying their risk-based assessments for the last quarter of this year and all of 2010, 2011, and 2012. The move appears desperate because it is. The agency said in a memo today that it was out of money. The “staff estimates that both the Fund balance [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 30 Sep 2009 | 3:04 am Toys R Us to hire 35,000 holiday workers Ready or not, the holiday season is nearing, and Toys R Us is ringing in the busy shopping season by hiring 35,000 seasonal employees nationwide. Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 3:04 am UPDATE 2-Siamgas unit to acquire Chevron Ocean Gas for $51 mln * Sees net profit, revenue up 25 pct in 2010 (Adds executive quotes) Source: RSS feed - channel BNewsBusiness | 30 Sep 2009 | 3:03 am Stock futures point to higher open (Reuters) - Stock futures pointed to a higher open on Wall Street on Wednesday, the last day of the third quarter, with investors awaiting GDP and employment data. Source: RSS feed - channel BNewsBusiness | 30 Sep 2009 | 3:02 am BA eyes BMI and expects Iberia merger this year Willie Walsh, the chief executive of British Airways (BA), expects to complete the airline’s merger with Iberia before the end of this year. Source: Latest Business News from Times Online | 30 Sep 2009 | 3:00 am Health insurance: My biggest fear Many insured Americans are feeling overwhelmed by rising premiums, deductibles, fewer doctors who accept Medicare and shrinking coverage for prescription drugs. Here are 8 of their stories. Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 3:00 am A Perfect Internet For Only $350 Billion The FCC has issued a report of almost 200 pages showing its interim plan for increasing broadband deployment and use in both urban and rural areas. The program is complex because it offers at least a dozen options for reaching an abstract goal. The analysis says that everyone in America should have access to a high-speedInternet [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 30 Sep 2009 | 2:58 am BA chief Willie Walsh expects to seal Iberia merger by end of year British Airways chief executive said its longrunning allshare £4.2bn merger with Spain's Iberia could be sealed by the end of the year. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Sep 2009 | 2:56 am UK recovery 'at risk' from £180bn shortfall Economic recovery in Britain will be slowed down by a possible credit shortfall of £180 billion next year caused by the weakness of the banking sector and the state budget deficit, the International Monetary Fund (IMF) warned today. Source: Latest Business News from Times Online | 30 Sep 2009 | 2:55 am Sanyo's total common shares rise 9 pct to 2.9 bln TOKYO, Sept 30 (Reuters) - Japan's Sanyo Electric Co Ltd said Daiwa Securities SMBC converted 24.6 million preferred shares it owned in Sanyo into common stock, raising the number of Sanyo's common shares... Source: RSS feed - channel BNewsBusiness | 30 Sep 2009 | 2:52 am Second-quarter sales up at Marks and Spencer (AFP) AFP - British retailer Marks and Spencer said Wednesday that sales improved in its second quarter, driven by revamped food, clothing and homeware products, but it remained cautious about the outlook. Source: Yahoo! News: Business | 30 Sep 2009 | 2:49 am CIT seeking lifeline, but not a merger Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 2:44 am IMF cuts global debt writedown estimate to $3.4 trillion (Reuters) Reuters - The International Monetary Fund on Wednesday lowered its estimate for global writedowns for banks and other financial institutions to roughly $3.4 trillion but warned that loan losses were set to rise as unemployment and associated delinquencies increase. Source: Yahoo! News: Business | 30 Sep 2009 | 2:40 am London Markets: FTSE 100 up, on track for best-ever quarter London shares edged higher on Wednesday, moving the top index toward what’s likely to be its best-ever quarter. Source: MarketWatch.com - Top Stories | 30 Sep 2009 | 2:40 am Sanofi-Aventis plans 5-yr, 10-yr euro bonds -IFR LONDON, Sept 30 (Reuters) - French drug company Sanofi-Aventis SA plans a two-part issue of five-year and 10-year euro-denominated bonds, with benchmark sizes for both maturities, IFR reported on Wednesday... Source: RSS feed - channel BNewsBusiness | 30 Sep 2009 | 2:34 am Europe shares set for best quarterly rise in 10 years (Reuters) Reuters - European shares look set to finish the third quarter with their best performance in nearly a decade on expectations of economic recovery while world stocks also rose strongly though not as much as in the previous period. The pan-European FTSEurofirst 300 (.FTEU3) index put on 0.4 percent on Wednesday and the MSCI world index added the same, while commodity prices were also firmer but the dollar fell against a basket of currencies. Source: Yahoo! News: Stock Markets News | 30 Sep 2009 | 2:33 am Italian banks raise cash, avoid state aid Italian banks UniCredit and Intesa Sanpaolo became the latest in a string of European banks to raise capital as they both said they would avoid a government bond deal. Source: MarketWatch.com - Top Stories | 30 Sep 2009 | 2:25 am Asia markets mixed as US confidence drops Asian stock markets were mixed Wednesday as a surprise drop in U.S. consumer confidence sowed new doubts about the pace of economic recovery. European shares gained modestly. Caution... Source: RSS feed - channel BNewsBusiness | 30 Sep 2009 | 2:23 am UPDATE 1-Gulf Keystone H1 loss narrows; shares surge * Sees oil-in-place volumes 2 bln-4 bln barrels at Shaikan Source: RSS feed - channel BNewsBusiness | 30 Sep 2009 | 2:20 am Australia rolls out nationwide swine flu vaccination PERTH, Sept 30 (Reuters) - Australia rolled out a nationwide vaccination drive for H1N1 influenza on Wednesday in a bid to arm itself against a possible outbreak of the disease. Source: RSS feed - channel BNewsBusiness | 30 Sep 2009 | 2:10 am Media Digest 9/30/2009 Reuters, WSJ, NY Times, FT, Bloomberg Reuters:   China celebrated 60 years of communist rule as a capitalist economy. Reuters:   The IMF cut global debt write-offs to $3.4 trillion. Reuters:   CIT (CIT) is close to a deal to give the company to bondholders. Reuters:   Toyota (TM) plans a huge US recall because of defective floor mats. Reuters:   The FDIC want banks to prepay to help it [...] [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Source: 24/7 Wall St. | 30 Sep 2009 | 2:04 am Europe Markets: European shares on track for best quarter in years European shares on track to record their best quarter in almost ten years. Source: MarketWatch.com - Top Stories | 30 Sep 2009 | 2:04 am OFT fines six recruitment agencies for price fixing Hays and other recruiters are hit with £39.7m for price fixing. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Sep 2009 | 2:03 am Web ad spend outstrips TV for first time Spending on internet advertising in Britain has overtaken television for the first time, cornering almost a quarter of the market, according to a report published today. Source: Latest Business News from Times Online | 30 Sep 2009 | 2:00 am Dollar rises on improved data The New Zealand dollar rode a wave of positive economic data today, including a strong survey of business confidence and better than expected Australian retail sales data.By 5pm the NZ dollar was worth US72.12c, up from US71.55c... Source: nzherald.co.nz - Business | 30 Sep 2009 | 1:57 am IMF cuts crisis losses prediction The International Monetary Fund cuts its prediction for write-downs from the financial crisis to $3.4tn (£2.1tn) from $4tn. Source: BBC News | Business | World Edition | 30 Sep 2009 | 1:48 am Mixed vista on Asian equity markets Asian equities registered mixed results on Wednesday as deteriorating US consumer confidence data damped investor optimism in some markets but others held up well. China's Shanghai composite gained 0.4... Source: RSS feed - channel BNPaperBusiness | 30 Sep 2009 | 1:46 am Pain in the... Muscle and joint pain is top cause for sick leave Muscle and joint pain account for almost half of all sick leave, both in the UK and across Europe, a study finds. Source: BBC News | Business | World Edition | 30 Sep 2009 | 1:46 am Microsoft chief executive Steve Ballmer's pay cut as sales fall Steve Ballmer takes a 5.5pc pay cut as the biggest software company suffers its first ever drop in sales. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Sep 2009 | 1:46 am NZ market posts modest gains The New Zealand sharemarket posted modest gains in mixed trading today with bargain hunters emerging in so-called situation stocks.The benchmark NZSX-50 index closed up 5.669 points, or 0.18 per cent, at 3161.062 after initially... Source: nzherald.co.nz - Business | 30 Sep 2009 | 1:43 am OFT fines recruitment firms for price-fixing The Office of Fair Trading (OFT) has fined six recruitment companies a total £39.27 million for price-fixing and for boycotting another company that supplies employees to the construction industry. Source: Latest Business News from Times Online | 30 Sep 2009 | 1:42 am Asia Markets And Europe Open Markets in Asia were narrowly mixed. The Nikkei was up .3% to 10,133. The Hang Seng was down .6% to 20,841. Sinopec (SNP) fell. The Shanghai Composite was up .9% to 2,779. At the open in Europe, the FTSE rose .1% to 5,166. The Dac was up .4% to 5,735 and the CAC 40 rose .6%. 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. | 30 Sep 2009 | 1:32 am M&S beats forecasts but expects 'tough' 2010 Marks & Spencer (M&S) today released a strong trading statement for the summer, with good growth especially in clothing. Source: Latest Business News from Times Online | 30 Sep 2009 | 1:25 am M&S halts decline in food sales Marks and Spencer raised its annual profit margin forecast on Wednesday, adding that it had stemmed a like-for-like sales decline in its UK food business that had lasted for almost two years.It also said... Source: RSS feed - channel BNPaperBusiness | 30 Sep 2009 | 1:18 am FSA orders insurance payback Banks and other lenders are told to compensate customers who may have been mis-sold payment protection insurance. Source: BBC News | Business | World Edition | 30 Sep 2009 | 1:12 am M&S sees sales improvement but little reason for consumers to cheer in 2010 Britain's biggest clothing retailer said today that sales of food and clothing improved in the last three months. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Sep 2009 | 1:11 am Pace of U.S. home price declines slows in July, index shows The drop eases to 13.3% in July compared with 15.4% in June, suggesting the housing market is approaching its bottom. In L.A. and Orange County, July prices were down 14.9% from the previous year. The pace of U.S. home price declines slowed in July, suggesting the housing market is approaching its bottom, according to a widely followed index released Tuesday. Source: L.A. Times - Business | 30 Sep 2009 | 1:00 am Dan Rather's lawsuit against CBS dismissed A New York appeals panel rules that a trial judge erred in allowing the newsman to pursue his case against the network. Rather's attorney vows to appeal the ruling, while CBS declares victory. During a court hearing last week, Dan Rather's long and costly battle against CBS Corp. appeared to be finally getting some traction. Ira Gammerman, the New York Supreme Court judge hearing motions on the case, repeatedly urged the squabbling parties to resolve their conflicts over deposition and discovery so Rather's lawsuit against his former employer could go to trial. He ruled that Rather could depose Viacom Chairman Sumner Redstone, dismissing CBS’ objections . Source: L.A. Times - Business | 30 Sep 2009 | 1:00 am YouTube to regain Warner Music videos A new agreement lets Warner control the advertising around its music videos and split the proceeds with YouTube but keep most of the revenue. Licensing talks had reached an impasse late last year. Music videos from Green Day, Jay-Z and Linkin Park will begin reappearing on YouTube as soon as December, the result of a multiyear agreement reached with Warner Music Group Corp. Source: L.A. Times - Business | 30 Sep 2009 | 1:00 am FDIC seeks $45-billion advance from banks to rebuild reserves Under the agency's proposal, institutions would prepay three years' worth of premiums to the fund that insures customer deposits in case of failures. A bankers group signals support for the plan. Despite signs of economic improvement, banks continue to fail at a brisk pace, forcing regulators to scramble to keep the industry-financed deposit insurance fund from running out of cash. Source: L.A. Times - Business | 30 Sep 2009 | 1:00 am Toyota to recall 3.8 million vehicles The move will address concerns that floor mats on the driver's side could cause the gas pedals to become stuck. Models affected include 2007-2010 Toyota Camrys and 2004-2009 Toyota Priuses. Toyota Motor Corp. said it would recall 3.8 million vehicles sold in the United States as it tries to resolve concerns that floor mats in those cars and trucks could cause their gas pedals to become stuck, leading to uncontrollable acceleration. Source: L.A. Times - Business | 30 Sep 2009 | 1:00 am Wal-Mart to expand $10 price deals to 100 toys The move comes after last year's successful '10 for $10' program. Toy retailers including Kmart and Toys R Us are battling for holiday-season shoppers' dollars. After the success of its "10 for $10" toy program last year, Wal-Mart Stores Inc. is expanding its lineup of $10 toys for the holiday season to more than 100 items. Source: L.A. Times - Business | 30 Sep 2009 | 1:00 am GM to stop auctioning new cars on EBay The 6-week-old program, which put tens of thousands of vehicles from over 200 dealers up for bid, ends Wednesday. The automaker says it will now focus on its current nationwide marketing campaign. The hammer has fallen on General Motors Co.'s experiment with EBay Inc. Source: L.A. Times - Business | 30 Sep 2009 | 1:00 am China to parade its new and improved arsenal The government's 60th-anniversary event will showcase military technology, most of which was made in China. Beijing dislikes its army's image as a poorly equipped force of rural enlistees. For the first time in a decade, Beijing on Thursday will showcase its latest armored vehicles, ballistic missiles and fighter jets in a demonstration of military ambition meant to befit the nation's economic rise. Source: L.A. Times - Business | 30 Sep 2009 | 1:00 am Let's limit our intake of corn-syrup ads A nationwide marketing campaign says high-fructose corn syrup has been unjustly blamed as a cause of obesity. True? Yes and no. News flash: High-fructose corn syrup isn't to blame for the obesity epidemic. Source: L.A. Times - Business | 30 Sep 2009 | 1:00 am Electronic book readers poised to become this holiday season's hot gift Will digital books catch fire this holiday? According to an online survey, 1 in 5 shoppers said they planned to buy an electronic book reader such as a Sony Reader or Amazon Kindle this year. Source: RSS feed - channel BNPaperBusiness | 30 Sep 2009 | 1:00 am Key Senate panel votes down 'public option' for healthcare Centrists side with Republicans in a blow to advocates of a government program to compete with private plans. The issue will likely be revisited on the Senate floor and in committee with the House. ... Source: RSS feed - channel BNPaperBusiness | 30 Sep 2009 | 1:00 am Wal-Mart to expand $10 price deals to 100 toys The move comes after last year's successful '10 for $10' program. Toy retailers including Kmart and Toys R Us are battling for holiday-season shoppers' dollars. ... Source: RSS feed - channel BNPaperBusiness | 30 Sep 2009 | 1:00 am Electronic book readers poised to become this holiday season's hot gift Will digital books catch fire this holiday? According to an online survey, 1 in 5 shoppers said they planned to buy an electronic book reader such as a Sony Reader or Amazon Kindle this year. Source: L.A. Times - Business | 30 Sep 2009 | 1:00 am YouTube to regain Warner Music videos A new agreement lets Warner control the advertising around its music videos and split the proceeds with YouTube but keep most of the revenue. Licensing talks had reached an impasse late last year. ... Source: RSS feed - channel BNPaperBusiness | 30 Sep 2009 | 1:00 am Business Briefing THE ECONOMY Source: RSS feed - channel BNPaperBusiness | 30 Sep 2009 | 1:00 am Pace of U.S. home price declines slows in July, index shows The drop eases to 13.3% in July compared with 15.4% in June, suggesting the housing market is approaching its bottom. In L.A. and Orange County, July prices were down 14.9% from the previous year. ... Source: RSS feed - channel BNPaperBusiness | 30 Sep 2009 | 1:00 am China to parade its new and improved arsenal The government's 60th-anniversary event will showcase military technology, most of which was made in China. Beijing dislikes its army's image as a poorly equipped force of rural enlistees. ... Source: RSS feed - channel BNPaperBusiness | 30 Sep 2009 | 1:00 am Overseas sales drive Asos growth Online fashion retailer Asos announces a surge in sales of almost 50% as it continues to prosper during the downturn. Source: BBC News | Business | World Edition | 30 Sep 2009 | 12:57 am IMF warns of further recession risks The IMF warns that banks round the world have still to reveal about half of their likely losses resulting from the financial and economic crisis Source: Financial Times - US homepage | 30 Sep 2009 | 12:49 am World financial system on 'road to recovery' IMF declares The International Monetary Fund has declared for the first time that the world's financial system is now on the "road to recovery." Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Sep 2009 | 12:32 am CIT near plan to turn over company to bondholders: sources (Reuters) Reuters - CIT Group Inc is nearing a plan that likely would hand the commercial lender over to its bondholders, sources familiar with the matter said on Tuesday. Source: Yahoo! News: Business | 29 Sep 2009 | 11:38 pm Online advertising overtakes television for the first time Advertising spending online has overtaken television expenditure in the UK for the first time according to a report. Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 29 Sep 2009 | 11:31 pm Wynn prices Hong Kong IPO at top of range Wynn Resorts prices the $1.6bn Hong Kong initial public offering of its Macao operations at the top end of an indicative range after investors flocked to the listing of the first US-based company in the city Source: Financial Times - US homepage | 29 Sep 2009 | 11:00 pm China moves to curb industrial capacity China unveils details of plans to curb overcapacity in industrial production that has been made worse by the country’s vast stimulus package Source: Financial Times - US homepage | 29 Sep 2009 | 10:55 pm Blue Chip court battle loss for pensioners The High Court has dismissed a claim by Whangarei pensioners Judy and Bruce Bartle that GE Money (GE Custodians) was in breach of its duty of care by lending them around NZ$640,000, which they then used to buy a Blue Chip apartment.... Source: nzherald.co.nz - Business | 29 Sep 2009 | 10:30 pm Ex-Moody's employee warned SEC about muni issues (AP) AP - As Congress steps up scrutiny of the credit rating industry, allegations by another former employee of Moody's Investors Service have come to light and the big rating agency is being called to account before a House panel. Source: Yahoo! News: Stock Markets News | 29 Sep 2009 | 10:03 pm Business confidence up to levels not seen since 1999 Business confidence took "another strong step forward" in September, reaching levels not seen since 1999 as the post Asian crisis recovery took hold, the latest National Bank Business Outlook survey showed.A net 49 per cent of... Source: nzherald.co.nz - Business | 29 Sep 2009 | 10:00 pm Best and Worst Stocks for Earnings Season (Screens) The third calendar quarter ends Wednesday, and earnings season -- a loosely defined period during which many companies report financial results -- starts in early to mid-October. Wall Street's published forecasts suggest that operating earnings underlying the S&P 500, the index that represents most of America's stock market by value, will have fallen 9% from a year ago. That would be a sharp improvement from prior quarters; operating earnings fell 19% year-over-year in the second quarter and 39% in the first, and they disappeared altogether in the fourth quarter of 2008. Despite the improvement, investors might be disappointed if third-quarter earnings merely meet forecasts. In the second quarter, nearly three-quarters of companies posted positive earnings surprises, whether from cost-cutting or careful management of their expectations (but rarely from growth, as few companies beat sales estimates). Stock valuations suggest buyers are betting on another round of positive surprises. The S&P 500 lately has traded near 20 times its forecast 2009 earnings. Its historical average is less than 15 times earnings. With so much seemingly riding on surprises, consider a statistical clue that can help predict which companies will please Wall Street and which will disappoint. It's not a sure thing, but it can bend the probabilities in an investor's favor. It has to do with analyst disagreement. Stocks with analysts' earnings forecasts that are broadly scattered tend to underperform the broad market, according to a study published in 2007 in the Journal of Finance and written by Anna Scherbina, a professor at the University of California, Davis. There are a couple of theories on why. The most convincing of them holds that companies with good news share all the details with anyone who'll listen, and those with bad news keep mum. The difference in information flow leads to agreement among analysts over companies that are performing well, and disagreement over ones that might be struggling. Below I've attempted to apply the study finding to S&P 500 companies, focusing on the 211 of them that are expected to earn at least 50 cents a share in their current fiscal quarters, and whose earnings consensuses are based on at least five estimates. Statisticians use a measure called standard deviation to judge the degree of scattering within a group of results. For each of my 211 companies, I divided the standard deviation of the current-quarter earnings consensus by the consensus itself, and expressed the result as a percentage. These ranged from less than 1% to more than 46%. A lower percentage suggests more agreement among analysts, and according to the study, an increased likelihood of market-beating returns over the next six months. A higher percentage should be read as a warning sign -- again, only one piece of evidence among many that investors should consider. Below are listed the top 10 and bottom 10 companies from my comparison.
Company	Ticker	Current-Quarter EPS Consensus (excl. special items)	Standard Deviation	Std. Dev. / Consensus*
C.R. Bard	BCR	1.28	0.01	0.8
Hewlett-Packard	HPQ	1.12	0.01	0.9
Praxair	PX	1.00	0.01	1.0
Baxter International	BAX	0.97	0.01	1.0
McCormick & Company	MKC	0.90	0.01	1.1
Philip Morris International	PM	0.90	0.01	1.1
Abbott Laboratories	ABT	0.90	0.01	1.1
Wal-Mart Stores	WMT	0.81	0.01	1.2
Medtronic	MDT	0.75	0.01	1.3
Torchmark	TMK	1.49	0.02	1.3

Bottom 10 CompanyTickerCurrent-Quarter
EPS Consensus
(excl. special items)Standard
DeviationStd. Dev. /
Consensus* Stanley WorksSWK0.620.1016.1 XL Capital Ltd.XL0.520.0917.3 CONSOL EnergyCNX0.650.1218.5 ApacheAPA1.470.2819.0 WhirlpoolWHR0.810.1619.8 Devon EnergyDVN0.860.2124.4 M&T BankMTB0.730.1926.0 Hartford Financial Services GroupHIG0.790.2531.6 CF Industries HoldingsCF1.130.4136.3 Freeport-McMoRan Copper & GoldFCX0.930.4346.2 * lower = more analyst agreement

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10 Things Bankruptcy Court Won't Tell You (10 Things)

1. “Personal bankruptcy’s not just for the poor.”

Linda Frakes, an entrepreneur in Georgia, built a life around her six-figure income. But when her new business collided with the credit crunch, Frakes found herself facing a financial fate she never anticipated. “It’s a far way to fall,” she says. Meet the new face of bankruptcy. This nation’s worst downturn in 70 years pushed more formerly affluent people into bankruptcy than in previous recessions. Overall, personal bankruptcy filings were up 36.5 percent in the first half of 2009 from the same time a year ago, and experts predict the number of filings will keep rising even as the economy recovers.

Leslie Linfield, executive director of the Institute for Financial Literacy, calls it “a middle-class recession”: Last year the institute surveyed likely bankruptcy filers and found 8.1 percent made more than $60,000, up from 6.9 percent in 2007. Experts blame the increase on slumping real estate and job losses, which have cut deeply into professional positions. Claire Ann Resop, a bankruptcy attorney in Madison, Wis., sees a
lot of mortgage brokers and real estate developers: “They made a lot of money, and now they can’t.”

2. “When it comes to bankruptcy, one size doesn’t fit all.”

No type of bankruptcy will eliminate certain kinds of obligations, like child support, alimony and most student loans. But there are differences in the way debt gets handled in personal bankruptcy, often depending on which kind you file for, either Chapter 13 or Chapter 7. And each has pros and cons. Chapter 13 allows those with regular income to repay debts over three to five years. That drags things out a bit, but it stops the foreclosure process, meaning debtors behind on their mortgage can keep their house and catch up on payments over time. Those without regular income must file Chapter 7, which involves no payment plan—all eligible debt, such as credit card balances, gets wiped out. But it’s hardly a free pass. Most debtors find the process pretty traumatic, not to mention severely damaging to their credit score. And Chapter 7 doesn’t stop foreclosure, so banks can still take the homes of debtors behind on a mortgage.

How do you know which form is right for you? Bankruptcy law is complex, and certain provisions vary from state to state, so it’s often best for potential filers to consult an attorney before deciding.

3. “We don’t want your house if we can’t get good money for it.”

A common belief about bankruptcy is that it will leave you with nothing, living out of a cardboard box, says Cathleen Moran, a bankruptcy lawyer in Mountain View, Calif. But that’s not necessarily true, even in Chapter 7 cases. In theory, Chapter 7 involves liquidating most of a debtor’s assets to pay creditors, including the home. But in reality, homeowners who end up filing often don’t have enough equity in their home to benefit creditors, either because they’ve taken out a second mortgage, the home’s value has fallen or both. In such cases, the trustee handling the bankruptcy can decide not to liquidate the home, in which case the debtor gets to keep it.

Also, there’s something called the homestead exemption, which in most circumstances allows you to keep your primary residence if your equity in it is below a certain threshold. It can vary widely from state to state: from $30,000 for a married couple filing Chapter 7 in Illinois, for example, to $75,000 for the same in California. But since Chapter 7 doesn’t stop foreclosure—although it tends to delay it by a few months—those behind on their mortgage often can lose their home regardless.

4. “This could actually improve your credit score down the road.”

Yes, bankruptcy will pummel your credit score, says Barry Paperno, consumer-operations manager for FICO, the company that develops the credit scoring formula used by the three major credit bureaus. Yet bankruptcy can be less damaging in the long run than juggling late payments on credit cards for years in a bid to postpone the inevitable. Bankruptcy stays on your credit report for 10 years, but you can begin repairing it immediately, if gradually.

The fact is, most people go bankrupt with lousy credit. They’ll be able to return to (and maybe surpass) their prebankruptcy FICO score more quickly than the rare debtor with pristine credit who needs to file bankruptcy after, say, a serious illness—which could mean a credit score drop of 100 points or more, Paperno says. Since 35 percent of one’s credit score is based on payment history, the further consumers get from any missed payments, the more their score improves, he says.

How to quicken the recovery? Establish new credit as soon as possible, Paperno says, either through a new credit card or car loan, though bankruptcy filers will have to pay higher interest rates.

5. “Debt-settlement firms may do more harm than good.”

Debt-settlement firms offer to play hardball with creditors and whittle outstanding balances by up to 75 percent. They bill their services as an alternative to bankruptcy, but in many cases they can hurt more than they help. Debt-settlement firms are unregulated, for-profit entities that require regular payments before taking any action on a consumer’s behalf. This business model works squarely against the debtors’ interests, says Walter Benenati, a bankruptcy attorney in Orlando who worked briefly for a debt-settlement firm. “They’re getting fees every month, so they have no incentive to settle [with creditors] as fast as possible,” he says.

In fact, you don’t need a middleman to negotiate with creditors. But, says Mariana Bekker, director of media relations for the United States Organizations for Bankruptcy Alternatives, a debt-settlement trade organization, most debtors don’t have the “time, stamina or desire” to do it themselves. Either way, you’ll owe taxes on any amount saved on your debt. (That’s right: The IRS considers forgiven debt taxable income.)

Debt erased as part of bankruptcy, by contrast, isn’t taxed.

6. “Don’t settle with Mom first or fudge the condo in Boca.”

Many debtors naturally want to pay back friends and family before filing for bankruptcy. Yet that can be a big mistake. Any money repaid to “insiders”—including relatives, friends and acquaintances, or business partners—within a year of bankruptcy is recoverable by the trustee. If the recipient doesn’t voluntarily return it, the trustee has the power to sue. A more serious infraction involves trying to hide assets from the court. So don’t even think about giving your Harley to your brother—or selling it for cheap—to protect it from creditors. Bankruptcy filers must list everything they’ve sold, transferred or given away over the past two years. And nothing can be transferred, given away or sold for less than market value.

There are many ways bankruptcy fudgers get caught. Spurned lovers or creditors often turn them in, says bankruptcy attorney Resop. She also recalls a case in which a lawyer read in the paper that a bankruptcy filer he’d represented a few years back was selling property. Turns out the filer had hidden the house from the court. He lost his bankruptcy discharge, letting creditors come after him again. Liars can also wind up in jail for perjury.

7. “Better save up before you file.”

This spring, Angela Watson realized she was in over her head. The Web entrepreneur from Long Beach, Calif., had incurred more debt than expected launching her business and wanted to explore the possibility of bankruptcy.

Yet once she started pricing lawyers’ services, which averaged about $2,000, Watson realized she couldn’t afford to file Chapter 7. Lawyers suggested she borrow the money from family and friends. “I was so hurt by that,” says Watson, who hasn’t even told some of her loved ones about her situation. She’s hoping to file with the help of a legal-services nonprofit.

Lawyers in Chapter 7 cases generally request payment up front; otherwise, their fees would be discharged during the bankruptcy process along with other debt. (In Chapter 13, lawyers’ fees become part of the payment plan.) These fees range from about $500 to $3,000, depending on the state and the complexity of the case. Bankruptcy court also charges routine fees: $245 to file Chapter 7, plus a $39 administrative fee and a $15 trustee surcharge; $235 to file Chapter 13, plus a $39 administrative fee. Consumers seeking free advice can visit the American Bankruptcy Institute’s online pro bono resource locator at probono.abiworld.org.

8. “Just because your bills stop coming doesn’t mean you shouldn’t pay them.”

Not only does filing for bankruptcy stop collection calls, but most bills stop coming too. That’s because the courts immediately file an injunction that prohibits collection actions against the debtor or his property. But that doesn’t mean debtors are suddenly released from payment obligations for secured possessions they want to keep—that’s legal lingo for anything bought with collateral, like a car or house. During Chapter 7 proceedings, which usually last about four months, you must remember to pay for what you want to keep in the absence of a bill. (In Chapter 13, those bills are folded into the payment plan the court establishes.) Besides the house and car, secured possessions could also include an engagement ring or other jewelry.

Debtors must decide to “reaffirm”—that is, keep and stay current on—any secured debt before all other debts are eliminated in bankruptcy. To do that, in the absence of a bill, contact the party you send payment to. For example, those with Chase auto loans should call the company for logistical (not legal) guidance, says a Chase spokesperson.

9. “Timing is everything.”

When you owe more than you own, it’s time to consult a lawyer, Linfield says. But that doesn’t mean bankruptcy is necessarily the next step, attorneys say. It’s often best to wait until you think the worst is over, says David Leibowitz, a Chicago bankruptcy lawyer, because if you

file prematurely, you’ll likely incur more debt, which won’t be included in the bankruptcy discharge. For example, those facing hospitalization may want to postpone until that’s behind them. And for Chapter 7 filers who stand to lose their home, holding off on filing can maximize the time living in the residence without making mortgage payments. To do this, wait until the eve of foreclosure to file for bankruptcy, Moran says.

On the other hand, there are situations in which it’s best not to wait. Those with no hope of repaying debt often have little to gain by postponing. In such cases, it’s usually better to bite the bullet sooner rather than later.

10. “Bankruptcy doesn’t have to be the end of the world.”

There's nothing easy about bankruptcy. It can be especially hard for middle-class filers who face a swift and unexpected slide down the socioeconomic ladder. And those who file for medical reasons suffer the double burden of health problems and financial distress. An important part of the coping process, mental-health professionals say, involves acknowledging the normal feelings of depression, fear and anger that often accompany bankruptcy.

But many people emerge from it stronger than they expected. It helps that bankruptcy has become more widespread these days, lessening its stigma. “Misery loves company,” says Richard Shadick, a psychologist and the director of a counseling center at Pace University in New York City. Before she filed, Frakes, the Georgia entrepreneur, dreaded the process and worried about how it would leave her. “I thought I’d be living in a double-wide,” she says. Instead, she parlayed her marketing skills into a deal on a new rental when she lost her home in Chapter 7. (She offered to market the subdivision in exchange for a lower rent.) She lost her old Chevy but got a bargain on a used Jaguar. More rewarding than these material comforts, Frakes says, was that she emerged from bankruptcy with her friends, her family and her faith intact. Indeed, support networks often make all the difference in helping people cope with bankruptcy, counselors say, so don’t be ashamed to reach out.

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An Emerging Threat to Oracle and SAP

ENTERPRISE SOFTWARE BEHEMOTHS ORACLE AND SAP face a small but potentially dangerous threat that could hurt their profitability over time. But you wouldn't know it from their shares, which have rallied smartly this year.

Since the advent of business-process software, maintenance fees charged by the software companies for fixing and upgrading clients' computing systems have been a lifeblood. These recurring fees provide a steady stream of revenue that often proves more lucrative than software sales. Maintenance fees account for more than 51% of Oracle's total revenue of $23.49 billion and boasts gross margins, including support, north of 90%. Oracle (ORCL) consistently gets 90% of its customers to renew their maintenance contracts each year. At SAP (SAP), about 50% of the company's fiscal 2009 projected revenue of 10.65 billion euros ($15.64 billion) comes from maintenance fees.

But that could start to change. Rimini Street, a privately held third-party maintenance provider, is going after this business, as are some smaller start-ups. "Automatic upgrades just aren't going to fly anymore," says Rimini Chief Executive and founder Seth Ravin. "We're going to change the way maintenance is [run]."

The maintenance bill for individual companies can run into the millions each year. Cost is Rimini's biggest advantage. It charges roughly half what Oracle and SAP do.

One drawback is that Rimini can't offer new or upgraded versions of software products, as software companies automatically do under maintenance contracts. Rimini pledges to fix and update current versions owned by its customers, with code supplied by Oracle and SAP. For example, a Rimini customer might opt to use its current software version for five or 10 years, paying Rimini to maintain it and create and apply fixes and upgrades.

The third-party approach is catching on with corporate software clients. In 2009 Rimini expects to have about $150 million in maintenance-contract bookings, up from $86 million a year ago. Oracle would charge about double, so that represents about $300 million in potential Oracle revenue, says Cowen analyst Peter Goldmacher. SAP's maintenance revenue hasn't been affected much yet because Rimini launched service for customers of the German software giant only three months ago. "It doesn't mean Oracle will lose all its revenue overnight. We are a rounding error, for now," Ravin says.

But considering third-party outfits target the most profitable parts of these companies, investors should realize that maintenance revenue might not generate the annuity-like cash flows of the past, Goldmacher warns. Oracle's stock has risen 20%, to 21, this year, while SAP is up about 35%, to 49. Although both are well below their 2000 highs, investors are betting these and other technology companies will benefit as the economy recovers.

Greater competition in the maintenance business, and the long-term threat to earnings, admittedly undercut the thesis of Barron's bullish cover story on Oracle last year ("Oracle's Larry Ellison's Payoff," May 19, 2008). We argued then that investors should worry less about sluggish growth in new software licenses because of the reliability of maintenance revenue, especially in a difficult economic climate. An Oracle spokesperson declined to comment.

Goldmacher is convinced Rimini and other third-party vendors are a long-term threat to Oracle and SAP. Rimini provides maintenance and support for Siebel, PeopleSoft and JD Edwards business software, all of which were acquired by Oracle in recent years. (Ravin once headed PeopleSoft maintenance support.) Rimini also provides the same for SAP enterprise-software products. Oracle is the more diversified company. It remains a database leader and has entered the server and storage business through its Sun Microsystems acquisition.

LAS VEGAS-BASED RIMINI more than quadrupled sales in the first half of 2009, and now employs 140 people, with plans to hire another 60 by year end, Ravin says. Recent customers include Dick's Sporting Goods (DKS), Ross Stores (ROST) and Petco Animal Supplies; none returned Barron's calls. The four-year-old company recently sold a minority stake for an undisclosed sum to Adams Street Partners, a Chicago venture-capital firm, in order to fund expansion in Europe.

SAP isn't concerned about third-party competition. "The value proposition of Rimini Street is best suited for customers that are running software that can't be upgraded, which is not the case with SAP customers," says SAP Executive Vice-President Janet Wood.

But at least one of SAP's largest customers, Germany's Siemens (SI), might not agree. According to published reports, Siemens is considering using third-party maintenance, which would be a blow to SAP. Wood wouldn't respond directly to those reports, saying: "We have a great relationship with Siemens."

Oracle seems to be playing hardball. It is trying to get Ravin to divulge business secrets about Rimini by asking him for additional testimony in an Oracle case against SAP that involves a now-closed SAP unit Ravin founded and ran. He previously made public comments comparing Rimini to this unit, TomorrowNow. "If Rimini has done nothing wrong, it should have nothing to hide," Oracle said in court filings.

Ravin wouldn't comment on the lawsuit, but isn't surprised by the legal tactics. "We are breaking open a monopolistic channel," he says. "They are not going to go quietly into the night without fighting for their revenue."

Nor should they. Their lifeblood is at stake.

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Mint.com CEO on Getting Hitched With Quicken (On the Street)

Mint.com, an online personal-finance service, made headlines earlier this month with news it would be acquired by Intuit (INTU) for $170 million. Intuit, maker of TurboTax software, competed with Mint through its Quicken Online service.

SmartMoney’s Angie Marek recently sat down with Mint CEO Aaron Patzer to talk about the future following the purchase. Watch the interview below.

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Is It Too Early to Start Holiday Shopping? (Deal of the Day)

Christmas is months away, but for many retailers the holiday shopping season has already begun.

Over the summer, stores like Sears (SHLD) and Kmart rolled out Christmas-in-July deals, many of which were intended to bring customers back for the holidays. Two months later, retailers began decking out their display windows with tree ornaments and holiday decorations.

But with consumer confidence subdued, unemployment near 10% and foreclosures still a concern, few consumers are thinking about holiday shopping, says Kimberly Picciola, a senior equity analyst at Morningstar. In most cases, they may be better off. The majority of retailers are unlikely to roll out their best holiday shopping deals until after Black Friday, she says.

Why? Most retailers lowered their inventory levels for this year’s shopping season compared to last year. That leaves them with more leverage to keep prices higher until the end of the shopping season.

Here are five questions consumers should ask themselves before starting their holiday shopping early.

Can I expect the same discounts this year as last year?

No. Although most retailers will continue discounting, their discounts won’t be as big as they were during last year’s holiday shopping season. Back then, retailers discounted their items by as much as 80% off their original price, says Marie Driscoll, a director in Standard & Poor’s equity research department. This year, most holiday sales won’t knock more than 40% to 60% off the original retail price, and they won’t be as widespread as they were last year, she says.

How does the timing of my purchase affect my selection?

Most retailers have lowered their inventory levels for the 2009 holiday shopping season on average by 10% from last year, Driscoll says. This means that retailers ordered fewer products from manufacturers.

With lower inventory levels, stores are less likely to discount products early, instead waiting to see how many units consumers purchase. Retailers won’t decide to significantly cut prices until around Black Friday -- once they have a sense of how much inventory they still have, says Jeff Green, the president of Mill Valley, Calif.-based Jeff Green Partners, a retail consulting firm. In this case, the longer a consumer waits to shop, the more likely they are to find better deals.

Retailers say that consumers who are set on a particular item might run the risk of a sellout if they wait too long. As of the end of July, Macy’s (M) inventories were down 7.5% compared with last year, says Jim Sluzewski, a spokesman for Macy’s. He says the company expects its comparable sales to drop 5% to 7% between August and January, vs. this period last year.

“Last year, if you saw something in the store and liked it, the longer you waited the deeper the discount would get,” Sluzewski says. “This year, if you see something you like, it may not be there anymore if you wait because inventory is less.”

Green says this scenario is unlikely. “The consumer is more concerned about pressing things like jobs and housing to really be focused on Christmas,” he says. This week, the Conference Board, a New York-based business research group, said its Consumer Confidence index fell to 53.1 in September, down from an upwardly revised 54.5 in August. A reading above 90 indicates the economy is solid.

In what sectors will I find biggest discounts and when?

Consumer electronics retailers will offer the biggest discounts going into the holiday shopping season, Green says. In part, that’s because there’s a lot of competition between retailers like Best Buy (BBY), online shopping sites like Amazon.com (AMZN) and manufacturers like Apple (AAPL) and Dell (DELL). In this environment, chances are slim that a product will sell out across all three of those avenues, so manufacturers might wait until the last few weeks of the holiday shopping season to slash prices, Green says.

Home furnishing and accessories, as well as women’s apparel, will also offer big discounts between now and the end of the holiday shopping season, Green says. Most consumers have stopped shopping for their homes -- with the exception of electronics, like high-definition televisions, which have also become a popular holiday gift, he says. In addition, consumers now are more likely to turn to practical gifts for their family and friends, like gift cards to restaurants or entertainment venues, instead of home accessories like tabletop decorations, Green says.

Stores selling women’s apparel will continue to see depressed sales because women with tight budgets – especially those with children – are more likely to focus on buying presents for their kids than themselves, he says.

Expect ongoing promotions like coupons and sales at department stores, he says.

How will the dollar’s strength affect my bottom line when shopping from a retailer abroad?

The dollar’s value is unlikely to drop significantly between now and the end of the holiday shopping season, Green says. Should fluctuations occur, they won’t impact most product pricing within the country since retailers purchase these products months before the holiday shopping season kicks in. Individuals who purchase items from a seller abroad could find themselves paying more should the dollar decline against the euro, for example, but a meaningful drop is unlikely within the next three months, Green says.

Bottom line: Shop now or wait?

Consumers should hold off until at least the middle of November to start their holiday shopping.

Ideally, try to wait until Black Friday. That’s when retailers will have a better sense of their inventory levels. By then, inventory should be lower than it was last year, but potentially higher than retailers had hoped. That’s when you’ll start seeing greater discounting, Green says.

In addition, merchandise on the racks will continue to change throughout the next few months. “A lot of merchandise that arrives in stores mid-October and beyond will tempt consumers,” Driscoll says. “If you start shopping now, what will you do then?”

Deals will likely get better as we move further into the holiday shopping season, particularly in December, she says. And as usual, during the last two or three days before Christmas, most inventory is worth up to 75% less because retailers want to unload it to make way for new inventory for the post-Christmas season.

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.

FDIC wants banks to prepay fees to meet failure bill

FDIC wants banks to prepay fees to meet failure bill (Reuters)

Reuters - U.S. banking regulators proposed on Tuesday that banks prepay three years of fees to help cover the rising cost of bank failures, now put at $100 billion through 2013.

Kordia posts loss, talks up new transtasman cable

Scores dead in South Pacific tsunami

TVNZ profits plunge 90pc to $2.1m

Ag Minister wants Crafars out of industry, criticises Fonterra

Power to oust 'incompetent and unskilled' liquidators, receivers

CIT's future in question ahead of lender meeting (AP)

SEC watchdog pushes changes after Madoff failure (AP)

AP - The watchdog of the Securities and Exchange Commission has recommended a new system for handling the thousands of tips and complaints the agency receives and other changes to prevent another breakdown like the one that allowed Bernard Madoff's massive fraud to go undetected for 16 years.

CIT (CIT) For Suckers

Worker confidence in job market returns - survey

Dimon shakes up JPMorgan top team

Hartford Financial names ex-BofA exec as new CEO

Liberals defeated in key US healthcare vote

Daily Mail looks to happy new year as advertising slide slows

Pound up as fears of Bank rate change ease

Regulator orders banks to review PPI complaints

Foreign investors took out $9 billion last year

Nike beats on cost cuts, shares jump

Boston Sci to pay J&J $716 million to settle suits

U.S. consumer woes overshadow housing cheer (Reuters)

Reuters - U.S. house prices rose for a third month in July, but consumer confidence fell unexpectedly in September as the worst job market in 26 years fueled worries about personal finances, private reports showed on Tuesday.

Write-Offs: 09.29.09

$$$ French Rogue Trader Takes to Riviera Stage [AP]

$$$ BofA's Krawcheck Sets Her Team: The Memo [Deal Journal]

$$$ Hank Greenberg's I-Firm Takes 120K Feet in Zuckerman's 399 Park [NYO]

$$$ The SEC's 58-Step Program [BI]

$$$ Bonita Bay Brawl [implode-o-meter]

$$$ This is a sculpture of a bull impaling Bernie Madoff. [BBC]

Bond Fund Inflow Hits A New Record (Investor's Business Daily)

Drop in consumer confidence weighs on stocks (AP)

AP - A surprise drop in consumer confidence tripped up investors Tuesday, a day after a round of corporate takeovers set off a steep market rally.

Drop in consumer confidence weighs on stocks (AP)

AP - A surprise drop in consumer confidence tripped up investors Tuesday, a day after a round of corporate takeovers set off a steep market rally.

Presented By:

UBS: Everything Is Cool But Don't Come In 'Til We've Sterilized The Place

So UBS has yet to say definitively whether or not they've got an outbreak on their hands but they have informed the new associate and analyst classes to enjoy themselves a four day weekend, 'cause there's no need to come in for training tomorrow (again). Additionally, only those wearing hazmat suits should get close to the area. Again, no conclusions should be jumped to, as this could mean anything from a surprise party to chlamydia. Regardless, do not fear. The Swiss have this thing under control.

How the major stock indexes fared on Tuesday (AP)

Chris Dodd Could Learn A Thing Or Two From Vladimir Putin

Chris Dodd may believe in the power of one, but not Vladimir Putin. While he was actually addressing the role he sees for the Russian state going forward, he might as well have been addressing Dodd's continued enthusiasm for a single banking regulator.

"We understand how deceptive blind faith in an omnipotent state is, how illusory are the hopes that total intervention in economic life might fix everything and put everything in its place," Mr. Putin said.

To the extent that the situation stabilizes, that the effects of the crisis are overcome, we plan to consistently and purposefully reduce state intervention in the economy," he said.

Putin Sounds More Welcoming Tone to Foreign Investors [NYT]

China's economic numbers don't add up

Iran ‘has secret nuclear arms plan’

Confidence surges among CFOs in US

Ortel on Deflation Risk, Caughey on Technology Stocks: Audio

Bank Of America Making Great Strides In Customer Satisfaction

Having stumbled a bit dealing with the handicapped and fallen Marines, Bank of America is now getting an earful from its credit card customers. A 14-year customer of BAC, Ann Minch had seen and heard enough from Bank of America and CEO Ken Lay. Yes, she was steaming mad at Ken Lay for raising the interest rate on her credit card to 30%. While the real Ken in question must have breathed a sigh of relief she gave him an out, her four minute tribute to Bank of America gave the firm a pretty good read of where it stands with some of their customers.

Headphones should probably used for the video that follows after the jump

Langenfeld Says Railroads Are Good Place to Invest: Audio

Summary Box: SEC IG urges changes after Madoff (AP)

Bloomberg's Zacharia on Obama UN Address: Video

Vodafone's emergency Apple talks over iPhone

Gordon Brown: 'City is ideologically bankrupt'

Halloween Sales Take A Hit

This seasonal shop set up in a space formerly occupied by a sporting goods store.(Seven_Null7/ Planet Money Flickr poolCreative Commons)

By Caitlin Kenney

The National Retail Federation says Americans will be spending less money on candy corns and pumpkin carving tools this season. Halloween sales are expected to drop 18 percent this year, after reaching a four-year high in 2008.

One in three people interviewed by the group this month said the poor state of economy would likely affect their Halloween plans. People mentioned buying less candy, not purchasing new decorations and making costumes instead of purchasing new ones.

Even the holiday's biggest spenders are feeling the pinch, 18-24 year olds say they'll be spending nearly 21 percent less. Fewer part time jobs and parents less able to help out are some of the reasons cited by teens who are cutting back.

Halloween is a relatively small holiday for the retail industry, but some analysts see the drop in spending as a sign of worse things to come. The International Council of Shopping Centers is predicting a 1 percent increase in same store sales in November and December.

As for me, Halloween is one of my favorite holidays and even though I'll be using some of last year's decorations, I already feel the lure of pumpkin spice candles and skull goblets from Party City.

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Unfounded Rumor Of The Afternoon: Robert Wolf Out At UBS?

From the mailbag:

Maybe those who were told at UBS not to come in for the day were part of Robert Wolf's coterie-- hearing confirmation that he's been fired, which would jive with Gasparino's story last week that Bob McCann would be taking over as head of UBS Americas.

Or maybe he just has swine flu-like symptons, too and thought it best to take a personal day? Let us know.

Norb Vonnegut Discusses His Novel `Top Producer': Audio

Matt Taibbi On Goldman's Short Selling Logic: The Statistical Equivalent Of A Non-Sequitur

Rolling Stone's chief Wall St. correspondent Matt Taibbi has a missive coming out soon on the fall of Bear and Lehman. But before he reveals the solution to those riddles, he took some time to return to the conspiracy/blame game theorists' version of Old Faithful, Goldman Sachs. This time around, the target is three pages ripped out of a presentation Goldman was apparently using to advance their cause in Washington in connection with the ongoing debate on naked short selling. But chances are MT was not on the original distribution list. So how exactly did he come upon the word according to GS?

Mervyn King can avoid being misunderstood on sterling by avoiding the topic

Latin America Is On The Mend, Needs $400 Billion

By Laura Conaway

The worst of the economic crisis is over for Latin America, Augusto de la Torre, World Bank chief economist for the region, told the Americas Conference in Florida. De la Torre says Latin American could soon attract new foreign investment. From the Miami Herald:

"Latin America can actually help the world more than people think," he said, since its economy as a whole is almost as big as China but consumption is much larger.

On the other hand, Pamela Cox, World Bank vice president for Latin America, told the conference countries in the region will need to borrow $400 billion next year -- and it won't be easy to get. A companion report in the Herald quotes Cox as saying:

"It will not be simple, even for multilateral financial institutions used to this level of borrowing, among other things, because the capital available in developed countries is being used for their own stimulus measures."

Latin America countries owe combined $2.94 trillion in foreign debt. During the recession, employment has been high and exports have fallen. Cox credits new financial regulations for the region's avoiding of heavy bank failures and currency collapses.

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O'Neill Is Doubtful Emissions Reduction Will Pass: Audio

Help Jamie Dimon Name His Bar 'n Grill

Many of you have spent countless nights fantasizing about what it would be like getting drunk with Jamie Dimon. But it was just that-- a fantasy that you never imagined would come true. Well, peasants, today comes the thrilling news that if we can get JD to quit his gig on Park, this thing could actually happen. It's on the tip of his tongue and all we have to do is coax it out. Courtesy of Mrs. Judy Dimon, the lowdown on JD's plans for the future:

Hopes of US house prices stabilising

Baby Steps Of Progress For General Motors

There may be hope yet for the new General Motors and anybody looking to see auto bailout money complete the round trip. It took just six weeks for GM to learn that eBay may work well for buying artifacts from failed investment banks or California's liquidation but when it comes to autos, consumers want a bit more than the standard pitch of 'can't you just see yourself in that car'. The lack of demand for visualization-based car and truck purchases has led GM to cancel their online program. Showing its ability to make subtle refinements, the automaker will shift its focus from trying to get people to take a test drive in their head to giving them a risk-free two months to mull over their purchase decision. Given their performance over the past couple of decades, a one step forward, one step back model is, literally, a step in the right direction.

Food makers hungry to change for WIC

Marc Dreier Got Into The Ponzi Biz To Fulfill His Destiny For Greatness, To Fill A Void, And To Buy A Beach House

Not a day goes by that I don't curse Bernie Madoff, for robbing Marc Dreier of the insane media attention he deserved for a scam maybe not as big as but exponentially more creative and ridiculous than what the simpletons over at the Lipstick building had going on. Today we have a bittersweet glimpse of what that would've been like, courtesy of Bryan Burrough's interview with MD. Let's just start with the images above. Would Bernie, or any financial services hack for that matter, agree to such a photo shoot? No! Meanwhile you've got Dreier mugging it up for the camera. Is that his "sexy face" you see in the bottom right corner? Yeah it is! Whereas some people have turned down multiple offers for a tasteful centerfold spread in Bloomberg Markets Magazine, you've got this guy setting the room on fire with minimal direction from the photographer to "WORK IT, OWN IT." And the outtakes, my god, the outtakes. Don't even hesitate to dream they involve something along the lines of this:

Bloomberg's Nichols on G-8, Harper on Fiscal Policy: Video

FDIC Wants Bank Fees Early To Bolster Insurance Fund

By Laura Conaway

The FDIC has unveiled a plan to shore up its insurance program by essentially borrowing $45 billion from member banks. The idea is to have the banks prepay three years' worth of fees. The FDIC had considered borrowing the money outright from either banks or the Treasury, but each proved politically unpopular. Now the FDIC may have found a way to split the difference.

From the New York Times:

Officials said that the plan would be less expensive than a direct loan from the banks -- an idea that many banks supported -- because no interest would have to be paid and because the plan would not be voluntary.

In addition, the FDIC plans to raise banks' fees, too, by three cents on each $100 in deposits. You could argue that banks are like ordinary insurance consumers -- paying more for coverage when claims spike. So far in 2009, 95 banks have gone under. The FDIC is on track to lose $100 billion this year and next on failures. Its insurance fund is set to go into deficit this week.

The FDIC's push for early payment could take effect after a 30-day public comment period.

Bonus reading: Felix Salmon on the best fix for the insurance fund.

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3 Ways Google Wave Will Change Business

Tomorrow, Google will release the much-anticipated Google Wave, an innovative new communications platform. Mashable goes into depth about what Wave is, and also how it can change business. Ben Parr’s article on Wave’s game-changing features includes some benefits for business:

Drag-and-drop file uploads: (These) make Google Wave not only a communication platform, but a useful project management system. Companies could use Google Wave as their communication and file-sharing platform. Combined with Wave Extensions, you could build an entire project management platform and time management system better than anything on the market.

Playback: Playback clarifies any conversation and makes it simple to get anyone up-to-speed. Instead of “check your email,” it will become “just playback the wave” and you will have all the information that you need. You could get someone up-to-speed within minutes, rather than hours.

For more details on each feature, see Ben’s post.

Wave launches tomorrow for 100,000 invitees. Not having reviewed it myself, it sounds mainly like a major time and resource saver for businesses. I look forward to seeing if/how companies can use it to revolutionize processes, and whether it has potential to foster any new industry niches.

Starbucks’ VIA Instant Coffee: A Potential Hit?

Starbucks is releasing its new VIA instant coffee today. Starbucks has executed one of its biggest advertising campaigns ever to promote VIA. The Seattle Times describes the campaign:

Starbucks has already put lots of time and money into its promotion of VIA here in Seattle, with a pep rally that included the Husky Marching Band, a cocktail mix-off and a nationwide road trip promoting the instant brew on Twitter and YouTube.

Though it will be released in varying stores, ranging from its current availability in Target and Costco to REI, Barnes & Nobles and Office Depot.

Entering the instant coffee market is a good idea for Starbucks, especially if VIA tastes better than Nescafe–err, other products. Going international with VIA could be a gold mine.

Consumerist, however, points out that VIA might not meet American taste or price standards:

…in tests conducted this summer, Consumer Reports found that Via didn’t quite live up to (its taste) promise:

We’ll reserve judgment until we try it ourselves. But at $1 a serving, vs. about 20 cents for instant Nescafe — or $1 for fresh-brewed coffee from the corner deli — we will have to love it if we’re going to give it more than just a try.

If VIA tastes better than Nescafe, and is sourced from better ingredients, I think it will have a market niche, even at a higher price. That niche just might not be in the States. I vote in favor of Starbucks on this particular product gamble. What do you think?

Hochman Says Dollar Will Continue to Devalue: Audio

Ralph Lauren Raised to `Buy’ at Goldman Sachs: Audio

Hunter Says U.S. Rental Market Inventory Still High: Audio

Roccati Likes BNP Paribas, Societe Generale, UniCredit: Audio

Why oil may be a cursed resource

Is Europe's carbon trading all smoke?

U.S. may ban insurers of Iran's cargo

What the increase in RV sales tells us

FDIC looks for ways to replenish fund

Tea Party FAIL

Where to Get Your Free Joe on National Coffee Day

Today is National Coffee Day, one of many annual food-related celebrations of unspecified origin. If you’re among the 54% of Americans who enjoy a daily brew, you might want to celebrate National Coffee Day by acquiring your juice for free. Below, we’ve listed some of the coffee shops offering special National Coffee Day deals:

Texas/Midwest: Dunn Bros. is offering one free 12 oz. cup with this coupon.

Los Angeles: Panera is offering a second cup of coffee, free, when you order one cup and say “pay it forward.”

Massachusetts, Rhode Island, New Hampshire: McDonald’s is giving away free cups of Newman’s Own coffee today and tomorrow.

Coral Gables, Fla: Buttercream Cupcakes & Coffee is giving away a cup of free joe.

All over the country, Starbucks will be giving away a free cup of its new VIA instant coffee on October 2-4. The catch: It’s instant.

Filterfresh, a coffee supplier, is offering a home brewer and coffee for your office if you write a winning story about “why coffee is the greatest beverage of all time.”

Ohio and Kentucky: Busken Bakery is offering free coffee and a cookie.

If you don’t see any offerings in your region, walk up to your favorite brewer and ask nicely whether they have anything to give you on National Coffee Day. If they say no, throw a fit, start crying, and blame lack of caffeine for your temper tantrum. You stand a chance of invoking their pity and getting something:

If they remain stubborn, tell your local brewers that National Espresso Day is on November 23, and they’d better offer you something free…or else.

U.S. Consumer Confidence Falls. Germans Say They're Feeling Better

By Laura Conaway

More mixed signals from a squirrely economy: The Conference Board's Consumer Confidence Index fell in September by more than a full point, from 54.5 in August to 53.1 this month. The Conference Board reports:

Consumers' assessment of current conditions was less favorable in September. Those claiming business conditions are "bad" increased to 46.3 percent from 44.6 percent, while those claiming conditions are "good" increased to 8.7 percent from 8.5 percent. Consumers' appraisal of the job market was also less favorable. Those claiming jobs are "hard to get" increased to 47.0 percent from 44.3 percent, while those claiming jobs are "plentiful" decreased to 3.4 percent from 4.3 percent.

Americans' outlook on the labor market is as stagnant as the labor market itself. The Conference Board says the survey results could spell bad news for retailers in the upcoming holiday shopping season.

Meanwhile, German consumer confidence hit a 16-month high this week.

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The Unique Origins of 25 Popular Products

Happy accidents make good inventions. Spills, explosions, odd chemical reactions, and plain old forgetfulness produced some of today’s most practical products. From saccharin to shopping carts, each of the inventions below has a strange and unique origin:

25. Bra

Image: Wikimedia

New York socialite Mary Phelps Jacob patented the modern bra as the result of an unsuitable corset. When she found her whalebone corset poking out of an evening gown before an event, Phelps used silk handkerchiefs and ribbon to build herself a primitive bra.
When friends and strangers started asking for their own bras, Phelps knew she was onto something. In 1914, she patented her “Backless Brassiere,” then started a business that sold it. She later sold the patent to the Warner Brothers Corset Company for $1,500; that company, in turn, earned $15 million from bras during the next three decades.

24. Graham Cracker

Image: JustinGunter

The Reverend Sylvester Graham claimed you could suppress carnal urges through diet. According to Graham, bland foods curbed sexual tendencies like masturbation. To help his followers adapt to his prescribed diet, Graham invented his namesake Graham Cracker in 1829. Hundreds of followers chowed down, paving the way for the modern, sexually unaffected graham cracker consumer.

23. Microwave Oven

In 1945, Raytheon engineer and inventor Percy Spencer stood in front of a magnetron—a radar component—and noticed a chocolate bar start to melt in his pocket. Curious about the magnetron’s potential, Spencer obtained a bag of popcorn kernels and watched them pop next to the magnetron. The microwave oven was born.

Radarange, the world’s first microwave oven, was 6 feet tall, weighed 750 pounds, and cost around $5,000. It wasn’t until 1967 that a popular countertop model costing $495 hit the market. Today, most Americans own much cheaper and more efficient models.

22. Post-Its

Image: Quirkyalone

After experimenting with adhesives, 3M scientist Dr. Spencer Silver found himself with a reusable, mildly sticky glue in 1968. Though he hadn’t intended to create this specific substance, he tried promoting it within the company, as a spray or glue for temporary bulletin board notices. His efforts did not gain traction until fellow employee Art Fry attended one of Silver’s presentations. Fry, frustrated that his bible hymnal bookmarks constantly fell out during church choir practice, realized that Silver’s glue was the perfect bookmarking solution. Fry proposed the bookmark idea to management. Within five years, 3M introduced Post-it Notes. They have been indispensable to the modern office ever since.

21. German chocolate cake

Image: Stu Spivack/Flickr

In 1852, English chocolatemaker Samuel German created Baker’s German’s Sweet Chocolate, the essential ingredient upon which the cake’s name is based. A Texas homemaker sent a newspaper a recipe for German’s Chocolate Cake in 1957, popularizing the cake recipe. General Foods, owner of the Baker’s Chocolate brand, forwarded the recipe to newspapers across the country in a push to increase chocolate sales. Somewhere along the line, newspapers dropped the “s” at the end of German’s, resulting in the “German” chocolate cake.

20. Corn Flakes

Image: Eplacencia

In the late 1800s, entrepreneur Will Keith Kellogg teamed up with his brother John, an MD and nutrition expert, research healthy diets for patients. While making bread one day, Will accidentally let the dough stand too long. As a result, the dough produced flakes when he rolled it for baking.

Feeling experimental, Will baked the flakes, creating a crunchy cereal that patients loved. Will refined the recipe with corn. He co-founded a cereal mail order company with Jon, then started the Battle Creek Toasted Corn Flakes Company, the first “ready-to-eat cereal” operation in the world. Kellogg’s followed, and corn flakes remain a classic.

19. WD-40

Image: North Harvest Beangrowers

In 1953, three rocket scientists at San Diego’s Rocket Chemical Company tried to develop a substance that would prevent corrosion in rockets by displacing water. They finally succeeded on their 40th try, naming the substance “Water Displacer—40th Attempt.” More than 15 years later, Rocket company executive John S. Barry made the product a household name. Today, WD-40 resides is the lube of choice in as many as 80% of American households.

18. Shopping cart

In the late 1930s, Oklahoma City grocery store owner Sylvan Goldman and an employee came up with a new way for shoppers to move larger amounts of groceries. At the time, customers lugged their goods in baskets, making for a heavy and difficult shopping experience. They patented the “Folding Basket Carriage for Self-Service Stores” in 1940.

To advertise the new invention, the store discouraged customers from carrying baskets. At first, people avoided them. However, after Goldman marketed them through demos and models, they caught on like wildfire. Today’s shopping carts are a larger version of Goldman’s invention.

17. Penicillin

Dr. Alexander Fleming, as part of his bacterial research, was growing Staph cultures in his London lab when he decided to go on vacation. He failed to wash out one batch of bacteria before he left. Two weeks later, when he came back, he found his petri dish covered in mold. All the bacteria in the dish had died. Fleming had discovered Penicillin, entirely by accident.

16. Teflon

In 1938, chemist Roy Plunkett was researching refrigerants when perfluorethylene, one of his ingredients, polymerized inside a pressurized, iron-lined container. The iron had catalyzed the reaction, helping create an inert, low-friction seal. Plunkett’s company, Kinetic Chemicals (a DuPont-General Motors joint venture) patented the polymer in 1941. Four years later, it registered the Teflon trademark. The chemical continues to coat pans around the world.

15. TNT

In 1863, Joseph Wilbrand discovered 2,4,6-trinitrotoluene. It took people 28 years to develop a high-velocity initiator to detonate the compound. The German army started using it as a shell filling in 1902. In 1914, during World War I, it became commonplace. People around the globe still explode it today.

14. X-Rays

Renowned German scientist Wilhelm Röntgen was experimenting with cathode rays in 1895 when he discovered the x-ray. Röntgen had covered his cathode tube with thick black paper. When he ran an electric current through the tube, a nearby fluorescent screen started glowing. The screen, coated in barium platinocyanide, stopped glowing when Röntgen turned off the current. He realized that a mysterious kind of ray must be making the screen glow. He codenamed the ray an X-ray, and proceeded to write books on it. His discovery earned him the first-ever Nobel Prize in physics.

13. Bubble Gum

Image: ImpactLab

In 1928, accountant Walter Diemer worked at a rubber company, but experimented with gum recipes on the side. One of his ingredient combinations was less sticky and stretchier than other gums. He discovered that it he could blow bubbles with it.

Excited by the new gum’s potential, Diemer brought two kilograms of it to a grocery store. It sold out in one afternoon. It didn’t take long for bubble gum to catch on with kids; years later, in 1951, the Topps Company added a stick of it to their baseball card packages, replacing the old gift of a cigarette. It became an instant tradition.

12. Velcro

Image: Jim Ekstrom/Exeter Univ.

After a 1941 hunting trip, Swiss engineer George de Mestral and his dog were both covered in burdock burrs. De Mestral examined some of the burrs under a microscope. He found that their hook-shaped spikes would latch onto loops in fur, hair, or clothing, making them incredibly sticky. He realized that materials could be bound together in the same way, if the hooks and loops were constructed properly.

After years of experimentation, de Mestral found a way to make hooks and loops from nylon, then mechanize the process of weaving the hooks. Ten years after making his discovery, he submitted his hook/loop combo for a Swiss patent, which was granted in 1955. Worldwide patents and manufacturing plants followed, although it took more than a decade for Velcro to gain widespread acceptance.

11. Gatorade

Image: Nerd Fitness

In the early 1960s, University of Florida Gators football coach Ray Graves grew tired of watching his players grow tired in the tropical summer heat. When he asked his team doctor for help, the doctor inspired a research team to create a hydrating mixture of water, salt, sugar, lemon juice, potassium, and phosphate. Dubbed “Gatorade,” the drink supported the team during their first Orange Bowl win. Soon afterwards, researchers partnered with foodmaker Stokely-Van Camp to distribute the drink. Quaker later took over, helping the drink become an international sensation. The University of Florida, meanwhile, still receives royalties for Gatorade on an annual basis.

10. Maybelline

Before mascara was invented, women used to smear Vaseline and coal dust on their eyelashes. When American chemist T.L. Williams saw his sister doing this, he headed to his lab to create a more convenient product called Lash-Brow-Ine. Local women liked the mixture, but its name hardly rolled off the tongue. So he rebranded it Maybelline, a combination of his sister Maybel’s name and Vaseline. After Maybelline redefined modern mascara, it became a national cosmetics giant.

9. Slinky

Image: Lighten Up

In 1943, US Navy engineer Richard James was trying to develop a spring for ship instruments when he stumbled across the Slinky. He knocked a spring from a shelf and watched it “step” its way down to a pile of books, then a table, then to the floor. His wife Betty named the toy “slinky,” and a company was born.

In 1960, Richard, fed up with success, left the family to join a religious group in Bolivia. Betty continued to run the company until 1998.

8. Silly Putty

Image: DIYHappy

During World War II, the United States experienced a severe rubber shortage. As a result, the government funded scientists’ efforts to find a cheap rubber replacement. One such scientist, General Electric’s James Wright, was working on a synthetic rubber substitute when he dropped boric acid into silicone oil. The stretchy, bouncy mass now known as Silly Putty resulted.

Wright’s “nutty putty” made the scientific rounds, but nobody could find a use for it. Finally, in 1949, businessman Peter Hodgson ran across the stuff at a party. After buying production rights from GE, he dubbed the substance Silly Putty and repackaged it. A worldwide sensation ensued.

7. Popsicle

Image: Charlotte’s Fancy

11-year-old Frank Epperson left a stirring stick in a soft drink out on his porch one night in 1905. The next morning, when he discovered his accident, he found that record low temperatures left the pop frozen to the stick.

Epperson did nothing with his find until 1923, when he patented his “Eppsicle” ice pop. He changed the name to Popsicle when his kids started calling it that. After making the iced treat in a few different flavors, he sold production rights to New York’s Joe Lowe Company, which gained it a wider audience. The Popsicle, now owned by Unilever, today comes in more than 30 flavors.

6. Play-Doh

Play-Doh began life as Kutol brand wallpaper cleaner. Just when Kutol, a family business, was going broke in the early 1950s, a magazine published an article about using wallpaper cleaner to make Christmas ornaments. Employee Joe McVicker’s sister-in-law Kay tried making wallpaper cleaner ornaments with local schoolkids, and found that they loved it.

Her find inspired the owners to swap detergents for colorant in their cleaner, add a more pleasant smell, and renamed it Play-Doh. The new product first took off in schools around Cincinnati, then became the national sensation it is today.

5. Potato Chips

Image: North Carolina State U

In 1853, George Crum served as the head chef of New York’s Moon Lake Lodge, famous for its French fries. When a customer sent back a plate of fries, complaining of their thick cut, Crum retaliated. He cut the potatoes as thin as he could, fried them in grease until they were crunchy, and sent them back.

Surprisingly, the guest was delighted. So many other guests requested the thin-fried potatoes that Crum named them “Saratoga Chips.” The chips became so popular that other people started imitating the recipe and trying to sell them as a snack food. By the early 1920s, grocers began selling them. In 1926, Laura Scudder put potato chips into bags; six years later, Herman Lay turned his Lay’s potato chips into the first national brand. Today, bagged potato chips are one of the country’s favorite snack foods.

4. Saccharin

Johns Hopkins scientist Constantin Fahlberg discovered saccharin while experimenting on toluene derivatives, normally found in coal tar. When Fahlberg found that a residue from his experiments tasted sweet, he devoted more time to researching it. He later patented the substance and named it saccharin.

Saccharin was introduced as a food additive in the US in 1900. It gained more traction as a sugar substitute during WWI, when sugar was rationed. Now, it is most popularly known as Sweet N’ Low.

3. Wheaties

In 1922, a health clinician was preparing bran gruel for his patients when he accidentally spilled some onto a hot stovetop. The gruel hardened into flakes, which the clinician found tasted good. The clinician showed the flakes to the Washburn Crosby Company (now General Mills), which perfected and packaged them as “Gold Medal Whole Wheat Flakes.” The company renamed the flakes Wheaties after a public naming contest. Nine years later, General Mills began sponsoring baseball broadcasts, and Wheaties became the now-famous “Breakfast of Champions.”

2. Scotch Guard

Scientist Patsy Sherman was working on inventing jet fuel line rubber for 3M in the early 1950s. One of her latex emulsions fell onto the flood, splashing a lab assistant’s shoes. Sherman and her team couldn’t wash it off—instead, water and solvents would bead on the surface of the latex, then run off. Sherman started researching the latex as a fabric protectant. In 1955, Scotchguard, which protected fabrics from liquids, was released to the market.

1. Kotex

Image: Well.ca

During World War I, paper manufacturer Kimberly Clark sold the Army an ultra-absorbent bandage called Cellucotton. Military nurses also started using the absorbent bandage material as sanitary napkins. When the war ended, Kimberly Clark decided to market Cellucotton for precisely that purpose. Dubbed “Kotex”—cotton + textile—the new product became the precursor of the modern maxi pad. Today, Kotex is one of Kimberly Clark’s best-known brands.

Sources: Each source is linked in this blog post. We drew heavily on the Lemelson-MIT program’s inventors list, which deserves special mention.

House Prices On The Rise. Plus: Wall Street Bulls And Dairy Cows

By Laura Conaway

Good morning, and welcome to this Tuesday's reading list.

The latest figures on home prices are in, courtesy of the S&P/Case-Shiller index. Home prices rose across the nation from June to July 2009, with the exception of Las Vegas and Seattle. Overall, the index posted a 1.2 percent gain from month to month, the third straight positive report. The big picture, if you can bear to look, shows that in the year ending July 2009 the index fell by 13.3 percent -- hey, it's the smallest drop in 17 months and less than expected.

Meanwhile, the Dow is looking 10,000 squarely in the eyes again.

Looking to replenish its insurance fund, the FDIC is likely the propose that banks prepay three years' worth of fees, the Wall Street Journal reports (subs. req'd.).

Calculated Risk finds an unintended consequence in the federal tax break for first-time homebuyers. A lot of those buyers used to be renters, and their exit from that market may push rents downward. "Extend the tax credit and we might be looking at the core CPI showing deflation," CR writes. "Welcome to the Fed's nightmare."

Simon Johnson proposes a new way out of the G20, IMF tangle -- an Emerging Market Fund, or EMF, for developing countries that deserve more clout.

Science makes more cows, and the market makes milk prices fall.

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Clueless Parent FAIL