Yahoo!’s renewed focus boosts its profits

Yahoo!’s decision to cut jobs and concentrate on its core businesses as an internet media company has resulted in a tripling of profits from a year ago.


Source: Latest Business News from Times Online | 21 Oct 2009 | 3:30 pm

Japan automakers look beyond U.S. as strong yen bites (Reuters)

Reuters - Japanese automakers such as Honda and Nissan want to reduce their reliance on the U.S. market, where weak demand and a falling dollar have slashed profits, even as a poor turnout at their flagship auto show highlights the challenges at home.

Source: Yahoo! News: Business | 21 Oct 2009 | 4:33 am

Cadbury raises targets in face of Kraft bid

The UK confectionery group, which is seeking to fend off an unwanted approach from Kraft of the US, raised its full-year financial targets following a strong third quarter
Source: Financial Times - US homepage | 21 Oct 2009 | 4:23 am

Yahoo sales falter

Yahoo Inc. raised its outlook for the rest of the year on Tuesday as it reported third-quarter earnings that blew past analysts' forecasts.
Source: Business and financial news - CNNMoney.com | 21 Oct 2009 | 4:22 am

Ahead of the Bell: Wells Fargo earnings on tap

Wells Fargo & Co., the nation's fourth largest bank by assets, is set to report its third-quarter results before the market opens on Wednesday. The market wants to see signs that loan...
Source: RSS feed - channel BNewsBusiness | 21 Oct 2009 | 4:21 am

Continental loses $18 million in third quarter

Continental Airlines Inc. lost money in the third quarter as business travelers stayed home, causing a nosedive in airline revenue. But not everything was bleak for Continental. Traffic...
Source: RSS feed - channel BNewsBusiness | 21 Oct 2009 | 4:20 am

Fiat reports 3rd straight quarterly loss

The Italian automaker Fiat Group SpA has posted its third straight quarterly loss due largely to falling sales of trucks and construction and farm equipment. Wednesday's earnings release
Source: RSS feed - channel BNewsBusiness | 21 Oct 2009 | 4:19 am

Dell sees Windows 7 sales boost in mid-2010

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 21 Oct 2009 | 4:17 am

Google Music is Coming Soon

TechCrunch reports that Google will soon launch a new music service. As of yet, they don’t have many details of what Google Music (or Google Audio?) will look like:

Google will soon launch a music service, we’ve heard from multiple sources, and the company has spent the last several weeks securing content for the launch of the service from the major music labels. One source has referred to the new service as Google Audio.

We’re still gathering details, but our understanding is the service will be very different to the Google China music download service that they launched in 2008. That service, which is only available in China, allows users to search for music and download it for free.

This new service will be available for at least U.S. users, our sources confirm, although it isn’t clear if it’s a download or streaming service, or both. Google already has a decent (if little used) music search engine that can be accessed by simply typing “music:” before a query (example). But songs are not available for streaming or download from those searches.

Is Google going to try to take on iTunes? And Spotify? It’s nice to see more competition in this space.

Source: Business Pundit | 21 Oct 2009 | 4:16 am

Macau: The New Las Vegas

Based on industry figures, Las Vegas casinos will only bring in about $4.8 billion this year. Receipts in Macau rose 22% to $3.8 billion in the third quarter. While casino companies lose money in Nevada, their counterparts in Asia are making a fortune. Several US casino companies have raised money in IPOs in China. Wynn (NASDAQ:WYNN) recently [...]

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Source: 24/7 Wall St. | 21 Oct 2009 | 4:08 am

Tax credits boost Deutsche profit

Deutsche Bank says it expects to report a three-fold increase in profits for the July to September quarter to 1.4bn euros.
Source: BBC News | Business | World Edition | 21 Oct 2009 | 4:05 am

Indications: U.S. stock futures point to second straight dip

U.S. stock futures point to a second straight day of declines, ahead of a slate of earnings from Wells Fargo and Morgan Stanley and an assessment of the economy from the Federal Reserve.

Source: MarketWatch.com - Top Stories | 21 Oct 2009 | 4:05 am

Profit for Silverstone circuit

Silverstone Holdings, which hosted its last British Grand Prix this year, says it made a £600,000 operating profit in 2008.
Source: BBC News | Business | World Edition | 21 Oct 2009 | 4:02 am

Earnings Watch: Updates, advisories and surprises

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

Source: MarketWatch.com - Top Stories | 21 Oct 2009 | 4:01 am

Dell sees Windows 7 boost starting mid 2010

HONG KONG (Reuters) - Demand for computers from large companies is likely to pick up by as soon as mid-2010 as a result of Microsoft's launch this week of its Windows 7 operating system, a senior Dell executive said on Wednesday.
Source: Reuters: Business News | 21 Oct 2009 | 3:56 am

Home sales rise in summer months

Property sales in the UK picked up over the summer months, according to figures from HM Revenue & Customs.
Source: BBC News | Business | World Edition | 21 Oct 2009 | 3:53 am

The Idea Of Breaking Up The Largest Banks Gains Ground

Former Fed chief Paul Volker has argued that America’s largest banks should be broken up to prevent a situation in which another credit crisis would force the government to spend hundreds of billion of dollars to rescue them.  Almost no one in the Administration or Congress is listening to him. The New York Times reports that “The only [...]

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Source: 24/7 Wall St. | 21 Oct 2009 | 3:52 am

Equitable Life: more policyholders in line for compensation as Government backs down

Equitable Life campaigners have secured a victory after the Government said it would not challenge the findings of a landmark High Court ruling made last week.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 21 Oct 2009 | 3:50 am

China bank regulator sounds credit-risk warning

China banking regulators warned Wednesday about rising risks in the sector and urged banks to keep their lending within reasonable levels, according to a media report Wednesday.

Source: MarketWatch.com - Top Stories | 21 Oct 2009 | 3:48 am

China's Volvo bid may stall over intellectual property

HONG KONG (Reuters) - Geely Holding's attempt to buy Ford Motor Co's Volvo car unit is in danger of stalling over disagreements about intellectual property rights, a source close to the talks said on Wednesday.
Source: Reuters: Business News | 21 Oct 2009 | 3:47 am

World stocks lower ahead of more US earnings (AP)

AP - World stock markets fell modestly Wednesday after soft U.S. housing data reined in some of the optimism generated by a raft of better-than-expected earnings.

Source: Yahoo! News: Stock Markets News | 21 Oct 2009 | 3:46 am

World stocks lower ahead of more US earnings

World stock markets fell modestly Wednesday after soft U.S. housing data reined in some of the optimism generated by a raft of better-than-expected earnings. In Europe, the FTSE 100...
Source: RSS feed - channel BNewsBusiness | 21 Oct 2009 | 3:46 am

World stocks lower ahead of more US earnings (AP)

AP - World stock markets fell modestly Wednesday after soft U.S. housing data reined in some of the optimism generated by a raft of better-than-expected earnings.

Source: Yahoo! News: Business | 21 Oct 2009 | 3:46 am

UPDATE 3-Ferrovial's BAA sells Gatwick airport at a loss

* Ferrovial's BAA appealing a UK competition ruling * Ferrovial shares down 4.2 pct
Source: RSS feed - channel BNewsBusiness | 21 Oct 2009 | 3:44 am

Is it time to dump your ARM?

If you are among the 6.5 million homeowners who took out a low-rate adjustable-rate mortgage during the housing boom, you've probably spent the past couple of years waiting for your day of reckoning to come.
Source: Business and financial news - CNNMoney.com | 21 Oct 2009 | 3:44 am

Economic Report: Pound rallies as BOE affirms wait-and-see stance

Bank of England policymakers unanimously agreed earlier this month to hold off on making any changes to their money-printing quantitative easing program, according to minutes released Wednesday.

Source: MarketWatch.com - Top Stories | 21 Oct 2009 | 3:43 am

China's Volvo bid may stall over intellectual property (Reuters)

Reuters - Geely Holding's attempt to buy Ford Motor Co's Volvo car unit is in danger of stalling over disagreements about intellectual property rights, a source close to the talks said on Wednesday.
Source: Yahoo! News: Business | 21 Oct 2009 | 3:42 am

BoE MPC united on quantitative easing but divided on inflation

The Bank of England voted unanimously to leave the size of its asset purchase programme unchanged at £175bn this month minutes for the October meeting showed.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 21 Oct 2009 | 3:41 am

The Great Depression repeats itself

Source: Business and financial news - CNNMoney.com | 21 Oct 2009 | 3:41 am

UPDATE 1-China's Volvo bid may stall over intellectual property

* Intellectual property concerns a major stumbling block
Source: RSS feed - channel BNewsBusiness | 21 Oct 2009 | 3:40 am

TARP Too Secret, GM Investment A Bust

The Troubled Asset Relief Program inspector Neil Barofsky has almost nothing good to say about the way the Treasury has handled the TARP. He released his latest report to Congress today. His first criticism. which echoes a previous one, is that taxpayers are unlikely to ever get their investments in GM and Chrysler back. Chrysler’s sales [...]

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Source: 24/7 Wall St. | 21 Oct 2009 | 3:37 am

Bank unanimous on rates and quantitative easing

The Bank of England voted unanimously to keep interest rates at the historic low of 0.5 per cent this month and to maintain the £175 billion limit on its money-printing programme.
Source: Latest Business News from Times Online | 21 Oct 2009 | 3:36 am

BAA agrees Gatwick airport sale

BAA agrees to sell Gatwick, the UK's second busiest airport, to Global Infrastructure Partners for £1.5bn.
Source: BBC News | Business | World Edition | 21 Oct 2009 | 3:31 am

Seawater Desalination Remains Critical to Meet Water Requirements Across the Middle East and North Africa, Finds Frost & Sullivan

DUBAI, UAE, October 21 /PRNewswire/ -- It is estimated that the Middle East and North Africa (MENA) region needs to add about 2.7 million Cu m/day of desalination...
Source: RSS feed - channel BNewsBusiness | 21 Oct 2009 | 3:31 am

Cadbury ups sales forecast against takeover

British confectioner Cadbury on Wednesday stepped up its defence against a takeover by US giant Kraft Foods by upgrading its full-year sales forecast after a third-quarter rise. "The...
Source: RSS feed - channel BNewsBusiness | 21 Oct 2009 | 3:28 am

Jon Friedman's Media Web: LeBron James' health is serious business

The Cleveland Cavaliers, the New York Knicks and the NBA itself breathed a sigh of relief when LeBron James returned to practice -- with a clean bill of health -- after being diagnosed with the swine flu.

Source: MarketWatch.com - Top Stories | 21 Oct 2009 | 3:28 am

Using buybacks to help pick stocks

The top job of managers at every company is the same: allocating capital. Should money be spent on internal growth or acquisitions? Should capital be returned to shareholders via dividends or share repurchases?
Source: Business and financial news - CNNMoney.com | 21 Oct 2009 | 3:23 am

Stock futures dip; raft of earnings eyed (Reuters)

Reuters - U.S. stock index futures pointed to a lower open on Wall Street on Wednesday, with futures for the S&P 500 down 0.24 percent, Dow Jones futures down 0.1 percent and Nasdaq 100 futures down 0.34 percent.

Source: Yahoo! News: Stock Markets News | 21 Oct 2009 | 3:23 am

Stock futures dip; raft of earnings eyed

(Reuters) - U.S. stock index futures pointed to a lower open on Wall Street on Wednesday, with futures for the S&P 500 down 0.24 percent, Dow Jones futures down 0.1 percent and Nasdaq 100 futures down 0.34 percent.
Source: Reuters: Business News | 21 Oct 2009 | 3:23 am

Stock futures dip; raft of earnings eyed (Reuters)

Reuters - U.S. stock index futures pointed to a lower open on Wall Street on Wednesday, with futures for the S&P 500 down 0.24 percent, Dow Jones futures down 0.1 percent and Nasdaq 100 futures down 0.34 percent.

Source: Yahoo! News: Business | 21 Oct 2009 | 3:23 am

Fuel poverty 'continues to rise'

Up to 4.6 million households in England could be in fuel poverty in 2009, according to a government report.
Source: BBC News | Business | World Edition | 21 Oct 2009 | 3:23 am

Titanic Meets The Great Gatsby in Debut Novel About 1929 Stock Market Crash Book Officially to Launch On 80th Anniversary of Event

NEW YORK, Oct. 21 /PRNewswire/ -- On the 80th Anniversary of the Stock Market Crash of 1929 (October 24-29th), regardless of the gyrations in the current stock market, there will
Source: RSS feed - channel BNewsBusiness | 21 Oct 2009 | 3:20 am

Bank unanimous over rate freeze

The Bank of England's rate-setting body was unanimous in its decision to keep rates on hold at 0.5% this month, minutes show.
Source: BBC News | Business | World Edition | 21 Oct 2009 | 3:19 am

Weak open seen for stocks

U.S. stock futures slipped early Wednesday, ahead of quarterly financial results from Morgan Stanley and Boeing.
Source: Business and financial news - CNNMoney.com | 21 Oct 2009 | 3:17 am

Upbeat broker comment boosts London shares

High street stocks stood out on London's equities market on Wednesday as a broker upgrade for Tesco outweighed a lacklustre reaction to interim numbers from Home Retail Group. But overal the FTSE 100 fell...
Source: RSS feed - channel BNPaperBusiness | 21 Oct 2009 | 3:16 am

FACTBOX-BHP Billiton's huge Olympic Dam mine

Oct 21 (Reuters) - Key facts about BHP Billiton's Olympic Dam mine in southern Australia, which will not return to full capacity until the March quarter of 2010 after its main shaft was damaged following...
Source: RSS feed - channel BNewsBusiness | 21 Oct 2009 | 3:13 am

London Markets: London lackluster; telecoms and miners contrast

Gains from supermarket firm Tesco and telecoms offset losses for the London Stock Exchange and miners in London.

Source: MarketWatch.com - Top Stories | 21 Oct 2009 | 3:07 am

Sun Microsystems to cut 3,000 jobs amid European inquiry

Sun Microsystems, the computer hardware and information technology company, is to cut 3,000 jobs in the next year as it awaits the verdict of an EU antitrust investigation into a takeover by Oracle, the business software giant.
Source: Latest Business News from Times Online | 21 Oct 2009 | 3:06 am

Anthony Bolton: this bull market is not over

Financials such as banks property and insurance remain Bolton's top picks.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 21 Oct 2009 | 3:05 am

Larry Ellison Doesn’t Play Chicken

Larry’s Ellison, the founder and CEO of Oracle (NASDAQ:OFCL) does not make idle threats. He does not have to. In most games against his competition he holds the majority of the cards. He has taken over a number of businesses in his sector of the tech world. Those that resisted were taken over anyway. The [...]

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Source: 24/7 Wall St. | 21 Oct 2009 | 3:05 am

How mega-fraudster Madoff is adjusting to life in prison

Life in federal prison is very different for disgraced US financier Bernard Madoff, who was convicted of a $65bn fraud.
Source: BBC News | Business | World Edition | 21 Oct 2009 | 3:03 am

Europe Markets: Europe choppy as corporate updates eyed

European shares pulled back from early gains in a choppy session on Wednesday, with Peugeot, Deutsche Bank and PPR Group all declining after updating on third-quarter progress.

Source: MarketWatch.com - Top Stories | 21 Oct 2009 | 2:59 am

Yahoo! (YHOO) And The Miracle Of Cost Cutting

Wall St. was impressed by but not euphoric about Yahoo!’s (NASDAQ:YHOO) third quarter earnings. The company’s net revenue was $1.131 billion, down from $1.325 billion in the period last year. Net income for the quarter that ended in September was $187 million, $.13 cents a share, up from $54.3 million, or $.04 a share, a [...]

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Source: 24/7 Wall St. | 21 Oct 2009 | 2:58 am

The return of oil price shock

Oil prices are back around $80 a barrel for the first time in nearly a year. But is that good news or bad news for the economy? Let the debate begin.
Source: Business and financial news - CNNMoney.com | 21 Oct 2009 | 2:54 am

Karzai’s main rival welcomes run-off

Abdullah Abdullah, the main challenger to Hamid Karzai, said he would take part in a presidential election run-off vote next month, but called for better procedures to prevent fraud
Source: Financial Times - US homepage | 21 Oct 2009 | 2:52 am

Kuwait's Wataniya telecom profit slides (AFP)

AFP - Kuwait National Mobile Telecommunications Co (Wataniya) announced a 27.7 percent decline in its third quarter profits, in a statement posted Wednesday on the Kuwait bourse website.

Source: Yahoo! News: Stock Markets News | 21 Oct 2009 | 2:52 am

Time to invest in China?

Recovering profits and cheap valuations support the investment case.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 21 Oct 2009 | 2:46 am

Like it or not, here comes more stimulus

You won't see it all in one neat package. And you won't hear the White House call it stimulus.
Source: Business and financial news - CNNMoney.com | 21 Oct 2009 | 2:41 am

PSA Peugeot Citroen's revenue drops 7.7%

French carmaker PSA Peugeot Citroen S.A. said Wednesday its third-quarter revenue fell 7.7%, as scrappage incentives in Europe stimulated demand but led to increasing sales of lower-margin cars.

Source: MarketWatch.com - Top Stories | 21 Oct 2009 | 2:38 am

The average mortgage fee rises to £947

The typical mortgage arrangement fee has jumped by 14pc this year.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 21 Oct 2009 | 2:33 am

Vital Signs: Protect yourself when picking a health plan

The bad news is many workers are likely to find themselves on the hook for more of the cost of their job-based health benefits in 2010. The good news is some employers are softening the blow by offering financial incentives for taking an active role in maintaining or improving health.

Source: MarketWatch.com - Top Stories | 21 Oct 2009 | 2:32 am

Big banks take your money and run

A river of cash has flowed into the biggest banks over the past year. But for borrowers, it has been more of a meandering stream.
Source: Business and financial news - CNNMoney.com | 21 Oct 2009 | 2:26 am

The number of people behind with their energy bills increases by 50 per cent

Citizens Advice has seen a 46pc increase in the number of people contacting it during the past six months.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 21 Oct 2009 | 2:26 am

Ex-finance official tapped to lead Japan Post

The nomination of new president at Japan Post is seen by some as a death knell for plans to privatize the postal-and-finance giant.

Source: MarketWatch.com - Top Stories | 21 Oct 2009 | 2:26 am

Housing: Best recovery bets

Home prices are forecast to plumment over the next two years. These 7 cities -- including Seattle -- are bucking the trend.
Source: Business and financial news - CNNMoney.com | 21 Oct 2009 | 2:25 am

Dell sees Windows 7 boost starting mid 2010 (Reuters)

Reuters - Demand for computers from large companies is likely to pick up by as soon as mid-2010 as a result of Microsoft's launch this week of its Windows 7 operating system, a senior Dell executive said on Wednesday.
Source: Yahoo! News: Business | 21 Oct 2009 | 2:15 am

Martin Lewis: the key steps to getting your finances back on track

It's time to face facts: we're a debtilliterate nation and together we're a trillion pounds in the red.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 21 Oct 2009 | 2:14 am

Morgan Stanley may give up Crescent Real Estate: report

(Reuters) - Morgan Stanley may hand over its unit Crescent Real Estate Equities Co to Barclays Capital, the Wall Street Journal said, citing people familiar with the matter.
Source: Reuters: Business News | 21 Oct 2009 | 2:10 am

IMF tells Asia to keep spending

The International Monetary Fund has warned Asian nations not to withdraw stimulus spending until the global recovery is assured.
Source: BBC News | Business | World Edition | 21 Oct 2009 | 2:09 am

Diary of a private investor: 'The bears have taken the wrong course'

Right now the same pundits who were wrong six months ago are continuing to offer bearish opinions.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 21 Oct 2009 | 2:09 am

Media Digest (10/21/2009) Reuters, WSJ, NYTimes, FT, Bloomberg

Reuters:   China is having trouble managing supply and demand. Reuters:   Geithner said the core programs of the TARP are ending. Reuters:   Yahoo! (NASDAQ:YHOO) tripled it profits. Reuters:   Sun Microsystems (NASDAQ:JAVA) will cut 3,000 jobs due to delays in the Oracle (NASDAQ:ORCL) buyout of the company. Reuters:   The SEC is looking for ways to make dark pools of money more [...]

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Source: 24/7 Wall St. | 21 Oct 2009 | 2:08 am

LG Elec trumps forecasts on strong phones, TV sales

SEOUL (Reuters) - LG Electronics Inc's quarterly profit jumped nearly 50 percent thanks to strong sales of mobile phones and TVs, but the company is headed for a weaker fourth quarter on higher marketing costs and price competition.
Source: Reuters: Business News | 21 Oct 2009 | 2:03 am

Cadbury raises targets in face of Kraft bid

Cadbury, the UK confectionery group that is a takeover target for US food group Kraft, on Wednesday increased its full-year financial targets on the back of stronger revenue growth but said declines in...
Source: RSS feed - channel BNPaperBusiness | 21 Oct 2009 | 2:01 am

Gatwick sold by BAA for £1.5 billion as new owner plans expansion

BAA today confirmed it was selling Gatwick for £1.51 billion to Global Infrastructure Partners, an investment fund that also owns London City airport.
Source: Latest Business News from Times Online | 21 Oct 2009 | 1:47 am

Asia Markets (10/21/2009)

Markets in Asia were slightly lower. The Nikkei was down a fraction at 10,333. The Hang Seng was down .1% to 22,372. China Mobile (NYSE:CHL) was down. The Shanghai Composite dropped .5% to 3,071. At the open in Europe, the FTSE rose .4% to 5,264. Cadbury rose after increasing guidance. The Dax was up .5% to 5,837. The CAC [...]

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Source: 24/7 Wall St. | 21 Oct 2009 | 1:33 am

Strong sales rise boosts Cadbury

UK confectioner Cadbury reports higher-than expected sales in the third quarter, raising pressure on would-be US suitor Kraft.
Source: BBC News | Business | World Edition | 21 Oct 2009 | 1:32 am

Cadbury sales rise 7% in defence to Kraft bid

Cadbury’s today announced that third-quarter sales beat expectations as it made a last-ditch attempt to prevent a hostile bid from America's Kraft Foods.
Source: Latest Business News from Times Online | 21 Oct 2009 | 1:27 am

London stocks rise at open (AFP)

AFP - Shares in London were firm at the start of trade on Wednesday as the corporate sector announced encouraging quarterly figures.

Source: Yahoo! News: Stock Markets News | 21 Oct 2009 | 1:27 am

Cadbury raises pressure on suitor Kraft with bullish update

Chocolate and gum maker confident of independent future after posting strong thirdquarter growth and raising sales and profit forecasts.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 21 Oct 2009 | 1:25 am

'Tough measures' to cut UK debt

Spiralling UK debt means tax rises, spending cuts and delayed retirement beyond what is being discussed, a think tank says.
Source: BBC News | Business | World Edition | 21 Oct 2009 | 1:23 am

Financial stocks push Aussie market down

SYDNEY- The Australian share market closed slightly lower with losses among resources and financial stocks.The benchmark S&P/ASX200 index lost 7.6 points, or 0.16 per cent, to 4,838.6 points, while the broader All Ordinaries index...
Source: nzherald.co.nz - Business | 21 Oct 2009 | 1:07 am

Hotels still struggling but there are bright spots

Southern California is one of several areas where the lodging industry is showing signs of improvement. The occupancy rate nationwide drops to 59.8% and revenue per available room falls 12%. ...
Source: RSS feed - channel BNPaperBusiness | 21 Oct 2009 | 1:00 am

Sun Microsystems to layoff as many as 3,000 employees

The struggling server and software maker says the cuts will affect about 10% of its 29,000 workers worldwide and will happen over the next year. ...
Source: RSS feed - channel BNPaperBusiness | 21 Oct 2009 | 1:00 am

Apple, Win7 products unveiled

Apple Inc. has made significant upgrades to its venerable iMac computers and several other products.

Source: L.A. Times - Business | 21 Oct 2009 | 1:00 am

Health insurer tries to avoid owning up to error

Who should pay when a health insurer screws up? Not the insurer, apparently.

Source: L.A. Times - Business | 21 Oct 2009 | 1:00 am

Feared flood of foreclosures in California may be averted

Lenders are working with struggling borrowers to keep them in their homes in an effort to keep a glut of foreclosed properties from further depressing the housing market. ...
Source: RSS feed - channel BNPaperBusiness | 21 Oct 2009 | 1:00 am

Long Beach port settles truckers suit over clean air plan

The port agreed to remove all requirements not directly related to the push to allow only newer, less-polluting trucks at the complex, including a demand that trucking firms file financial reports. ...
Source: RSS feed - channel BNPaperBusiness | 21 Oct 2009 | 1:00 am

Writers strike case fuels criticism about how the WGA investigates misconduct

Jonathan Prince, a member accused and found not guilty of scab-writing during the 100-day strike, says the guild relied on a secret informant who gained unauthorized access to his e-mails.

As a 20-year member of the Writers Guild of America, Jonathan Prince was startled to learn that his union was accusing him of being a scab during the writers strike.

Source: L.A. Times - Business | 21 Oct 2009 | 1:00 am

FDA clamps down on nutrition labels on food packaging

The agency is targeting foods bearing logos or language suggesting the product is more healthful than the ingredients justify. ...
Source: RSS feed - channel BNPaperBusiness | 21 Oct 2009 | 1:00 am

California accuses bank of raiding pension funds

The state attorney general says a State Street Corp. of Boston cheated CalPERS and a teachers pension agency out of nearly $57 million

A Boston bank cheated California's two largest employee pension funds of nearly $57 million by inflating fees it charged for foreign currency trades, according to a suit filed Tuesday by the state attorney general's office.

Source: L.A. Times - Business | 21 Oct 2009 | 1:00 am

Sex, drugs alleged in suit against Madoff associates

Bernard Madoff's investment firm had a "diversion-filled office environment" featuring a culture of "sexual deviance" and drug use, says a lawsuit filed Tuesday against companies that dealt with the Ponzi-scheme...
Source: RSS feed - channel BNPaperBusiness | 21 Oct 2009 | 1:00 am

Sex, drugs alleged in suit against Madoff associates

Bernard Madoff's investment firm had a "diversion-filled office environment" featuring a culture of "sexual deviance" and drug use, says a lawsuit filed Tuesday against companies that dealt with the Ponzi-scheme mastermind.

Source: L.A. Times - Business | 21 Oct 2009 | 1:00 am

Los Angeles and Anaheim slug it out over the convention floor

A Freeway World Series between the Dodgers and Angels is looking iffy. But a titanic struggle over trade shows and conventions is being waged.

That long-awaited Freeway Series between the Dodgers and Angels is on shaky ground, but there's at least one contest already underway between Los Angeles and Anaheim -- it's just not being fought on a baseball diamond.

Source: L.A. Times - Business | 21 Oct 2009 | 1:00 am

Hotels still struggling but there are bright spots

Southern California is one of several areas where the lodging industry is showing signs of improvement. The occupancy rate nationwide drops to 59.8% and revenue per available room falls 12%.

While hotels across the country continue to struggle with slumping occupancy rates and sliding revenues, industry data released Tuesday show signs of improvement in several regions, including Southern California.

Source: L.A. Times - Business | 21 Oct 2009 | 1:00 am

FDA clamps down on nutrition labels on food packaging

The agency is targeting foods bearing logos or language suggesting the product is more healthful than the ingredients justify.

The Food and Drug Administration announced plans Tuesday to clamp down on food labeling that it says may mislead consumers into thinking products are more nutritious than they are.

Source: L.A. Times - Business | 21 Oct 2009 | 1:00 am

Is China's rebound for real?

Some economists say that too much of China's growth is coming from investment in inefficient state-owned enterprises and that stimulus policies are diverting the country away from long-needed reform. ...
Source: RSS feed - channel BNPaperBusiness | 21 Oct 2009 | 1:00 am

Feared flood of foreclosures in California may be averted

Lenders are working with struggling borrowers to keep them in their homes in an effort to keep a glut of foreclosed properties from further depressing the housing market.

Signs are emerging that a much-feared escalation of California home foreclosures may not happen, as banks respond to government pressure and scale back their repossessions of troubled properties.

Source: L.A. Times - Business | 21 Oct 2009 | 1:00 am

Los Angeles and Anaheim slug it out over the convention floor

A Freeway World Series between the Dodgers and Angels is looking iffy. But a titanic struggle over trade shows and conventions is being waged. ...
Source: RSS feed - channel BNPaperBusiness | 21 Oct 2009 | 1:00 am

Is China's rebound for real?

Some economists say that too much of China's growth is coming from investment in inefficient state-owned enterprises and that stimulus policies are diverting the country away from long-needed reform.

When China releases its third-quarter gross domestic product figures Thursday, it's likely to post growth that's the envy of a recession-weary globe. Some analysts project the world's third-largest economy will easily surpass the government's 8% expansion target.

Source: L.A. Times - Business | 21 Oct 2009 | 1:00 am

Gatwick airport sold for £1.5bn

Britain's secondbiggest airport has been sold to the owner of London City airport for £1.5bn.
Source: Finance and Business. Latest breaking news stocks and shares from the UK and world | 21 Oct 2009 | 12:36 am

Market dips over 1pc on offshore weakness

The New Zealand sharemarket dipped today on a combination of profit-taking and weakness in offshore markets.But news that a huge rights issue by Pyne Gould Corp only had a shortfall of 11.3 per cent was well received as evidence...
Source: nzherald.co.nz - Business | 21 Oct 2009 | 12:28 am

Fed's Yellen: No tightening in next several months

SANTA BARBARA, California (Reuters) - The time for the U.S. Federal Reserve to start pulling back its extensive support for the economy is not close at hand and policymakers have time to decide what sequence of steps they will take, San Francisco Fed President Janet Yellen said on Tuesday.
Source: Reuters: Business News | 21 Oct 2009 | 12:00 am

NZ dollar settles around US75c

The New Zealand dollar was volatile but overall generally firm on a day the market received some unexpected commentary from Reserve Bank of New Zealand governor Alan Bollard.The NZ dollar traded to a new 15 month high of US75.75c...
Source: nzherald.co.nz - Business | 20 Oct 2009 | 11:37 pm

Tarp inspector threatens subpoena

Neil Barofsky, the special inspector general for the $700bn government bail-out fund, steps up his criticism of the US Treasury with a threat to seize documents from the administration
Source: Financial Times - US homepage | 20 Oct 2009 | 10:06 pm

Tax Rules for Amateur, Professional Gamblers (The Tax Guy)

When the economy goes in the tank, some people react by trying their luck at gambling. While losses are the usual outcome, some folks do get lucky. And there are professional gamblers out there, too. So what are the tax rules? Read on for the answers.

Tax Rules for Amateur Gamblers

The most important thing to know is you can only deduct gambling losses for the year to the extent of your gambling winnings for the year. This limitation applies to the combined results from any and all types of gambling (including playing the lottery, slots, poker, bingo, betting on the horses, and all the rest). For example, say you win a total of $1,500 in various gambling activities and lose a total of $2,000. You can generally deduct $1,500 of losses to offset your winnings. The $500 of excess losses goes up in smoke. Sorry.

After applying the losses-cannot-exceed-winnings limitation, the allowable loss amount for a person who is not a professional gambler is claimed as an itemized deduction on Schedule A of Form 1040. Unfortunately, if you don’t itemize, you’re out of luck in the gambling loss deduction game.

But there is some good news. Your allowable itemized gambling loss write-off is not subject to the deduction phase-out rule that applies to some other itemized deductions (that phase-out rule is scheduled to disappear in 2010 unless Congress extends it). And you can deduct your allowable itemized gambling loss in full under the alternative minimum tax (AMT) rules.

However, an amateur gambler can’t deduct any out-of-pocket expenses related to gambling activities (such as transportation costs). These expenses are considered nondeductible personal outlays.

What about winnings? You must report the full amount as miscellaneous income on page 1 of Form 1040. If your winnings for the year exceed your losses, you can’t subtract your losses from your winnings and report the net winnings on page 1. Instead, you have to report all your winnings on page 1, and all your losses on Schedule A (assuming you itemize). If losses exceed winnings, you still have to report all the winnings on page 1 and losses up to your winnings on Schedule A (assuming you itemize).

Tax Rules for Professional Gamblers

Over the years, quite a few court decisions have tried to define what it takes to be a professional gambler. The bottom line is you must devote substantial time to gambling on a regular basis, and you must depend on gambling winnings as a meaningful source of income. It also helps if you can prove that you conduct your gambling activities in a business-like fashion by keeping detailed records of wins and losses and developing and evaluating strategies.

The courts have agreed with the IRS position that the aforementioned losses-cannot-exceed-winnings limitation on deductible gambling losses applies equally to professional gamblers and amateurs. Also, a 2007 court decision confirmed that a professional tournament poker player’s losses were subject to the losses-cannot-exceed-winnings limitation. The taxpayer argued that playing in poker tournaments was not really gambling, and that her losses were therefore not subject to the deduction limitation. The Tax Court said no such luck.

When an individual can rightly claim to be a professional gambler for tax purposes, gambling winnings should be reported as business income on Schedule C of Form 1040, and gambling losses should be reported as a business expense on Schedule C. This treatment is favorable in years when you have losses, because it ensures that you can deduct enough losses to offset all your winnings. (For amateurs, there is no such guarantee because losses must be treated as itemized deductions.)

However, the seemingly benign rule that a professional gambler’s winnings and losses belong on Schedule C can have a big negative impact in profitable years, because net Schedule C income gets hit with the dreaded self-employment (SE) tax. In some cases, the SE tax issue can make claiming professional gambler status more expensive than being an admitted amateur.

What about a professional gambler’s out-of-pocket expenses to conduct the business of gambling (transportation, out-of-town meals and lodging, and so forth)? In 2008, the IRS conceded that these expenses do not have to be combined with gambling losses in applying the losses-cannot-exceed-winnings limitation. In other words, a professional gambler’s garden-variety expenses to conduct the business of gambling can be deducted on Schedule C, under the normal rules for business expenses, without regard to gambling winnings. This is good news, because it allows those out-of-pocket expenses to shelter income from other sources (from investments, retirement benefits and so forth) in years when gambling losses exceed winnings.

Remember: The losses-cannot-exceed-winnings limitation still applies to a professional’s actual gambling losses (as opposed to out-of-pocket expenses).

Record-Keeping

Whether you’re an amateur or a professional, you must document gambling losses to claim any deductions for them, and it certainly behooves you to do so. In theory, every loss must be accounted for separately, and every win must be reported as income. Beware: For most types of gambling at a legitimate gaming facility, you’ll be issued a Form W-2G (Certain Gambling Winnings) if you win $600 or more ($1,200 or more from slots or bingo; $1,500 or more from keno). The IRS gets a copy of Form W-2G, so you better report that income on your return. For more record-keeping tips, see IRS Publication 529 (Miscellaneous Deductions).

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 | 20 Oct 2009 | 10:00 pm

Do Emerging-Markets Funds Have More Upside?

THAT 18-WHEELER THAT barreled past while you were trying to decide whether to get back into the stock market was an emerging-markets fund.

Some of the group's best performers are exchange-traded funds. In fact, the iShares MSCI Emerging Markets Fund (EEM), has rocketed 66% in 2009, helping push its market value to $37 billion. That makes it the third-largest U.S. ETF, after the SPDR S&P 500 (SPY) and the iShares MSCI EAFE Index Fund (EFA).

The largest emerging-markets ETFs include Vanguard Emerging Markets (VWO), iShares MSCI Brazil Index (EWZ), iShares FTSE/Xinhua China 25 Index (FXI), iShares MSCI Taiwan Index (EWT), iShares MSCI South Korea Index Fund (EWY), iShares S&P Latin America 40 Index (ILF), and iPath MSCI India Index (INP). There are also several dedicated to the BRIC bloc (Brazil, Russia, India, China).

Though the pace may slow, emerging-markets ETFs are likely to keep growing over the long haul, as money managers and investors use them to match benchmarks and to complement bets on specific companies. Wasif Latif, vice president of equity investments at USAA, notes that the most popular China ETF, the iShares FTSE/Xinhua China 25 is heavily invested in financial companies and telecoms, but much less in the manufacturing and consumer-oriented sectors. If someone wants to invest in the latter, he can do so by buying individual shares.

A year after Lehman Brothers collapsed, the world economy seems to be healing. But growth rates in developed nations are expected to be unimpressive, and much less robust than the developing world's. While U.S. gross domestic product is likely to rise 2.2% next year, China's GDP could climb by four times as much. And resource-rich developing countries are piling up cash, bolstering their balance sheets. Recently, Moody's upgraded Brazil's sovereign debt to investment-grade.

What's more, U.S. pension funds probably will increase their allocations to emerging markets over the next several years. That's because new pension regulations require them to, among other things, close funding gaps — and fast-growing, high-yielding emerging markets could help them do that.

According to JPMorgan emerging-markets strategist Will Oswald, defined-benefit plans in the U.S. have just 0.3% of their $3.7 trillion of assets in emerging-markets debt and just 2.1% in emerging-markets stocks. Moody's rates JPMorgan's tradeable Emerging Markets Bond Global Index as investment-grade, making the significant pickup in yield attractive. (It was recently 6.4%.)

Another potential plus: The BRIC markets account for just 5.1% of the MSCI All-Country Index, versus 1% in 1993. HSBC thinks that the figure will hit 25% by 2013, as those markets' importance rises.

Earnings have revived, along with economic activity. Morgan Stanley reckons that earnings troughed in the quarter just ended, falling 39% from the peak (with profits down 51% in Asia, 25% in Latin America and 29% in emerging Europe). Morgan Stanley's Jonathan Garner predicts that earnings per share will advance 28% in U.S. dollar terms in 2010, giving the MSCI emerging-markets index a 14.4 forward price/earnings ratio.

The meteoric rise of emerging markets this year has raised fear that they've run too far, too fast. Recently, Credit Suisse reduced its Overweight rating on these markets, citing a record 20% valuation premium to all global markets, record second-quarter inflows into Chinese equities, China's own concern about excess liquidity, plus the bank's view that the "equity risk appetite is now at euphoric levels last breached in 2000." And Bank of America Merrill Lynch observed that the developing world's stock-market value stood at $2.9 trillion — more than the Eurozone's.

But while stock valuations, compared with those in the developed markets, are expensive when measured by book value, they're cheaper when gauged on price-earnings multiples. And on a market-cap-to-GDP basis, emerging markets are far cheaper than developed ones.

At Barron's request, technical analyst John Roque, the managing director of WJB Capital, analyzed the iShares MSCI Emerging Markets Fund. At first glance, he says, it appears to be "overbought," trading a third above its 200-day moving average, which is "fairly close to a two standard-deviation reading."

But further scrutiny showed that only two of its largest components — China Mobile (CHL) and Chungwha Telecom (CHT) — are seriously overbought. Roque concluded that the others — Samsung Electronics (005930.Korea), Taiwan Semiconductor (TSM), Itau Unibanco (ITUB), Petrobras (PZE), Posco (PKX), KB Financial (KB) and Banco Bradesco (BBD) are "healthy from a technical perspective, trading above upward sloping 50- and 20-day moving averages. Until more of the top 10 holdings deteriorate," Roque says, "the trend for this fund is still intact." And that trend is up.

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 | 20 Oct 2009 | 10:00 pm

October 21, 2008 (Tuesday): Moola For Money-Market Mutual Funds; Bailing On Ford

Breaking the Buck Stops Here?

After Lehman Brothers collapsed in September, one money-market mutual fund notably “broke the buck.” Now the Fed says it will put up $540 billion to buttress such funds. The money will go to buy up commercial paper and other securities held by money-market mutual funds in hopes of restoring investor confidence, stemming the flow of redemptions, and helping unlock the frozen credit markets. (For more on this news, click here, here and here)

Yahoos No More

A weak advertising climate coupled with the overall poor economy is hurting Yahoo’s bottom line. The Internet company announces today that net income for the third quarter is just $54 million, down from $151 million in the third quarter last year. Jerry Yang, Yahoo CEO, says in a call he expects to cut “at least ten percent” of Yahoo’s workforce in the next two months. (For more on this news, click here, here and here)

Breaking Up Is Hard To Do

Billionaire investor Kirk Kerkorian reveals today that he’s bailing on his bet on Ford. Kerkorian’s Tracinda has already sold 7.3 million shares for an average of $2.43 each—less than half of the average price paid by Kerkorian for his Ford holdings, according to a Bloomberg estimate. The move is seen as signifying a lack of confidence in the automaker. (For more on this news, click here, here and here)

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 | 20 Oct 2009 | 10:00 pm

Pop Quiz: What's New About 'Freakonomics'? (Consumer Action)

In the economy-makes-strange-bedfellows category, it's hard to beat the calculations of Steven Levitt and Stephen Dubner, authors of the 2005 best-seller, "Freakonomics." The book applied economic theory — not moral standards — to societal issues like effective parenting and why people cheat. It not only led to some pretty controversial findings — like the suggestion that a drop in crime in the United States could be related to abortion laws — it made media stars of Levitt and Dubner.

Now comes volume II, "SuperFreakonomics," and it looks like Levitt and Dubner are up to even more headline-grabbing tricks. In "SuperFreakonomics," the authors, (Levitt is an economist at the University of Chicago; Dubner is a journalist), go straight for hot-button issues. Out: studies of names and children. In: terrorism and global warming. Why global warming? Dubner says the subject was a “natural” given the amount of attention it's getting and because it "includes so much economic and scientific territory," he says.

Yet topicality alone isn't going to sell books, says Cathy Langer, the lead buyer for Tattered Cover, an independent book store in Denver. Though economics books have been doing well for her, Langer was fairly conservative when ordering "SuperFreakonomics." That's because sequels don't always follow originals in popularity, she says.

Just how far into the news cycle have Levitt and Dubner's interests shifted? We checked out the indexes of volumes one and two to find out. Here's a look, as measured by number of subtopics.

Top 5 Topics in "SuperFreakonomics"
1) Prostitution - 37
2) Climate, Global Warming/Cooling - 27
3) Altruism - 16
4) Terrorists, Terrorism - 15
5) Women – 13
(Tie - Doctors, health care and hospitals garnered another 13 mentions between the three.)

Top 5 Topics in "Freakonomics" 
1) Crime, Crime Reduction - 28
2) Incentives - 22
3) Children - 22
4) Names - 18
5) Drugs, Drug Dealers - 14

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 | 20 Oct 2009 | 10:00 pm

Will You Be a Home-Heating Winner or Loser? (Deal of the Day)

In the next few weeks, homes in the coldest parts of the country will start receiving their heating bills for the 2009-10 season, and most will notice a treat: lower heating costs.

The drop comes in part because the temperatures from October through March are expected to be warmer than last year, which in turn will send down the price of natural gas, heating oil, propane and electricity. Households that primarily depend on propane for heating are likely to spend an average of 14% less, according to the Energy Information Administration (EIA), which tracks energy statistics from the government. Homes that depend on natural gas will see their bill drop by about 12%. Do you use heating oil and electricity? Your bill will drop, too, but only by about 2%.

Producers and suppliers are adapting different strategies to cope with shifts in supply and demand. Here’s what it means for your home-heating bill.

Winners

Natural gas suppliers: Natural gas supplies started rising at the end of 2008, when industrial consumption plummeted as factories and manufacturers lost business. Now those inventories are approaching a record high, with more than 3.8 trillion cubic feet projected to be on hand as of Oct. 31, according to the EIA. Those high storage levels are dampening prices. For the coming winter, the EIA projects that natural gas will cost on average $11.52 per one million cubic feet, down from $14.58 during the 2005-06 winter season.

What’s more, there’s speculation that natural gas could be discovered on vast shale formations in Texas and the Northeast and further cushion the country’s inventory. However, this discovery could be a double-edged sword, on the one hand increasing demand, but also prompting some consumers to switch to natural gas. That would prompt a price increase.

CONSUMERS' BOTTOM LINE: “The biggest short-term winners will be the households that have natural gas furnaces,” says James Owen, spokesman for the Edison Electric Institute, an association of U.S. shareholder-owned electric companies, which represents 70% of the electric power industry. But the drop won’t be proportional to the price decrease of wholesale natural gas because utility companies buy natural gas months in advance of winter and have long-term contracts, says Richard Goldberg, the president of Warm Thoughts Communications, a consulting company for heating oil, natural gas and propane providers.

In an attempt to get new customers, some utility companies are offering incentives. National Grid, a natural gas and electricity delivery company, is slashing up to 60% of the cost of a natural gas furnace for households in Massachusetts, New Hampshire and Rhode Island that convert to natural gas; the household pays for installation.

Heating oil suppliers: The dip in heating oil prices is a huge help for heating-oil retailers, which saw customers convert to natural gas furnaces during price spikes, says Goldberg.

Heating oil prices are projected to drop to $2.62 a gallon on average, from $3.32 a gallon in 2007-08. “The biggest drive that causes people to convert from oil is fear prices will get high,” he says. “Now, you’re seeing fewer people converting away from oil because prices have come down.”

When heating oil prices drop, suppliers are also more inclined to lower their markups, but the amount varies by company, says John Maniscalco, the CEO of the New York Oil Heating Association, which represents heating oil providers.

But should the National Oceanic and Atmospheric Administration’s warmer winter predictions come to fruition, heating oil retailers will end up selling fewer gallons than last winter, which could tighten their finances, says Brandon Wright, a spokesman for the Petroleum Marketers Association of America, whose 8,000 wholesale and retail members sell heating oil, propane and solar panels. To hedge that possibility, some heating oil providers are ordering less inventory for the winter, he says.

CONSUMERS' BOTTOM LINE: Households that depend on heating oil will see lower prices. They’ll also feel the market price swings, says Goldberg. To protect yourself from price volatility, consider locking in a fixed price of heating oil that your provider is offering; that way should prices rise, you’ll still pay the lower price. However, should prices drop, you’ll be stuck paying the higher locked-in price. (Read our story on fuel co-ops here.)

Losers

Integrated energy companies: Energy behemoths like Exxon Mobil (XOM) and Chevron (CVX) will feel the downward slide of heating oil prices, primarily the difference between the high price they pay to buy crude oil and the low price that heating oil sells at, says Allen Good, a Morningstar equity analyst who tracks these companies. As a result, their revenues will decrease.

These companies have been dealing with a weak refining margin all year, says Good. That means they’ve been paying a higher price to refine crude oil into heating oil than they’re getting to sell it. At this time last year, total refining across the U.S. was at about 90% capacity utilization, whereas now it’s running at 80% to 85%, he says.

Still, Exxon and Chevron will offset these losses thanks to their refining assets throughout the world, especially in Asia and Europe where demand is higher than in the U.S., Good says. Earlier this year, Exxon Mobil’s joint venture in Fujian Province, China, announced the launch of 160,000-barrels-per-day crude distillation units. Energy companies whose refining occurs primarily in the U.S., like ConocoPhillips (COP) will see their revenues hit even harder, says Good.

CONSUMERS' BOTTOM LINE: Lower heating oil prices will persist on the retail market during the 2009-10 winter.

Natural gas producers: Compared with this time last year, only half of the natural gas drilling rigs in the U.S. are operating. That’s in part due to record inventories and lower prices, says Chris McGill, the managing director of policy analysis at the American Gas Association.

Companies in the business of exploring, drilling and finding natural gas might be more exposed to price slides if they haven’t presold a lot of their gas, says Mike Beck, a vice president for Direct Energy, which produces electricity and natural gas and is a retail supplier. This business requires heavy investment and capital and when prices drop it’s harder to secure that, he says.

CONSUMERS' BOTTOM LINE: As long as natural gas inventory levels remain high, expect prices on the retail market to stay low.

Electricity suppliers: The price of electricity – which is set by several factors – is projected at one cent per kilowatt hour on average during the 2009-10 winter, down 2.1% from the previous winter. A variety of fuels help make electricity, including coal and natural gas, says Owen of the Edison Electric Institute. With coal and natural gas prices dropping, electricity also takes a dip. Coal consumption in the electric power sector fell by 11% in the first half of 2009 as compared with the first half of 2008, according to the EEI, due in part to lower electricity generation by the industrial sector.

Still, the long-term outlook for electricity suppliers looks quite optimistic. Thirty-five percent of U.S. households rely on electricity as their primary heating fuel, according to the EIA. And the number of those electricity-dependent households is growing faster than households using other major heating fuels. 

CONSUMERS' BOTTOM LINE: Expect slightly lower prices than last winter and probably the smallest dip in price out of all the conventional heating fuels.

Propane suppliers: Propane prices depend primarily on natural gas and heating oil and both of their prices have dropped, says Goldberg. The EIA projects that the price per gallon of propane will drop to $2.05 during the 2009-10 winter, down from $2.37 last winter.

There is also an abundant supply of propane. Up until the housing bust, propane was increasingly the heating preference for new homes, especially in areas where natural gas isn’t the primary heating source, says Goldberg. When the home-building market slowed, demand for propane dropped and inventory piled up.

Should propane prices drop even further, they could fall below some propane companies’ cost structure, and they’ll have difficulty weathering that storm, says Sara Banaszak, a senior economist at American Petroleum Institute.

CONSUMERS' BOTTOM LINE: Households that depend on propane for heating should have started seeing price reductions last year and will continue to this winter, says Goldberg.

Solar panel suppliers: When conventional heating prices decrease, consumer demand for solar panels also drops. When gas and oil prices rise, solar panels become more popular because that’s when households look at energy-efficient substitutes, says Heather Honea, an associate professor at San Diego State University’s College of Business.

Also, during a downturn, most consumers can’t pay for such an investment. On average, purchasing and installing photovoltaic panels that convert sunlight into electricity costs $25,000 to $35,000, says Monique Hanis, a spokeswoman for the Solar Energy Industries Association, a trade group.

Yet fitting your home with solar panels is getting cheaper. That’s because companies that install them are looking for ways to increase business following flat demand for solar panels in the commercial sector between 2008 and 2009. What’s more, households that purchase and install a solar photovoltaic system by Dec. 31, 2016, can get a tax credit of up to 30% of the cost.

CONSUMERS' BOTTOM LINE: Consumers considering switching to solar heating should make the move within the next year as prices continue to drop and the federal tax credits are in effect simultaneously. This is the time when households should set up the infrastructure that will protect them from rising conventional heating prices, which at some point will return, says Honea.

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 | 20 Oct 2009 | 10:00 pm

3 Stocks Expected to Double Earnings Next Year (Screens)

Fast earnings growth is a promising sign for a stock. Expectations of fast earnings growth, however, can cause trouble. A glowing forecast for next year's earnings often persuades investors to pay many times this year's earnings for shares. The result is often disappointment.

High-expectation stocks are more than twice as likely as humble-expectation ones to produce negative earnings surprises, and they tend to suffer much sharper price declines afterward, according to a 2002 study by a pair of University of Michigan finance professors.

The broad U.S. stock market faces high expectations at the moment. Companies in the S&P 500 index are forecast to improve their earnings by 34% next year — more than three year's worth of typical growth. Accordingly, the index is priced at 20 times this year's earnings forecast, about one-third richer than its historical average.

Below are three S&P 500 companies whose earnings per share are expected to double between their current fiscal year and their next one, ignoring one-time charges and credits. These companies aren't necessarily doomed to fall short. For each, the earnings increase would represent a step toward prior levels of profitability rather than a jump to record levels. But investors should nonetheless be careful not to pay too much for the presumed growth.

Bank of America

Bank of America's (BAC) stock price is 68% below where it stood at the end of bubbly 2006, but because of a much larger share count, its stock market value is down only 38%. Of course, included in that value are mortgage seller Countrywide and investment seller Merrill Lynch, both of which used to have plump market values of their own before falling into desperate financial condition and being bought by Bank of America last year. In the third quarter, Bank of America lost money, as revenue from credit cards, brokerage services, investment banking and mortgages declined from the second quarter. The company is expected to end the year with a profit. The consensus forecast for 2010 calls for a sharp improvement, but individual estimates within the consensus are broadly scattered, and for good reason. Much of the bank's profit recovery depends on the future ability of borrowers to make their payments, which in turn depends on difficult-to-predict factors like employment and the direction of asset prices.

Harley Davidson

So puny are Harley Davidson's (HOG) profits at the moment that they're expected to more than triple next year and still not amount to half what the company made in 2007. Management has a turnaround plan that, unfortunately for York, Pa., bike-builders involves shutting the company's plant there. Harley will also cut non-core, money-losing products like Buell and MV Augusta motorcycles, while adding more international dealerships for its core brand. A weak dollar seems likely to spur overseas purchases. The stock price has nearly tripled since March. Shares now seem priced as though an earnings recovery is a sure thing, at 21 times forecast 2010 earnings.

Masco

Masco (MAS) makes home-improvement products, like cabinets, faucets and paints. In 2006, its sales topped $12.7 billion. This year, they're expected to total about $7.6 billion, a 20% decline from last year. Profits are projected to be positive but skimpy this year and to multiply next year on a dash of sales growth and plenty of cost-cutting. On Tuesday, though, investors learned that September housing starts and building permits were much weaker than expected. Masco has worked to reduce the number of products it sells to builders of new houses, but the company still depends on them for about 35% of sales. Shares trade at 40 times the 2010 earnings consensus.

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 | 20 Oct 2009 | 10:00 pm

Madoff investors sue KPMG and major banks

NEW YORK/LOS ANGELES (Reuters) - Some investors defrauded by epic swindler Bernard Madoff on Tuesday added accounting firm KPMG , JPMorgan Chase and Bank of New York Mellon to a civil lawsuit in a New York court, lawyer Joseph Cotchett said.
Source: Reuters: Business News | 20 Oct 2009 | 9:20 pm

New CEO for NZ Post

NZ Post has confirmed the appointment of PriceWaterhouseCoopers senior partner Brian Roche as its new chief executive.He will take up the new job at the start of 2010, succeeding John Allen, who left NZ Post at the end of June...
Source: nzherald.co.nz - Business | 20 Oct 2009 | 8:50 pm

Bernard Madoff's life behind bars revealed

Bernard Madoff shares a jail cell with a 21-year-old drug dealer and socialises with a former crime boss and an Israeli spy, according to a legal action filed yesterday in New York.
Source: Latest Business News from Times Online | 20 Oct 2009 | 8:40 pm

Record September for tourists to NZ

Australian tourists are coming to visit in their droves, according to the latest figures from Statistics New Zealand.The tourism industry, feeling the squeeze ever since the recession began, finally enjoyed a lift in September.SNZ...
Source: nzherald.co.nz - Business | 20 Oct 2009 | 8:00 pm

Yahoo triples profit, beats expectations

SAN FRANCISCO (Reuters) - Yahoo Inc beat Wall Street's profit and sales expectations as spending by advertisers showed signs of life in the third quarter and as months of cost-cutting and restructuring boosted the Internet company's bottom line.
Source: Reuters: Business News | 20 Oct 2009 | 7:40 pm

Yahoo triples profit, beats expectations (Reuters)

Reuters - Yahoo Inc beat Wall Street's profit and sales expectations as spending by advertisers showed signs of life in the third quarter and as months of cost-cutting and restructuring boosted the Internet company's bottom line.

Source: Yahoo! News: Business | 20 Oct 2009 | 7:40 pm

Second runway ahead as City Airport's owner buys Gatwick for £1.5bn

Gatwick will be sold today for £1.5 billion, in a move expected to prompt a series of developments at the airport.
Source: Latest Business News from Times Online | 20 Oct 2009 | 7:22 pm

Kiwibank raises fixed mortgage rates again

Kiwibank is increasing its fixed mortgage rates for the second time this month.The move comes after BNZ announced hikes in its fixed mortgage rates yesterday. Last week ASB and ANZ National moved fixed mortgage rates higher.Kiwibank...
Source: nzherald.co.nz - Business | 20 Oct 2009 | 7:00 pm

Housing, price data points to sluggish recovery (Reuters)

Reuters - Softer-than-expected U.S. housing starts last month and a drop in prices paid at the farm and factory gate pointed to an anemic economic recovery, backing views that interest rates could stay low for a while.

Source: Yahoo! News: Business | 20 Oct 2009 | 6:36 pm

Galleon chief protests innocence as investors leave

Raj Rajaratnam, the American billionaire at the centre of a $25 million ($£15 million) insider-trading case, has insisted that he is innocent, but his protestations have not been enough to prevent investors from pulling out almost half the funds invested with his Galleon Group.


Source: Latest Business News from Times Online | 20 Oct 2009 | 6:01 pm

Halabi’s property empire withers as administrator sets about sell-off

Some of the most expensive commercial office buildings in London have been placed into administration as a property empire built by Simon Halabi, the Syrian-born billionaire, began to crumble.


Source: Latest Business News from Times Online | 20 Oct 2009 | 6:01 pm

Opec chief blames speculators for oil price rise

Opec, the cartel of 12 oil-exporting countries, blamed speculators for a recent rise in the price of oil.


Source: Latest Business News from Times Online | 20 Oct 2009 | 6:01 pm

Don't punish private companies, lawyer tells MED

Proposals to make large private companies file financial statements as if they were publicly traded should be killed off immediately, says law firm Chapman Tripp."They made cutting room floors for ideas like these," said CT partner...
Source: nzherald.co.nz - Business | 20 Oct 2009 | 6:00 pm

California in $200m State Street legal action

California has launched a $200m legal action accusing State Street of committing ‘unconscionable fraud’ against Calpers and Calstrs, the largest US pension funds
Source: Financial Times - US homepage | 20 Oct 2009 | 5:57 pm

Barnes & Noble to launch e-reader

The leading US book retailer will sell a wireless electronic reader rival that may become the strongest challenge to Amazon’s dominance in the nascent e-reader market
Source: Financial Times - US homepage | 20 Oct 2009 | 5:42 pm

Upbeat start to US earnings season

Big US companies issued a string of quarterly earnings results that exceeded Wall Street’s expectations, reflecting how quickly they have cut costs
Source: Financial Times - US homepage | 20 Oct 2009 | 5:28 pm

Sun blames Brussels as 3,000 jobs are axed

Sun Microsystems announced plans to slash 3,000 jobs in the next year, blaming the delay on getting European Commission clearance for its agreed $7bn acquisition by Oracle
Source: Financial Times - US homepage | 20 Oct 2009 | 5:11 pm

Market falls back from yesterday's gains

The New Zealand sharemarket fell in early trading, pulling back from gains that yesterday took it to the highest level in 13 months.Leading shares were down in the first few minutes of trading today with Contact Energy losing...
Source: nzherald.co.nz - Business | 20 Oct 2009 | 5:00 pm

Migration gain the most in five years

The number of people moving to New Zealand to stay reached a five-year high in September, new figures from Statistics New Zealand (SNZ) show.For the year, the 87,200 people arriving on a permanent and long term (PLT) basis was...
Source: nzherald.co.nz - Business | 20 Oct 2009 | 5:00 pm

SEC mulls ways to shed light on dark pools (Reuters)

Reuters - U.S. securities regulators are considering ways to shed light on anonymous trading venues known as dark pools, including treating so called "indications of interest" as regular quotes, a source familiar with the Securities and Exchange Commission's position said on Tuesday.
Source: Yahoo! News: Stock Markets News | 20 Oct 2009 | 4:56 pm

SEC mulls ways to shed light on dark pools

WASHINGTON (Reuters) - U.S. securities regulators are considering ways to shed light on anonymous trading venues known as dark pools, including treating so called "indications of interest" as regular quotes, a source familiar with the Securities and Exchange Commission's position said on Tuesday.
Source: Reuters: Business News | 20 Oct 2009 | 4:56 pm

Write-Offs: 10.20.09

$$$ Chiesi Faced Tax Lien While Allegedly Trading Akamai [Bloomberg]

$$$ BofA Emails Tell Different Story About Merrill Deal [The Deal]

$$$ Goldman Sachs' Favorite NYC Private Schools [Cityfile]

$$$ Rakoff Gets Galleon Case [WSJ]

Sponsored Topics: Goldman Sachs - Bank of America - Merrill Lynch - Bloomberg L.P. - United States
Source: Dealbreaker | 20 Oct 2009 | 4:46 pm

Setback for US crackdown on oil speculation

US plans for an aggressive crackdown on energy speculation are in danger of unravelling, with leaders at the US commodity regulator raising doubts about proposed reforms
Source: Financial Times - US homepage | 20 Oct 2009 | 4:45 pm

Roche tipped to be new NZ Post head

The new head of NZ Post is tipped to be PriceWaterhouseCoopers partner Brian Roche.The Trans Tasman political newsletter said Mr Roche would be announced this week as chief executive to replace John Allen, who left in June to...
Source: nzherald.co.nz - Business | 20 Oct 2009 | 4:44 pm

Buffett Calls For Wall Street Diet Heavy On Sticks, Light On Carrots

Many people have spoken at great length about the evils of Wall St. but the Oracle is not buying the argument that Wall St. is evil itself. Keeping up the trend this week of refusing to name names, WB said part of the problem is ability of certain individuals to do their best George Costanza impression by leaving on top at the same time their respective organizations are in mortal danger.

Sponsored Topics: George Costanza - Wall Street - Oracle - China - Asia
Source: Dealbreaker | 20 Oct 2009 | 4:37 pm

Santander may pay special dividend

The biggest bank in the eurozone by market capitalisation continues to generate capital at such a rate that it may have to return cash to shareholders next year
Source: Financial Times - US homepage | 20 Oct 2009 | 4:23 pm

Leibowitz on Water, Energy Stocks; Callaway Golf Outlook: Audio

Source: Bloomberg - All Podcasts | 20 Oct 2009 | 4:17 pm

Drugstore.com posts narrower 3Q loss as sales rise (AP)

AP - Online retailer Drugstore.com Inc. said Tuesday it had a smaller third-quarter loss than a year earlier as sales of over-the-counter drugs and vision care items increased and its gross margins improved.
Source: Yahoo! News: Business | 20 Oct 2009 | 4:09 pm

Which Hedge Fund Is Gearing Up To Strip Search Employees In Wake Of Galleon?

Forbes reports that "an unnamed hedge fund" is seeking to bring in a specialist who can come in and "make sure employees are not wearing wires," in an effort to screw (or: finger) said fund. Who do we think it is?

How Dirty Are Hedge Funds? [Forbes via BI]

Sponsored Topics: Hedge fund - Business - Investing - Funds - Forbes
Source: Dealbreaker | 20 Oct 2009 | 3:53 pm

Epps, Friedland Discuss Barnes & Noble's E-Reader, Books: Audio

Source: Bloomberg - All Podcasts | 20 Oct 2009 | 3:48 pm

Stocks fall after mixed economic data, earnings (AP)

AP - A disappointing report on housing starts made investors nervous about the economy Tuesday and sent stocks lower even as profits at many companies exceed expectations.

Source: Yahoo! News: Stock Markets News | 20 Oct 2009 | 3:46 pm

How the major stock indexes fared on Tuesday (AP)

AP - A disappointing report on housing starts made investors nervous about the economy Tuesday and sent stocks lower even as profits at many companies exceed expectations. Stocks retreated from 2009 highs after the Commerce Department said applications for home building permits fell in September by the largest amount in five months. That is a discouraging signal for future construction.
Source: Yahoo! News: Stock Markets News | 20 Oct 2009 | 3:41 pm

Bank Of England Governor: Break Up The Banks

By Caitlin Kenney

Mervyn King, governor of the Bank of England, wants banks to separate their everyday activities from other riskier ventures. King addressed the issue during a speech in Scotland. From the Financial Times:

The Bank governor wants to see the utility aspects of banking -- payment systems and deposit taking -- hived off from more speculative ventures such as proprietary trading. "There are those who claim that such proposals are impractical. It is hard to see why," he said.

Although he said that ideas to force banks to hold debt that automatically turns into equity in a crisis were "worth a try", he downplayed their likely effect. "The belief that appropriate regulation can ensure that speculative activities do not result in failures is a delusion".

The Treasury and the Financial Services Authority in Britain have rejected the idea of splitting up the banks. British Prime Minister Gordon Brown has focused his efforts on requiring banks to create "living wills" which would help regulators wind them down in the event of bankruptcy.

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Source: NPR Blogs: Planet Money | 20 Oct 2009 | 3:39 pm

Goldman Sachs exec defends bonuses at ethics debate

LONDON (Reuters) - Bumper payouts to bankers should be seen as part of a longer term investment in London's economy, the vice chairman of Goldman Sachs International told a debate on ethics at St Paul's Cathedral on Tuesday.
Source: Reuters: Business News | 20 Oct 2009 | 3:33 pm

Analysts Munster, Marshall Discuss Apple’s Earnings: Audio

Source: Bloomberg - All Podcasts | 20 Oct 2009 | 3:31 pm

UBS’s Orji Discusses Demand for Technology Stocks: Audio

Source: Bloomberg - All Podcasts | 20 Oct 2009 | 3:24 pm

"But Seriously, This Is Not A Laughing Matter. I'm Probably Going To Lose A Lot Of Friends To Pound Town."

Pershing Square hedge fund manager Bill Ackman highlighted prison operator Corrections Corp. as one of the best real-estate businesses around, during a presentation at the Value Investing Congress in New York on Tuesday. The government is a major customer and there is strong demand for prison space and limited supply, Ackman explained. "It's also a hedge against your hedge fund business, because as the SEC ramps up..." Ackman said, prompting laughter at the conference. "We shouldn't joke about that," he added.

Sponsored Topics: Hedge fund - Business - New York - Investing - Funds
Source: Dealbreaker | 20 Oct 2009 | 3:24 pm

MGM Mirage, Caterpillar, Apple are big movers (AP)

AP - The following stocks were among those that moved substantially or traded heavily Tuesday on the New York Stock Exchange:
Source: Yahoo! News: Stock Markets News | 20 Oct 2009 | 3:20 pm

MGM Mirage, Caterpillar, Apple are big movers (AP)

AP - The following stocks were among those that moved substantially or traded heavily Tuesday on the New York Stock Exchange:
Source: Yahoo! News: Business | 20 Oct 2009 | 3:20 pm

The warning that went unheeded

In the 1990s, most people didn't know the Commodity Futures Trading Commission's chairman was warning about derivatives and being ignored. Frontline's Michael Kirk reports on Brooksley Born's fight against Washington's economic establishment.
Source: Marketplace | 20 Oct 2009 | 3:19 pm

The 100 Hardest Working Brands In The World

There are a number of ways to rank brand values. One of the most important is the level at which a brand contributes to the market value of a public company. 24/7 Wall St. asked Corebrand, the brand research and consulting firm, to look at the top 100 brands based their contribution to market capitalizaton. Using [...]

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Source: 24/7 Wall St. | 20 Oct 2009 | 3:06 pm

InfoGroup says it has settled SEC investigation (AP)

AP - Database provider InfoGroup Inc. says it has reached a tentative agreement with the Securities and Exchange Commission to settle an investigation of the company's spending and records that began nearly two years ago.
Source: Yahoo! News: Stock Markets News | 20 Oct 2009 | 2:46 pm

Presented By:

Source: Dealbreaker | 20 Oct 2009 | 2:43 pm

Ireland To Move Entire Housing Market Off-Balance Sheet

Having been frequently and thoroughly demonized over the past few years, off-balance sheet entities are now set to save the Irish government's debt levels from reaching comical magnitudes. The recently created National Asset Management Agency (NAMA) will be allowed to deal with the €77 billion in primarily mortgage loans taken off the balance sheets of Irish banks in solitude.

"The preliminary decision of Eurostat means that the acquisition of the assets from the financial institutions by NAMA may be treated as off-balance sheet in the budgetary arithmetic under European national accounting rules," Lenihan said. "In other words, it will not increase the general government debt ratio and neither will our budget balance be directly affected by the NAMA initiative," he said in a statement.

But if there is one thing the financial crisis has done, it's demonstrated the need for accuracy from agencies responsible for critical macroeconomic and accounting issues. Based on today's revelations, Ireland may want to hedge against anything Eurostat says.

Sponsored Topics: Ireland - Government debt - Financial crisis - Government of Ireland - Balance sheet
Source: Dealbreaker | 20 Oct 2009 | 2:43 pm

NYSE chief urges changes for 'dark pools' (AP)

AP - With federal regulators poised to propose changes for so-called "dark pools," the head of the New York Stock Exchange said tighter rules should be applied to the alternative trading systems that don't publicly provide price quotes and compete with traditional exchanges.
Source: Yahoo! News: Stock Markets News | 20 Oct 2009 | 2:31 pm

Bank of America Might've Bought Lehman If Tim Geithner Had Better Job Talking Up Dick

So Hank Paulson held secret meetings with Goldman in a hotel room in Russia and now we also find out, from Andrew Ross Sorkin's new book, that matchmakers Paulson and Geither arranged a midnight meeting between Dick Fuld and Ken Lewis on Monday, July 21, 2008 to discuss the possibility of something going down between the two men's firms. The rendez-vous took place after a dinner honoring the then Treasury Secretary, at which all of Wall Street's CEO's were assembled and one sort of gets the impression that maybe if Geithner had thought to talk Fuld/Lehman up to Lewis a little more ("he's a grower, not a shower"), and told Fuld "for god's sake, don't look so desperate, play it cool," the outcome might've been different. (It probably also would've required Richard to not be delusional about what he was trying to sell which, admittedly, TG couldn't have helped.)

As the dinner was ending, Mr. Geithner, approached Mr. Lewis and, leaning close, whispered, "I believe you have a meeting with Dick."

"Yeah, I do," Mr. Lewis replied.

Mr. Geithner gave him directions to a side room where the two could speak in private. He had apparently already given Mr. Fuld the same instructions, because Mr. Lewis noticed him across the room looking back at them like a nervous date.

Sponsored Topics: Wall Street - Andrew Ross Sorkin - HenryPaulson - KenLewis - United States Secretary of the Treasury
Source: Dealbreaker | 20 Oct 2009 | 2:26 pm

Yahoo! (YHOO) Cuts Costs, Makes Money–Market Not Impressed

Yahoo! (NASDAQ:YHOO)reported revenues of $1.575 billion for the quarter ended September 30, 2009, a decrease of 12%. Net income was $.13, compared to $.04 for the third quarter of 2008. Marketing services revenue declined 12% and fees revenues declined 11%, compared to the third quarter of 2008. Marketing services revenue from “owned and operated” sites was [...]

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Source: 24/7 Wall St. | 20 Oct 2009 | 2:25 pm

SanDisk Smokes Estimates (SNDK)

SanDisk Corp. (NASDAQ: SNDK) was already a screamer as shares were up a massive 300% from their 52-week lows due to a return to profitability in the June quarter (2 quarters early).  The flash memory leader just posted earnings of $0.75 in non-GAAP EPS and $935 million in revenues.  Thomson Reuters had estimates of $0.26 [...]

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Source: 24/7 Wall St. | 20 Oct 2009 | 2:18 pm

Congress Should Use A Lifeline

In democracies like the US, the will of the people is supposed to at least help determine the country's direction. It's part of the culture and manifests itself in a variety of places. Take, for example, Who Wants to Be a Millionaire. When you run into a tough question you have the option of finding out what the majority thinks by asking the audience. Congress may want to consider applying the same methodology to the tough question of how much financial regulation to introduce.

Sponsored Topics: Who Wants to Be a Millionaire - United States - Kids and Teens - School Time - Social Studies
Source: Dealbreaker | 20 Oct 2009 | 1:26 pm

When the Dow is up, news is down

You might think that when the Dow Jones Industrial Average is climbing, news coverage would increase too. But that's not what a study found from the Pew Center's Project for Excellence In Journalism.
Source: Marketplace | 20 Oct 2009 | 1:08 pm

Mass. Governor Reaches Out To Help Small Business With Health Premiums

By Caitlin Kenney

Massachusetts Governor Deval Patrick wants to help small businesses lower their health insurance premiums. The governor has proposed giving state insurance regulators more authority to review premiums before they go into effect and "disapprove rates if they are deemed unreasonable in relation to the benefits provided."

Patrick also wants to work with small businesses to establish cooperatives which would give them greater purchasing power and allow them bargain for cheaper rates. From the Boston Globe:

"The whole health care reform in Massachusetts had previously been centered around big government and big business,'' said Jon Hurst, president of the Retailers Association of Massachusetts, which represents many small businesses. "We're excited about it, because it puts the big insurers on notice that the administration, the regulators, are not going to put up with these double-digit increases anymore.''

Legislation passed in 2006, requires Massachusetts businesses with 11 or more full-time workers to offer health coverage or pay a penalty. The Health and Human Services Department says on average, small businesses pay up to 18 percent more than large firms for the same health insurance.

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Source: NPR Blogs: Planet Money | 20 Oct 2009 | 12:58 pm

Must Everyone Associated With The Galleon Case Have His/Her Own Cringworthy Rap To Speak Of?

Survey says: yes. Obviously you've got Raj's right here ("when the rally's on, put your money on Galleon), and below, the track laid down by the McKinsey Knowledge Center, a division launched by none other than McK "rising star" and Rajaratnam buddy-boy Anil Kumar. If you've been escorted out of your company's office in cuffs at some point in the last week, or think you might be soon, and have no theme song to speak of, we suggest you get in the recording studio ASAP.

Sponsored Topics: Recording studio - Business and Economy - Entertainment and Media - Music - McKinsey & Company
Source: Dealbreaker | 20 Oct 2009 | 12:56 pm

Galleon Quibbling Over Semantics Of When Firm Could Potentially Go Under

As reported yesterday, a source close to Sanjay Santhanam, Galleon's head of risk management, told Dealbreaker that Santhanam recently expressed fears the firm "could be closed by Friday," due to a massive amount of redemptions. A representative of the fund, however, takes issue with the potential expiration date offered by San-San, pointing out that, technically, the death would be much more slower and painful, and take us through the New Year.

Sponsored Topics: New Year - Risk management - Galleon - Business - Death
Source: Dealbreaker | 20 Oct 2009 | 12:23 pm

Sinche Says Dollar Index May Decline 5 to 7 Percent: Audio

Source: Bloomberg - All Podcasts | 20 Oct 2009 | 11:38 am

The 8 Best Viral Advertising Videos of 2009 (So Far)

Viral videos are one of the Internet’s best entertainment mediums. They teach, impress, and–perhaps most importantly–help you pass the time.

Companies know this. When they commission top international advertising firms to produce Internet videos, they use “going viral” as a measure of success. Marketing videos can help bolster a company’s reputation, increase sales, and foster positive associations in consumers’ minds. Or, as the Microsoft and Nokia videos below prove, they can lack product association, but still be viral.

Here are the best viral marketing videos of 2009–so far. It’s only late October. Companies still have time to release new viral hits. Only time will tell what kind of random and fascinating content will hit the Web next.

The BaaStuds

Samsung chose to promote its LED TVs using LED lights mounted on…sheep. This sensational video employs skilled shepherds and cameramen to create un-baa-lievable results. Views on YouTube (at time of writing): 9.5 million

MegaWoosh Waterslide

Microsoft sponsored this video of Swiss stuntman Bruno Kammerl executing a mind-blowing waterslide jump. Clad only in neoprene, Kammerl flies more than 100 feet into a tiny pool of water. How a waterslide jump relates to Microsoft’s Office Project 2007 is something of a mystery, but that’s just who fronted this flabbergasting fake. Views: 3.6 million

The Acrobutt

MSI laptops are so lightweight and durable that you can catch them in your buttcrack. At least, that’s what the company proved in its bizarre viral video, featuring young men in spandex hucking laptops into…you guessed it. Views: 2.3 million

What Kids Don’t See

German porn company Beate Uhse advertises its built-in child lock with a video reminiscent of an adult Rorschach test. If you’re curious as to how boobs can morph into a tweety bird, here’s your chance. Views: More than 800,000

Bruce Lee Plays Table Tennis

Ad agency Saatchi & Saatchi released this video for the Chinese release of the Nokia N96. The video features Bruce Lee playing ping pong using only a kung fu weapon–and beating his (very capable) opponents. The video is a jaw-dropper, though it’s unclear how it relates to the phone. Views: Only 2,000+ US

Mattress Dominoes

British company Bensons for Beds filmed mattress factory employees clutching mattresses, then falling like dominoes. The slapstick-style video ends with one employee and his mattress landing on a conveyor belt. A woman jumps into bed with him, and the couple gets loaded onto a Bensons truck. Views: 700,000

How’d He Make That Phone Disappear?

A man filmed this entire video on a new Samsung I8910 HD video phone. Towards the end of the video, he makes the phone he is holding disappear, though it can still make videos. He claims to have used no special effects. It was up to viewers to guess how he’d done it. Views: 1 million

Vanilla Ice Says Sorry

Virgin Mobile Australia released this video of Robert Van Winkle (formerly Vanilla Ice) apologizing for his first album. His apology, which is sincere, covers both his sound and his look. The shock value of this video lies in its uniqueness. Views: 885,000

Source: Business Pundit | 20 Oct 2009 | 11:30 am

Swartzberg Says Carbonated Drink Sales Are Declining: Audio

Source: Bloomberg - All Podcasts | 20 Oct 2009 | 11:18 am

Shepherdson Is Bullish on U.S. Equities for 2010: Audio

Source: Bloomberg - All Podcasts | 20 Oct 2009 | 11:16 am

You Are Being Monitored

Source: Business Pundit | 20 Oct 2009 | 11:15 am

Stretch Sees Euro as High as $1.56 by End of 2009: Audio

Source: Bloomberg - All Podcasts | 20 Oct 2009 | 11:13 am

Brewin's Lenhoff Predicts Further Gains in U.S. Stocks: Audio

Source: Bloomberg - All Podcasts | 20 Oct 2009 | 11:12 am

Housing Starts Stay Steady, But Builders Fear End Of Tax Credit

By Caitlin Kenney

Housing starts increased 0.5 percent in September to a seasonally adjusted annual rate of 590,000. Most economists had expected an increase closer to 2 percent. Housing starts began to rebound in June and for the last four months they've hovered just above 560, 000.

New home sales are up 30 percent through August, but analysts and builders worry that sales are likely to slump once the $8,000 credit for first-time home buyers expires next month. The National Association of Home Builders and Wells Fargo released their builder confidence survey yesterday, and the indexes which measure sales expectations, conditions and traffic of prospective buyers all fell in October.

Senate Banking Committee Chairman Chris Dodd and Senator Johnny Isakson are part of a group of lawmakers pushing the Obama administration to extend the credit. They testified about the state of nation's housing market today on Capitol Hill.

"The credit is set to expire in five weeks. But the work of stabilizing the housing market won't be done. We still need to use every tool at our disposal to try and fix this problem," Dodd said.

Dodd and Isakson want the credit extended through the end of June.

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Source: NPR Blogs: Planet Money | 20 Oct 2009 | 11:08 am

DeQuadros Sees Delayed Fed Response to Inflation Data: Audio

Source: Bloomberg - All Podcasts | 20 Oct 2009 | 11:07 am

Barnes & Noble Nook E-Reader Revealed

Image: Gizmodo

Barnes & Noble’s new e-reader, the Nook, goes on sale next Tuesday. Wired calls it a Kindle-killer:

The reader…looks a lot like Amazon’s white plastic e-book, only instead of the chiclet-keyboard there is a color multitouch screen, to be used as a keyboard or to browse books, cover-flow style. The machine runs Google’s Android OS, will have wireless capability from an unspecified carrier and comes in at the same $260 as the now rather old-fashioned-looking Kindle.

But it’s the details of the Barnes & Noble service itself that have us really interested. Gizmodo, which first broke the leaked images, has information that B&N will be discounting titles heavily in their electronic format, which is as is should be (no paper, printing or shipping costs). The Nook will also be able to get books from the Google Books Project.

And over at the Wall Street Journal, somebody got a peek at an at ad set to run in The New York Times this coming Sunday. The ad features the line “Lend eBooks to friends,” and this has the potential to destroy the Kindle model. One of the biggest problems with e-books is that you can’t lend or re-sell them. If B&N is selling e-books cheaper than the paper versions, then the resale issue is moot. And lending, even if your friends need a Nook, too, takes away the other big advantage of paper.

It’s nice to finally see some real competition in the e-reader space. The Wall Street Journal revealed yesterday that the Nook would cost $259.

Source: Business Pundit | 20 Oct 2009 | 10:39 am

Lack of sick pay sends colds, flu to work

Half of America's private-sector workers don't get paid sick leave. So, even when they don't feel well and could infect others, many of them still show up at the office. And that's not what the doctor ordered. Curt Nickisch reports.
Source: Marketplace | 20 Oct 2009 | 10:25 am

Comments from our listeners

Listeners let us know what they think of our coverage of checkout-line charity, Detroit supermarkets, New York City's Garment District, "The Tao of Wu" and shock advertising.
Source: Marketplace | 20 Oct 2009 | 10:25 am

Courts are weighing in on budget cuts

A federal judge in California has barred the state from cutting money from an in-home care program for the elderly and disabled. Other states may see their proposed budget cuts rolled back by the courts, too. Jeff Tyler reports.
Source: Marketplace | 20 Oct 2009 | 10:25 am

Looking for a niche with the Nook

Barnes & Noble is entering the e-reader market with the Nook. What's it got that Amazon's Kindle and the others don't? Mitchell Hartman reports.
Source: Marketplace | 20 Oct 2009 | 10:24 am

What do corporate profits mean for us?

Pfizer, Caterpillar, Wells Fargo and DuPont are among companies reporting better-than-expected profits this quarter. Analysts say there are more to come. Does good news for corporations mean a recovering economy? Alisa Roth reports.
Source: Marketplace | 20 Oct 2009 | 10:24 am

Merging new music with good business

No independent music label has done more to bring a lot of bands from obscurity to the top of the college charts than Merge Records. It was started 20 by two punk rockers, Laura Ballance and Mac McCaughan. They talk with Kai Ryssdal.
Source: Marketplace | 20 Oct 2009 | 9:56 am

Erickson Retirement Communities files Chapter 11

Erickson Retirement Communities, one of the biggest retirement community developers in the country, has filed for Chapter 11 bankruptcy protection. Reuters has more:

LLC, a U.S. retirement community developer, filed for Chapter 11 bankruptcy, and reached an agreement to sell its assets to Redwood Capital LLC, court documents showed.

In a filing with the U.S. Bankruptcy Court for the Northern District of Texas on Mon(d)ay, Erickson Retirement Communities listed both estimated assets and liabilities of more than $1 billion.

Maryland-based Erickson Communities, which was founded in 1983, currently includes 19 campuses and houses more than 22,000 people and has about 12,000 employees.

Erickson has 20 retirement communities around the country, according to their website. The Baltimore Sun reports on the reasons behind Erickson’s bankruptcy filing:

Erickson’s real estate arm, which acquires land for campuses and builds projects, has been hurt by the recession, as seniors who couldn’t sell existing homes put off moving to continuing-care communities.

The structure of the Erickson payments system, in which residents paid an upfront fee, also made the company vulnerable when the economy tanked…Seniors in Erickson communities generally paid their refundable entrance fees – ranging from $150,000 to upward of $400,000 – by selling their homes.

When the housing market collapsed, values declined and seniors either couldn’t sell their homes or didn’t feel they should, (investment expert Robert) Kramer said. “For most seniors, they still had an enormous appreciation compared to what they paid for their homes, but it wasn’t worth what it was two or three years ago and that is what they saw.”

Erickson was in the midst of large developments outside Maryland but couldn’t get seniors to put down the money to move in. When the credit markets collapsed, Erickson couldn’t restructure its loans.

Source: Business Pundit | 20 Oct 2009 | 9:39 am

Galleon moves assets into cash

Brokers to the hedge fund, whose founder and president Raj Rajaratnam, is at the centre of insider trading charges, say it is rapidly liquidating its investments in anticipation of a wave of investor redemptions
Source: Financial Times - US homepage | 20 Oct 2009 | 9:38 am

Plum Organics Issues Baby Food Recall

Image: Brand Engine

Plum Organics has issued a recall for its Apple & Carrot baby food after discovering a potential botulism contamination. Here’s the recall letter from the company, which has the details:

Dear Parents

I wanted to let you know that, today, Plum Organics voluntarily recalled a small portion
of our Apple & Carrot Baby Food in Portable Pouches after a routine test determined
the formulation was incorrect. Plum Organics immediately investigated the matter and
confirmed that a mixing error was to blame which resulted in an improper blend of
carrots and apples.

We have recalled all Apple & Carrot Baby Food in Portable Pouches with the best by
date of May 21, 2010 and marked with the following number “890180001221” located at
the bottom of the package.

No illnesses have been reported in connection with this product. We conducted extensive
testing of samples of every Plum Organic product manufactured before and after
this batch and all samples were found to be within the standard guidelines.

Consumers can return any Plum Organics Apple & Carrot pouch-based baby food
with the above “best by” date and UPC code to Toys-R-Us or Babies-R-Us for a full
reimbursement.

Please accept my deepest apologies for this inconvenience. If you have any further
questions, please contact Plum Organics at info@plumorganics.com.

Sincerely,

Gigi Lee Chang
Founder

Source: Business Pundit | 20 Oct 2009 | 9:20 am

Wholesale Prices Fall. Plus: The Hidden Costs Of Fossil Fuels

By Laura Conaway

Good morning. Here's what we're reading this Tuesday:

The Producer Price Index fell in September by 0.6 percent, which means wholesale goods were going for less last month than in August. Compared to this time last year, companies were paying 4.8 percent less for the same stuff. If you're a producer, that's not such great news. If you're working at the Federal Reserve and you're wary of inflation, today's figure is a green light for a keeping interest rates low.

Housing starts showed signs of sagging. They rose just 0.5 percent from August to September.

Americans need to save more and Asians need to start spending, says Federal Reserve Chairman Ben Bernanke. He says Asia appears to be leading the world out of the recession and warns that continued trade imbalances could send us right back to the brink.

Fossil fuels cost the U.S. $120 billion in health damages and early deaths, the National Research Council reports.

President Obama is set to host a Democratic fundraiser in New York City today, and the big banks that got big bailouts are steering clear of the event and its $30,400 tickets. With a 40 percent hike in bonus pay, Wall Street workers are shelling out bucks for fancy steaks and expensive condominiums.

And the New York Times' Andrew Ross Sorkin unveils his new book on the Lehman Brothers collapse with an excerpt in the paper today.

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Source: NPR Blogs: Planet Money | 20 Oct 2009 | 7:40 am

Cheat Sheet for “Not Computer People”

If you’re a computer person, then you probably take abuse from your friends and family. Here’s a web comic that will help you fight back. (Source: XKCD)

Source: Business Pundit | 20 Oct 2009 | 4:52 am