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For Wall Street, Pay Hikes. For The Rest Of Us, Pay CutsBy Laura Conaway The Senate Finance Committee on Tuesday approved its $829 billion plan for overhauling U.S. health care. It includes a tax on so-called Cadillac plans and support for health care cooperatives. The measure passed with a lone Republican supporter, Sen. Olympia Snowe of Maine. Some members of Treasury Secretary Tim Geithner's kitchen cabinet are supplementing their government salaries with millions from big Wall Street firms, Bloomberg reports. Meanwhile, Wall Street pay is on a record pace, the Wall Street Journal reports (sub. requ'd.). For more average Americans, this has been the year of the pay cut. The Mortgage Bankers Association predicts unemployment will reach 10.2 percent next year even as economic growth continues. Meanwhile, median home prices in Southern California have, miraculously, risen year-over-year. The stock market continued its upward push after news that China's exports had dropped the least amount in almost a year. The Washington Post's Steven Pearlstein is worried that the market is reinflating old bubbles. British unemployment rose in August by the least amount in a year. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 14 Oct 2009 | 4:59 am France Telecom worker saved from becoming 25th to commit suicideA worker at France Telecom was narrowly saved from becoming the 25th person in the company to commit suicide in 19 months.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Oct 2009 | 4:34 am Miners fuel surge in FTSE 100Strong overnight figures from Intel, the world's biggest chipmaker and a surge in mining stocks sent the FTSE 100 climbing back above the 5,200 mark. Source: Latest Business News from Times Online | 14 Oct 2009 | 4:30 am Stock futures sharply higher after Intel Q3; JPMorgan eyed (Reuters)
Source: Yahoo! News: Stock Markets News | 14 Oct 2009 | 4:29 am Stock futures sharply higher after Intel Q3; JPMorgan eyed (Reuters)
Source: Yahoo! News: Business | 14 Oct 2009 | 4:29 am Growth in UK unemployment slowsThe latest UK unemployment figure totals 2.47 million after a smaller rise than expected, official figures show.Source: BBC News | Business | World Edition | 14 Oct 2009 | 4:24 am UK unemployment rises by the least in a yearUK unemployment rose by the least in a year fresh figures showed today as the impact of the recession eased.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Oct 2009 | 4:22 am Oil reaches 2009 high above $75Oil prices reach their highest point of the year, breaking through the $75-a-barrel mark on encouraging economic news.Source: BBC News | Business | World Edition | 14 Oct 2009 | 4:20 am Money Matters heading to GlasgowThe BBC's Money Matters Roadshow returns with a host of experts ready to tackle people's cash queries in Glasgow.Source: BBC News | Business | World Edition | 14 Oct 2009 | 4:20 am Insure yourself against unemploymentUnemployment held virtually static at 2.47m in the three months to August with a rise of 88000 official figures show.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Oct 2009 | 4:17 am Economic Report: U.K. sheds jobs at slower paceThe number of British workers claiming jobless benefits in September posted the smallest rise since May 2008, offering a sign that the deterioration of the labor market is beginning to slow, economists said.
Source: MarketWatch.com - Top Stories | 14 Oct 2009 | 4:12 am Dollar slumps to a 14-month lowRead full story for latest details.Source: Business and financial news - CNNMoney.com | 14 Oct 2009 | 4:11 am Kitchen Worker Gets AIG (NYSE:AIG) Retention BonusAIG (NYSE:AIG) is a meritocracy. One of the firm’s best kitchen workers go a $7,70o retention bonus as part of the firm’s plan to keep key employees. According to the FT, the payment was made in March. Kenneth Feinberg, the government’s pay czar is asking that AIG retention bonuses be cut by $198 million for 2010 and that [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 14 Oct 2009 | 4:08 am Ciena rolls dice in bid for Nortel assetsCiena Corp. could take a big leap up the network industry ladder if it obtains valuable assets from a bankrupt Canadian rival, but such a major deal also poses hefty risks.
Source: MarketWatch.com - Top Stories | 14 Oct 2009 | 4:00 am Strong China trade, loan figures back recovery caseBEIJING (Reuters) - China reported surprisingly strong trade figures on Wednesday, providing fresh evidence that the world's third-largest economy is firmly on the path to recovery and that global demand is improving too.Source: Reuters: Business News | 14 Oct 2009 | 3:58 am Strong China trade, loan figures back recovery case (Reuters)
Source: Yahoo! News: Business | 14 Oct 2009 | 3:58 am Europe Markets: BASF, techs, miners lead Europe to sharp gainsEuropean shares rose sharply on Wednesday as results out from German chemicals giant BASF and U.S. microchip leader Intel revived optimism for third-quarter earnings trends.
Source: MarketWatch.com - Top Stories | 14 Oct 2009 | 3:56 am Blackstone see "more than green shoots" of recovery (Reuters)
Source: Yahoo! News: Business | 14 Oct 2009 | 3:53 am Blackstone see "more than green shoots" of recoveryDUBAI (Reuters) - Private equity firm Blackstone Group's chief executive said the worst of the industry's problems were behind it, and dealflow and IPO opportunities were opening up again.Source: Reuters: Business News | 14 Oct 2009 | 3:53 am Indications: Intel's strength lifts U.S. stock futuresA surprisingly strong profit and outlook from Intel helps steer U.S. stock futures higher with J.P. Morgan Chase results on deck.
Source: MarketWatch.com - Top Stories | 14 Oct 2009 | 3:49 am Amadeus is getting ready for big IPO: reportAmadeus IT Group SA, a Madrid-based technology provider for the travel industry, is getting ready for an initial public offering that may be one of the biggest since the start of the global financial crisis.
Source: MarketWatch.com - Top Stories | 14 Oct 2009 | 3:47 am Exports And The Problem With The “China Miracle”The rate at which China’s exports are dropping has slowed and that means its economy is growing well. Exports and manufacturing account for too large a portion of GDP for that not to be true. Exports declined 15.2% to $115.9 billion from a year earlier the best showing in 11 months. Bloomberg’s survey of analysts expected a drop of [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 14 Oct 2009 | 3:43 am Young jobless total falls amid better-than-expected figuresThe number of young people out of work has fallen as overall unemployment rose by a less than expected 88,000 to 2.47 million. Source: Latest Business News from Times Online | 14 Oct 2009 | 3:40 am China trade data, Intel results lift Asia stocksMost Asian equity markets rise, with Chinese stocks getting a bump from reassuring September trade data while the region’s technology stocks are bolstered by an upbeat outlook from Intel Corp.
Source: MarketWatch.com - Top Stories | 14 Oct 2009 | 3:38 am UPDATE 1-Ukraine Naftogaz to buy 7-8 bcm of Russian gas in Q4KIEV, Oct 14 (Reuters) - Ukraine will import about 7-8 billion cubic metres (bcm) of Russian gas in the fourth quarter of this year, including about 1.0-1.2 bcm in October, a deputy chief executive of...Source: RSS feed - channel BNewsBusiness | 14 Oct 2009 | 3:34 am BRIEF-Mediaset chairman on Spanish TV interestROME, Oct 14 (Reuters) - Mediaset Chairman Fedele Confalonieri, replying to a question on whether the broadcaster owned by Italian Prime Minister Silvio Berlusconi is interested in buying some TV operations...Source: RSS feed - channel BNewsBusiness | 14 Oct 2009 | 3:33 am British unemployment rate unchanged at 7.9%: dataBritain's unemployment rate remained at 7.9 percent in the three months to August, official data showed on Wednesday, beating market expectations of 8.0 percent.Source: RSS feed - channel BNewsBusiness | 14 Oct 2009 | 3:32 am Earnings Watch: Updates, advisories and surprisesA roundup of the latest corporate earnings reports and what companies are saying about future quarters.
Source: MarketWatch.com - Top Stories | 14 Oct 2009 | 3:31 am The Intel (NASDAQ:INTC) Results May Not Be Good For PCsThe immediate reaction to Intel’s (NASDAQ:INTC) results, which were better than expected, is that they signalled an improvement in the PC industry. Intel provides about 70% of PC chips. The world’s largest chip company said it was comfortable with industry estimates that PC sales will grow 10% worldwide next year. Growth is one thing. Profitability another. The [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 14 Oct 2009 | 3:27 am BRIEF-Saipem on Nigeria contractMILAN, Oct 14 (Reuters) - Italian oil services company Saipem SpA said in a statement on Wednesday:Source: RSS feed - channel BNewsBusiness | 14 Oct 2009 | 3:25 am UK unemployment hits 14year high of 2.47mThe number of British people out of work has risen by a smallerthanexpected 88000 according to ONS figures.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Oct 2009 | 3:25 am Ghana plays down Vodafone reportGhana's government distanced itself from an official report which said the sale of its telecoms firm to Vodafone was "illegal".Source: BBC News | Business | World Edition | 14 Oct 2009 | 3:22 am Competitiveness of Indian Cities: Study of 37 Indian Cities on Competitiveness Framework of Institute for CompetitivenessJYVASKYLA, Finland, October 14 /PRNewswire/ -- Institute for Competitiveness ( href="Source: RSS feed - channel BNewsBusiness | 14 Oct 2009 | 3:20 am Handbags and snoods help Burberry top forecastsLONDON (Reuters) - Luxury goods group Burberry beat second-quarter revenue forecasts, helped by demand for handbags, leather goods and snoods, adding to signs of a consumer recovery and lifting its shares to a 21-month high.Source: Reuters: Business News | 14 Oct 2009 | 3:17 am UPDATE 3-ASML Q3 bookings bonanza fuels tech recovery hopes* Q3 new machine bookings 777 mln eur, beating top f'castSource: RSS feed - channel BNewsBusiness | 14 Oct 2009 | 3:15 am BASF 3rd-quarter profit tops estimatesBASF, the world’s largest chemicals company, on Wednesday reports third-quarter profit beat estimates on cost cutting, growth in Asia and the integration of Ciba.
Source: MarketWatch.com - Top Stories | 14 Oct 2009 | 3:15 am Oil sets 2009 high on weak dollar, economyLONDON (Reuters) - Oil surged for a fifth day on Wednesday to a 2009 high above $75 a barrel, boosted by a weak dollar and optimism about a global economic rebound that will lead to higher energy demand.Source: Reuters: Business News | 14 Oct 2009 | 3:13 am Oil sets 2009 high on weak dollar, economy (Reuters)
Source: Yahoo! News: Stock Markets News | 14 Oct 2009 | 3:13 am Burberry's appeal defies recessionBurberry, the 150-year old maker of trenchcoats and red, black and tan checked scarves that has recently moved up into the FTSE100 index, continues to benefit from its resurgence as a high fashion brand...Source: RSS feed - channel BNPaperBusiness | 14 Oct 2009 | 3:12 am Mining Sector Report: Gold - Still Aping the 1970sLONDON, October 14 /PRNewswire/ -- Synopsis: In our April 2009 report, Gold - a return to the 1970s, we posited a theory that if gold repeats the same performance in the...Source: RSS feed - channel BNewsBusiness | 14 Oct 2009 | 3:10 am World stocks up as tanking dollar boosts oil, gold (AP)
Source: Yahoo! News: Stock Markets News | 14 Oct 2009 | 3:09 am World markets rally to 1-year peakRead full story for latest details.Source: Business and financial news - CNNMoney.com | 14 Oct 2009 | 3:06 am London Markets: Miners lead advance in sharply higher FTSE 100Miners gain in London on Wednesday, with Rio Tinto and Fresnillo higher after detailing quarterly production figures.
Source: MarketWatch.com - Top Stories | 14 Oct 2009 | 3:02 am World stocks up as tanking dollar boosts oil, goldGlobal stock markets rose Wednesday as China's economy showed more signs of recovery and oil prices touched a new high for the year above $75 a barrel. Helping lead Asia's advance were...Source: RSS feed - channel BNewsBusiness | 14 Oct 2009 | 3:00 am 24/7 Wall St. Interview With Investment Strategist Ed Yardeni24/7 Wall St. interviewed Ed ”>Yardeni to talk about trends in the economy and the signs he looks for to help determine what he thinks is likely to happen in the global economy over the next few quarters. Dr. Yardeni is the President of Yardeni Research, Inc., a provider of independent investment strategy research. He has as served [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 14 Oct 2009 | 2:59 am China slows falling trade in recovery hopeTrade to and from China continued to fall in September but plunged less violently than at any time in the last nine months in a sign that the giant economy has been steered into full recovery mode. Source: Latest Business News from Times Online | 14 Oct 2009 | 2:56 am Ukraine Naftogaz to buy 7-8 bcm of Russian gas in Q4KIEV, Oct 14 (Reuters) - Ukraine will import about 7-8 billion cubic metres (bcm) of Russian gas in the fourth quarter of this year, including about 1.0-1.2 bcm in October, a deputy chief executive of...Source: RSS feed - channel BNewsBusiness | 14 Oct 2009 | 2:51 am Euro hits $1.49 for first time since August 2008The euro surged on Wednesday to a 14-month peak above 1.49 dollars, as the greenback was hit by rising economic confidence, increased risk appetite and the prospect of super-low US rates...Source: RSS feed - channel BNewsBusiness | 14 Oct 2009 | 2:51 am Cisco spends on wirelessTelecom products maker Cisco Systems has entered a deal to buy wireless Internet infrastructure company Starent Networks for $2.9 billion, Cisco announced Tuesday.Source: Business and financial news - CNNMoney.com | 14 Oct 2009 | 2:51 am Phytopharm jumps on promising Parkinson's disease resultsPhytopharm shares jumps 67pc after the Cambridgebased biotech company reported promising results from early tests of its Parkinson's drug Cogane.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Oct 2009 | 2:50 am Stocks set to leap at openU.S. stock futures surged Wednesday, buoyed by an optimistic outlook and upbeat results from chipmaker Intel.Source: Business and financial news - CNNMoney.com | 14 Oct 2009 | 2:49 am Burberry's sales perk up, but wholesale suffersU.K. luxury retailer Burberry reported stronger-than-forecast fiscal second-quarter revenue on Wednesday, helped by demand for leather and handbags, but wholesale revenue proved a drag on the group for the period.
Source: MarketWatch.com - Top Stories | 14 Oct 2009 | 2:49 am Punch losses triple on £663m pub writedownPunch Taverns, Britain's largest pub landlord, today revealed that annual losses nearly tripled to £176 million after writing off £663 million on the value of its assets. Source: Latest Business News from Times Online | 14 Oct 2009 | 2:27 am What to do with $10,000 nowLow interest rates and the recent stock market surge make this a challenging time to find the best places for your extra cash.Source: Business and financial news - CNNMoney.com | 14 Oct 2009 | 2:27 am Stock futures signal gains; Intel Q3 boost(Reuters) - U.S. stock index futures pointed to a strong open on Wall Street on Wednesday following forecast-beating results from Intel Corp and ahead of earnings from JPMorgan Chase & Co.Source: Reuters: Business News | 14 Oct 2009 | 2:25 am Decline in Chinese trade slows sharplyFigures show that falls in exports and imports were smaller than most economists expected in September amid wider expectations that third quarter gross domestic product growth will exceed 9%Source: Financial Times - US homepage | 14 Oct 2009 | 2:23 am Rio raises output target on China demandRio Tinto upgraded its 2009 iron ore production target by up to 7.5 per cent on Wednesday following a record performance in the third quarter on the back of continued strong demand from Chinese steelmakers...Source: RSS feed - channel BNPaperBusiness | 14 Oct 2009 | 2:20 am Decline in Chinese trade slowingThe decline in Chinese exports slows in September, suggesting improvements in economies elsewhere in the world.Source: BBC News | Business | World Edition | 14 Oct 2009 | 2:19 am Push on to expand $8,000 tax creditCongress is considering proposals to greatly expand a soon-to-expire $8,000 tax credit for first-time homebuyers -- potentially applying it to all but the wealthiest homebuyers.Source: Business and financial news - CNNMoney.com | 14 Oct 2009 | 2:11 am Afghanistan: Behind the frontlineExamine the reconstruction efforts of the US, Britian and other leading members of Afghanistan’s international assistance force on an interactive mapSource: Financial Times - US homepage | 14 Oct 2009 | 2:04 am Media Digest 10/14/2009 Reuters, WSJ, NYTimes, FT, BloombergReuters: Aggressive trading in gold in China may be pushing the price of the metal up. Reuters: Blackstone’s (NYSE:BX) CEO says the worst of the crisis is over. Reuters: The House has begun to create a financial regulation bill. Reuters: Intel (NASDAQ:INTC) beat Street estimates. Reuters: Crude oil hit new highs for 2009. Reuters: New investors are moving into the [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 14 Oct 2009 | 2:03 am U.S. wants to cut AIG bonusesThe Treasury Department, after missing an opportunity to rein in controversial bonuses to AIG employees last year, is now pressing the bailed out insurer to reduce a $198 million bonus pool, according to an overseer's report released Tuesday.Source: Business and financial news - CNNMoney.com | 14 Oct 2009 | 1:59 am Crdit Agricole reveals plans to repay 3bn state supportPARIS, Oct 14 - Crdit Agricole said it would repay 3bn ($4.5bn) of state support this month, the last of the French banks to detail when it will reimburse government aid given during the financial crisis...Source: RSS feed - channel BNPaperBusiness | 14 Oct 2009 | 1:58 am Returning risk appetite lifts London's minersLondon equities were back on an upward path on Wednesday, after stronger output growth at Rio Tinto helped energise the mining sector. There was wider momentum on leading indices around the world after...Source: RSS feed - channel BNPaperBusiness | 14 Oct 2009 | 1:57 am Aussie stocks climb to 12-month highSYDNEY- The Australian sharemarket rose to a new 12 month high on Wednesday spurred on by an upbeat report from miner Rio Tinto and economic data showing a rise in consumer confidence.At the 1615 AEDT close, the benchmark S&P/ASX200...Source: nzherald.co.nz - Business | 14 Oct 2009 | 1:56 am London stocks rise at open (AFP)
Source: Yahoo! News: Stock Markets News | 14 Oct 2009 | 1:55 am Burberry handbags drive rise in revenuesThe luxury goods group beat secondquarter revenue forecasts helped by demand for handbags and leather goods.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Oct 2009 | 1:52 am London home 'needs £93,000 wage'A new report claims single Londoners would need to earn £93,000 to afford the average home in the city.Source: BBC News | Business | World Edition | 14 Oct 2009 | 1:43 am Talks due over BA strike threatTalks aimed at averting a strike by British Airways staff over job cuts and changes to pay and conditions are due to start later.Source: BBC News | Business | World Edition | 14 Oct 2009 | 1:41 am Workers feel more confidence in their pensionsWorkers' confidence in pension schemes has improved significantly since the end of last year research has shown.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Oct 2009 | 1:36 am Organised crime bureau probes ex-JJB directorsJJB Sports, the struggling retailer, yesterday admitted to shareholders that both the Serious Organised Crime Agency (SOCA) and HM Revenue are investigating the activities of former executives. Source: Latest Business News from Times Online | 14 Oct 2009 | 1:32 am Asia Markets And Europe Open 10/14/2009Markets in Asia were mixed. The Nikkei dropped .3% to 10,051. The Hang Seng moved up 1.7% to 21,839. PetroChina (NYSE:PTR) and Sinopec (NYSE:SNP) moved up on oil prices. The Shanghai Composite rose 1.2% to 2,970 At the open in Europe, the FTSE was up 1.3% to 5,220. Rio Tinto (NYSE:RTP) rose. The Dax was higher by 1.3% to [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 14 Oct 2009 | 1:26 am Lord Myners meets top banks to urge restraint on bonusesLeading US and European banks with big operations in Britian will be urged by City minister Lord Myners to show restraint on bonuses at a meeting today.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Oct 2009 | 1:15 am Youth unemployment may break 1m markEconomists reckon that the number of young people without work in Britain could pass the one million mark for the first time.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 14 Oct 2009 | 1:07 am Housing upturn occurring in some parts of Southern California, data showThe median sales price in some areas rose last month for the first time since the market crashed in 2007, according to MDA DataQuick.Southern California's housing market took another small step toward recovery in September as the median sales price for homes in some areas rose above last year's levels -- the first such increases since the market crashed.
Source: L.A. Times - Business | 14 Oct 2009 | 1:00 am Gasoline prices expected to riseWith oil futures edging toward $75 a barrel, experts expect gas to go up in California.Gasoline prices were down this week, but behind the scenes some economists are worried that a jump in the price of crude oil could slow the recovery.
Source: L.A. Times - Business | 14 Oct 2009 | 1:00 am Tech firms are enjoying their economic stimulusIncreased spending on computers and gadgets by consumers and businesses is giving the sector a big boost.The nation's bellwether technology sector is kicking into gear as businesses and consumers boost their spending on computers and electronics.
Source: L.A. Times - Business | 14 Oct 2009 | 1:00 am California metal mine regains lusterFears of a shortage of rare-earth minerals used in high-tech applications has bolstered an effort to reopen production at the Mountain Pass Mine in the Mojave Desert. ...Source: RSS feed - channel BNPaperBusiness | 14 Oct 2009 | 1:00 am California appears poised to be first to ban power-guzzling big-screen TVsIndustry lobbying efforts appear to elicit little sympathy from the state Energy Commission, which may vote as soon as Nov. 4. ...Source: RSS feed - channel BNPaperBusiness | 14 Oct 2009 | 1:00 am Dole's value drops by half in 6 years, to $1.2 billion from $2.5 billionThe large decline in the food company's worth is disclosed in documents filed with the SEC in conjunction with its efforts to sell a 41% stake to the public for about $14 a share.Dole Food Co. has lost half its value since billionaire David Murdock bought the company six years ago in a transaction valued at $2.5 billion.
Source: L.A. Times - Business | 14 Oct 2009 | 1:00 am Sumner Redstone's financial picture brightensBig gains in the value of his family's shares in Viacom Inc. and CBS Corp. have given the billionaire some badly needed leverage with his lenders. ...Source: RSS feed - channel BNPaperBusiness | 14 Oct 2009 | 1:00 am Dole's value drops by half in 6 years, to $1.2 billion from $2.5 billionThe large decline in the food company's worth is disclosed in documents filed with the SEC in conjunction with its efforts to sell a 41% stake to the public for about $14 a share. ...Source: RSS feed - channel BNPaperBusiness | 14 Oct 2009 | 1:00 am How about a bailout for student debtors?If the U.S. can come to the assistance of banks and homeowners, surely it could offer a helping hand in the form of lower interest rates for students. ...Source: RSS feed - channel BNPaperBusiness | 14 Oct 2009 | 1:00 am Housing upturn occurring in some parts of Southern California, data showThe median sales price in some areas rose last month for the first time since the market crashed in 2007, according to MDA DataQuick. ...Source: RSS feed - channel BNPaperBusiness | 14 Oct 2009 | 1:00 am Sumner Redstone's financial picture brightensBig gains in the value of his family's shares in Viacom Inc. and CBS Corp. have given the billionaire some badly needed leverage with his lenders.Billionaire Sumner Redstone is breathing easier.
Source: L.A. Times - Business | 14 Oct 2009 | 1:00 am How about a bailout for student debtors?If the U.S. can come to the assistance of banks and homeowners, surely it could offer a helping hand in the form of lower interest rates for students.Like many recent college grads, Los Angeles resident Steven Lee finds himself unemployed in one of the roughest job markets in decades and saddled with a big pile of debt. He owes about $84,000 in student loans for undergrad and grad-school costs.
Source: L.A. Times - Business | 14 Oct 2009 | 1:00 am Mortgage professionals expect home foreclosures to keep risingExecutives and economists at the Mortgage Bankers Assn. convention say job losses have replaced adjustable subprime loans as the main cause of defaults.Despite sub-5% mortgage rates and signs that home prices have bottomed out in some places, executives and economists are decidedly downbeat about the future of the country's mortgage industry as well as the housing market it depends on.
Source: L.A. Times - Business | 14 Oct 2009 | 1:00 am California appears poised to be first to ban power-guzzling big-screen TVsIndustry lobbying efforts appear to elicit little sympathy from the state Energy Commission, which may vote as soon as Nov. 4.The influential lobby group Consumer Electronics Assn. is fighting what appears to be a losing battle to dissuade California regulators from passing the nation's first ban on energy-hungry big-screen televisions.
Source: L.A. Times - Business | 14 Oct 2009 | 1:00 am California metal mine regains lusterFears of a shortage of rare-earth minerals used in high-tech applications has bolstered an effort to reopen production at the Mountain Pass Mine in the Mojave Desert.Fear of a shortage of rare-earth metals used in high-tech military and industrial products has spawned global efforts to reopen abandoned mines, including the formidable Mountain Pass Mine in California's Mojave Desert.
Source: L.A. Times - Business | 14 Oct 2009 | 1:00 am NZ market higher in mixed tradingThe New Zealand sharemarket turned around a weak open to end ahead on improved volume today.The benchmark NZSX-50 index closed up 17.02 points, or 0.537 per cent at 3186.484 after initially opening slightly weaker.Turnover...Source: nzherald.co.nz - Business | 14 Oct 2009 | 12:38 am Japan keeps the markets guessingThe Bank of Japan gives no details of what it plans to do with its stimulus package as it keeps interest rates unchanged.Source: BBC News | Business | World Edition | 14 Oct 2009 | 12:08 am Dollar continues rise against USThe New Zealand dollar rose today as the US dollar struck a 14 month low against the euro.By 5pm the NZ dollar was buying US73.99c, up from US73.37c at 8am and US73.68c at 5pm yesterday.Strong retail sales data yesterday was...Source: nzherald.co.nz - Business | 13 Oct 2009 | 11:44 pm PepsiCo and Anheuser in landmark purchasing pactPepsiCo, the soft-drinks and snacks company, and Anheuser-Busch, the US subsidiary of the world’s largest brewer, announced a deal to jointly purchase a range of goods and services in the USSource: Financial Times - US homepage | 13 Oct 2009 | 11:34 pm House begins assembly of financial reform planWASHINGTON (Reuters) - The House Financial Services Committee is to begin work on Wednesday on a top priority for the U.S. Congress -- legislation to mend regulatory holes exposed by last fall's financial crisis.Source: Reuters: Business News | 13 Oct 2009 | 11:20 pm House begins assembly of financial reform plan (Reuters)Reuters - The House Financial Services Committee is to begin work on Wednesday on a top priority for the U.S. Congress -- legislation to mend regulatory holes exposed by last fall's financial crisis.Source: Yahoo! News: Business | 13 Oct 2009 | 11:20 pm Major U.S. firms on route to award record pay in '09: report(Reuters) - Major U.S. banks and securities firms are on track to pay employees about $140 billion in total compensation and benefits this year, the Wall Street Journal said, citing an analysis of securities filings for the first half of 2009 and revenue estimates through the end of the year.Source: Reuters: Business News | 13 Oct 2009 | 10:28 pm Major U.S. firms on route to award record pay in '09: report (Reuters)Reuters - Major U.S. banks and securities firms are on track to pay employees about $140 billion in total compensation and benefits this year, the Wall Street Journal said, citing an analysis of securities filings for the first half of 2009 and revenue estimates through the end of the year.Source: Yahoo! News: Business | 13 Oct 2009 | 10:28 pm 3 Stocks That Are Up Big but Still Cheap (Screens)Most stocks are up big since spring and look expensive relative to earnings. The ones below are up huge, but still look cheap. Within the S&P Composite 1500, which tracks small, midsize and large companies that make up 85% of the U.S. stock market by value, the median stock has gained 31% in six months. Among the 1,272 of these companies with published earnings forecasts for their current fiscal year, the median sells for nearly 18 times earnings. The market’s historical average price is below 15 times earnings. Among the 1,500 index stocks, just 23 have doubled in six months and have price/earnings ratios below 15. Below are three of these, selected for their manageable debt and improving profitability. Joy Global
6-Month Gain: 101% Milwaukee-based Joy Global (JOYG) makes mining equipment. More than two-thirds of sales are related to coal production. More than half come from outside North America. About 60% of sales are for after-market products. The company tends to lag the business cycle by a year or so; sales for its fiscal year ending Oct. 31 are expected to rise 4%, but those for next year are seen dropping 21%. Recently, Joy has pleasantly surprised stockholders, topping earnings forecasts in each of the past four quarters -- by double-digit percentages in the past two quarters. A run-up in commodity prices has boosted demand for new metal-mining equipment, while a robust economic recovery in China bodes well for sales of coal equipment world-wide. China generates most of its electricity from coal, and increasingly must import coal from other countries to meet demand. XL Capital
6-Month Gain: 121% Insurance stocks have gained about twice as much as the broad market since March. Earlier this year, companies had suffered steep declines in their investment portfolios, and property and casualty premiums had slid versus a year ago. At the end of July, Bermuda-based XL Capital (XL) reported a 26% rise in book value, brought on by a rebound in investment markets. Management at the time said pricing was starting to firm in some areas of the business. Investors seem confident that those improvements have continued into autumn. Options traders have recently reported strong buying in long-term call contracts, bets that the stock price will rise. Newell Rubbermaid
6-Month Price Gain: 101% Based in Atlanta, Newell Rubbermaid (NWL) sells household products like Rubbermaid storage containers and Calphalon nonstick pans; office supplies like Sharpie markers and Paper Mate pens; and tools, like Lenox saw blades. With consumers cutting spending, offices cutting staff and builders finding less work, sales for the company are expected to tumble 14% this year. Management has aggressively cut costs and shuttered businesses with slim margins or little growth potential. Deutsche Bank (DB) analyst Bill Schmitz, who covers the stock with a “buy” recommendation, wrote to clients in mid-September that the company is “turning a long corner,” and that it’s poised for significant improvement in profit margins once sales growth returns. The company halved its dividend rate in March to 20 cents a year, paid quarterly. Its current yield is 1.3%. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.
Source: SmartMoney.com | 13 Oct 2009 | 10:00 pm Less Stress. More ReturnsThe market might have improved recently, but that hasn’t calmed the nerves of many investors — or even some pros. Talk of a double-dip recession, a stock market pullback and the ongoing problems in the financial industry is keeping at least some people on edge. But a number of investors think they have an answer: the equivalent of Xanax for their portfolios, stocks of companies that in almost any economy generate a consistent stream of cash and boast solid balance sheets. These stocks might not double in a couple of months, but they likely won’t crash and burn, either. With the economy still uncertain, some experts say these stable, or stress-free, stocks are the best buy at this point. And among the smaller firms, there are bargains to be had, analysts say. To be sure, this approach wasn’t hugely successful during the run-up last spring, and it won’t be if the market goes on another tear. In the six months since the market’s bottom, debt-free networking giant Cisco Systems rose 60 percent; its struggling, debt-laden rival, Alcatel-Lucent, more than tripled. But now some investors question whether the lesser lights can keep their momentum going in the absence of a robust economy. A so-called high-quality company, in contrast, has predictable sales and profits and not a lot of debt. Plus, these stocks have history on their side. In the past three business cycles, high-quality stocks, on average, beat lower-quality stocks, rising 23 percent nine months after the worst point of a recession, compared with an average 17 percent for the latter, according to Ned Davis Research. Investors looking for such stalwart companies often gravitate to a handful of well-known giants, such as Johnson & Johnson or IBM. But some savvy managers are moving into smaller and midsize companies. Smaller firms don’t need to increase their profit much in dollar terms for it to have a big benefit on the bottom line. Eric Cinnamond, who manages the $256 million Intrepid Small-Cap fund, recently sold off some of his volatile oil companies and replaced them with regional supermarket Weis Markets, a steady company he calls “too boring to fail.” Below, a look at five overlooked companies that could lead to a less stressful stock portfolio. Ross Stores (ROST, $46)The American consumer is not dead. Shoppers might think twice these days about maxing out their credit cards, but they are still spending — especially at places such as discount retailer Ross Stores. While other retailers have been clobbered, the Pleasanton, Calif.–based firm has been reporting monthly sales increases and even raised its profit expectations for 2009. The recent embrace of thriftiness has helped, but Ross also is improving itself, says Aram Green, portfolio manager for Legg Mason Partners Small Cap Growth fund, which owns the shares. With recent technology upgrades, Ross is pushing its merchandise out the door faster, boosting operating profits and generating plenty of cash. This also means shoppers are seeing fresher merchandise. Ross tries to act like one of its own bargain shoppers as well. The company searches for goods that manufacturers have been stuck with after other retailers canceled their orders. Ross then buys the goods at a steep discount. Since Ross doesn’t need to plan orders far in advance like traditional stores, it can chase hot fashion trends — a big plus when consumers are increasingly skittish. “We have a lot of flexibility,” Chief Financial Officer John Call tells SmartMoney. “That’s why our business has been steady.” Weis Markets (WMK, $32)Started by two brothers nearly a century ago, Weis Markets differentiated itself back then by not accepting credit, requiring customers to pay cash for their groceries. These days credit cards are welcome in their stores, but the small regional grocer still eschews debt on its own balance sheet, and that has given it the flexibility to invest in its business. The company has spent nearly $1 billion on its stores since the mid-’90s, focusing on technology to keep shelves stocked and increase the frequency of deliveries to offer the freshest food. Analysts say these moves let Weis compete in a market against giant grocery chains and Wal-Mart. Weis owns a dairy and ice cream plant at its corporate offices in Sunbury, Pa., as well as distribution and meat plants, all of which help keep a lid on costs. Last year profits took a hit, as food-related commodity inflation ate into earnings. But those commodity prices have since fallen, and analysts expect that to help Weis’s bottom line. Small changes, such as customers’ increasing preference for more profitable private-label brands, can quickly translate into a big increase in profits, analysts say. After paying for all its expenses and investments, Weis has a free cash flow yield — the amount of free cash divided by its market value — of about 10 percent, much higher than other grocers’. Cinnamond says owning Weis these days is “like going to the bank and getting a 10 percent yield on a CD.” Sybase (SY, $41)Sybase’s origins weren’t particularly stable; the database software firm was created out of a Berkeley, Calif., house 25 years ago. But it has grown into the type of company that could calm investors’ nerves. About 70 percent of the firm’s $1.1 billion in annual sales come from recurring — and predictable — customer maintenance contracts. Even in the downturn, 90 percent of those contracts were renewed, making it an “incredibly sticky business,” says Ragen Stienke, manager of the WHG SMidCap fund, which owns the stock. Sybase generates a sizable chunk of cash, and analysts say the company itself has a pristine balance sheet. Sybase helps other firms store and mine data, a process that can help a company better understand its customers’ behavior, among other things. Sy-base’s system for sifting through columns of data rather than rows gives the company an edge over some rivals, says Curtis Shauger, a software analyst at boutique investment firm Caris & Co. Despite the downturn, Chief Executive John Chen raised 2009 earnings and cash-flow estimates, citing a “reasonably robust business pipeline.” Of course, Sybase’s contract revenue might not be so consistent if the economy falls off a cliff again. But many experts believe Sybase’s profits will continue to be resilient. Paychex (PAYX, $29)One would have expected payroll-processing firm Paychex to have been crushed in the recent recession. After all, with fewer jobs out there — especially in Paychex’s niche of small to midsize firms — there are fewer paychecks to handle. Paychex also earns money holding cash for clients between pay periods, and they’ve made a lot less over the past year since interest rates are near record lows. But to the surprise of many, the company has still been able to raise sales and generate $624 million in free cash over the past four quarters. In fact, the company has generated cash every year since it went public in 1983, a period spanning three recessions. Analysts credit the success to the Rochester, N.Y.–based firm’s focus on reducing expenses as soon as its revenue growth slows. With few economists forecasting higher interest rates or a rapid increase in jobs over the short term, Paychex could be in for more tough times. But Chief Executive Jonathan Judge tells SmartMoney that his debt-free firm can grow even in a downturn and is pursuing business in new areas, such as expanding into rural areas. “We are going down the food chain of opportunity to get as far as we can now,” he says. The company’s efficient business and its ability to pay a 4.3 percent dividend yield during such a tough period gives Don Easley, comanager of the T. Rowe Price Diversified Mid-Cap Growth fund, comfort in waiting for better times. “It’s like hitting singles steadily over the long term,” he says. Hospira (HSP, $45)It’s hard to find a health care company that is safe from politicians angling for reform or budget cuts in the midst of the downturn, but Hospira is a company “where the force is with them,” says Michelle Clayman, who manages the Calvert Capital Accumulation Fund. The company, which was spun-off from Abbott Labs in 2004, makes generic injectable drugs as well as pumps and supplies necessary for administering medicines. The businesses have held up well, generating an increasing amount of cash every quarter over the past 12 months. But this is not just a “steady Eddie” business, it also has plenty of growth opportunities, says Kimberley Scott, manager of the Ivy Mid-Cap Growth fund. For starters, Hospira is reorganizing its business – cutting costs by slimming its product line-up and selling non-core assets like its critical care business to focus on growth areas. The company’s last cost-cutting drive helped it beat profit expectations by 10 to 15 cents a quarter. Junaid Husain, medical technology analyst for Soleil, expects a repeat performance. Over the next few years, Hospira also stands to benefit from billions in branded drugs losing patent protection, analysts say. To be sure, hospitals are still facing budgetary pressures, which could curtail that growth. But Hospira has locked in big contracts with hospital purchasing organizations requiring a minimum purchase for some of its supplies — offering some comfort about future results, Clayman 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 | 13 Oct 2009 | 10:00 pm A Valuable Franchise, Warts and AllTHIS IS NORMALLY a time that Wall Street would be warming to McGraw-Hill (MHP), the owner of Standard & Poor's, one of the two leading credit-rating agencies. Bond issuance soared by 50% in the third quarter as corporations worldwide took advantage of low interest rates and a thaw in the markets, and that means higher profits for S&P. The agency is paid by debt issuers to rate new deals, and contributes 75% of McGraw-Hill's earnings. Yet investors are shunning the company amid concerns about legal, regulatory and competitive risks to both S&P and its chief rival, Moody's (MCO). Shares of McGraw-Hill are down almost 20% since late August, to 27, while Moody's is off 18% since then, to 22. It probably hasn't helped sentiment toward either stock that Warren Buffett's Berkshire Hathaway (BRK.A) has trimmed its big stake in Moody's. The overhang has created a rare opportunity to buy McGraw-Hill at a historically low valuation, when its profit outlook is brightening. Shares of the New York company, which also owns a textbook publisher and a group of media assets including four ABC TV stations, some profitable trade publications and the ailing BusinessWeek magazine, now for sale, fetch 12 times projected 2009 profits of $2.25 a share, and 11 times estimated 2010 earnings of $2.55 a share. The current price/earnings ratio is about half McGraw-Hill's average P/E of 20 in the past decade. The stock carries a 3.3% dividend yield, and its free-cash-flow yield is 8.5%. That's derived by dividing the company's $8.5 billion market value by its estimated 2009 free cash of $720 million. "McGraw-Hill has a very attractive valuation, and there's an upward bias to earnings estimates," says Michael Meltz, an analyst at JPMorgan who rates the stock Overweight and has a price target of 35. "The stock trades at a discount to the market, and has been a laggard through the recent market recovery." The company's third-quarter earnings release, out later this month, could cheer investors if it shows renewed strength at S&P. Total profits are expected to fall to about $1 a share from $1.28 in the year-earlier period, partly reflecting weakness in textbooks. The fourth quarter could show a gain in profits compared with a year ago. Next year's results could benefit from a pick-up in the elementary- and high-school textbook business, currently pressured by state and local budget constraints. The debt-rating business appears to have bottomed, and media profits are expected to rise. Even if McGraw-Hill gets nothing for BusinessWeek and merely rids itself of the publication and its reported $40 million in annual losses, that could boost profits by nearly 10 cents a share in 2010. McGraw-Hill had operating earnings of $2.65 a share in 2008. The threats to S&P in the courts and in Washington — reflecting the fallout from disastrously misguided ratings on hundreds of billions of dollars of dubious mortgage securities and various structured entities — aren't trivial. But they appear unlikely to bury S&P or do much to dent the enviable 40% profit margins that helped make McGraw-Hill a winning stock for much of the past decade. The shares now are down 60% from their 2007 peak of 72. Investors may need some patience, because there have been dozens of lawsuits against McGraw-Hill that are unlikely to be resolved soon. This may help explain why the stock trades in line with the valuations of cigarette companies such as Altria (MO) and Reynolds American (RAI), although the tobacco industry has beaten back almost all the lawsuits against it. The doomsday prospect of multiple billion-dollar judgments against S&P looks remote. The Street got spooked last month when a federal judge in New York allowed a lawsuit against S&P to proceed despite the company's claims of First Amendment protection of ratings opinions. In the wake of that ruling, McGraw-Hill CEO Harold "Terry" McGraw III insisted that the decision was merely procedural, and didn't undercut the company's longstanding legal defenses. He said the company's overall legal risk is "low," while noting that McGraw-Hill is prepared for a legal "marathon." Terry McGraw declined to speak with Barron's. The bear case on the rating agencies has been made by David Einhorn, the hedge-fund manager who heads Greenlight Capital and whose public doubts about Lehman Brothers were vindicated. Einhorn has said the agencies wrecked their credibility with triple-A ratings on dubious mortgage securities, as well as inflated ratings on companies ranging from Lehman Brothers to American International Group (AIG) and Fannie Mae (FNM). He has characterized the ruling by the New York judge as a "game-changing decision" that could prove "devastating" to Moody's and S&P, which are being sued by a group that suffered losses on debt issued by Cheyne Finance, a specialized investment vehicle holding mortgage securities and other assets that collapsed in 2007. The plaintiffs claim the ratings were misleading and they allege fraud. McGraw-Hill points out that it's difficult to win a fraud case because it requires plaintiffs to prove that S&P knew its ratings were faulty when issued. Meltz, the JPMorgan analyst, agrees with the company. "The rating agencies have never lost a case in 100 years, so it's easy to view any chink in the armor as a 'game changer.' But their legal protections are ample," he wrote last month in a note to clients. Its subtitle: "Not every paper cut leads to gangrene." Among the numerous regulatory proposals in Washington are some that would make it easier to sue the rating agencies. The reality is that rating agencies have been under scrutiny since the Enron debacle in 2001, and they were the subject of legislation in 2006. None of this materially undercut the business or its profitability, and Meltz doubts that the outcome will be different this time. There has been greater competition in the ratings business in recent years, something Washington has sought to foster. S&P and Moody's remain the dominant global players, and it will be hard for an upstart to match the breadth of their ratings coverage. S&P has issued one million ratings on more than $32 trillion of debt. While institutional investors might grouse about its missteps, most still rely on the agency. Our sum-of-the-parts analysis, based on projected 2010 operating profits, suggests a conservative value for McGraw-Hill of $35 a share. This analysis, which relies in part on figures provided by an institutional investor, puts a multiple of eight on the pretax profits of most of McGraw-Hill's divisions, and a higher multiple of 11 on the attractive non-ratings part of S&P. Many investors don't recognize that about a third of S&P's revenue comes from outside the bond-rating business, and includes an equity-index division that licenses products such as the SPDR S&P 500 (SPY) exchange-traded fund that tracks the S&P 500 index, as well as Compustat and Capital IQ, which provide corporate financial data to investment professionals. Our valuation of the S&P bond-rating unit is significantly below what it historically had been accorded. At McGraw-Hill's current price, investors effectively may be paying less than five times projected pretax profits for the ratings business. Don't expect to see a breakup of McGraw-Hill. CEO McGraw is adamantly opposed to the idea, which we advocated in a 2006 article ("Free S&P," Jan. 30, 2006), when the stock traded at nearly double its current level. The McGraw family controls an estimated 10% of the stock, hardly enough to block a breakup attempt — but there never has been a serious push from investors to split the company, despite the lack of meaningful business synergies among the operating units and the stock's persistent discount to its sum of the parts. A breakup in 2006 might have benefited holders, because McGraw-Hill could have gotten $5 billion for its textbook business — about double its current estimated value. The media operations were worth more then than now. McGraw-Hill has endured losses at BusinessWeek for awhile, before trying to sell now at what could be a bottom. Our view in 2006 was that top management wasn't doing enough to justify corporate overhead; it totaled $106 million in 2008. Terry McGraw's main job, as we saw it, should have been to protect the lucrative S&P rating franchise, and he hasn't done a good job of that. But under his guidance, McGraw-Hill has maintained a strong balance sheet, with net debt at the end of the second quarter of $731 million. The company wasted money on an aggressive stock-buyback program in 2006 and 2007 when it spent $3.8 billion — almost half its current market value — to buy 65 million shares at an average price of $57. Legal risks and management mistakes seem well discounted now in McGraw-Hill's depressed stock. Investors are getting a chance to buy shares of a company with improving fundamentals in all its major businesses, a strong balance sheet and a historically low valuation. That's usually a good investment bet. The Bottom Line:At a recent 27, McGraw-Hill's shares have significant upside for patient investors. Our sum-of-the parts analysis pegs the company's value at 35 a share, or more. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.
Source: SmartMoney.com | 13 Oct 2009 | 10:00 pm 13 Tips to Slash Halloween Costs (Deal of the Day)For many consumers, the scariest thing about Halloween this year is the economy. Nearly a third of consumers say economic woes have affected their Halloween plans, and of that group, 88% say they intend to spend less, according to the National Retail Federation. The industry group expects an average tab of $56 — 15% less than last year — for candy, decorations, greeting cards and a costume. But there is good news for trick-or-treaters who would rather not advertise their cutbacks by dressing as a hobo or Bernie Madoff. Retailers are offering more sales and discounts this year to lure in consumers — and avoid an excess of holiday items to be marked down on Nov. 1, says Sok Verdery, the chief executive of deal site CouponShack.com. In fact, some of the best deals can be found during the week of Oct. 14-20, says Dan de Grandpre, the chief executive of sale tracker Dealnews.com. Expect discounts of up to 65% on costumes, with ample choices available, he says. Here’s how to save on all the trappings for a spooky Halloween: CostumesPurchase last year’s model. Designers reinvent classic costumes each year, offering new takes on princesses, clowns and other popular themes, says Verdery. But aside from the price, there’s rarely much difference. At BuyCostumes.com, a child’s pirate captain costume is on clearance for $18 — less than half the “New for 2009” version’s $40 price. Scour for coupons. Sites like CouponShack.com, RetailMeNot.com and Savings.com offer codes for free shipping or additional discounts that can often be paired with retailer’s sales. For example, use code EERIE99 at CostumeExpress.com and save 15% on an order of $70 or more. Search your closet. “Oftentimes, the better costumes are the ones people put their personal creativity into,” says Ben Armstrong, the president of the Haunted House Association, an industry group. Here’s how to turn the contents of your closet into a free costume:
DecorationsFocus on lighting. “You can change the whole appearance of your home very cheaply with the right lighting,” says Armstrong. Move your existing outdoor lights to cast spooky shadows instead of brightly-lit areas. Can’t shift a light’s direction? Place a tree branch in the light’s path to project the shape on a larger scale. Candles and white holiday lights can also add to the mood. Download creepy sounds. Hunt for free soundtracks online to download or stream from your computer. Halloween-Sounds.com offers free tracks for home entertainment. Or you might set up scary movies on your TV. Think seasonal, not Halloween. Don’t fork over cash for a giant latex spider or an inflatable coffin ($26 and $53, respectively, at HalloweenExpress.com). Bales of straw, uncut pumpkins and gourds can decorate your doorstep through Thanksgiving, Verdery says. They’re cheap, too. A bale of straw goes for $3.85 at Family Home & Garden in Raleigh, N.C. After the holidays, recycle it as garden or flower bed mulch to cut garden costs next year. Shop around for pumpkins. A wet spring has farmers across the country reporting smaller harvests and wimpier pumpkins than in previous years. Before you buy, call around to compare prices and ask about selection. In the Washington, D.C., area, for example, Homestead Farms charges 59 cents a pound, while Crooked Run Orchard charges 45 cents a pound. For a 15-pound pumpkin, that’s a $2.10 difference. CandyBuy in bulk. Get friends, neighbors or family members together to purchase big bags from a warehouse club or discount online distributor, Verdery says. A one-pound bag of Tootsie Rolls will set you back about $5 at drugstores; on Amazon.com (AMZN), a five-pound bag is $15. That’s like getting two pounds free. Eliminate chocolate. On a per-piece basis, hard candy is usually cheaper. At CandyWarehouse.com, 100 fun-sized M&M packs cost $29.50, or roughly 30 cents apiece. In comparison, 300 Smarties candy rolls are $15, or five cents each. Skip candy. Many kids appreciate other treats buyable in bulk, like temporary tattoos, decorated pencils or stickers, says Todd Mark, the vice president of education for Consumer Credit Counseling Services of Greater Dallas. OrientalTrading.com has 72-packs of Halloween tattoos for $2.99 to $4.99 each. You can also hang onto leftovers for next year without worrying about expiration dates. ActivitiesGet scared on a weekday. Haunted houses and other attractions see fewer visitors during the week. “It’s incredibly creepy,” says Armstrong. “Sometimes you have the place to yourself.” Smaller crowds can yield price breaks, too. Fright Planet in Sacramento knocks $3 off its $20 price tag for weeknight visitors. Seek out freebies. Churches, schools and local groups host plenty of free fall festivals, parades, haunted houses and costume contests, so check local news reports for what’s going on locally, Mark says. Combine activities. Many farms with pumpkin patches and apple orchards also offer low-priced fall entertainment. Carleton Farm in Everett, Wash., offers free hayrides, a tube slide for kids and access to some of the farm’s animals. On the weekend, there’s a cannon that shoots pumpkins across the fields. They also have a four-acre corn maze, priced $6 for adults and $4 for kids. SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.
Source: SmartMoney.com | 13 Oct 2009 | 10:00 pm Intel glides past Street expectations, cheers marketSAN FRANCISCO (Reuters) - Intel Corp's quarterly outlook and results soared past expectations on Tuesday, sending shares 7 percent higher and fueling optimism over a tech sector recovery before the crucial holiday season.Source: Reuters: Business News | 13 Oct 2009 | 9:31 pm Pepsi, Anheuser to jointly buy goods, servicesLOS ANGELES (Reuters) - PepsiCo and Anheuser-Busch have agreed to jointly purchase goods and services, from computers to travel, in the United States in a move one expert called a first for large companies.Source: Reuters: Business News | 13 Oct 2009 | 9:28 pm Genesis unveils $136m loss, misses every performance targetGenesis Energy has reported a full year loss of $136 million after writing down by $183 million the value of its Huntly power station and warning that the 1000MW plant will only be available for national energy security purposes if...Source: nzherald.co.nz - Business | 13 Oct 2009 | 9:15 pm Financial recovery will take 20 years, says EnglishOne of the worst yearly economic turnarounds in New Zealand's history will take 20 years to recover from, Finance Minister Bill English said today.The final government accounts for the year ended June showed a dramatic $12.9 billion...Source: nzherald.co.nz - Business | 13 Oct 2009 | 9:00 pm Property sales jump 10pc in SeptemberThe first month of the 'spring selling season' saw the the number of houses sold jump 10 per cent from the month before, while the national median house sale price was steady, rising 0.9 per cent.Figures released this morning...Source: nzherald.co.nz - Business | 13 Oct 2009 | 8:30 pm Solid Energy profits, dividends well below forecastSolid Energy has reported a record $110.8 million profit in the year to June 30, but the state-owned enterprise is disappointed because it is below half of forecast.The coal miner had planned to pay the Government $100m in dividends...Source: nzherald.co.nz - Business | 13 Oct 2009 | 8:00 pm Fletcher sees Formica sales lift, building products pick-upFletcher Building said Formica sales will rise after the laminates unit completes its global restructuring while demand for building products will increase as global economic growth returns.The housing market seems to have turned...Source: nzherald.co.nz - Business | 13 Oct 2009 | 8:00 pm MBA: Foreclosures, unemployment to peak next year (AP)AP - Foreclosures will peak by the end of next year and unemployment will climb above 10 percent as the housing market and U.S. economy grapple with the aftermath of the recession, the Mortgage Bankers Association's chief economist said Tuesday.Source: Yahoo! News: Business | 13 Oct 2009 | 6:21 pm Ex-Bear trial jury chosen, some ousted for biasNEW YORK (Reuters) - Two prospective jurors who wrote comments about "wrongdoing" and "bending the rules" on Wall Street were rejected by a U.S. judge on Tuesday for the trial of two former Bear Stearns Cos hedge fund managers on fraud charges.Source: Reuters: Business News | 13 Oct 2009 | 6:19 pm Last orders for Newcastle Brown brewery before shift to YorkshireA Friday night down the Bigg Market downing a few “Newky Browns” is a long-established tradition for the young men of Newcastle. Somehow, Tadcaster Brown Ale doesn’t quite have the same ring to it. Source: Latest Business News from Times Online | 13 Oct 2009 | 6:01 pm Alan Sugar turns on the charm for the people who matterFor four months ITV News has been tracking a group of college-leavers — six youngsters who left Bournville College in Birmingham in June. I am supposed to treat them like lab rats — coldly following their progress, or lack of it, and making note of how their age group could be the much-toted “lost generation”. Only it doesn’t work like that. Source: Latest Business News from Times Online | 13 Oct 2009 | 6:01 pm How to . . . get ready for the festive seasonDo it now Source: Latest Business News from Times Online | 13 Oct 2009 | 6:01 pm Royal Bank of Scotland may be told to sell 300 branchesRoyal Bank of Scotland could be made to sell more than 300 branches by the European Commission as a penalty for receiving billions of pounds of state aid. Negotiations between the Treasury, the Commission and RBS, which is 70 per cent owned by the taxpayer, were last night intensifying. Source: Latest Business News from Times Online | 13 Oct 2009 | 6:01 pm Backslash: web creator Sir Tim Berners-Lee apologises for his strokesA light has been shone on one of the great mysteries of the internet. What is the point of the two forward slashes that sit directly infront of the “www” in every internet website address? Source: Latest Business News from Times Online | 13 Oct 2009 | 6:01 pm Court finds against Telecom over high-speed data pricingThe High Court at Auckland has found that from 2001 to 2004 Telecom leveraged its position to charge downstream competitors disproportionately high prices for wholesale access to its network.This prevented competitors from offering...Source: nzherald.co.nz - Business | 13 Oct 2009 | 6:00 pm Senate committee passes healthcare billDemocratic efforts to overhaul the US healthcare system passed an important milestone when a key Senate committee backed a centrist bill by a surprisingly clear majority.Source: Financial Times - US homepage | 13 Oct 2009 | 5:30 pm Bloomberg acquires BusinessWeekThe financial news and data provider Bloomberg agrees to buy BusinessWeek magazine, hit by falling advertising revenue.Source: BBC News | Business | World Edition | 13 Oct 2009 | 5:23 pm Bloomberg steps in to save BusinessWeek magazineFinancial media group Bloomberg has agreed to save BusinessWeek paying 2m5m £1.2m3.1m to buy the ailing business magazine.Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 13 Oct 2009 | 5:15 pm Kitchen worker received AIG ‘retention bonus’AIG’s ‘retention bonuses’ went to hundreds of employees in the insurer’s troubled financial products unit, including a kitchen assistant who received $7,700 in March, a US government report is set to revealSource: Financial Times - US homepage | 13 Oct 2009 | 5:15 pm Reserve Bank eases back on crisis measuresImproving global financial market conditions are prompting the Reserve Bank of New Zealand to withdraw several temporary crisis measures put in place last year to help ensure day-to-day liquidity.The changes will kick in from...Source: nzherald.co.nz - Business | 13 Oct 2009 | 5:15 pm Write-Offs: 10.13.09$$$ RBS is letting people look at its art as part of "a broader effort to showcase major changes at the bank." [Reuters] $$$ Prison Brawl: Who would you take in Madoff v. Martha? [CNBC] $$$ Bernanke: third most powerful man in DC (Geithner/Summers tied at 7)? [GQ] $$$ Bloomberg buying BusinessWeek [BW] $$$ Treasury Says AIG Should Lower Retention Payments [ABC] $$$ Citadel veterans start new firm [WSJ] 
 Sponsored Topics: CNBC - Wall Street Journal - American International Group - American Broadcasting Company - Bernard Madoff Source: Dealbreaker | 13 Oct 2009 | 5:12 pm Intel optimistic about the recoveryMicrochip maker Intel reported quarterly sales, profit and an outlook that easily beat Wall Street's estimates Tuesday, and said it is optimistic that demand for chips will continue to rise as the economy recovers.Source: Business and financial news - CNNMoney.com | 13 Oct 2009 | 5:10 pm Bloomberg scoops up Business WeekThe group promises to create ‘a new model for the business weekly’ after winning an auction for the 80-year-old US financial magazine with an offer worth just a few million dollarsSource: Financial Times - US homepage | 13 Oct 2009 | 5:05 pm Funky oligarchWhat motivates Alexander Lebedev?Source: BBC News | Business | World Edition | 13 Oct 2009 | 5:03 pm CNN: Health care plan gets 1st OKThe Senate Finance Committee passed a long-awaited $829 billion health care bill Tuesday by a 14-9 vote.Source: Business and financial news - CNNMoney.com | 13 Oct 2009 | 5:01 pm Big business blitz: It's all about jobsThe U.S. Chamber of Commerce, in an effort sure to rankle Democrats, is launching a multi-million dollar media blitz to promote job growth and raise alarm bells at what it sees as dangerous economic policies.Source: Business and financial news - CNNMoney.com | 13 Oct 2009 | 4:52 pm Tim Geithner And Larry Summers Will Shock You With Their Tennis Moves
A quick look at Summers suggests diving for drop shots isn't really his game, though opponents say he's deceptively agile. The typical Summers point will start with a cannon-like serve. If the return is weak, the bulky six-footer will cut the ball off and swing for a difficult angle. Each additional shot is more likely than the last to either be out or un-returnable--the shorter the rally the better. As a player, "Larry is very tenacious ... like his personality," says Bollettieri.
Sponsored Topics: Tennis - Sport - Nick Bollettieri - Instruction - Shopping Source: Dealbreaker | 13 Oct 2009 | 4:45 pm Intel earnings beat Wall Street forecastsIntel signals a strong holiday sales season for the computer industry, with third-quarter earnings well ahead of Wall Street expectationsSource: Financial Times - US homepage | 13 Oct 2009 | 4:27 pm RBS eyes 300 branches sell-offThe group is exploring a government-backed plan to give up its branded branches in England and Wales, in a radical move to satisfy Brussels state aid authorities that could be achieved through a sale or a flotationSource: Financial Times - US homepage | 13 Oct 2009 | 4:16 pm Mixed J&J earnings leave investors little to cheer (AP)
Source: Yahoo! News: Stock Markets News | 13 Oct 2009 | 4:02 pm Marshall on Apple, Boyle on Corporate Earnings, Stocks: AudioSource: Bloomberg - All Podcasts | 13 Oct 2009 | 3:53 pm FHA Will Have No Part Of Higher Standards
Quite right. You need somebody willing to take on the risk of default, whether they know it or not. Like the taxpayer. FHA Head Rejects Calls for Higher Down Payments [WSJ].
Sponsored Topics: Mortgage - Federal Housing Administration - FHA - Scott Garrett - United States Congress Source: Dealbreaker | 13 Oct 2009 | 3:49 pm How the major stock indexes fared on Tuesday (AP)AP - Investors grew cautious Tuesday after quarterly sales at Johnson & Johnson fell short of expectations and an influential analyst stirred worries that bank shares are overheated. Most stocks posted modest losses, a day after finishing at their best levels in a year.Source: Yahoo! News: Stock Markets News | 13 Oct 2009 | 3:48 pm Healthcare overhaul bill clears Senate Finance CommitteeSen. Olympia Snowe is the sole Republican to side with Democrats as the bill passes, 14 to 9. Her support for the bill requiring health insurance for all Americans is seen as victory for Obama.Legislation that would transform the nation's healthcare system cleared a significant hurdle today as the Senate Finance Committee voted 14-9 for a sweeping overhaul.
Source: L.A. Times - Business | 13 Oct 2009 | 3:41 pm Letter: 'Americans Ought To Worry About China's Rise'Philip T. writes from China: I am a graduate student in Chinese history currently here in China for what will be a year doing research for my Ph.D. I very much agree with Kishore Mahbubani's observation that the Western (esp. American) media seems employ a "self-congratulatory discourse" that exaggerates the shortcomings of China and its competitive disadvantages vis-a-vis the U.S. In most cases, I know there is no malicious or conspiratorial intent behind the rhetoric. I am no apologist for the current regime; nor am I ignorant of the economic, political, social, and environmental problems China faces. I think the issues your show and others raise are real, and I also think that Chinese society itself would benefit from a more open and free discussion of the multitude of problems China faces. Nonetheless, I think that many Western journalists have employed the same boilerplate language or unquestioned ideas for so long (i.e. "countries can't develop a modern economy without democracy/civil society/creativity/etc.") that they have failed to see what really is happening on the ground in China. I think Americans ought to worry about China's rise not because they should fear the rise of a formidable competitor, but because it seems that the U.S. is simply not ready for the challenge. China has kept its fiscal house in order, amassed huge foreign reserves, and has flexed its diplomatic muscle on the world stage. It sells *useful* manufactured goods while the U.S. exports agricultural products (e.g. chicken feet) and mountains of debt. Its focused leadership has delivered tangible (if uneven) economic prosperity to many people. The gleaming infrastructure and rising standards of living are real. The U.S., on the other hand, seems stuck in engaging in solipsistic political, social, and cultural debates that are diverging further and further from reality as more and more challenges emerge. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 13 Oct 2009 | 3:16 pm Standard Chartered’s Smith Sees Consumer Gold Interest: AudioSource: Bloomberg - All Podcasts | 13 Oct 2009 | 2:54 pm Bid On Bernie's Shaggin' Wagon
Sponsored Topics: Rolls-Royce - Mercedes-Benz - Bentley - auto - Makes and Models Source: Dealbreaker | 13 Oct 2009 | 2:34 pm 52-Week High ClubPier 1 Imports Inc. (NYSE: PIR) rallied over 11% to a yearly high of $5.01 after Dow Jones reported that the company had entered into an agreement to sell its St. Charles Ill. distribution center $11 million. ResMed Inc. (NYSE: RMD) hit a yearly high of $47.90 after analysts at Credit Suisse upgraded the stock. Bitstream Inc. [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 13 Oct 2009 | 2:33 pm Intel Bedazzles (INTC, SMH, USD)Intel Corporation (NASDAQ: INTC) has just reported earnings and gave guidance for the quarter ahead. The processor giant posted $0.33 EPS and $9.39 billion in revenues. Consensus estimates from Thomson Reuters were $0.28 EPS and $9.04 billion in revenues. Gross margin also came in 57.6%, above expectations of 54%. Intel gave guidance of $10.1 billion [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 13 Oct 2009 | 2:20 pm Conseco Scores Paulson & Co. Investment (CNO)Conseco, Inc. (NYSE: CNO) was a mixed blessing today after the close. The firm is diluting shareholders with a secondary offering, but it also announced that the esteemed firm Paulson & Co. is taking 16.4 million shares and additional warrants for another 5 million shares. This is listed as an aggregate purchase price of $77.9 [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 13 Oct 2009 | 2:15 pm Goldman bonuses raise Wall Street barGoldman Sachs' bonus pool is reportedly $23 billion -- a figure Goldman disputes. Whatever the number turns out to be when Goldman reports profits on Thursday, it won't convince anybody that Wall Street has changed its ways. Jeremy Hobson reports.Source: Marketplace | 13 Oct 2009 | 2:04 pm Depression diary has recession lessonsA diary written during the Great Depression by a young lawyer named Benjamin Roth is now a book edited by his son, Daniel Roth, and James Ledbetter. The editors talk with Kai Ryssdal about what the diary means for today.Source: Marketplace | 13 Oct 2009 | 2:03 pm How to pick jurors for Wall Street trial?As jury selection continues in the trial of two former Bear Stearns hedge fund managers, Kai Ryssdal talks with trial consultant Susan MacPherson about how lawyers pick jurors for such complex and high-profile cases.Source: Marketplace | 13 Oct 2009 | 2:03 pm More Agent Orange vets to benefitThe Veterans Administration plans to expand the list of illnesses it recognizes as caused by exposure to the herbicide Agent Orange, making Vietnam vets with those illnesses eligible for government-paid treatment. John Dimsdale reports.Source: Marketplace | 13 Oct 2009 | 1:48 pm Valuation Exercises At Wharton
Sponsored Topics: Business school - Frank Reynolds - Education - Business - Colleges and Universities Source: Dealbreaker | 13 Oct 2009 | 1:48 pm Facebook to discern companies, fansFacebook is home to hundreds of pages dedicated to companies and products, and lots of them look official. But how do you separate real pages from pages established by fans? The social networking giant is going to find out. Alisa Roth reports.Source: Marketplace | 13 Oct 2009 | 1:24 pm Presented By:Source: Dealbreaker | 13 Oct 2009 | 1:23 pm Photo Of The Day: The Situation Is Fluid
Sponsored Topics: Charlie Gasparino - Physics - Fluid Mechanics and Dynamics - Arts - Companies Source: Dealbreaker | 13 Oct 2009 | 1:23 pm Deep job cuts ‘give US groups an edge’US companies cut far more jobs than their European rivals during the crisis, possibly explaining why American groups are performing better than their overseas competitorsSource: Financial Times - US homepage | 13 Oct 2009 | 1:12 pm Case checks business roles in apartheidA lawsuit against several multinational companies accused of working with South Africa's former apartheid government could set a new standard for corporate accountability overseas. Gretchen Wilson reports.Source: Marketplace | 13 Oct 2009 | 12:57 pm Damning Evidence Emerges From Dance Of Near Death CaseAt some point this morning, investor relations girl Christine Mancision pulled her LinkedIn profile, presumably because her bosses at Luxor Capital Group didn't appreciate having their name associated with Mancision's war on dancing. In reality, it seems as though the real reason was because girlfriend's got something to hide.
Sponsored Topics: Investor relations - Dance - Business - Financial Services - Investment Banks Source: Dealbreaker | 13 Oct 2009 | 12:56 pm Zandi Sees Little Traction for U.S. Recovery in 2010: AudioSource: Bloomberg - All Podcasts | 13 Oct 2009 | 12:56 pm Put Options on ETFs Offer Market Volatility Protection: AudioSource: Bloomberg - All Podcasts | 13 Oct 2009 | 12:54 pm US Natural Gas ETF Discloses Strategy Changes & Risks (UNG)The United States Natural Gas (NYSE: UNG) is disclosing some current and future changes to its investment vehicle strategy in its attempt to manage its size and to track the price moves of natural gas. While the aim and goal of the ETF is to still trade around the price moves of natural gas, the [...][[ This is a content summary only. Visit my website for full links, other content, and more! ]]
Source: 24/7 Wall St. | 13 Oct 2009 | 12:50 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 Tuesday:Source: Yahoo! News: Stock Markets News | 13 Oct 2009 | 12:46 pm Overwhelmed by check-out-line charityIt's becoming more common for grocery store shoppers to be asked to contribute to charities while they're in the check-out line. Those small contributions can add up for worthy causes, but there are hidden costs involved. Michael May reports.Source: Marketplace | 13 Oct 2009 | 12:33 pm Census Bureau Says Foreclosures Make 2010 Count More Costly
"Just one among scores of foreclosed/bank owned houses I saw in a Latino community at North Las Vegas." (Cartographer / Flickr Creative Commons) By Laura Conaway It's a foreclosed world out there. From the AP: The Census Bureau director says foreclosures will make it tougher and more expensive for census workers to get an accurate count of families next year. Director Robert Groves said Tuesday in Los Angeles that he expects some questionnaires will land at empty homes in areas hard hit by the housing crisis. That means workers will need to make more door-to-door visits, which costs more money. Groves says 2010 census workers will look for the newly homeless and people doubling up with relatives. » E-Mail This » Add to Del.icio.us
Source: NPR Blogs: Planet Money | 13 Oct 2009 | 12:13 pm Milev Likes Consumer, Domestic Stocks in Russia: AudioSource: Bloomberg - All Podcasts | 13 Oct 2009 | 12:09 pm UK To Introduce Revolutionary Approach To Mortgage Lending
Sponsored Topics: Mortgage - Financial Service Authority - Business - Loan - FSA Source: Dealbreaker | 13 Oct 2009 | 12:08 pm Posco Raised to `Buy’ at Goldman Sachs: AudioSource: Bloomberg - All Podcasts | 13 Oct 2009 | 12:04 pm Trennert Discusses U.S. Inflation, Dollar Weakness: AudioSource: Bloomberg - All Podcasts | 13 Oct 2009 | 12:00 pm Freedman Says Intel’s Server Sales Are Very Strong: AudioSource: Bloomberg - All Podcasts | 13 Oct 2009 | 11:51 am Stretch Says Vivendi Sale of 20% NBC Stake Is Likely: AudioSource: Bloomberg - All Podcasts | 13 Oct 2009 | 11:30 am Hedge Fund Investor Relations Girl's Dance Of Near Death Cautionary Tale For Us All
Sponsored Topics: New Jersey - Hedge fund - Business - Investor relations - Dance Source: Dealbreaker | 13 Oct 2009 | 10:58 am Ambitious Asian banks on the marchFlood of deals by Asian institutions seizes advantage of western rivals’ weaknessSource: Financial Times - US homepage | 13 Oct 2009 | 10:53 am FTSE 100 down 1.08% (AFP)
Source: Yahoo! News: Business | 13 Oct 2009 | 10:39 am FTSE 100 down 1.08% (AFP)
Source: Yahoo! News: Stock Markets News | 13 Oct 2009 | 10:39 am The Business of Amphibious Vehicles: An Interview with Gibbs’ Neil Jenkins
Gibbs Technologies brings you one step closer to living like James Bond. That’s not their tag line–they promote themselves more discreetly than that. But when you tear up the highway in your sports car, drive it into the water, flick a switch, and glide down a river, perhaps stopping to wave at passing gawkers, you know it inside: You are 007. Gibbs calls it High Speed Amphibian technology (HSA). We call game-changing fun. Gibbs’ HSA vehicles include the Aquada, a sports car that converts into a speedboat; the Quadksi, a quad/jetski combo, and the Humdinga, a Hummer-like 4WD vehicle that cruises on land and water. Their patented technology, which took more than a decade to develop, can also be licensed to turn any car into an amphibian.
New Zealand business tycoon Alan Gibbs first tried the concept in 1995. Several years later, multitalented automotive engineer Neil Jenkins partnered with Gibbs to perfect the vehicles’ engineering. Jenkins assembled a group of engineers who, with Gibbs, mastered the design of what will likely become the world’s first mass-production amphibious vehicles. Jenkins is now the Chairman of Gibbs Technologies. Business Pundit caught up with him to explore the business behind Gibbs’ groundbreaking inventions. (Read more about the vehicles’ fascinating technology here.) BP: Why has it taken your products so long to hit the market? Jenkins: Several reasons. First, until Gibbs Technology came along, an awful lot of people tried to do what we do, and failed completely and utterly. In fact, the US government gave General Dynamics millions to do what we do, build an expeditionary amphibious vehicle. They have not performed that well, to our knowledge so far, and that’s because it is extremely difficult to do. As an engineering challenge, you are right at the limit of knowledge and of technology, so it’s a very difficult task. The first 3-4 years were us trying to work out the science behind what we needed to do. Once we had finished all the solutions we needed, we spent a couple of years working on the product design, because there’s no better way to test engineering in action than putting them into reality. That took us a few years. In 2003 I think it was, we had a press release of the technology and showed the Aquada for the first time. We were looking to put that into low-volume production at the end of 2004. Unfortunately, our engine supplier at the time, Britain’s Rover, went into bankruptcy, and we lost our engine supplier. We decided that rather than sell any of the 50 vehicles that we made, we would be better served to keep those to ourselves, and search for a new engine, so that we could put a proper product line on the market and not have an interruption in terms of the product’s availability. Because it takes several years to actually put a new engine in, first find a source of a new engine, then integrate it into the vehicle, and meet the appropriate regulations for emissions and so on, it’s quite a lengthy task.
BP: Who is your civilian target market? Jenkins: The beauty of our products is that all products we’re working on covers the spectrum of potential consumers. For example, the Quadski, at one end of the scale, is relatively low-cost. It’s for off-road and marine use. That will appeal, I think, to a lot of younger people and sportsmen who want a fun vehicle. At the other end of the scale, we have first responder vehicles. These are unique vehicles for specific rescue applications, flood rescue, and that sort of thing. They will look expensive to the man in the street, but to the first responder community, they will represent great value for the money. At the moment, if there is a flood rescue issue, those guys have to mobilize trucks, boats, helicopters, all sorts of things, in order to rescue people. With our technology, they will be able to leave the fire depot or whatever depot they’re coming from, drive to the area where the service is needed, drive into the water–and if necessary back onto land or into water–to get to the point of need. Currently, they don’t have a vehicle that does that, so it’ll be a real step forward in rescue vehicles. They’ll be performing rescues on real people in reasonable health rather than recovering bodies. BP: What market do you think the Gibbs vehicles will affect the most? Jenkins: We’re not looking at encroaching on any existing market or take any existing market share from anyone. We’re not competing with a car that someone wants to go shopping in, or a sports boat that people only want to use on the weekend. I think it’ll be a completely new way of using transport. We’re in a completely different class of purchase. We’ll be competing for money against other forms of transport, I guess, but we have such a unique differentiator that we probably won’t be classed in the same way as a car. For example, if someone wants to do what we do, which is build normal road transport and good water transport, they would have to buy a boat, a trailer, and a truck to tow it all. Launching a boat takes time and skill. We’re a vehicle where they could combine all three of those items. Instead of having to store one for some of the time, they could buy and use our vehicle very simply. They could go straight from land to water. (With our vehicles), it takes 5 seconds to transition from a land vehicle into a boat. Once it’s transitioned, it takes 5 seconds or less to be heading out onto (the water), doing 30-35 miles per hour, which is a respectable speed for any motor boat. BP: Is it legal to drive into a river in most countries? Jenkins: In most countries, there is nothing to stop you launching a boat in any water, as long as you comply with the laws of the land and the water authority, (although) there are areas where there are some speed restrictions, there are areas protected from navigation. Generally, you can take almost any of the major cities in the world, including New York, London, Sydney, all sorts of places. There’s nothing that stops you driving down an available ramp and into a river, cut some traffic and get into the water and get out somewhere else. All you need is the infrastructure to get in and out of the water, which many cities have. I’m not sure about Manhattan, whether that has many boat ramps, but for example, London has many boat ramps on the Thames.
BP: The first phase of the concept was designed in Detroit, if I understand correctly from the Gibbs story. Does that mean that Ford, GM, or Chrysler–or some of their technologies, employees, or know-how–were involved? During that time, we liaised with a lot of the major suppliers and spoke to the Big 3 in terms of looking for engines and drive train components, but we’ve never had a formal relationship with any of those people. We certainly keep a good look out in terms of what they’re working on and what they’re doing, just in case there’s any source of course, but we don’t have a formal relationship, no. Jenkins: That’s a difficult question. I think over the past several years, in our work with different groups, including the military and so on, there’s no doubt in my mind that the technology is very useful and provides a completely new dimension to transport. My hope will be that it doesn’t take a long time for people to recognize that and then start using it. I hope that people are excited by the technology and excited by the opportunity that it affords them in terms of opening up their transport boundaries. It’s the ultimate off-road vehicle in the sense that you no longer need land. But the primarily it’s a boat that can launch itself and can recover itself. My hope is that the technology is understood and appreciated and that the market develops quickly. Neil Jenkins’ most recent challenge, at time of writing, has to do with the US regulatory environment. Visit Gibbs Technologies’ website to find out more about their products and upcoming releases.
Source: Business Pundit | 13 Oct 2009 | 10:11 am Chart: Lack Of Credit Threatens Economy
Chart by High Frequency Economics. By Laura Conaway Got this note and the chart above from Carl B. Weinberg of High Frequency Economics. Weinberg writes about the shrinking of credit in the eurozone and Britain: Analysis of money and credit growth over centuries has taught economists the following lesson: No economy has ever grown without an accommodating increase in money and credit. One does not have to be an economist to see this contraction of money and credit as an unambiguous signal that these economies must contract, probably in a deflationary environment. Weinberg, a decided bear, predicts we'll see the effects of shrinking credit by the end of this year. He continues: We have already seen a retraction of bank lending to households wreak havoc with consumers' expenditures -- particularly expenditures on consumer durables, autos and homes. Households are increasing their savings rates -- paying down credit, or simply not borrowing more -- and this has caused a major economic contraction. Call this the first leg of what we now expect will be a much bigger global economic downturn. We fear that companies will fail for lack of credit to finance inventories -- which remain too high relative to sales anyway -- working capital to fill orders and trade. A new round of layoffs will ensue. These failures and job losses will permanently damage the economy. Not a very cheery outlook, right? Bonus: Credit Tightens for Small Businesses » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 13 Oct 2009 | 9:37 am Cisco Buys Starent Networks for $2.9 billion
Cisco will acquire networking products company Starent for $2.9 billion. Tech consolidation fever continues. The Wall Street Journal has more: Cisco will pay $35 a share for Starent, a Tewksbury, Mass., maker of software and gear for wireless carriers. That represents about a 21% premium over Starent’s closing stock price of $29.03 Monday on the Nasdaq Stock Market. Cisco, based in San Jose, Calif., expects the deal to close during the first half of 2010. The acquisition is likely to increase Cisco’s ability to help carriers manage the data moving across their wireless networks, said Ned Hooper, chief of Cisco’s strategy office. The amount of data that travels on these networks is set to double each year until 2013 as people increasingly access the Internet via their mobile devices, according to Cisco. Upon completion of the deal, Starent is to become the Mobile Internet Technology Group within Cisco’s service-provider business. The new group is to be managed by Starent Chief Executive Ashraf Dahod.
Source: Business Pundit | 13 Oct 2009 | 9:06 am TSX extends drop as banks weigh (Reuters)Reuters - Toronto's main stock index deepened an early decline on Tuesday morning, led lower by Royal Bank of Canada and other banks as they tracked weakness in U.S. financial issues.Source: Yahoo! News: Stock Markets News | 13 Oct 2009 | 8:24 am BofA agrees to give more details on Merrill (Reuters)
Source: Yahoo! News: Stock Markets News | 13 Oct 2009 | 8:08 am How to Correctly Manage a Pessimist
The Harvard Business Review has a valuable article on managing pessimists in your team. Among the tips:
Source: Business Pundit | 13 Oct 2009 | 7:36 am A Japanese Take on American Police
Source: Business Pundit | 13 Oct 2009 | 6:00 am AIG to sell Taiwan insurance unit for $2.15 billion (Reuters)
Source: Yahoo! News: Business | 13 Oct 2009 | 5:32 am Bank Of America Plays Nice. Plus: Gold, Chicken Wings Rise In ValueBy Laura Conaway Good morning, and welcome to our Tuesday reading list. Bank of America says it will give the New York attorney general documents that show the legal advice it got while making a deal to buy Merrill Lynch last year. Insiders say the bank is playing nice as part of a strategy to settle investigations into what it knew about a plan for bonuses at Merrill. The trial begins for two former Bear Stearns hedge fund managers with jury selection today. It's the only major criminal case to yet develop from the global economic meltdown. Lots more talk about when the Federal Reserve will raise interest rates again. Latest short answer: When unemployment falls. Meanwhile, gold hit a new record of $1,066.70 an ounce. If you've got big bucks parked in secret accounts overseas, you've got until Thursday to let the IRS know or face prosecution for tax evasion. A couple of hints about how we live now: First, in the category of closed systems, some coal plants that agreed to keep pollutants out of the air are dumping them in the water instead. Second, in the category of supply and demand, the recession has turned the market for chicken upside down, with wings now the expensive part. » E-Mail This » Add to Del.icio.us Source: NPR Blogs: Planet Money | 13 Oct 2009 | 5:28 am
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