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SFO to seek permission to prosecute BAE for briberyThe Serious Fraud Office (SFO) today announced it will seek permission to prosecute BAE, Britain's biggest defence contractor, over bribery charges. Source: Latest Business News from Times Online | 1 Oct 2009 | 5:22 am BAE Systems faces bribery chargesThe UK's Serious Fraud Office is expected to announce that it wants to prosecute defence giant BAE Systems over alleged bribery.Source: BBC News | Business | World Edition | 1 Oct 2009 | 4:35 am London Markets: Legal & General shines in modestly weak FTSE 100Legal & General and Vedanta Resources rally in a generally lackluster London equities market.
Source: MarketWatch.com - Top Stories | 1 Oct 2009 | 4:34 am World stocks mostly lower on weak economic data (AP)
Source: Yahoo! News: Stock Markets News | 1 Oct 2009 | 4:33 am Potential Breakthrough in Esophagus Cancer (CTIC)Cell Therapeutics, Inc. (NASDAQ: CTIC) has announced what may be a large breakthrough in the fight against cancer. This is a combined test rather than as a standalone treatment, but the result may be a huge step in cancer of the lower esophagus. As many of the ties of one cancer are made to others, [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 1 Oct 2009 | 4:31 am Vtion shares slip in first day of German tradeChinese mobile data card manufacturer Vtion Wireless got off to a lackluster start on its debut on Thursday, the first listing on Germany’s primary exchange in more than a year.
Source: MarketWatch.com - Top Stories | 1 Oct 2009 | 4:26 am Global economy expanding says IMFThe global economy is expanding and financial conditions have improved significantly, says the International Monetary Fund.Source: BBC News | Business | World Edition | 1 Oct 2009 | 4:25 am SFO to pursue bribery case against BAE SystemsSerious Fraud Office will pursue a prosecution against BAE Systems over bribery allegations after the arms maker refused a plea bargain.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 1 Oct 2009 | 4:23 am The real health-care reform risksRegular readers of this magazine have learned to think a lot about risk. You know that you can't predict every market crash, but you can take steps to lower your exposure to the unexpected. The health-care reform debate we're having in this country happens to be largely about risk.Source: Business and financial news - CNNMoney.com | 1 Oct 2009 | 4:19 am KKR completes deal with fund; on Euronext (Reuters)Reuters - Private equity firm Kohlberg Kravis Roberts & Co closed a long-awaited deal on Thursday to buy its Amsterdam-quoted fund, becoming a Euronext- listed company and completing the first step toward an expected move to the New York Stock Exchange.Source: Yahoo! News: Stock Markets News | 1 Oct 2009 | 4:15 am Want a job on Wall Street? Good luckWall Street's job woes don't appear to be over just yet.Source: Business and financial news - CNNMoney.com | 1 Oct 2009 | 4:12 am KKR Finally Goes PublicKKR wanted to follow Blackstone (BX) into the public markets, but the recession and credit crisis ruined that dream. Blackstone’s shares were so badly beaten down that the KKR partners may be glad that they missed their window. But, now KKR will have publicly traded shares which may give its major owners some liquidity. The private [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 1 Oct 2009 | 4:08 am Premier League in Singapore dealSing Tel wins the rights to show English Premier League football matches in the city state from 2010 to 2013.Source: BBC News | Business | World Edition | 1 Oct 2009 | 4:07 am Indications: U.S. stock futures weaken before data delugeU.S. stock futures trade lower Thursday ahead of a deluge of economic data.
Source: MarketWatch.com - Top Stories | 1 Oct 2009 | 4:05 am EBay gains favor on Wall StreetAfter spending more than a year in Wall Street's doghouse, eBay Inc. has managed to win back favor from investors and analysts in recent weeks, as data has shown improvements in the company's core online auctions business.
Source: MarketWatch.com - Top Stories | 1 Oct 2009 | 4:01 am Introducing the Bank Systems & Technology Elite 8 Bank Technology LeadersNEW YORK, Oct. 1 /PRNewswire/ -- If the familiar adage, "What doesn't kill us makes us stronger," is true, then the executives who comprise Bank Systems &...Source: RSS feed - channel BNewsBusiness | 1 Oct 2009 | 4:00 am Information in Electronic Medical Records to be Health Industry's Most Valuable Asset in Five Years, Finds PricewaterhouseCoopersPromise of Cost Savings, Improved Patient Quality Lies in Secondary Use of Data NEW YORK, Oct. 1 /PRNewswire/ -- Hundreds of billions of gigabytes of health information are...Source: RSS feed - channel BNewsBusiness | 1 Oct 2009 | 4:00 am Boston Hotels & Attractions for a Fall Getaway in the Heart of New EnglandBETHESDA, Md., Oct. 1 /PRNewswire/ -- In the fall, Boston hotels are inundated by guests seeking out an authentic New England experience; which is why Marriott International, Inc....Source: RSS feed - channel BNewsBusiness | 1 Oct 2009 | 4:00 am SectorWatch.biz Issues MarketStats on Water Treatment and Waste Management Companies GEVI, WM, TTEK, VE, PLL and SHAWIRVINE, Calif., Oct. 1 /PRNewswire/ -- SectorWatch.biz announces the availability of MarketStats for water treatment and waste management equities in the news and driving marketsSource: RSS feed - channel BNewsBusiness | 1 Oct 2009 | 4:00 am IMF raises U.S. GDP forecast, warns on debtWASHINGTON (Reuters) - The U.S. economy is mending more quickly than anticipated, although high unemployment and growing commercial property defaults will put a drag on the recovery, the International Monetary Fund said on Thursday.Source: Reuters: Business News | 1 Oct 2009 | 3:59 am Europe Markets: M&A, autos and buybacks steady Europe stocksDeal-making helps steady European stocks on the first day of the fourth quarter.
Source: MarketWatch.com - Top Stories | 1 Oct 2009 | 3:54 am Value Of Dollar Killing Japanese Car Profts, Could Help The Big ThreeThe expected recovery of the American car business was supposed to be based on huge cost cuts at all three domestic companies and improved product lines based largely on a desire among US drivers to have more fuel-efficient cars. It turns out that the value of the dollar may do more to vanquish the Japanese and [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 1 Oct 2009 | 3:53 am Court lets woman off £8,000 loanA ruling by a county court judge could mean that thousands of borrowers can renege on their debts.Source: BBC News | Business | World Edition | 1 Oct 2009 | 3:53 am UK factory activity sees new dipActivity in the UK manufacturing sector fell unexpectedly for the second month in a row in September, a survey indicates.Source: BBC News | Business | World Edition | 1 Oct 2009 | 3:49 am Munich Re to buy back up to 1bn of sharesMunich Re, the world's biggest reinsurance group, indicated confidence that it had overcome the financial crisis by telling investors on Thursday that it would buy back up to 1bn ($1.45bn) of its shares...Source: RSS feed - channel BNPaperBusiness | 1 Oct 2009 | 3:47 am Eurozone jobless continues risingThe unemployment rate across the 16 countries that use the euro rises again as the effects of the recession continue to be felt.Source: BBC News | Business | World Edition | 1 Oct 2009 | 3:42 am Oil falls towards $70 after near $4 jumpLONDON (Reuters) - Oil eased toward $70 on Thursday, pulling back after the sharpest daily jump since April as ballooning distillate stocks doused positive sentiment and revived the view that oil prices may have run ahead of demand.Source: Reuters: Business News | 1 Oct 2009 | 3:40 am IMF: World recovering faster than expectedThe global economy is recovering faster than expected but governments should be careful to not withdraw their stimulus measures prematurely, the International Monetary Fund said Thursday.Source: RSS feed - channel BNewsBusiness | 1 Oct 2009 | 3:39 am With $2 Billion Profit Potential GE (GE) Won’t Sell NBCUGE (GE) won’t sell its NBC Universal division, at least not at the price levels that are being rumored. It is unlikely that in the current economic environment that GE could get more than $30 billion for the unit, which is now an essential part of the conglomerate’s earnings. Rumors of a potential deal, though, abound. [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 1 Oct 2009 | 3:36 am Aviva savers to share in £470 million payoutAround 805,000 Aviva customers are to share in a £470 million payout after voting to be bought out by the insurance business. Source: Latest Business News from Times Online | 1 Oct 2009 | 3:31 am This savings bet sets off alarm bellsQuestion: Most of our savings are in mutual funds, including our IRAs. We were recently approached by an adviser who wants us to roll our money into variable annuities in order to prevent further declines in the value of our portfolio. Is this a wise thing to do? --Jerry, Grants Pass, OregonSource: Business and financial news - CNNMoney.com | 1 Oct 2009 | 3:26 am European equities firm at start of fourth quarter (AFP)
Source: Yahoo! News: Stock Markets News | 1 Oct 2009 | 3:24 am Britain to make 'stronger' exit from recessionBritain's emergence from recession in 2010 will be stronger than previously thought, according to the International Monetary Fund (IMF). Source: Latest Business News from Times Online | 1 Oct 2009 | 3:20 am Economic Report: Germany's retail sales fell 1.5% in AugustGermany’s retail sales declined in August, official data showed Thursday, highlighting the ongoing weakness of domestic demand in Europe’s biggest economy.
Source: MarketWatch.com - Top Stories | 1 Oct 2009 | 3:16 am Ukraine's Naftogaz indicates default on bondsUkraine's debt-laden state energy firm Naftogaz says it has failed to repay principal on $500 million of its bonds on time, indicating a default. Analysts and creditors say the failure...Source: RSS feed - channel BNewsBusiness | 1 Oct 2009 | 3:14 am Asia stock markets slip while Europe gainsAsian markets were mostly lower Thursday after Wall Street fell and a Japanese survey showed manufacturers still think they have too many workers. European shares edged up after the IMF...Source: RSS feed - channel BNewsBusiness | 1 Oct 2009 | 3:09 am Thailand's CPI dips 1% in SeptemberThailand's consumer prices dipped for the ninth straight month in September, on par with declines seen in August, as the government said its expect prices to begin trending higher from this month.
Source: MarketWatch.com - Top Stories | 1 Oct 2009 | 3:06 am IMF Increases US GDP Growth Rate More Than China’sThe IMF upgraded its estimates for 2010 GDP growth in almost every country and region in the world based on its belief that the recession is receding rapidly into the past. Among the more interesting forecasts in its World Economic Outlook are the ones for the US and China. The IMF was more aggressive in increasing the [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 1 Oct 2009 | 3:03 am B. of A. seen looking internally for new CEOBank of America will likely pick an internal candidate to replace departing CEO Ken Lewis, because of a shortage of suitable outsiders for the job, according to reports and analyst notes Thursday.
Source: MarketWatch.com - Top Stories | 1 Oct 2009 | 3:01 am S.Korea KNOC says starts drilling in northern IraqSEOUL, Oct 1 (Reuters) - State-run Korea National Oil Corp (KNOC) has begun drilling a field in northern Iraq that could hold up to 1.2 billion barrels of crude, the firm said on Thursday.Source: RSS feed - channel BNewsBusiness | 1 Oct 2009 | 3:01 am Brick By Brick Toys"R"Us And LEGO Systems, Inc. Construct Dynamic Program For LEGO(R) Lovers Of All Ages"Bricktober" Offers LEGO Fans Exclusive Products, Spectacular Savings and Fun Events All Month Long WAYNE, N.J., Oct. 1 /PRNewswire/ -- Toys"R"Us has partnered...Source: RSS feed - channel BNewsBusiness | 1 Oct 2009 | 3:00 am Liquidity Markets Show Signs of Life as U.S. Venture-Backed IPOs Raise Most Capital Since 2007; M&As Remain ScarceDow Jones VentureSource: M&As and IPOs Net $2.7B Down 49% From A Year Ago; Upswing on the Horizon with Over $1 Billion in M&As Expected to Close in 4th Quarter SAN...Source: RSS feed - channel BNewsBusiness | 1 Oct 2009 | 3:00 am Tokyo and Seoul stocks slide in AsiaMost major Asian markets ended lower Thursday in cautious trade, with Japanese shares falling after the Bank of Japan’s tankan survey showed corporations planned to cut capital outlays more than expected.
Source: MarketWatch.com - Top Stories | 1 Oct 2009 | 2:59 am Cisco strikes $3 billion deal to buy TandbergCisco Systems strikes a $3 billion deal to buy Norway’s Tandberg to bolster its position in video conferencing.
Source: MarketWatch.com - Top Stories | 1 Oct 2009 | 2:51 am London shares continue record rallyThe London market opened in positive territory this morning, the FTSE 100 Index edging ahead by 23.58 points to 5,157.48, continuing what had been its best-ever performance in its 25 years of existence last quarter. Source: Latest Business News from Times Online | 1 Oct 2009 | 2:49 am Stock futures indicate flat to softer start(Reuters) - Stock futures pointed to a flat to weaker start for Wall Street on Thursday, with the Nasdaq Composite futures down 0.3 percent after Cisco System offered to buy Norwegian Tandberg for $3 billion in cash.Source: Reuters: Business News | 1 Oct 2009 | 2:48 am Stock futures indicate flat to softer start (Reuters)
Source: Yahoo! News: Business | 1 Oct 2009 | 2:48 am Stock futures indicate flat to softer start (Reuters)
Source: Yahoo! News: Stock Markets News | 1 Oct 2009 | 2:48 am Cisco (CSCO), Unable To Help Itself, Buys TandbergCisco (CSCO) continues to buy companies at a rapid-fire pace. It added video infrastructure and transport company Tandberg to its video hardware and software portfolio, paying $3 billion in cash for the firm. Announcing the news release Cisco said “TANDBERG’s leading video endpoints and network infrastructure solution will be integrated into Cisco’s world-class collaboration architecture. This [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 1 Oct 2009 | 2:42 am Stocks brace for new quarterU.S. stocks were set to kick off the fourth quarter on a lackluster note Thursday, ahead of testimony by Federal Reserve Chairman Ben Bernanke.Source: Business and financial news - CNNMoney.com | 1 Oct 2009 | 2:34 am World powers meet for Iran nuclear talksSenior diplomats from the US, UK, France, Germany, Russia and China open talks with a senior Iranian official in Geneva, in the hope of discussing Tehran’s nuclear programme and avoiding fresh economic sanctionsSource: Financial Times - US homepage | 1 Oct 2009 | 2:20 am Cisco to buy Tandberg for $3 billion (Reuters)
Source: Yahoo! News: Business | 1 Oct 2009 | 2:18 am Cisco to buy Tandberg for $3 billionOSLO (Reuters) - U.S. network equipment maker Cisco System is to buy Norway's video-conferencing equipment maker Tandberg ASA for an agreed 17.2 billion crowns ($3.0 billion) in cash, the companies said on Thursday, lifting Tandberg shares.Source: Reuters: Business News | 1 Oct 2009 | 2:18 am Media Digest 10/1/2009 Reuters, WSJ, NYTimes, FT, BloombergReuters: Ken Lewis will step down as CEO of Bank of America (BAC) Reuters: Cisco (CSCO) bought Tandbeg for $3 billion. Reuters: The IMF raised forecasts for US GDP but warned on its growing debt. Reuters: Turnaround experts say the collapse of CIT (CIT) would be a mess. Reuters: New media expansion has made traditional measures of TV audiences [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 1 Oct 2009 | 2:08 am Lufthansa buys rest of BMI shares from SASFRANKFURT - Deutsche Lufthansa has agreed to buy the 20 per cent of BMI it does not yet own from Scandinavia's SAS, boosting its holding in the British carrier to 100 per cent. Germany's flagship carrier...Source: RSS feed - channel BNPaperBusiness | 1 Oct 2009 | 2:07 am Global recession is ending. Thanks, AsiaRead full story for latest details.Source: Business and financial news - CNNMoney.com | 1 Oct 2009 | 2:05 am BofA CEO Lewis out by year's end, search on for successor (Reuters)
Source: Yahoo! News: Business | 1 Oct 2009 | 1:57 am BofA CEO Lewis out by year's end, search on for successorNEW YORK (Reuters) - Bank of America Corp CEO Kenneth Lewis announced he was retiring, after months of being dogged by a series of government investigations into the company's acquisition of Merrill Lynch last year that had become a major distraction for the biggest U.S. bank.Source: Reuters: Business News | 1 Oct 2009 | 1:57 am Asia manufacturing picks up. but U.S. remains key worrySEOUL/TOKYO (Reuters) - Manufacturing activity surged across Asia in September as demand picked up, although plans by Japanese manufacturers for record cuts in capital spending cast doubts on the strength of a recovery in the industrialized world.Source: Reuters: Business News | 1 Oct 2009 | 1:56 am Bharti shares jump as MTN merger called offBharti Airtel shares jumped as much as 11.6 per cent on Thursday on news that it had called off merger talks with MTN after the two companies failed to secure approval from the South African government...Source: RSS feed - channel BNPaperBusiness | 1 Oct 2009 | 1:54 am London shares firm at open (AFP)
Source: Yahoo! News: Stock Markets News | 1 Oct 2009 | 1:54 am 47% will pay no federal income taxMost people think they pay too much to Uncle Sam, but for some people it simply is not true.Source: Business and financial news - CNNMoney.com | 1 Oct 2009 | 1:52 am Cisco launches $3bn move on TandbergCisco announced a $3bn cash offer for Tandberg, a Norwegian videoconferencing company, early Thursday, throwing down another challenge to Microsoft as it pushes deeper into the online collaboration business...Source: RSS feed - channel BNPaperBusiness | 1 Oct 2009 | 1:49 am Cisco launches $3bn move on TandbergCisco has announced a $3bn cash offer for Tandberg, the Norwegian videoconferencing company in a move that throws down a further challenge to MicrosoftSource: Financial Times - US homepage | 1 Oct 2009 | 1:49 am London shares extend gains into new quarterLondon equities extended their record third quarter run into the final quarter of 2009 on Thursday, driven by sustained gains for insurance stocks. Legal & General continued to be at the centre of...Source: RSS feed - channel BNPaperBusiness | 1 Oct 2009 | 1:41 am Comcast in talks to buy NBC Universal stakeGeneral Electric has sounded out Comcast, the US cable operator, over the sale of at least part of NBC Universal if Vivendi decides to divest its 20 per cent holding in the television and movies group...Source: RSS feed - channel BNPaperBusiness | 1 Oct 2009 | 1:40 am Comcast in talks to buy NBC Universal stakeGeneral Electric has sounded out Comcast, the US cable operator, over the sale of at least part of NBC Universal if Vivendi decides to divest its 20 per cent holding in the television and movies group that it controlsSource: Financial Times - US homepage | 1 Oct 2009 | 1:40 am Cisco buys video conferencing firmSource: Business and financial news - CNNMoney.com | 1 Oct 2009 | 1:38 am Indonesia hit by second earthquakeOfficials warned that the death toll from the 7.6-magnitude tremor and its aftershocks – along the same faultline that yielded the earthquake that set off the 2004 Indian Ocean tsunami – was likely to rise sharplySource: Financial Times - US homepage | 1 Oct 2009 | 1:36 am Peston's picksBAE: Can't pay, but would like to pay and move onSource: BBC News | Business | World Edition | 1 Oct 2009 | 1:32 am Asia Markets And Europe Open 10/1/2009Markets in Asia were mixed with China closed for a holiday. The Nikkei was off 1.5% to 9,977. Mitsubishi UFJ (MYU) fell further. At the open in Europe, the FTSE was up .1% to 5,137. The Dax rose .3% to 5,694, and the CAC 40 was high by .3% to 3,805. Data from Reuters and MarketWatch. Douglas A. McIntyre Posted [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 1 Oct 2009 | 1:27 am BAE faces prosecution over bribery claimsBAE Systems, Britain's biggest defence contractor, will learn today if it is to be prosecuted over long-running allegations of bribery in a number of countries including the Czech Republic, South Africa, Romania and Tanzania. Source: Latest Business News from Times Online | 1 Oct 2009 | 1:24 am Comcast denies it has deal to buy NBC UniversalNEW YORK/PARIS (Reuters) - Comcast Corp, the largest U.S. cable service provider, denied a Web report on Wednesday that it had struck a deal to buy media conglomerate NBC Universal for $35 billion.Source: Reuters: Business News | 1 Oct 2009 | 1:14 am Comcast denies it has deal to buy NBC Universal (Reuters)Reuters - Comcast Corp, the largest U.S. cable service provider, denied a Web report on Wednesday that it had struck a deal to buy media conglomerate NBC Universal for $35 billion.Source: Yahoo! News: Business | 1 Oct 2009 | 1:14 am Kopping a dealHow Liverpool clinched a new £80m shirt dealSource: BBC News | Business | World Edition | 1 Oct 2009 | 1:13 am Mandatory retirement age must be put to restThere should not be any one 'magic' age beyond which society says people are too old to work says Ros Altmann.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 1 Oct 2009 | 1:06 am IMF says world recession is over expects global growth above 3pc next yearInternational Monetary Fund says world recession is now over as it raised its growth forecast for the global economy back above 3pc for next year.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 1 Oct 2009 | 1:02 am Jay Leno has fewer guests to choose from thanks to rival networks' boycottABC and CBS are discouraging their stars from appearing on the new prime-time talk show to keep it from undercutting their costly dramas. NBC says it's not concerned. ...Source: RSS feed - channel BNPaperBusiness | 1 Oct 2009 | 1:00 am Tort reform is the healthcare debate's frivolous sideshowAny issue featuring so many interest groups cantering about on hobbyhorses is an issue where the truth goes to die. So let's try a shot of reality.Every circus needs a sideshow, which must be why every time the issue of rising medical costs gets debated, politicians start clamoring for "tort reform."
Source: L.A. Times - Business | 1 Oct 2009 | 1:00 am Tort reform is the healthcare debate's frivolous sideshowAny issue featuring so many interest groups cantering about on hobbyhorses is an issue where the truth goes to die. So let's try a shot of reality. ...Source: RSS feed - channel BNPaperBusiness | 1 Oct 2009 | 1:00 am CEO of Bank of America to step downKenneth D. Lewis helped make it the nation's largest bank, but dealings in the financial crisis tarnished his image. He will leave Dec. 31, the company said.Kenneth D. Lewis, who became a focus of public and political outrage while presiding over Bank of America Corp.'s stunning fall from grace in the financial crisis, is stepping down as chief executive at the end of the year.
Source: L.A. Times - Business | 1 Oct 2009 | 1:00 am John Watson to take Chevron reins from David O'ReillyThe ascension of the oil titan's vice chairman after its current chairman and CEO retires Dec. 31 had been expected.In a move that surprised analysts for its timing but not its content, Chevron Corp. Chairman and Chief Executive David J. O'Reilly will step down, to be replaced by Vice Chairman John S. Watson.
Source: L.A. Times - Business | 1 Oct 2009 | 1:00 am GM to kill Saturn after promising deal falls apartPenske Automotive Group planned to buy the brand but now will not, saying it was unable to strike a pact with a manufacturer to build Saturns in the future.In a surprise development, General Motors Co. said it would kill its Saturn brand after a deal to sell it to an auto dealership chain fell through at the eleventh hour.
Source: L.A. Times - Business | 1 Oct 2009 | 1:00 am Third quarter was a bed of roses on Wall Street, but thorns lurkStocks soared 15% even amid worries that the economy is being propped up by the federal government.On Wall Street, it paid to wear rose-colored glasses in the third quarter.
Source: L.A. Times - Business | 1 Oct 2009 | 1:00 am GM to kill Saturn after promising deal falls apartPenske Automotive Group planned to buy the brand but now will not, saying it was unable to strike a pact with a manufacturer to build Saturns in the future. ...Source: RSS feed - channel BNPaperBusiness | 1 Oct 2009 | 1:00 am Golden State Mutual Life seized by California regulatorsThe insurer, whose customers are mainly African American, is losing $200,000 a month and about to run out of funds completely, officials say. The state hopes to find a new firm to take over policies.State insurance regulators have seized control of Golden State Mutual Life Insurance Co., a financially struggling company that has primarily served the African American community for the last 84 years.
Source: L.A. Times - Business | 1 Oct 2009 | 1:00 am Comcast might buy stake in NBC UniversalThe cable TV giant is in talks with General Electric over its vast entertainment holdings.The nation's largest cable television company, Comcast Corp., is in talks to buy a stake in entertainment giant NBC Universal, said people familiar with the situation.
Source: L.A. Times - Business | 1 Oct 2009 | 1:00 am Internet governance goes global as U.S. loosens grip on ICANNA deal with Internet Corp. for Assigned Names and Numbers allowing the U.S. to review the group expired Wednesday. ICANN now will be reviewed by a group of stakeholders from around the world. ...Source: RSS feed - channel BNPaperBusiness | 1 Oct 2009 | 1:00 am Hotel Bel-Air closes for renovations, laying off 250 union workersThe hotel has refused to commit to rehiring the employees, many of whom are immigrants, when work is done in 2011. Many are worried about losing affordable health coverage.The Hotel Bel-Air closed quietly Wednesday, shutting for two years of renovations without agreeing to a severance package with its unionized employees.
Source: L.A. Times - Business | 1 Oct 2009 | 1:00 am Stater Bros. starts free prescription-antibiotics programAlbertsons plans to match the offer. Free drugs include ciprofloxacin, doxycycline, penicillin and bactrim. The move is part of Southern California grocery chains' battle for customers, analysts say.Southern California's supermarket price war found a new front Wednesday when Stater Bros. started filling a selection of antibiotic prescriptions for free.
Source: L.A. Times - Business | 1 Oct 2009 | 1:00 am Jay Leno has fewer guests to choose from thanks to rival networks' boycottABC and CBS are discouraging their stars from appearing on the new prime-time talk show to keep it from undercutting their costly dramas. NBC says it's not concerned.Despite a new prime-time perch and a larger audience, NBC comedian Jay Leno is fishing for guests from a substantially smaller pool of talent.
Source: L.A. Times - Business | 1 Oct 2009 | 1:00 am Aviva customers in £470m payoutAbout 805,000 Aviva policy holders are to share in £470m from the company after choosing to accept a special payment.Source: BBC News | Business | World Edition | 1 Oct 2009 | 12:46 am IMF raises U.S. GDP forecast, warns on debt (Reuters)
Source: Yahoo! News: Business | 1 Oct 2009 | 12:41 am German retail sales slip in August (AFP)
Source: Yahoo! News: Business | 1 Oct 2009 | 12:38 am An inconvenient truth: financial crises are inevitableThe IMF's new early warning system is doomed to disappoint says Edmund Conway.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 1 Oct 2009 | 12:35 am IMF says world economy is recoveringThe International Monetary Fund says the world economy is recovering, but warns there are many obstacles to sustained rapid growthSource: Financial Times - US homepage | 1 Oct 2009 | 12:34 am Market closes slightly higherThe New Zealand sharemarket rose today, gaining momentum during the afternoon, even though international markets were mixed.The benchmark NZSX-50 index closed up 22.797 points, or 0.721 per cent, at 3183.859.Turnover was worth...Source: nzherald.co.nz - Business | 1 Oct 2009 | 12:19 am GM set to wind down Saturn brandGeneral Motors announces it will shut down its Saturn brand after talks about selling it to a former racing driver collapse.Source: BBC News | Business | World Edition | 1 Oct 2009 | 12:06 am Britain's £215bnayear funding gap the worst in the world says IMFBritain is facing a more severe credit crunch than any other country in the developed world the International Monetary Fund said yesterday.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Sep 2009 | 11:44 pm NZ dollar little changedThe New Zealand dollar spent a quiet session trading in a narrow range but dealers said economic reports this week have put a floor under the currency.By 5pm the NZ dollar was buying US72.12c from US72.33c at 8am and US72.12c...Source: nzherald.co.nz - Business | 30 Sep 2009 | 11:40 pm Adam Applegarth Northern Rock's former chief lands first job since run on the bankAdam Applegarth chief executive of Northern Rock when it was rescued is reported to have taken a job with US private equity firm Apollo.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Sep 2009 | 11:15 pm Business leaders back controversial Infrastructure Planning CommissionControversial plans to streamline the planning process for large infrastructure projects should encourage new investment into the UK business leaders have said.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Sep 2009 | 11:14 pm BAE facing bribery case as talks with SFO stallSerious Fraud Office could recommend criminal prosecution if arms maker refuses to accept offer of plea bargainSource: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Sep 2009 | 10:51 pm Chinese show of power on anniversaryThe People’s Republic of China celebrated its 60th birthday on Thursday with a spectacular military and civilian parade through the centre of the deserted capital BeijingSource: Financial Times - US homepage | 30 Sep 2009 | 10:38 pm Who Can Wealthy Investors Trust?BETWEEN THE ROCKY MARKETS, THE SHAKY BANKS and Bernie Madoff, the relationship between wealth managers and their clients didn't stand a chance. Rightly or not, investors first grew suspicious of their advisors and bankers, then contemptuous. Says one ultra-high-net-worth investor, who oversees billions of dollars in family investments: "I'm better off assuming that all these people are only out for themselves." That kind of deep distrust is starting to dramatically reshape the world of wealth management, where banks, brokerage houses and other investment outfits compete to serve millionaires and billionaires. More than one out of four high net-worth investors yanked money from their wealth mangers in 2008, according to a survey by consulting firm Capgemini and Merrill Lynch. And some bankers believe that as many as four out of five are now thinking about firing their managers and picking new ones. "The amount of money in motion is probably several orders of magnitude higher than this industry has ever seen before," says Bruce Holley, a senior partner who heads the Boston Consulting Group's U.S. wealth-management practice. "Clients are aware that it's more critical for them to get good advice in such turbulent times, but at the same time, they are more nervous and wary than ever before." For bankers and advisors, he adds, "there's tremendous potential to either win or lose relationships." That's evident in Barron's annual ranking of America's top wealth-management outfits. None of the top five players, and only one of the top 10, holds the same position as last year, the result of both money on the move and crisis-driven mergers. Another factor: We've tightened our definition of wealth management. We think the term now denotes services for accounts of $5 million and up, verus $1 million-plus in the past, as firms increasingly cater to the very richest. Bank of America (BAC), No. 3 on our list last year, now towers over the field with $685 billion in accounts of $5 million and up -- reflecting its acquisition last year of Merrill Lynch, previously No. 1, and its earlier purchase of U.S. Trust. Morgan Stanley (MS), No. 5 in last year's listing, moves to No. 2 as a result of teaming with Smith Barney, previously a unit of Citigroup. Wells Fargo (WFC), now owner of the old Wachovia Securities, JPMorgan (JPM), the leader in ultra- high-end private banking and Goldman Sachs (GS), long a powerhouse in the field, round out the top five. But the reshuffling extends deep into the ranks. Some of the biggest winners were smaller old-line private banking outfits, which benefited as last fall's financial crisis rocked some of the giants to their core. Bessemer Trust, formed more than 100 years ago to manage the money of the Phipps family, partners of Andrew Carnegie, shot up to No. 13 in the ranking from No. 20 last year. Northern Trust (NTRS), long a favorite home for Midwest fortunes, climbed from No. 13 to No. 8. Fiduciary Trust, started during the Great Depression to serve the anxious rich, leaped to No. 30 from 37. "We have just had the two best years in the 16 years I've been working here" in terms of attracting new assets under management, says Henry Johnson, president and co-CEO of Fiduciary Trust. Johnson attributes some of the growth in clients to the firm's conservative investment approach, which produced returns that looked relatively appealing, compared with the losses on major market indexes. "But," he says, "there's also a big element of a flight to quality happening out there, as clients seek out someone that they feel can help them rebuild their trust in the system." Even Fiduciary's name can be a plus, since a growing number of potential clients understand the meaning of the word "fiduciary" -- an investment professional with a legal obligation to put the client's interest ahead of his own. THE SURGE OF MISTRUST DIRECTED at private bankers and other advisors is logical, argues Maurice Schweitzer, an associate professor at the Wharton School. "Suddenly, clients recognize new ways that things could go wrong that had never occurred to them before, and if there isn't an extraordinary degree of transparency and communication, it's inevitable that the level of trust in their advisor will decline," says Schweitzer, who has studied issues of trust in a variety of industries. "They're going to be asking for extra reassurance in many areas, and that is going to be expensive for private banks to deliver, but it's completely reasonable. The Madoff debacle showed people that they might not be able to trust the printed statements they got from their advisor." Tony Guernsey, the New York-based head of National Wealth Management at Wilmington Trust, No. 21, has been on the receiving end of just that kind of client anxiety in recent months: "I've had clients walk in and say, look, I got a statement from Bernie Madoff that said I owned such and such, but it turns out that I didn't own anything -- so prove to me you're not Madoff." Suddenly, Guernsey says, investors are hungering for information about the arcane workings of third-party firms used for clearing transactions and holding securities in custody. Customers of Madoff certainly would have been a lot better off if he hadn't been handling such back-office tasks through a unit of his own firm, which helped mask his Ponzi scheme. Each time Guernsey is asked, he walks the client through their Wilmington statement in chronological order, spelling out the complete process of where each asset came from and where it now resides. "I reassure them, 'See, you can tell that none of this is in our name, it's all held in your name at an independent custodian.'" Of course, suspicions and blame can go too far. It's unrealistic to expect your manager to have posted gains last year when the huge majority of pros were down. But if the manager greatly trailed the market, that's another story. If a wealth manager has been hard to reach on the phone during stressful times, that's a clear red flag -- and most firms now realize that more than ever. "If the client has to call you, then you don't get points for that," says Dean Junkans, the chief investment officer of Wells Fargo Private Bank. For more tips on how to decide whether to dump or keep your wealth manager, see the box on this page. In many cases, distrust is sparked by a simple misunderstanding or miscommunication. "People have different, unstated, beliefs about what represents a betrayal of trust, and what are referred to as 'psychological contracts,'" says Schweitzer. "In that case, it's the perception of the client that matters -- that is the reality." For instance, a banker might reassure clients that their portfolios are protected from sudden shocks. In the banker's eyes, relative outperformance would meet that criterion, but the clients might interpret the reassurance as a promise they wouldn't lose money. Earlier this month, Peter Skoglund, co-head of Credit Suisse Private Banking USA, No. 11 in the rankings, met with a client who had experienced just this kind of miscommunication with his previous private bankers. "The advisor had invested his assets in some private-equity and hedge funds and now he's 'gated' and he can't withdraw his funds," Skoglund says, referring to lockup arrangements under which it can take up to 18 months for an investor to retrieve assets after requesting their return from a fund manager. The fault could lie with the client for not asking the right questions, but in Skoglund's eyes, at least, it's always up to the banker to be sure that any potential questions are addressed. "The winners are going to be those who can be most transparent with their clients, and who solve the issue of communication," he says. NOT SURPRISINGLY, MANY BANKERS and advisors are ramping up the nature and frequency of communication with the wealthy families whose assets they manage. "When the markets are strong and going up all the time, that communication is less valued by the client," says Peter Charrington, CEO of Citi Private Bank in North America, No. 23. But now, with transparency the buzzword, "people want to be more actively aware of how we are generating returns for them," Charrington says. Communication of course isn't just about returns. Says John Taft, head of RBC Wealth Management for the U.S.: "Our industry, for a long time, focused on a whole bunch of fancy complicated products that weren't properly tested, instead of emphasizing our role as responsible stewards of our clients' wealth," he says. Now, he argues, the trend is in the other direction. "Private banking has to move back to the basic, fundamental issues, communication with our clients chief among them." To that end, Fiduciary Trust's Johnson insists that his private bankers travel -- despite a firm-wide cost-cutting blitz -- to meet with their clients face to face on a regular basis. He also urges them not to try to cram too many meetings into one day in the name of efficiency. "We would rather do two or three good meetings a day, than five meetings a day," he says. "The process of rebuilding or reinforcing trust takes time." Clients are now asking some questions that private bankers have never dealt with before. "They are being frank and freely asking what would happen if the bank collapses -- how does the FDIC insurance guarantee work, for instance," says Robert Reilly, the Philadelphia-based head of the wealth-management division at PNC Bank, No. 22. Answering such questions has been winning business from people who use PNC for other services, such as corporate banking, as well as from customers of National City Bank, a Cleveland institution that PNC acquired after it was hobbled by mortgage losses. Customers "want to know what it means that we are regulated by the Fed and the Office of the Comptroller of the Currency," Reilly says. The goal, he adds, is to "proactively address any concerns before mistrust becomes a fixed part of our clients' attitude to the financial system." It's all highlighting the changing requirements for success. "A good wealth manager is a quasi-psychologist, able to understand a client's hopes and fears," says Boston Consultant Group's Holley. "A lot of wealth managers organize their meetings with clients around process and returns, but if you don't increase the emotional component, you're just checking a box by having that meeting." And here's the biggest change: "There is going to be more healthy skepticism on the client's part about the kind of promises a bank makes," says Johnson of Fiduciary Trust. "The industry will have to adjust to that." When promises are both believed and kept, life will start looking up for clients and bankers alike. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.
Source: SmartMoney.com | 30 Sep 2009 | 10:00 pm 3 Stocks Poised to Outperform (Screens)Investors sometimes forget that stocks aren’t merely abstract instruments made for betting. They represent shared ownership of real companies. So picking good stocks resembles picking good businesses off of a for-sale-by-owner list. Blind hope that the value of, say, a pizza parlor will rise over time won’t help. What matters more is evidence that it’s highly profitable or cheap, or, ideally, both. The companies listed below are cheaper than most, with forward price/earnings ratios below 15, compared with 20 for the S&P 500, a broad stock market index. They’re also plenty profitable, with returns on equity greater than 18%, versus a median of 14% for S&P 500 companies. Return on equity is a company’s yearly profit divided by its net worth, and it shows how efficiently management uses available resources. Studies show companies with high returns on equity tend to produce bigger stock market returns than those with low ones. In one respect, these companies are merely average. They’re valued at $5 billion to $10 billion. That’s medium-size for publicly traded companies. The S&P 500 median company value is about $8 billion. Consol EnergyForward P/E: 14 The pace of construction has slowed in most countries over the past two years, which means demand for steel has softened. That means steel makers don’t need as much metallurgical coal, which is used to make coke, a key steel ingredient. Meanwhile, a manufacturing downturn has reduced demand for industrial electricity, and for the steam coal used to produce much of it. Add in the possibility of an expensive carbon tax on power companies, and it’s clear why investors have fled shares of Consol Energy (CNX), a coal producer based near Pittsburgh. It sold for more than $110 a share in June 2008, but today goes for about $45. The new price might be too pessimistic, even considering the challenging business conditions. Management has cut coal production and the business remains highly profitable and minimally indebted. Shares are trading at 14 times earnings, with a tiny but affordable dividend. And although sun, wind and atomic power will surely play larger roles in America’s power production some day, cheap coal is likely to meet the bulk of demand over the next decade. Forest LabsForward P/E: 8 Forest Labs (FRX) is based in midtown Manhattan, not some sprawling campus in a less densely populated town. That’s fitting; Forest is as much an asset manager as a drug developer. It specializes in licensing potentially lucrative drugs from the companies or agencies that discovered them, and seeing those drugs through clinical trials, approval filings and marketing. Shares are eight times earnings, despite growing sales, a mountain of cash (more than $9 a share) and a flood of new cash coming in each year (more than 10% of its market value). The too-good-to-be-true valuation suggests a looming problem isn’t reflected in the numbers. In fact, there are two: Forest’s Lexapro, a depression pill with yearly sales of $2.3 billion, will face generic competition in March 2012. And Namenda, the company’s Alzheimer’s drug, with yearly sales of about $1 billion, goes generic in April 2015. The company’s total sales are just over $4 billion a year, to put the potential decline in perspective. But Forest is busily spending its cash on promising new drugs, and, remember, it doesn’t have to come up with enough new revenue to completely replace what it loses, but rather, just enough to make the shares worth more than eight times earnings today. Judging by analyst forecasts for the company’s drugs in development, that seems likely. FlowserveForward P/E: 13 Flowserve (FLS), based in Irving, Texas, makes industrial pumps, valves seals and more for a wide variety of industries. Growth sources, like power companies in emerging markets, aren’t sufficient at the moment to make up for lax demand from U.S. oil refiners and chemical producers. Companywide sales are expected to fall 3% this year. But shares are cheap and debt is negligible. Analysts say Flowserve is using the downturn to take market share from weaker competitors. Management recently has made a habit of surpassing investor expectations. The company has topped Wall Street’s earnings estimates in each of its past four quarters. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.
Source: SmartMoney.com | 30 Sep 2009 | 10:00 pm Deficit's Future? We Ask White House's Orszag (On the Street)
Today marks the beginning of a new fiscal year for the U.S. government. It follows a year that ended with a projected $1.6 trillion deficit, a record. Thanks to a weak economy and expected increases in government spending, the federal budget is expected to run trillion-dollar deficits for at least a few years more. With so much focus on the country’s deficit, we sought out Office of Management and Budget Director Peter Orszag to find out how the man in charge of the country’s purse strings plans to tackle it. As director of the OMB, Orszag’s top priority is to find money for President Obama's agenda. Orszag: Since it is desirable to allow the deficit to increase during an economic downturn, our focus should be the medium- and long-term deficits, after the economy has recovered. The first step in addressing those deficits is to stop making them worse, which is why the administration supports pay-as-you-go legislation, so that any new initiatives are paid for. If we had abided by this approach during the previous administration, the projected 10-year deficit would be $5 trillion smaller! The next step is to address the key driver of long-term deficits: health-care costs. If health-care costs continue to grow at their historical rates, Medicare and Medicaid will double as a share of spending on federal programs within the next 30 years. The administration is committed to health-care reform that is not only deficit neutral over the next 10 years, but also puts in place key structural changes that will help reduce health-care cost growth thereafter. Orszag: Addressing health-care cost growth is the key to our fiscal future. That’s the takeaway from long-term budget projections, whether done by CBO or other independent analysts. I have great respect for its staff and for the role that CBO plays in policy debates. At the same time, we need to remember that even the best referee sometimes gets things wrong, and when that happens, it is healthy to point it out. SmartMoney: Health-care reform is not an easy sell to Americans unfamiliar with the specifics. What do you see as the OMB’s biggest challenges on this front?
Orszag: There’s a reason health-care reform hasn’t happened in 50 years. It is hard work. But just because it’s hard, doesn’t mean we can ignore it and hope it goes away. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.
Source: SmartMoney.com | 30 Sep 2009 | 10:00 pm Can You Juggle Multiple Jobs?
Ken Hall expected it would take much longer to get back to work. Within a few weeks of being downsized from his position as marketing director of an architecture firm, the 47-year-old from Memphis had scored a new job. For the nation’s growing ranks of unemployed, the odyssey begins with a pink slip. Only these days the quest doesn’t lead to a single new job but many. Faced with a national unemployment rate that recently jumped to a 26-year high, more than 7 million Americans are cobbling together a patchwork of positions to make ends meet. A recent survey from job site CareerBuilder.com revealed that 10 percent of workers had taken on a second job in 2008, while nearly double that said they plan to do so this year. Not surprisingly, the folks most likely to find themselves freelancing are those a little further down the bumpy road to retirement; a full 65 percent are over the age of 46. A year of crushing layoffs has driven much of this workforce shift. Analysts say firms that aren’t downsizing are hiring contractors, consultants and other contingent workers—for lower pay and few, if any, benefits (which cost them, on average, an extra 30 percent). And the only way many workers find to minimize their risk of being unemployed again is to diversify the number and kinds of jobs they hold, not unlike an investment portfolio. “More people are doing it out of necessity,” says Ravin Jesuthasan, of consulting firm Towers Perrin. Losing a steady paycheck and benefits certainly isn’t easy—especially with a family to support. And experts say competition among freelancers has become increasingly fierce, with projects running shorter and paying less. Still, some workers are seeing silver linings: self-structured time, a refreshing lack of office politics, a greater variety of tasks and contacts—and the chance to fast-track a career change. Trawling for Fish—and a New JobPhillip LoFaso has had his share of workplace adventures during a 23-year career in marketing. Yet none of it prepared him for this: Last fall the 50-year-old found himself aboard an 85-foot-long fishing boat off the coast of Long Island, trawling for scallops and squid while trying not to get seasick. Once LoFaso helped yank the nets out of the water, he’d toss back catch that couldn’t be sold to restaurant distributors: bluefish, sand sharks and, yes, a baby whale. “It can be unnerving,” says LoFaso, who was back on the boat this summer. “I’m a 9-to-5 guy.” Or at least he was. Ever since this father of two from Huntington, N.Y., got laid off from a health care publishing company last April, he’s been working all sorts of hours—trying to make up his former $150,000 salary. A full-time consulting gig in publishing downscaled to part-time, then ended abruptly earlier this year. He’s spent hot summer days hoisting hundreds of seats into makeshift stadiums for outdoor events like a Hilary Duff concert. He’s also been painting houses, bussing tables at parties and driving a catering van—not to mention piloting that fishing vessel in the wee hours while the captain sleeps. “As long as it’s not illegal or immoral, I’m ready to go,” says LoFaso. For his efforts, though, LoFaso is still facing an issue common among patchwork part-timers: generating income. Even with all his jobs, he’s making less than a quarter of his former salary, without benefits. Indeed, a recent Columbia University study says that workers who lost their jobs in mass layoffs in the 1980s were still earning about 20 percent less than similar nondisplaced workers two decades later. To bring in extra income, LoFaso’s wife, Regina, a preschool teacher, started babysitting part-time. But they’re still falling behind on mortgage payments for their five-bedroom home—meaning fewer movies and dinners out and no summer vacation. LoFaso says the worst part is, with all this job juggling and searching, he’s now spending less time with his family than he did when he was working full-time. Still, LoFaso suspects the right project at the right time might lead him back to a full-time gig. In fact, every two weeks he meets with a local support group made up of former marketers. While they set aside time to vent about the personal challenges they’ve each been facing, they also swap tips about improving their résumés and interview skills. And most important, they share job leads. “We’ve stopped thinking of it as competition,” he says. Free Chauffeur No MoreFor Aliya Jiwa, the competition for new work is just heating up. Until last winter she had enjoyed a full-time job as a hotel development analyst in Dubai, complete with a tax-free salary of $65,000 and cushy perks like a free furnished apartment and daily chauffeur. But the company shut down her office in February, prompting Jiwa’s move to New York City—and the freelance life. She quickly developed a network of friends who, like her, had been laid off from corporate jobs. Often, they forward job notices to each other. But whenever the most lucrative positions pop up, such as event-promotion gigs that pay upwards of $200 a day, things can get a little less collegial. “Those are the ones everyone wants to get,” says Jiwa, who estimates she’ll earn as much as $70,000 this year if she keeps up her current pace of project work. Hustle is nothing new to this feisty 31-year-old, who once owned and managed a café in downtown Chicago for four years. When Jiwa sold it, she invested her profits in an MBA from the Lausanne Hotel School in Switzerland. The only problem: She came up $25,000 short, and Mom’s now calling in the loan. While Jiwa’s got two and a half years to pay off that debt, she’s kicking into overdrive to get there sooner. It helps that a foreign hotel chain has hired her part-time to analyze the market potential for new properties. But a typical 18-hour workday for Jiwa has recently consisted of writing property blurbs for a real estate site, blogging and writing freelance articles, then helping a former banker use Twitter and social networking to promote his online T-shirt business. In fact, she used him as a reference to get her own line of shirts printed. Next challenge: to market and sell all 1,200 of them herself. Yet her tiny one-bedroom apartment barely has room for the product she’d need to order if her venture took off—especially when she’s also helping launch her twin brother’s online shoe business. Although office rents have dropped 23 percent in Manhattan from their peak in the spring of 2008, Jiwa isn’t ready to invest in a workspace quite yet. Instead, she’s found a new apartment in the building next to hers. It isn’t free, and there’s no chauffeur. But it costs less than her current rent for almost double the space. Trying Not to Slip Off the RoofKen Hall had never experienced a party quite like this before. An acquaintance he’d known for nearly two decades had turned 70 and hosted a celebration in his sprawling backyard outside Memphis. More than 50 guests turned up, including some of Hall’s church friends, and they spent the evening admiring the sunset, tapping their feet to live bluegrass and reminiscing about the birthday boy as photos flashed on a giant screen. But while Hall had been introduced to some guests as a family friend, he wasn’t asked to sit down with them when dinner was served. The reason? “I was not invited to the party,” says Hall, who had been hired by a catering company to pour beer and wine spritzers all evening. Bartender is just one of the many hats that Hall has donned this year. Ever since the end of the busy wedding season, when his mixing skills were honed at receptions in local gardens and museums, Hall has been splitting his time and energy trying to secure two kinds of incomes. On the one hand, he’s looking for something steady—which is why he’s consulting with a few local nonprofit agencies. He also took his bartending skills a step further, becoming certified to train and award serving permits. He figures that by teaching four weekly classes of 15 people, he can earn an extra $1,500 a month. At the same time, Hall is also picking up short-term contracts, in hopes that one morphs into a full-time position. That means subcontracting with an agency, where tasks have included finding 14 musicians to perform “patriotic music” at a country club fireworks show. (Yes, that’s him on trombone.) Another stint: organizing the transportation for a five-day corporate meeting. Sounds easy enough, until the tour bus guide keels over from an apparent heart attack. Anyone mind a detour? As stressful as moments like these have been for Hall, he’s just thankful his own health has stayed strong—so far. Unlike other positions he’s held during his 24-year career, none of his current gigs offer health insurance. And his last full-time employer was too small to qualify him for Cobra, putting Hall among the 25 percent of freelancers lacking health coverage, according to the Ayers Group, a career-transition consulting firm. (For alternative plans, see “Beyond Cobra” on page 58.) During his first few months of unemployment, insurance was on his to-do list, but Hall was in no rush to pay the out-of-pocket expense of a private plan—now averaging individuals $6,750 a year, three times the cost of a work-sponsored plan. But coverage recently became a priority after Hall got caught in a downpour while redoing his roof. “I almost slipped off,” he says. Thus far, Hall’s been able to get by with the earnings he’s amassed, without racking up any debt. He did dip into savings once, though money pressures recently eased when he paid off the mortgage on his three-bedroom house. Still, it doesn’t make life any easier when he spends his days sending out résumés and waiting for calls back. “When the phone rings, I have absolutely no idea what might be on the other end,” he says. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.
Source: SmartMoney.com | 30 Sep 2009 | 10:00 pm No unilateral tarriff cuts till 2015, says trade ministerNew Zealand will not consider the unilateral reduction of any tariffs until 2015 at the earliest, Trade Minister Tim Groser and Commerce Minister Simon Power said today.New Zealand has had a policy of reducing or reviewing its...Source: nzherald.co.nz - Business | 30 Sep 2009 | 9:08 pm Citi closes sale of Nikko Cordial to SMFGNEW YORK (Reuters) - Citigroup completed the sale of its Japanese brokerage Nikko Cordial Securities to Sumitomo Mitsui Financial Group, one more step in the U.S. bank's plans to shed non-core assets.Source: Reuters: Business News | 30 Sep 2009 | 8:12 pm Richest Americans lost $300 billion last year - ForbesIt might have been a tough year for the poor in the US, but the country's super-rich have also been hit by the recession, with the Forbes list of richest Americans showing a $300 billion plunge.Total wealth of the Forbes 400 -...Source: nzherald.co.nz - Business | 30 Sep 2009 | 8:00 pm Lawmaker seeks group liability for rating agencies (AP)AP - A key House lawmaker wants to make credit rating agencies widely criticized for failing to give investors adequate warning of the risks in subprime mortgage securities that triggered the financial crisis collectively liable for inaccuracies.Source: Yahoo! News: Business | 30 Sep 2009 | 7:23 pm Banks turn off loan facility for Sth Canterbury financeTimaru-based South Canterbury Finance (SCF) has released its audited annual report for the year ended June 30, 2009, revealing that its banks had turned off an unused NZ$100 million lending facility to the finance company while it...Source: nzherald.co.nz - Business | 30 Sep 2009 | 7:00 pm GM to close Saturn as sale to Penske collapsesDETROIT (Reuters) - General Motors Co will close Saturn and wind down its dealership network after a deal to sell the faltering brand to Penske Automotive Group collapsed, the automaker said on Wednesday.Source: Reuters: Business News | 30 Sep 2009 | 6:58 pm 2degrees, Vodafone offer free Samoan callsCell phone companies 2degrees and Vodafone have launched special deals to allow free calls to the tsunami-hit islands.Newcomer 2degrees is offering its customers free calls to Samoa, American Samoa and Tonga for the next two weeks,...Source: nzherald.co.nz - Business | 30 Sep 2009 | 6:58 pm Smiths Group takes slow and steady path through recessionWhen Philip Bowman stated early last year that it would take two to three years to implement his plans for Smiths Group, the City could be forgiven for thinking him too chary. Source: Latest Business News from Times Online | 30 Sep 2009 | 6:49 pm September rise in house prices, new listingsA shortage of properties listed for sale, which was thought to have been a factor in rising prices, looks to have eased last month.Property listing website Realestate.co.nz today reported property listings rose 19 per cent in...Source: nzherald.co.nz - Business | 30 Sep 2009 | 6:30 pm Why Ken Lewis Didn’t Matter At The EndIt was a surprise when Ken Lewis, the CEO of Bank of America (BAC), finally resigned. Neither shame nor pressure could move him out of his corner office. He was replaced as the bank’s chairman and the government replaced a number of his board members, and even those rebukes were not sufficient to embarrass him [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 30 Sep 2009 | 6:18 pm Bank of America’s Lewis to quit top job by year-end after steering bank through crisisKen Lewis, the chief executive of Bank of America who masterminded the acquisition of Merrill Lynch last year, is to step down by the end of this year, it emerged last night. Source: Latest Business News from Times Online | 30 Sep 2009 | 6:03 pm Fundraising brings OnLive’s internet games streaming plans closerOnLive, an online video gaming company, will begin streaming games over the internet within a few months after it secured substantial funding. Source: Latest Business News from Times Online | 30 Sep 2009 | 6:01 pm Applegarth comes in from cold to join Apollo as a senior adviserAdam Applegarth, the former chief executive of Northern Rock, the nationalised bank, has landed a job with an American private equity firm, The Times has learnt. Source: Latest Business News from Times Online | 30 Sep 2009 | 6:01 pm What’s fairness got to do with anything, Gordon?Less financial engineering, more real engineering. It is the mantra of the moment and Lord Mandelson said it again in his speech at the Labour Party conference. Source: Latest Business News from Times Online | 30 Sep 2009 | 6:01 pm Write-Offs: 09.30.09$$$ Great news for white collar criminals: breaking out of prison has never been easier. [Cityfile] $$$ The Wall Street Draft [American Madness] $$$ Melissa Francis's vote for the Name Jamie Dimon's Bar 'n Grill contest. [Twitter] $$$ Bank of America's Enemies List [The Deal] 
 Sponsored Topics: Bank of America - Jamie Dimon - Melissa Francis - Business - Financial Services Source: Dealbreaker | 30 Sep 2009 | 6:00 pm Beca wins international business awardEngineering consultancy Beca won the judges' supreme award at the New Zealand International Business Awards 2009.It was one of seven New Zealand companies recognised for outstanding success in international markets in the awards,...Source: nzherald.co.nz - Business | 30 Sep 2009 | 6:00 pm Ken Lewis is out at Bank of AmericaKen Lewis, the beleaguered CEO of Bank of America, announced Wednesday that he will retire at year's end. There was no successor named.Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 5:47 pm Saturn’s end likely as Penske walks awayPenske Automotive Group, the listed dealership chain, walked away from a deal to acquire GM’s Saturn unit in a decision that spells the end for the brand and threatens thousands of jobsSource: Financial Times - US homepage | 30 Sep 2009 | 5:45 pm GM kills Saturn after Penske ends dealCar dealership operator Penske Automotive Group announced on Wednesday that it has cancelled plans to acquire General Motors' Saturn unit. As a result, GM said it will wind down the brand and dealer network.Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 5:44 pm WJB Capital’s Fullman Likes ETF Options: AudioSource: Bloomberg - All Podcasts | 30 Sep 2009 | 5:39 pm Nooyi Says PepsiCo Will Generate $7 Billion Cash in 2009: AudioSource: Bloomberg - All Podcasts | 30 Sep 2009 | 5:36 pm Super rich are $300 billion lighterThe recession has taken its toll on the nation's super rich, whose collective net worth fell for only the fifth time in 28 years, according to a survey released Wednesday.Source: Business and financial news - CNNMoney.com | 30 Sep 2009 | 5:32 pm Presented By:Source: Dealbreaker | 30 Sep 2009 | 5:30 pm What Was Ken Griffin Doing At Blackstone Today?
Sponsored Topics: Crab - Ken Griffin - Fish and Seafood - Home - Cooking Source: Dealbreaker | 30 Sep 2009 | 5:30 pm Stocks slip but still have best quarter since 1998 (AP)
Source: Yahoo! News: Stock Markets News | 30 Sep 2009 | 5:06 pm Kiwi dollar piggybanks on Aust strength, holds above US72cThe New Zealand dollar held above 72 US cents, helped by a surge in Australia's currency to near a 14-month high amid further signs that economy is picking up pace.Retail sales in Australia climbed 0.9 per cent in August, beating...Source: nzherald.co.nz - Business | 30 Sep 2009 | 5:00 pm Animal welfare checks begin on all Crafar farmsGovernment inspectors are starting urgent checks on the welfare of livestock at farms owned by the Crafar family, amid concerns that publicity over alleged cruelty could harm overseas perceptions of meat and milk exports.Agriculture...Source: nzherald.co.nz - Business | 30 Sep 2009 | 5:00 pm BoA's Ken Lewis falls on swordBank of America chief executive Ken Lewis last night agreed to fall on his sword as a result of the bank's controversial 50bn £31.2bn acquisition of troubled Merrill Lynch at the height of last autumn's financial crisis.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Sep 2009 | 5:00 pm US to take flexible course on bonusesThe US intends to take a flexible approach to interpreting global guidelines on bankers’ bonuses, a move likely to frustrate European nations that want clearly defined standards to be applied globallySource: Financial Times - US homepage | 30 Sep 2009 | 5:00 pm How the major stock indexes fared on Wednesday (AP)AP - The stock market had a fitting end to a stellar but erratic third quarter as investors still ambivalent about the economy shuttled between bouts of buying and selling. Wall Street's major indexes ended the July-September period with big gains Wednesday as investors placed more bets that the recovery will keep gathering momentum.Source: Yahoo! News: Stock Markets News | 30 Sep 2009 | 4:47 pm CIT eyes debt exchange or prepack bankruptcy: sourcesNEW YORK (Reuters) - CIT Group Inc is planning to offer its unsecured debt holders two options: either exchange their debt voluntarily, or face a prepackaged bankruptcy, sources close to the situation said on Wednesday.Source: Reuters: Business News | 30 Sep 2009 | 4:43 pm Podcast: Should Government Run Our Health Insurance?
In San Francisco, the Cadillac plan.(Steve Rhodes/Planet Money Flickr pool) On today's Planet Money: The U.S. Senate Finance Committee twice voted down a measure to have the government offer a health insurance plan -- the so-called public option. In countries like England and Canada, the public option is a fact of life. Taxpayers put money into the system and everyone automatically gets health insurance from the government, in what's known as a single-payer system. Should the government run our health insurance? Donna Smith of the California Nurses Association says it should. Smith, whose personal insurance nightmare figures in the Michael Moore documentary Sicko, says a single-payer system would get care to more people and save money. Stuart Butler of the Heritage Foundation says government shouldn't become everyone's insurance company. Butler, who's from the U.K., says single-payer care is no cure-all. Bonus: After the jump, two videos -- one for socialized medicine, and one against it. Download the podcast; or subscribe. Intro music: The Feelies' "Let's Go." Find us: Twitter/ Facebook/ Flickr. Y'all sort this out in the comments, OK? First up, Andy Lubershane's "Why We Need Government-Run Universal Socialized Health Insurance: Second, How the World Works' response: » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 30 Sep 2009 | 4:21 pm Gasparino: Ken Lewis To Step Down By End Of Year
Update: Andrew Cuomo has chimed in an attempt to ruin the happiest day of Ken Lewis's life and say that the news of the resignation will not stop his investigation, in case you thought anyone was going to get off easy.
Sponsored Topics: Future - Predictions - Arts - Technology - Facebook Source: Dealbreaker | 30 Sep 2009 | 4:12 pm Lawmaker seeks group liability for rating agencies (AP)AP - A key House lawmaker wants to make credit rating agencies widely criticized for failing to give investors adequate warning of the risks in subprime mortgage securities that triggered the financial crisis collectively liable for inaccuracies.Source: Yahoo! News: Stock Markets News | 30 Sep 2009 | 3:58 pm Lewis in surprise departure from BofAKen Lewis, the embattled chief executive of Bank of America, will step down at the end of the year, putting an end to a turbulent eight-year tenureSource: Financial Times - US homepage | 30 Sep 2009 | 3:56 pm Australian bank NAB tipped as L&G predatorLegal & General put in a strong performance for the fourth day in a row amid mounting speculation that an Australian financial services group is preparing a multibillion pound takeover bid for the company.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 30 Sep 2009 | 3:50 pm Chart: Is The Economy Political?
From "Tracking the Recovery," by the Economic Policy Institute. By Laura Conaway It's been called the "the personal, unfair recession," by Ezra Klein, and for good reason. A new survey by the Economic Policy Institute, "Tracking the Recovery" finds that 57 percent of respondents are close to someone who has been laid off. Sixty-one percent say the know someone whose hours or pay has been cut. I'm struck by the chart above, which shows that people think the Obama administration needs to do more to combat unemployment -- and also that President Obama is the person they trust most to have the right economic policies. The 2010 midterm Congressional elections may serve as a referendum on the president's handling of the economy. On the other hand, when I look at the chart above, I wonder how strongly people believe the economy is a political issue at all, or at least whether they believe in any politician's ability to get it right. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 30 Sep 2009 | 3:33 pm Pay Czar May Not Rule With An Iron Fist After All
As the guy in charge of evaluating whether or not bank CEOs achieved the goals their compensation seems to justify, KF also shared a little insight into what his own goals are for the government determined compensation scheme.
Sponsored Topics: Facebook - Chief executive officer - Chicago Bar Association - Department of the Treasury - Executive compensation Source: Dealbreaker | 30 Sep 2009 | 3:30 pm Ken Lewis To Step Down At Bank Of America (BAC)CNBC is reporting that Bank of America (BAC) CEO Ken Lewis will step down by the end of the year. There have been a number of reports in the past that he would leave the bank The bank confirmed media reports in a press release: Ken Lewis, chief executive officer and president, announced today that he has notified [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 30 Sep 2009 | 3:22 pm Thanks to This Week's Advertisers
Sponsored Topics: Advertising - Economist - Business - Marketing and Advertising - Video Games Source: Dealbreaker | 30 Sep 2009 | 3:20 pm BAE faces threat of bribe chargesCorruption investigators plan to press criminal charges over BAE Systems’ arms deals if last-ditch efforts to force the company to accept an agreed guilty plea fail, the Financial Times has learntSource: Financial Times - US homepage | 30 Sep 2009 | 3:12 pm Report: 1 in 3 loan applications denied (AP)
Source: Yahoo! News: Business | 30 Sep 2009 | 2:52 pm Caption Contest Wednesday
Sponsored Topics: OliverStone - Shia LaBeouf - Wall Street - Michael Douglas - FrankLangella Source: Dealbreaker | 30 Sep 2009 | 2:51 pm CNBC Reports: "New York's street-cart vendors aren't just low-income immigrants anymore"
Sponsored Topics: New York - United States - CNBC - Society and Culture - Metro Areas Source: Dealbreaker | 30 Sep 2009 | 2:45 pm Atrocities In Paradise
Sponsored Topics: Cayman Islands - Caribbean - Business - Business and Economy - Tax haven Source: Dealbreaker | 30 Sep 2009 | 2:37 pm Campaign gives a toast to sherryWine producers in Spain are waging a campaign to make sherry cool. Caitlan Carroll reports.Source: Marketplace | 30 Sep 2009 | 1:59 pm What Are Rebecca Jarvis's Short And Long Term Career Plans And Do They Involve CNBC?
Sponsored Topics: CNBC - Business - Margaret Brennan - Rebecca Jarvis - Kenneth Macke Source: Dealbreaker | 30 Sep 2009 | 1:49 pm Calvo Sees Difficulty Unwinding Stimulus Packages: AudioSource: Bloomberg - All Podcasts | 30 Sep 2009 | 1:33 pm Mandel Says Consumer Confidence Still Low for Autos: AudioSource: Bloomberg - All Podcasts | 30 Sep 2009 | 1:03 pm Chandler Sees Swiss Bank Intervention in Franc Drop: AudioSource: Bloomberg - All Podcasts | 30 Sep 2009 | 12:53 pm Kenyan hunger worsens over droughtMillions of Kenyans are going hungry because of a severe drought that has devastated harvests and caused food prices to more than double. Jennifer Collins reports.Source: Marketplace | 30 Sep 2009 | 12:36 pm Listener: Why Can't We Compare Doctors?David Kestenbaum continued his coverage of the information gap in health care Tuesday on All Things Considered. Meanwhile, Andy Wardlaw, a TV editor from the land of KPCC and KCRW, writes: When I read the New Yorker article you linked to about doctors' success in fighting cystic fibrosis, I got pretty angry. Doctors' success rates aren't recorded and compared? So how is there competition in the marketplace? It seems doctors must largely earn their business based on their bedside manner, not their medical results, so long as their medical results aren't miserable. It also seems strange this isn't a more common topic of discussion. I mean, this is one of the major complaints about our educational system: it's very hard to judge which teachers are good and which are bad, and who should be fired and who should get a raise. But at least there, we get a healthy debate. Seriously, this makes me mad. In my job, I worry about getting fired. Not "stay up all night" worried, but there's enough pressure that I can't ever think my job is easy. I have to dig in, find the unobvious solution. If a co-worker does something faster or better than I did, I pay attention because I don't want to be left behind. And, I can tell you, I'm a better editor because of it. Apparently, doctors don't do any of that. That's not to say their job is easy, but it seems that the stress comes from the wrong part of the job: Lawsuits, bureaucracy, paperwork, and so forth. » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 30 Sep 2009 | 12:34 pm Taking Stock: Are the markets fair?Harvard political philosopher Michael Sandel talks with Kai Ryssdal about his new book, "Justice," and the morality of Wall Street.Source: Marketplace | 30 Sep 2009 | 12:34 pm More regulation isn't the only answerThe House is inching closer to a vote on regulation proposals for the financial system. But commentator David Frum says we may need to think beyond regulation to prevent the next crisis.Source: Marketplace | 30 Sep 2009 | 12:34 pm Icelanders get hot over mortgagesIceland is expecting a wave of public anger over the dire state of the economy. Stephen Beard reports thousands of mortgage holders are likely to join a national repayment strike.Source: Marketplace | 30 Sep 2009 | 12:18 pm Nike is latest to swoosh out of chamberNike is resigning from the U.S. Chamber of Commerce Board over disagreement on climate change. Steve Henn reports on why so many companies are leaving the chamber.Source: Marketplace | 30 Sep 2009 | 12:18 pm CIT's shaky future hurts small bizBusiness lender CIT is scrambling to work out a deal with its bondholders for a takeover, or it'll have to file for bankruptcy. Bob Moon reports on the fallout for the small businesses caught in the middle.Source: Marketplace | 30 Sep 2009 | 12:18 pm A look at economic developments around the globe (AP)AP - A look at economic developments and activity in major stock markets around the world Wednesday:Source: Yahoo! News: Business | 30 Sep 2009 | 11:58 am A look at economic developments around the globe (AP)AP - A look at economic developments and activity in major stock markets around the world Wednesday:Source: Yahoo! News: Stock Markets News | 30 Sep 2009 | 11:58 am Sage Group Raised to ``Overweight’’ at Morgan Stanley: AudioSource: Bloomberg - All Podcasts | 30 Sep 2009 | 11:47 am Zentner Sees U.S. Housing Prices Increasing in 2011: AudioSource: Bloomberg - All Podcasts | 30 Sep 2009 | 11:46 am Paper: Rewarding Teachers WorksBy Laura Conaway A new paper based on research in India sheds some light on whether rewarding teachers for students' performance makes a difference. Karthik Muralidharan and Venkatesh Sundararaman -- from the University of California at San Diego and the World Bank, respectively -- looked at 500 schools and 55,000 students. Their conclusion: pay incentives work. They write: We find that performance-based bonus payments to teachers were a significantly more cost effective way of increasing student test scores compared to spending a similar amount of money unconditionally on additional schooling inputs. Alex Tabarrok of Marginal Revolution has more. Podcast bonus: Which Teacher's Worth More? » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 30 Sep 2009 | 11:45 am Bove Sees Bank of America Boosting Capital With Sale: AudioSource: Bloomberg - All Podcasts | 30 Sep 2009 | 11:45 am Levitt Says Ratings Firms Should Be Subject to Liability: AudioSource: Bloomberg - All Podcasts | 30 Sep 2009 | 11:44 am Two U.S. House panels take aim at credit raters (Reuters)Reuters - A U.S. congressional panel is expanding its probe of credit rating agencies to look at why securities regulators ignored warnings from former Moody's Corp executives about the company's weak compliance department and ratings process.Source: Yahoo! News: Stock Markets News | 30 Sep 2009 | 10:30 am Mistake #5: Blending In
Okay, so maybe you don’t want to wear Technicolor socks, but if you’ve ever walked into a business meeting without a smile and a handshake, this post is for you. This post is the fifth in the series 8 Mistakes Men Don’t Make. Blending in at the outset can ensure that no one takes you seriously when you’re ready to be heard. But I’ll let you in on a secret: men make them too, especially this one. Banish Passive IntroductionsA powerful introduction is audible, direct, and confident. It includes not only your name, but your title or role in the organization. This is the first clue to others in the room that you know who you are and that you’re there for a purpose. Entering a room quietly does nothing to establish your authority. Physical PositioningA big mistake is sitting, literally, on the sidelines of the room. I see this one all the time. In an effort to be polite, or to avoid being perceived as a threat or challenge, women will take the side chairs in a meeting room. Another power sucking move is to take the spot in the middle of the table every time. When I was in school accounting students with good grades were aggressively recruited by the big accounting and consulting firms, as well as Fortune 500 corporations. Recruiting events were pseudo-social events where our softer skills could be observed. One of the first things we learned was to choose your company before you sit. In important meetings, pay attention to where you are, physically. Speaking of—stand up! The more space you take up, and the more of your body that is visible during communication, the more of your message gets across. My enemy is the podium. At 5’1” if I stand behind one, all you see is my head—and that can be all but obscured by a large microphone. When I speak to a group the first thing I do is take that bad boy out and start moving around the front of the room. To the Host Goes the PowerI love this idea. Other people naturally defer to you on your turf. While you may not be able to host every interaction, a lot of times you can ‘play host’. The more people you know in the room, the easier this is to do. Get people talking about themselves just as you would if you were sharing cider in your home and you will create instant rapport. Like these ideas? Check out Carol Spieckerman and Lisa Carver, who came up with the original list of mistakes men don’t make. Image Credit: Pink Sherbet, Flickr
Source: Business Pundit | 30 Sep 2009 | 10:20 am Manufacturing Takes Surprise Dip In Chicago PMIBy Laura Conaway This week we'll get a few new signals about where this economy is heading. One comes from the Institute for Supply Management in Chicago. Its Chicago Purchasing Managers' Index, or Chicago PMI, gives a snapshot of whether manufacturing in that region is growing or shrinking. The September answer is in: Shrinking. A reading of below 50 on the Chicago PMI indicates contraction, and above 50 indicates expansion. Analysts were looking for a 52. They got a reading of 46.1, down from 50 in August. U.S. Treasurys got a little bounce after the news, because investors value safer bets in a stormy economy. When Treasurys go up, stocks tend to drop, as they did this morning. The good news, such as it is, is the same old news lately, from GDP to job loss: The rate of contraction is slowing. The full ISM report is due out Thursday morning at 10 a.m. Eastern. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 30 Sep 2009 | 9:26 am Wood Sees U.S. Corporations Changing Focus to Revenue: AudioSource: Bloomberg - All Podcasts | 30 Sep 2009 | 8:30 am Pet Food Proves Recession-Proof, Thanks to Anthropomorphism
We may be resorting to beans and rice for dinner, but Fido isn’t suffering. This Denver Post article points out that the pet food industry is solid as ever: …spending on pets remains robust, with total sales of all pet products topping $45 billion this year, a 5 percent increase, according to the American Pet Products Association. And retail sales of pet food are up 4.5 percent in 2009 at about $18 billion. Future pet-food sales are projected to top $21 billion by 2013. The strong spending comes amid price increases in nearly every pet-food category, the result of rising costs of fuel, ingredients and transportation for manufacturers. “We’ve seen double-digit growth this year. The recession hasn’t really touched us,” said Deb Dempsey, owner of Mouthfuls in Denver’s Highland neighborhood. “We’re not selling tons of bedding and clothing, and treats and durable goods, the foofy stuff, has stayed down.” “We have so many customers who say they’d eat macaroni and cheese before they’d cut back on their dogs,” she said. This trend towards premiumization is helping keep the pet food industry on its feet. According to this Petfood Industry article, Consumers appear to be accepting these price increases in spite of declining real disposable income and falling consumer confidence. Due to deepening anthropomorphism, pet owners are becoming even more brand loyal. Many owners hold the view that their pets can tell the difference between different products and they are therefore reluctant to switch brands in case it upsets their pets’ digestive systems. That “deepening anthropomorphism” could actually be considered a revolution in the way Americans treat their pets, writes ABC News: The pet food industry knows it, too: “The pet-food industry has gotten very good at tapping into peoples’ anxieties about the quality of their own diet, and then getting them to apply that anxiety to their pets’ diets,” says (author and historian Katherine Grier). “First, of course, the industry had to convince people that the traditional way they fed pets — cooking them meat or feeding scraps — was unhealthy.” Always, the message is the same: You’d do it for yourself — why not for the animal you love? “Things that were once considered optional are now really being considered necessities by pet owners,” (another source) says. “These companies have made the attachment between the health and well-being of your pet and their product.” (Read more of this excellent article.) I’d be interested to know how/whether increased computer use has affected the way we see pets, especially dogs. In any case, pet food marketers are onto something. It looks like this trend is going to last.
Source: Business Pundit | 30 Sep 2009 | 8:16 am Tight Credit Threatens Recovery. Plus: ADP Says 254,000 More Jobs GoneBy Laura Conaway Good morning, and welcome to Wednesday's reading list. The International Monetary Fund says the global economy is showing signs of recovery. Among the biggest risks now: governments competing with the private sector for loans in a tight credit market. We saw hints of that this week at the Americas Conference, where a World Bank official estimated Latin American nations will need to borrow $400 billion next year. The U.S. Commerce Department says the economy was shrinking less last quarter than it originally thought. In the second quarter, gross domestic product appears to have been contracting at an annualized rate of 0.7 percent, instead of at 1 percent. GDP shrank at a yearly rate of 6.4 percent in the first quarter. Nations will spend $100 billion adapting to climate change next year, a new World Bank study suggests. The latest payrolls report from ADP suggests that U.S. companies cut 254,000 jobs in September. That's down 44,000 from August. The official unemployment number for September is due from the Bureau of Labor Statistics. Early bets have it rising from 9.7 percent to 9.8 percent. Mega-lender CIT is readying a Hail Mary pass, handing control to its bondholders -- if they'll take it. GM is giving up on selling new cars to Californians in eBay auctions. California dealers suggest the program wasn't a huge hit. A GM spokesperson told the Detroit Free-Press he didn't know how many cars had been sold that way, then added, "We are calling it a success." » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 30 Sep 2009 | 8:05 am When Help Desk Gets Tired of Helping…
Source: Business Pundit | 30 Sep 2009 | 5:56 am Analysts: Toyota Recall Not Expected To Create Lasting Company Damage
Yesterday, Toyota announced a recall of up to 3.8 million cars, its biggest domestic recall ever. The company is replacing floor mats, which may cause accelerators to stick. BusinessWeek details the recall’s impact on Toyota: …the news could have been worse for Toyota Motor Corp. The problem can be fixed with relative ease by exchanging floor mats, when some recalls involve taking apart cars. Analysts said Wednesday the flaw is unlikely to exact a great toll on Toyota’s already-suffering bottom line. The world’s biggest automaker by global vehicle sales, Toyota was seriously battered by the credit crunch and auto slump that struck last year, sinking to its worst ever yearly loss of 437 billion yen ($4.9 billion) for the fiscal year ended March 31. Toyota is forecasting a 450 billion yen ($5.0 billion) loss for the fiscal year through March 2010, although hopes surfaced have lately that the worst may be over, with sales recovering enough to allow Toyota to project a narrower loss. The recall will affect 2007-2010 model year Toyota Camry, 2005-2010 Toyota Avalon, 2004-2009 Toyota Prius, 2005-2010 Tacoma, 2007-2010 Toyota Tundra, 2007-2010 Lexus ES350 and 2006-2010 Lexus IS250 and IS350. I agree with the analysts–a floor mat recall isn’t a deal killer for Toyota. However, it does open the door for other companies (Honda? Hyundai?) to market their superior quality in an attempt to lure in concerned carbuyers.
Source: Business Pundit | 30 Sep 2009 | 5:32 am
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