World Business News Headlines for May 13, 2010

Barack Obama plans to punish BP with tax hike as Gulf spill worsens

Oil companies face an immediate tax rise of 1 cent per barrel to help to pay for the clean-up in the Gulf of Mexico under proposed legislation rushed out by the White House yesterday.

Source: Latest Business News from Times Online | 13 May 2010 | 6:01 pm

UK trade deficit widens in March

The UK's trade gap with the rest of the world widened sharply to £3.7bn in March, according to official figures.
Source: BBC News | Business | World Edition | 13 May 2010 | 4:15 am

BP Oil Spill Costs Top $450 Million As Questions About The Dénouement Rise

BP plc (NYSE: BP) says that the costs of cleaning up and attempting to cap the oil flow from what is left of the Deepwater Horizon infrastructure have risen above $450 million. According to The Wall Street Journal, “Jason Kenney, a U.K.-based analyst at ING, thinks BP’s total costs stemming from the spill, including environmental cleanup [...]

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Source: 24/7 Wall St. | 13 May 2010 | 4:14 am

SAP buys into smartphone software

German software giant SAP is buying California's Sybase for $5.8bn in a deal which boosts SAP in its battle with US rival Oracle.
Source: BBC News | Business | World Edition | 13 May 2010 | 4:12 am

Spain joins euro austerity drive

MADRID/BRUSSELS (Reuters) - Spain belatedly joined the euro zone's austerity bandwagon Wednesday in response to a widening debt crisis as the European Commission sought an unprecedented right of prior review of national budgets.

Source: Reuters: Business News | 13 May 2010 | 4:11 am

1.1 million homes to be repossessed

The foreclosure plague may have finally reached its peak in April 2010 -- but don't expect delinquency statistics to plummet anytime soon.
Source: Business and financial news - CNNMoney.com | 13 May 2010 | 4:09 am

Facebook faces fresh privacy criticism

Facebook has been sharply criticised by European data protection officials for putting users’ privacy at risk with changes to its service
Source: Financial Times - US homepage | 13 May 2010 | 4:08 am

Sony aiming for black as annual loss shrinks (AP)

AP - Sony Corp., maker of the PlayStation 3, stayed in the red last business year but predicts a return to profit as restructuring and an aggressive 3-D rollout bear fruit.

Source: Yahoo! News: Business News | 13 May 2010 | 4:07 am

Indications: U.S. stock futures step back; euro slide continues

U.S. stock futures step back Thursday, as nervousness over national debt burdens continue amid market gyrations.

Source: MarketWatch.com - Top Stories | 13 May 2010 | 4:07 am

Telefonica net income rises less-than-forecast 2%

Spanish telecom giant Telefonica on Thursday reported first-quarter net profit rose a smaller-than-estimated 2%, as strength in Latin America and the U.K. was partly offset by troubles in its unemployment-ravaged home country.

Source: MarketWatch.com - Top Stories | 13 May 2010 | 4:07 am

Bankruptcies to keep on rising

The number of people seeking bankruptcy in England and Wales rebounded in the first three months of the year.
Source: BBC News | Business | World Edition | 13 May 2010 | 4:03 am

BP says oil spill costs $450 million so far

LONDON (Reuters) - British oil major BP said the oil spill in the Gulf of Mexico had cost it $450 million so far, an increase of $100 million on the figure reported earlier this week.

Source: Reuters: Business News | 13 May 2010 | 4:00 am

UPDATE 2-BP says oil spill costs $450 million so far

LONDON, May 13 (Reuters) - British oil major BP said the oil spill in the Gulf of Mexico had cost it $450 million so far, an increase of $100 million on the figure reported earlier this week.
Source: RSS feed - channel BNewsBusiness | 13 May 2010 | 3:59 am

World newspaper forum called off due to crises (AP)

AP - A Lebanese newspaper says the global financial crisis coupled with regional tensions have derailed its hosting of a world gathering of newspaper executives and editors planned for next month.
Source: Yahoo! News: Business News | 13 May 2010 | 3:55 am

Sprint: Who Wants 4G?

The premise behind the turnaround plans of Sprint-Nextel (NYSE: S) is that the 4G WiMax ultra-fast wireless network that it is building with Clearwire (NASDAQ: CLWR) with the financial support of Intel (NASDAQ: INTC) will draw customers from AT&T (NYSE:T) Wireless and Verizon Wireless which each has nearly twice Sprint’s subscriber base of 50 million customers. The [...]

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Source: 24/7 Wall St. | 13 May 2010 | 3:53 am

Stock index futures signal dip; techs eyed

(Reuters) - U.S. stock index futures pointed to a lower start on Thursday, with futures for the S&P 500, Dow Jones and Nasdaq down 0.1-0.3 percent at 5:30 a.m. EST.

Source: Reuters: Business News | 13 May 2010 | 3:51 am

Stock index futures signal dip; techs eyed (Reuters)

Reuters - U.S. stock index futures pointed to a lower start on Thursday, with futures for the S&P 500, Dow Jones and Nasdaq down 0.1-0.3 percent at 5:30 a.m. EST.

Source: Yahoo! News: Stock Markets News | 13 May 2010 | 3:51 am

Fewer homes are repossessed

The number of homes repossessed in the UK fell in the first three months of 2010, according to lenders.
Source: BBC News | Business | World Edition | 13 May 2010 | 3:51 am

Sainsbury sales and profits rise

The UK's third-biggest supermarket chain, Sainsbury's, says its figures show it is growing faster than its rivals.
Source: BBC News | Business | World Edition | 13 May 2010 | 3:43 am

Bangkok protests devastate shopping paradise (AP)

AP - Bangkok's shopaholics are suffering withdrawal symptoms while some of Asia's fanciest department stores are seeing red — on their balance sheets and all around them as so-called Red Shirt protesters continue a crippling, weekslong occupation of the Thai capital's prime commercial district.

Source: Yahoo! News: Business News | 13 May 2010 | 3:43 am

Panel reveals litany of failures on oil spill

A powerful House investigations panel revealed a litany of failures in the blow-out preventer in BP’s leaking Gulf of Mexico well, suggesting that BP and Transocean officials overlooked warning signs and then disagreed on what to do about them
Source: Financial Times - US homepage | 13 May 2010 | 3:37 am

BA outlines Heathrow strike plan

British Airways plans to run at least half its flights from Heathrow Airport during next week's cabin crew strike.
Source: BBC News | Business | World Edition | 13 May 2010 | 3:33 am

Sony Earnings And Prospects Still Dismal, Time To Break It Up

Sony (NYSE: SNE) said that its numbers for the fiscal year ending on March 31 were better than last year. They were, but only marginally. And, in several key segments of its business, the figures are hardly better at all. For the year, Sony revenue dropped from 7.214 trillion yen from 7. 730 trillion yen. [...]

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Source: 24/7 Wall St. | 13 May 2010 | 3:31 am

Asia stocks ride improved sentiment, Nikkei +2.2%

Asian markets jump Thursday, with Japanese stocks getting a boost from a flurry of solid earnings reports, while Hong Kong and Chinese shares gained as investors snapped up Chinese banks after a recent correction.

Source: MarketWatch.com - Top Stories | 13 May 2010 | 3:30 am

Hearing set in OC for Toyota lawsuits (AP)

AP - A federal judge in Orange County could set the framework for the lawsuits facing Toyota Motor Corp. related to its sudden acceleration problems.
Source: Yahoo! News: Business News | 13 May 2010 | 3:28 am

Diary of a Private Investor: 'I held my nerve to buy shares'

What extraordinary and exciting times. I have been jumping from political websites to stock market websites and back again trying to keep up with the latest developments.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 13 May 2010 | 3:25 am

Bail-out concerns keep euro under pressure

Global Markets Overview: Single currency falls close to recent lows against the dollar as the tremors from Monday’s €750bn bail-out package continue to reverberate
Source: Financial Times - US homepage | 13 May 2010 | 3:16 am

Portugal to unveil ‘crisis tax’ to cut deficit

José Sócrates, Portugal’s prime minister, is to announce tough new austerity measures, including a ‘crisis tax’ on companies and wages, to accelerate cuts in the country’s gaping budget deficit
Source: Financial Times - US homepage | 13 May 2010 | 3:15 am

US repossessions at all-time high

The number of US home repossessions hits an all-time high, but is now expected to start to fall back.
Source: BBC News | Business | World Edition | 13 May 2010 | 3:15 am

3i shares get boost as asset valuations improve

Shares in the U.K. private-equity investment firm climb after the company says it has returned to profit and sharply reduced its debt.

Source: MarketWatch.com - Top Stories | 13 May 2010 | 3:15 am

RPT-Czech Unipetrol sees demand rising slowly

PRAGUE, May 13 (Reuters) - Demand for refinery and petrochemical products is rising but at a slow pace, Czech downstream oil group Unipetrol said on Thursday.
Source: RSS feed - channel BNewsBusiness | 13 May 2010 | 3:14 am

UPDATE 1-Deals of the day -- mergers and acquisitions

(Adds Ford Motor, Tullett Prebon, Astaire Securities; updates SAP AG)
Source: RSS feed - channel BNewsBusiness | 13 May 2010 | 3:12 am

World stocks rise as growth hopes best debt fears (AP)

AP - World stock markets advanced Thursday as concerns about a European debt crisis waned and investors turned to signs of a growing global economy.

Source: Yahoo! News: Business News | 13 May 2010 | 3:09 am

World stocks rise as growth hopes best debt fears (AP)

AP - World stock markets advanced Thursday as concerns about a European debt crisis waned and investors turned to signs of a growing global economy.

Source: Yahoo! News: Stock Markets News | 13 May 2010 | 3:09 am

Meet Dunkin's culinary masterminds

Dunkin' Donuts has always sold a lot of bagels -- in addition to, well, doughnuts. But about a year ago it decided it wanted to sell a lot more. It's not as easy as you think. Green bagels on St. Patrick's Day? Add 15% more poppy seeds? A Dancing With the Stars tribute bagel? You get the picture. The job fell to the Dunkin' Brands Culinary Innovation Team. The crew's bakery specialists experimented with more than just flavor, trying new forms to make something that topped even the traditional bagel in portability. They tested everything from a pretzel shape to a baguette shape. They worked to perfect their toppings, in one instance toning down the jalapeño flavor. Ten months later the Bagel Twist made its national debut in varieties like cheddar cheese and French toast.
Source: Business and financial news - CNNMoney.com | 13 May 2010 | 3:07 am

The Death Of Wall St.

The Wall Street Journal reports that J.P. Morgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), Deutsche Bank AG (NYSE:DB) and UBS AG are under investigation for allegedly having “misled investors about their roles in mortgage-bond deals.” The New York Times writes that Goldman Sachs, Morgan Stanley, UBS, Citigroup, Credit Suisse, Deutsche Bank, Crédit Agricole and Merrill Lynch are [...]

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Source: 24/7 Wall St. | 13 May 2010 | 3:04 am

Oil higher in Asian trade (AFP)

AFP - Oil prices were higher in Asian trade Thursday, buoyed by positive economic data from Europe and the United States, analysts said.

Source: Yahoo! News: Business News | 13 May 2010 | 3:03 am

3 Stocks That Have Tripled in a Year (Screens)

Hough: The market has soared in the past year; these are among its top performers.

Source: SmartMoney.com | 13 May 2010 | 3:01 am

Casinos Gamble on Low Room Rates (Deal of the Day)

With gambling revenue down, resorts look for new ways to draw guests.

Source: SmartMoney.com | 13 May 2010 | 3:01 am

Probe into Wall St. banks expands - report

A preliminary criminal probe into whether big banks misled investors about their participation in mortgage-bond deals is expanding, according to the Wall Street Journal.
Source: Business and financial news - CNNMoney.com | 13 May 2010 | 3:01 am

How to Make Money in a World of Risk

Hedge-fund manager Adam Fisher discusses the mess Europe is in.

Source: SmartMoney.com | 13 May 2010 | 3:01 am

They're Ba-ack: The Return of the Small Car

Compact cars are selling well again, and it's not because of the mileage.

Source: SmartMoney.com | 13 May 2010 | 3:01 am

Currencies: Dollar erases losses vs. rivals in Asian trading

The dollar rose in late Asian trading Thursday, after a session spent mostly under pressure as Asian equity markets rose and risk-seeking investors sought higher-yielding currencies.

Source: MarketWatch.com - Top Stories | 13 May 2010 | 3:01 am

BT swings back into annual profit

UK telecoms company BT beats expectations and returns to annual profits after years of losses and harsh cost-cutting.
Source: BBC News | Business | World Edition | 13 May 2010 | 2:59 am

A Little Relief In Foreclosure Rates

Mortgage foreclosures are either getting better or worse, depending on the point of view. Realty Trac, which keeps monthly figures on defaults and forecloses, said that there were 333,837 in April. That was down 9% from March, but only 2% from the same month last year–a number that is statistically inconclusive. RealtyTrac’s topline numbers include actual foreclosures and some [...]

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Source: 24/7 Wall St. | 13 May 2010 | 2:57 am

Pru gets in principle nod for AIA buy: sources

LONDON/NEW YORK (Reuters) - UK regulators have agreed in principle to Prudential Plc's $35.5 billion purchase of AIG's Asian life insurance unit, sources familiar with the situation said, and the British insurer hopes to price its bumper rights issue within days.

Source: Reuters: Business News | 13 May 2010 | 2:48 am

Pru gets in principle nod for AIA buy: sources (Reuters)

Reuters - UK regulators have agreed in principle to Prudential Plc's $35.5 billion purchase of AIG's Asian life insurance unit, sources familiar with the situation said, and the British insurer hopes to price its bumper rights issue within days.
Source: Yahoo! News: Business News | 13 May 2010 | 2:48 am

NY attorney general investigating eight banks: report

WASHINGTON (Reuters) - The New York attorney general has begun an investigation into eight banks to determine whether they provided misleading information to agencies that rate mortgage securities, The New York Times reported on Thursday.

Source: Reuters: Business News | 13 May 2010 | 2:46 am

UK coalition holds first cabinet meeting

David Cameron chairs his first coalition cabinet as prime minister and his new ministers begin to outline how they will tackle the UK’s enormous deficit
Source: Financial Times - US homepage | 13 May 2010 | 2:43 am

London Markets: British shares up as earnings boost, BT climbs

British shares rise on Thursday, boosted by earnings across a range of sectors, from telecom BT Group to private-equity firm 3i Group.

Source: MarketWatch.com - Top Stories | 13 May 2010 | 2:28 am

UPDATE 3-Tullett suitor walks away, shares slide

* Revenue down 12 pct to 312 mln stg in four months to April
Source: RSS feed - channel BNewsBusiness | 13 May 2010 | 2:27 am

Sainbury's welcomes signs of stable new coalition as profits rise

Britain's second-biggest supermarket also reports a rise in full-year profits.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 13 May 2010 | 2:27 am

Sinochem oil trade chief to become CNOOC VP -sources

BEIJING, May 13 (Reuters) - State-run oil and chemicals trader Sinochem Corp's vice-president Li Hui will become vice-president of China National Offshore Oil Co (CNOOC), industry officials told Reuters...
Source: RSS feed - channel BNewsBusiness | 13 May 2010 | 2:26 am

BT shares rise as it posts £1bn profit

BT shares have risen by 8 per cent as the telecoms company reported fourth-quarter results that exceeded expectations after £1.8 billion of cost cuts.
Source: Latest Business News from Times Online | 13 May 2010 | 2:17 am

Sainsbury’s warns new Government over VAT rise

J Sainsbury today warned that future sales growth could be impacted from a possible rise in VAT to 20 per cent under the new coalition Government.
Source: Latest Business News from Times Online | 13 May 2010 | 2:15 am

Economic Report: Japan's March current-account surplus tops views

Japan’s current-account surplus grows 65.1% in March compared to the same period last year, reaching $27.2 billion and exceeding the expectations of economists.

Source: MarketWatch.com - Top Stories | 13 May 2010 | 2:13 am

BT swings to stronger-than-forecast profit

Helped by better-than-forecast revenue and a lack of charges in its global services division, BT Group records a better-than-anticipated profit and its shares surge.

Source: MarketWatch.com - Top Stories | 13 May 2010 | 2:12 am

UPDATE 1-KazMunaiGas EP Q1 net income down 52 percent

ALMATY, May 13 (Reuters) - Kazakh oil producer KazMunaiGas Exploration and Production posted a 52 percent fall in first-quarter net income to 51.7 billon kazakh tenge ($352 million).
Source: RSS feed - channel BNewsBusiness | 13 May 2010 | 2:11 am

Tullett Prebon shares slump after bid talks end

Shares in Tullett Prebon dropped as much as 14% Thursday after the interdealer broker said talks with a potential buyer had ended unsuccessfully and that its revenue had been hurt by the loss of employees to a rival.

Source: MarketWatch.com - Top Stories | 13 May 2010 | 2:09 am

UPDATE 2-Polish TVN sees mild TV ad recovery in 2010

(Releads with forecast, adds CEO, analyst comments, shares)
Source: RSS feed - channel BNewsBusiness | 13 May 2010 | 2:08 am

Seoul to curb telecom marketing spending

South Korea’s telecoms regulator unveiled a plan to curb rising marketing costs by the country’s major telecom operators in a move to ease stiff competition and encourage investment in new technology and services
Source: Financial Times - US homepage | 13 May 2010 | 2:04 am

TABLE-Mitsuuroko -2009/10 group forecast

CONSOLIDATED EARNINGS ESTIMATES (in billions of yen unless specified)
Source: RSS feed - channel BNewsBusiness | 13 May 2010 | 2:01 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 | 13 May 2010 | 2:01 am

Stock markets up on Spanish cuts

Stocks rise in Europe and Asia after Spain announced plans to cut its deficit, easing worries that Europe's debt crisis could spread.
Source: BBC News | Business | World Edition | 13 May 2010 | 1:59 am

Saylor Advertising -2009/10 parent results

Year ended Year ended Year to
Source: RSS feed - channel BNewsBusiness | 13 May 2010 | 1:55 am

Saylor Advertising -2009/10 group results

Year ended Year ended Year to Six months to
Source: RSS feed - channel BNewsBusiness | 13 May 2010 | 1:55 am

Crisis cut U.S. minority mortgage access: study (Reuters)

Reuters - America's financial crisis disproportionately cut access to conventional mortgage loans for minority communities compared to predominantly white neighborhoods, according to a study released on Thursday.
Source: Yahoo! News: Business News | 13 May 2010 | 1:51 am

Media Digest 5/13/2010 Reuters, WSJ, NYTimes, FT, Bloomberg

NYT: NY Attorney General is investigating eight banks for allegedly providing misleading information about mortgage instruments to rating agencies: The Goldman Sachs Group (NYSE: GS), Morgan Stanley(NYSE: MS), Deutsche Bank (NYSE: DB), UBS (NYSE: UBS), Credit Suisse (NYSE: CS), Merrill Lynch, Credit Agricole, and Citigroup (NYSE: C). Reuters: SAP (NYSE: SAP) will buy Sybase for $5.8 [...]

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Source: 24/7 Wall St. | 13 May 2010 | 1:51 am

Fed scores wins in Wall Street reform

Congress is mellowing toward the Federal Reserve.
Source: Business and financial news - CNNMoney.com | 13 May 2010 | 1:42 am

DSG sales rise 6pc as it targets World Cup boost

DSG International, Europe's second-biggest electricals retailer, said it would meet full-year profit forecasts as it posted second-half sales slightly above market expectations.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 13 May 2010 | 1:41 am

NYSE to use 'flash crash' to reclaim glory

Last week's market swoon briefly shaved about $1 trillion dollars off of the value of U.S. equities. But it may have a much more lasting and beneficial effect on the NYSE Euronext -- the exchange world's resident tortoise.
Source: Business and financial news - CNNMoney.com | 13 May 2010 | 1:40 am

Stocks gain as fears fade

Stocks rallied Wednesday, with the Dow logging triple-digit gains, as European debt noise faded and investors focused on an improving domestic economy and corporate earnings.
Source: Business and financial news - CNNMoney.com | 13 May 2010 | 1:40 am

Standard Chartered begins historic attempt to list shares in India

Standard Chartered will today unveil plans to become the first foreign company to list its shares in India.
Source: Latest Business News from Times Online | 13 May 2010 | 1:39 am

Sony reports second straight loss

Sony reports a loss of 40.8bn yen for the year to the end of March - less than half the loss it made the previous year.
Source: BBC News | Business | World Edition | 13 May 2010 | 1:30 am

Foreclosures down 2 percent from last year (AP)

AP - Millions of Americans are still likely to lose their homes in the coming years, but the foreclosure crisis is finally showing signs of subsiding.

Source: Yahoo! News: Business News | 13 May 2010 | 1:27 am

London stocks rise at open (AFP)

AFP - Shares in London rose at the start of trade on Thursday as the formation of a new government helped to ease uncertainity among investors.

Source: Yahoo! News: Stock Markets News | 13 May 2010 | 1:26 am

BT to invest £1bn in fibre network, TV as 2010 results beat expectations

BT beat market expectations with a 2pc decline in full-year revenues, and forecast a return to growth in 2012/13, the telecoms group said on Thursday.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 13 May 2010 | 1:24 am

Emerging oil rig evidence shows lack of regulation (AP)

AP - The first firm evidence of what likely caused the disastrous Gulf of Mexico oil blowout — a devastating sequence of equipment failures — drives home a central unsettling point about America's oil industry: key safety features at tens of thousands of U.S. offshore rigs are barely regulated.

Source: Yahoo! News: Business News | 13 May 2010 | 1:11 am

Business Bullet: Oil, Debt, Sainsbury's, BT

The latest news on: Oil, Debt, Sainsbury's, BT
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 13 May 2010 | 1:07 am

Macy's rings up profit of $23 million

The department store giant credits an overhaul of its merchandising structure for its swing to first-quarter earnings of 5 cents a share, compared with a loss of $88 million last year.

Department store giant Macy's Inc. said Wednesday that it swung to a better-than-expected profit in its first quarter thanks to strong sales in stores and online, better inventory control and an overhaul of its merchandise strategy.

Source: L.A. Times - Business | 13 May 2010 | 1:00 am

IPad tablet's popularity has rivals scrambling to roll out competing devices

Apple has a big head start, but rivals are lining up and analysts are giving Hewlett-Packard the best odds. The...
Source: RSS feed - channel BNPaperBusiness | 13 May 2010 | 1:00 am

Southern California theme parks get ready to open new attractions this summer

New light shows, roller coasters and a 3-D King Kong ride are aimed at helping attendance numbers rebound from last year's slump. ...
Source: RSS feed - channel BNPaperBusiness | 13 May 2010 | 1:00 am

O.C. insurance broker gets 10-year sentence for bilking investors

James Halstead persuaded victims, including retirees on fixed incomes, to invest $50 million, promising huge returns. He used the money to buy such things as exotic cars and a Las Vegas home.

An Orange County insurance broker was sentenced Wednesday evening to 10 years in federal prison for stealing millions in investor dollars that he spent on exotic cars, expensive jewelry and a Las Vegas house.

Source: L.A. Times - Business | 13 May 2010 | 1:00 am

Macy's rings up profit of $23 million

Facetime: Sony TV President Steve Mosko

Sony TV's Steve Mosko wrestles to keep a strong lineup on the air at home and abroad. Over the last 15 months,...
Source: RSS feed - channel BNPaperBusiness | 13 May 2010 | 1:00 am

Facetime: Sony TV President Steve Mosko

Sony TV's Steve Mosko wrestles to keep a strong lineup on the air at home and abroad.

Over the last 15 months, Sony Television President Steve Mosko has traveled to Russia, Tokyo, London, Holland and twice to India. He wasn't impersonating Ryan Bingham, the itinerant corporate hatchet man played by George Clooney in "Up in the Air." Mosko, president of Sony Pictures Television since 2000, added international markets to his duties and embarked on a cram course in Sony's overseas operations, which include 122 channels in more than 140 countries.

Source: L.A. Times - Business | 13 May 2010 | 1:00 am

CalPERS board member faces third fine for failing to disclose financial interests on time

Priya Mathur has been fined $9,000 for previous violations by the state Fair Political Practices Commission. The...
Source: RSS feed - channel BNPaperBusiness | 13 May 2010 | 1:00 am

Southern California theme parks get ready to open new attractions this summer

New light shows, roller coasters and a 3-D King Kong ride are aimed at helping attendance numbers rebound from last year's slump.

Southern California theme parks last year had few new attractions but lots of discounts, bargains and two-for-one deals for recession-weary vacationers.

Source: L.A. Times - Business | 13 May 2010 | 1:00 am

Haim Saban buys back 'Power Rangers'

The media mogul, who launched the hit show in the 1990s, pays a reported $100 million to regain control of it from Walt Disney Co.

One of the most popular — and reviled — icons of 1990s children's television is back in the hands of the man who launched it.

Source: L.A. Times - Business | 13 May 2010 | 1:00 am

IPad tablet's popularity has rivals scrambling to roll out competing devices

Apple has a big head start, but rivals are lining up and analysts are giving Hewlett-Packard the best odds.

The success of Apple Inc.'s iPad has prompted other tech companies to plunge into the market for tablet computers, with start-ups and major PC makers racing to introduce their own competing devices before the end of the year.

Source: L.A. Times - Business | 13 May 2010 | 1:00 am

CalPERS board member faces third fine for failing to disclose financial interests on time

Priya Mathur has been fined $9,000 for previous violations by the state Fair Political Practices Commission.

The California Public Employees Retirement System, already under scrutiny for financial losses and allegations that its investment decisions were compromised by favoritism, may be getting another black eye — this one courtesy of board member Priya Mathur.

Source: L.A. Times - Business | 13 May 2010 | 1:00 am

Haim Saban buys back 'Power Rangers'

The media mogul, who launched the hit show in the 1990s, pays a reported $100 million to regain control of it from Walt Disney Co. ...
Source: RSS feed - channel BNPaperBusiness | 13 May 2010 | 1:00 am

US banks may have 'misled ratings agencies'

Eight American banks are being investigated over accusations that they misled ratings agencies ahead of the financial crisis.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 13 May 2010 | 12:58 am

Ford, Mazda aim to break up 3-way China JV: sources

SHANGHAI (Reuters) - Ford Motor and its China venture partners, Mazda Motor Corp and Chongqing Changan Automobile Co, are seeking Chinese government approval to end their three-way tie up, two sources said on Thursday.

Source: Reuters: Business News | 13 May 2010 | 12:24 am

Big banks slashed small business credit lines

The biggest Wall Street banks slashed their small business loan portfolios by 9% between 2008 and 2009, more than double the rate at which they cut their overall lending, according to a government report released Thursday.
Source: Business and financial news - CNNMoney.com | 12 May 2010 | 10:45 pm

Senate votes to ban certain bonuses for mortgage brokers, loan officers

The legislation prohibits payments for signing borrowers to higher interest rates and more onerous terms than those for which the borrowers were qualified. ...
Source: RSS feed - channel BNPaperBusiness | 12 May 2010 | 10:18 pm

Senate votes to ban certain bonuses for mortgage brokers, loan officers

The legislation prohibits payments for signing borrowers to higher interest rates and more onerous terms than those for which the borrowers were qualified.

The U.S. Senate voted Wednesday to ban certain bonus payments to mortgage brokers and loan officers, cutting off what experts have called one of the key causes of the nation's mortgage meltdown.

Source: L.A. Times - Business | 12 May 2010 | 10:18 pm

Ex-Glitnir investor faces $2bn action

Jón Ásgeir Jóhannesson, one of the main figures behind Iceland’s banking boom and bust, has been hit by a US lawsuit accusing him of a ‘massive fraud’ that led to the collapse of Glitnir bank
Source: Financial Times - US homepage | 12 May 2010 | 9:16 pm

Infiniti M56: Nipped, tucked and powered up

This new arrival to the M line is aggressive and shapely at the front and much more tidy in the rear than the outgoing model. And it's a solid performer on the road. ...
Source: RSS feed - channel BNPaperBusiness | 12 May 2010 | 8:21 pm

Infiniti M56: Nipped, tucked and powered up

This new arrival to the M line is aggressive and shapely at the front and much more tidy in the rear than the outgoing model. And it's a solid performer on the road.

This may come as a bit of shock to you, but we like our makeovers here in L.A.

Source: L.A. Times - Business | 12 May 2010 | 8:21 pm

SAP to buy rival Sybase for $5.8 billion

BOSTON (Reuters) - Germany's SAP AG said it plans to buy smaller business software maker Sybase Inc for $5.8 billion, gaining technology that allows it to deliver accounting software and other programs to smartphones.

Source: Reuters: Business News | 12 May 2010 | 7:14 pm

Cisco results top estimates but investors wary

NEW YORK (Reuters) - Cisco Systems Inc's quarterly results topped Wall Street forecasts as a global economic recovery encouraged companies to upgrade their networks, but CEO John Chambers' cautious tone prompted investors to sell the shares.

Source: Reuters: Business News | 12 May 2010 | 6:21 pm

Death knell sounded for interest-only mortgages

Lloyds Bank is cutting back on interest-only mortgages as it seeks to mitigate the increased risks posed by such deals.

Source: Latest Business News from Times Online | 12 May 2010 | 6:01 pm

Chez Gérard group set for resignations and sale

Paramount Restaurants, the Chez Gérard operator, is expected to be put up for sale amid speculation that its chief executive and its chairman are to quit.

Source: Latest Business News from Times Online | 12 May 2010 | 6:01 pm

Emirates posts strong profits

For most airlines the recession has meant huge losses, reduced capacity and cost cutting but Emirates, the Dubai-based carrier, has bucked that trend and posted a huge increase in profits.

Source: Latest Business News from Times Online | 12 May 2010 | 6:01 pm

Business big shot: Richard Moat

Richard Moat, T-Mobile’s chief executive in the UK, may be a less flamboyant character than Tom Alexander, his counterpart at Orange and chief executive of the newly merged Everything Everywhere, but it was he who stole the show at a recent mobile industry awards afterparty by belting out a note-perfect version of the Beatles’ I Saw Her Standing There.

Source: Latest Business News from Times Online | 12 May 2010 | 6:01 pm

London stops reaching for the sky

The building of new offices in Central London has slumped to a record low, sparking fears of a supply shortage and higher rents.

Source: Latest Business News from Times Online | 12 May 2010 | 6:01 pm

Awaiting an earthshaking discovery

If we have learnt one thing over the past couple of years, it is not to trust economic forecasters. The magazine of the Deutsche Börse has been polling relevant academics to see just how bad their record has been. A study by a couple of economists at the Central Bank of Ireland and University College London looked at the reliability of forecasts by the Federal Reserve Bank in New York and several commercial banks and concluded they are much worse today than 20 years ago. Part of the problem is that economists are under pressure to forecast early and often to win business, the Börse found, and so rely on preliminary statistics that are later drastically revised.

Source: Latest Business News from Times Online | 12 May 2010 | 6:01 pm

Manufacturing sector keeps expanding

New Zealand manufacturing has expanded for the third month in a row and reached its highest expansion rate since 2004, according to the monthly BNZ -Business NZ performance of manufacturing index (PMI) survey.The seasonally adjusted...
Source: nzherald.co.nz - Business | 12 May 2010 | 5:45 pm

Senate tackles mortgage finance in bank bill

WASHINGTON (Reuters) - The Federal Reserve scored a victory and mortgage bankers suffered a defeat on Wednesday as the Senate took aim at bank supervision and housing finance in its sprawling Wall Street reform effort.

Source: Reuters: Business News | 12 May 2010 | 5:42 pm

Life insurance law change prompts profiteering warning

Life insurers who hike premiums in line with pending tax changes may be tempted to use new rules as a way to drive profit in the face of shrinking margins, says the CEO of cut-price life insurer Pinnacle Life.The cost of buying...
Source: nzherald.co.nz - Business | 12 May 2010 | 5:30 pm

SAP to buy Sybase in $5.8bn deal

The world’s largest enterprise software maker will pay $65 per share in cash for its US rival Sybase, its biggest acquisition in almost three years
Source: Financial Times - US homepage | 12 May 2010 | 5:28 pm

Cisco CEO: Best quarter ever

Cisco Systems Inc. reported quarterly sales and profits Wednesday that beat expectations on strong demand for network equipment from companies around the world.
Source: Business and financial news - CNNMoney.com | 12 May 2010 | 5:20 pm

NZ sharemarket rises in early trading

The New Zealand sharemarket opened positively this morning, echoing gains made in overseas markets yesterday.The benchmark NZX-50 index, which closed yesterday at 3156.078, gained 13.826 points, or 0.438 per cent, to 3169.904...
Source: nzherald.co.nz - Business | 12 May 2010 | 5:04 pm

Cheaper meat and veges push food prices down

Cheaper meat and vegetables pushed down food prices in April to levels not seen since late 2009.Food prices fell 0.5 per cent last month from March, according to Statistics New Zealand's Food Price Index, with a 2.6 per cent decline...
Source: nzherald.co.nz - Business | 12 May 2010 | 5:00 pm

Tax rises likely under coalition government, says Institute for Fiscal Studies

The coalition agreement has left the door open for "significant net tax increases", the IFS warns.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 12 May 2010 | 4:42 pm

Catching Australia just got easier, says fund manager

Australian tax policy just made it easier for New Zealand to catch the "lucky country", says Harbour Asset Management managing director, Andrew Bascand.In a note to clients this week, the respected fund manager says the sudden...
Source: nzherald.co.nz - Business | 12 May 2010 | 4:30 pm

Kiwis more comfortable about economy

New Zealanders are still uncomfortable about the economy - but a little less so, according to a survey.UMR Research's online survey of 1000 New Zealanders in April found that opinions on economic conditions improved from -36 per...
Source: nzherald.co.nz - Business | 12 May 2010 | 4:30 pm

Obama calls Kabul tensions ‘overstated’

Barack Obama and Hamid Karzai work to heal the rift between their governments at the midpoint in Afghan president’s US visit
Source: Financial Times - US homepage | 12 May 2010 | 4:12 pm

Stocks recover from recent slide over debt fears (AP)

AP - A dose of good economic news sent stocks sharply higher Wednesday and erased the Dow Jones industrials' big plunge of last week.

Source: Yahoo! News: Stock Markets News | 12 May 2010 | 4:12 pm

Sybase shares soar 54% on SAP takeover

Shares of Sybase skyrocketed Wednesday following SAP's offer to buy the business software maker for $5.8 billion in cash.
Source: Business and financial news - CNNMoney.com | 12 May 2010 | 4:03 pm

Summary Box: Stocks bounce back from recent slide (AP)

AP - MARKET REBOUND: Upbeat economic news lifted stocks Wednesday. The Dow Jones industrials erased the slide of late last week, which came on concerns about Europe's debt woes.
Source: Yahoo! News: Stock Markets News | 12 May 2010 | 4:03 pm

Write-Offs: 05.12.10

$$$ “Everyone in life wants to be loved,” Andrew Ross Sorkin answered earnestly. [MarketWatch]

$$$ The Killers will perform at Arki Busson’s annual charity ball tomorrow, where you can bid on a Fiat 500 car painted by artist Damian Hirst; an original Richard Prince photograph from his Cowboy series; and a luxury Caribbean holiday with private jets and yachts thrown in. [Telegraph]

$$$ Cornell Endowment Chief Plans To Start Hedge Fund [BW]

$$$ Socially-Responsible Hedge Fund Aims For 25% Returns [FINalternatives]

$$$ Art is “an anti-currency play,” said Los Angeles money manager Jeffrey Gundlach, of DoubleLine Capital LP. “The sale benefited from that.” Among those in the packed Rockefeller Center salesroom were fashion designer Marc Jacobs, wearing cowboy boots and a denim baseball cap, author Salman Rushdie and SAC Capital Advisors Chairman Steven A. Cohen, who observed from a skybox. [Bloomberg]

$$$ James Gorman was alone in his 40th-floor office after a Thursday lunch when he saw the market wobbling. He called Suzanne Charnas, his head of investor relations. “Oh, God, what’s happening?” they said. Mr. Gorman thought it must have been some kind of mistake. [NYO]

$$$ When Warren Buffett Is Your Daddy [NYO]

$$$ Howard Marks’s Warning Signs [Scribd]
Warning Flags – Past and Present 05-12-10 _2

Source: Dealbreaker | 12 May 2010 | 3:52 pm

How the major stock indexes fared on Wednesday (AP)

AP - A dose of good economic news sent stocks sharply higher Wednesday and erased the Dow Jones industrials' big plunge of last week.
Source: Yahoo! News: Stock Markets News | 12 May 2010 | 3:50 pm

Unruffled Asia resumes its economic ascent

The pillars of the Parthenon may be crumbling. But half a world away, the stone slabs of the Great Wall of China, the basalt arches of the Gateway of India, and even the Twin Towers of Petronas have rarely...
Source: RSS feed - channel BNPaperBusiness | 12 May 2010 | 3:43 pm

$30m more for tourism in Budget

Tourism is getting more money to sell New Zealand to visitors as part of a $30 million increase announced this morning.Prime Minister and Minister of Tourism John Key made the announcement in a speech to the New Zealand Hotel...
Source: nzherald.co.nz - Business | 12 May 2010 | 3:42 pm

Taupo geothermal plant gets green light

Mighty River Power's joint venture with Taupo Maori has been given the green light by local authorities to build the Ngatamariki Geothermal Development at Tahorakuri,Environment Waikato (EW) hearings commissioners have granted...
Source: nzherald.co.nz - Business | 12 May 2010 | 3:30 pm

AgResearch boss calls for compulsory super

The Government's boost to science funding is a good start but radical changes are needed to lift the economy, says outgoing AgResearch chief executive Andrew West.These could include a capital gains tax on property and compulsory...
Source: nzherald.co.nz - Business | 12 May 2010 | 3:30 pm

Pru’s deal with AIA back on track

The UK life assurer hopes to launch its delayed $21bn rights issue early next week after agreeing to changes to the financing of its proposed $35.5bn takeover of AIA
Source: Financial Times - US homepage | 12 May 2010 | 3:30 pm

iPhone applications spoil party for rivals

iPhone and iPod Touch users around the world have downloaded more than three billion apps.On a warm night in Florida last month, a group of New Zealand and Australian business people were enjoying a few beers and chatting happily...
Source: nzherald.co.nz - Business | 12 May 2010 | 3:30 pm

Special Report: Can that guy in Ironman 2 whip IBM in real life?

BOSTON (Reuters) - In the movie "Ironman 2," Larry Ellison makes a cameo appearance as a billionaire, playboy software magnate. It is a role he knows well. He is playing himself -- chief executive of Oracle Corp, one of Silicon Valley's most enduring, successful and flamboyant figures.

Source: Reuters: Business News | 12 May 2010 | 3:28 pm

Commodities, CVS, Winn-Dixie, Coffee Wars: Taking Stock

Source: Bloomberg - All Podcasts | 12 May 2010 | 3:18 pm

Coalition government's first task is a Budget to save Britain

Now the post-election wrangling is over, the far more difficult business gets under way.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 12 May 2010 | 3:17 pm

HTC's ho-hum case against Apple

Source: Business and financial news - CNNMoney.com | 12 May 2010 | 3:10 pm

Big Jumps for ETFs and Stocks (Daily ETF Wrap-Up)

A widening trade deficit couldn't stop Wednesday's rally.

Source: SmartMoney.com | 12 May 2010 | 3:00 pm

The Oil Industry: Parsing the Damage in the Gulf

After three weeks of shifts, who stands to win and who to lose?

Source: SmartMoney.com | 12 May 2010 | 2:49 pm

Stocks recover from recent slide over debt fears

A dose of good economic news sent stocks sharply higher Wednesday and erased the Dow Jones industrials' big plunge of last week.

Source: L.A. Times - Business | 12 May 2010 | 2:45 pm

Stock Picks: Intel Up, Disney Down (Market Movers)

Intel rises on improved guidance; Disney falls despite "Alice in Wonderland."

Source: SmartMoney.com | 12 May 2010 | 2:35 pm

BioHealth Business Daily (AEZS, ACHN, EXEL, MNTA, NBIX, OXGN, PGNX, SQNM, SCLN, VVUS, VICL)

There were many stocks in Biotech and BioHealth with plus-signs after their share prices today. The BioHealth Business Daily is smoothing out the brief winners and losers to only weed out the market moves. Those on the move with news or events were AEterna Zentaris, Inc. (NASDAQ: AEZS), Achillion Pharmaceuticals, Inc. (NASDAQ: ACHN), Exelixis, Inc. [...]

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Source: 24/7 Wall St. | 12 May 2010 | 2:33 pm

Cisco Squeeks Past Estimated With Explosive Earnings

Cisco Systems Inc (NASDAQ: CSCO) reported third quarter net sales of $10.4 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion or $0.37 per share, and non-GAAP net income of $2.5 billion or $0.42 per share. Thomson Reuters had estimates at $0.39 EPS and revenues of $10.24 billion. The quarter ended [...]

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Source: 24/7 Wall St. | 12 May 2010 | 2:33 pm

Coalition Government: Defence industry warns against budget cuts

Britain's defence industry has warned the new coalition Government that further cuts in the defence budget will hurt Britain's economic recovery.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 12 May 2010 | 1:43 pm

Gasparino: Government To Probe All

Did you think Goldman Sachs and Morgan Stanley were going to be the only ones subjected to cavity searches by the US government? Think again, mon chi-chis! Charlie Gasparino reports that you should all be girding your loins.

The government has ramped up its investigation of Wall Street’s sale of toxic securities during the financial crisis to include firms other than Goldman Sachs and Morgan Stanley. Sources tell FOX Business that the Securities and Exchange Commission’s most active investigations so far also include Deutsche Bank and Citigroup, two of the biggest packagers of the toxic debt, known as collateralized debt obligations, that are at the center of the government’s interest.

Sources tell FOX Business that after the SEC initially requested information from all the firms when it began its probe last year, it came back and subpoenaed Citigroup and Deutsche Bank for additional documents, underscoring a heightened level of interest. In the case of Citigroup, the SEC has conducted depositions of senior executives there, these people tell FOX Business.

As of today, there have been no so-called Wells Notices issued to either firm. A Wells Notice indicates that the commission’s enforcement staff is recommending to the full commission that the firms should be charged with civil securities fraud.

Source: Dealbreaker | 12 May 2010 | 1:36 pm

Check Out the New Health Insurance Credit (The Tax Guy)

Want to cover your employees? Here's a tax break to help.

Source: SmartMoney.com | 12 May 2010 | 1:36 pm

GSI, Chem Rx, Rubicon: Bloomberg Law Bankruptcy Review

Source: Bloomberg - All Podcasts | 12 May 2010 | 1:29 pm

BP's Hayward is taking oil spill criticism on the chin but the US will want a scalp

Tony Hayward cannot do a "good" job in leading the clean up of the Gulf of Mexico, but the BP chief executive can do the "right" job.
Source: Finance and Business. Latest breaking news, stocks and shares from the UK and world | 12 May 2010 | 1:14 pm

Ten Companies That Could Benefit from the Gulf Oil Spill (FSLR, OPTT, SPWRA, ENER, SOLR, RSOL, ZOLT, FCEL, CLNE, AMSC)

There’s nothing like impending doom to focus the mind. And we may be seeing some of that as the efforts to clean-up the spewing oil from the explosion at the Macondo well owned and operated by BP plc (NYSE:BP). US Senators Kerry and Lieberman today introduced their climate bill, the American Power Act, for consideration [...]

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Source: 24/7 Wall St. | 12 May 2010 | 12:39 pm

Subway To Everyone Else: Stop Selling 'Footlong' Sandwiches

(David McNew/Getty Images)

By Jacob Goldstein

The Coney Island Drive Inn, a restaurant in Brooksville, Florida, has been selling 12-inch hot dogs -- the restaurant calls them "footlongs" -- for more than 40 years. Its Web site is gotfootlongs.com.

Last week, the restaurant got a letter from a lawyer representing Subway, which, as you may have heard, sells 12-inch sandwiches for five bucks.

After explaining that Subway "has applied for the trademark FOOTLONG (TM) in association with sandwiches," the letter says:

You are hereby put on notice to cease and desist from using FOOTLONG (TM) association with sandwiches. You must immediately remove all references to FOOTLONG (TM) in association with sandwiches.

(The full letter is online here.)

Given our recent interest in trademark issues -- recall the short life and painful death of the Planet Money Money Honey (TM) visor -- it seemed worth learning more. So I put in calls to Subway and to Blair Hensley, owner of the Coney Island Drive Inn.

Turns out, Subway has already recanted the letter.

It was a "clerical error," Kevin Kane, a Subway spokesman, told me. Using "footlong" for hot dogs is no problem -- the company is only trying to trademark the term for sandwiches, Kane said.

I asked him how many other footlong-related cease-and-desist letters the company has sent out, but he said he couldn't comment on that.

"Any legal process we go through is to protect the investment our franchisees have made in the brand," Kane told me. "If 'footlong' is a name that's been associated with us, it would benefit them that we would take an action like this to protect the association."

The trademark office will have to weigh that argument against the notion that "footlong" is commonly used to describe sandwiches that are 12 inches long, and not the property of one company.

Or, as Hensley said: "How can you trademark the word footlong?"

He said he had a photo from 1968 that shows the phrase "world famous footlongs" painted on the outside of the building, and a hand-painted menu board from 1963 that says "footlong specialists."

"We do have short dogs, but the majority of dogs we sell are footlongs," Hensley told me. "That's why you come here."

Subway's trademark applications for "footlong" are online here and here. (The applicant is Doctor's Associates, Inc., which is the name of Subway's parent company. It was founded by a guy who had a Ph.D. and a teenager who wanted to be a doctor.)

Hat Tip: St. Petersburg Times via The Awl

» E-Mail This » Add to Del.icio.us

Source: NPR Blogs: Planet Money | 12 May 2010 | 12:35 pm

US Budget Deficits As Long As The Eye Can See…

The deficit watch is only getting broader… Uncle Sam, via bailouts and other entitlements to keep the economy afloat, spent more than it brought in with a total federal budget deficit of $82.69 billion in April. The deficit was higher than projected as Dow Jones was calling for a $45 billion budget deficit and Bloomberg [...]

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Source: 24/7 Wall St. | 12 May 2010 | 12:24 pm

John Carney Needs Help

My dear friend and former colleague John Carney will be joining CNBC.com as a “senior editor” in the coming weeks and will also be “appearing regularly on CNBC’s Business Day programming.” Over the last few years John has been on the network as guest commentator but now that he’s an official member of the team, one very important thing needs to happen. It goes without saying but here it is: a nickname. Maria’s got one, Erin’s got one, Phil LeBeau’s got one and now Carney needs one too. If he’s gonna do this, he’s gotta do this right. I know what my pick is but let’s get democratic about this. Serious suggestions only, please.

Source: Dealbreaker | 12 May 2010 | 12:22 pm

Presented By:

Source: Dealbreaker | 12 May 2010 | 12:22 pm

Global shares turn higher on positive European data (AFP)

AFP - Global stock markets mostly posted solid gains on Wednesday after better-than-expected European growth figures and company results, but investors remained cautious, pushing gold to fresh record highs.

Source: Yahoo! News: Stock Markets News | 12 May 2010 | 12:21 pm

How to Avoid Losing Rewards Points (Card Sharp)

As issuers get stricter, cardholders must act quickly to shore up their rewards.

Source: SmartMoney.com | 12 May 2010 | 12:19 pm

6 Ways to Find Affordable SAT Prep Programs (Education and Your Money)

SAT prep courses can cost thousands of dollars. Here's how to save.

Source: SmartMoney.com | 12 May 2010 | 12:18 pm

PepsiCo Raised to `Conviction Buy,’ ATMI Cut to `Neutral’: Audi

Source: Bloomberg - All Podcasts | 12 May 2010 | 12:16 pm

All polluters not equal under new bill

Under the energy and climate bill introduced today, new limits on carbon dioxide pollution wouldn't hit all industries at once, and oil companies wouldn't be allowed into the carbon trading market. Nancy Marshall Genzer reports.
Source: Marketplace | 12 May 2010 | 12:02 pm

Gov't squishy on catfish inspections

U.S. farmers say imported catfish should be more rigorously inspected, but some suspect it's just a ploy to cut off competition. John Dimsdale reports.
Source: Marketplace | 12 May 2010 | 12:02 pm

Say goodbye to outrageous phone bills?

The Federal Communications Commission says it wants to find a way to put an end to phone bills that number in the hundreds or maybe even in the thousands of dollars. Brett Neely reports.
Source: Marketplace | 12 May 2010 | 12:02 pm

Letters: Housing, education and more

Kai Ryssdal reviews what listeners had to say about stories involving the housing industry, cuts in education, the death of the print business, and whether children actually make people happier.
Source: Marketplace | 12 May 2010 | 12:01 pm

Offshore oil drilling is still necessary

Commentator David Frum says despite the recent BP catastrophe in the Gulf of Mexico, we should keep drilling for oil.
Source: Marketplace | 12 May 2010 | 12:01 pm

Climate change fight like the Cold War

Strobe Talbott, president of the Broookings Institution, talks to Kai Ryssdal about how the Cold War relates to today's environmental battles.
Source: Marketplace | 12 May 2010 | 12:01 pm

Making sense of China's ups and downs

Marketplace's Alisa Roth reports on whether the U.S. has good reason to be worried about China's economy given the recent volatility in its markets.
Source: Marketplace | 12 May 2010 | 12:01 pm

Louisiana law clinics stripped of cash?

Louisiana legislature has introduced a bill that would make it harder for law schools and law students to fight for compensation after disasters like BP's oil spill. Eve Troeh reports.
Source: Marketplace | 12 May 2010 | 12:01 pm

Levitt, Shilling, Forbes, Darda, Altman, Hazen: Surveillance

Source: Bloomberg - All Podcasts | 12 May 2010 | 11:51 am

Wall St. Woman Warrior Takes on America

Who’s putting the government and Wall Street to task for the financial crisis? Commentators? Nonprofits? Bloggers?

How about a Wall Street veteran with a $7 billion private equity portfolio? That’s probably the last person you’d expect to be an activist. But Lynn Tilton has built her career on the unexpected.

Tilton’s company, Patriarch Partners, brings distressed companies back from the brink. Her brands include Spiegel, Rand McNally, and MD Helicopters.

Tilton, whose heart is in keeping America successful, emphasizes that Patriarch “(saves) America one company at a time, one job at a time.” She writes columns, including a regular one at the Huffington Post, that offer solutions for saving American industry.

Her devotion to higher causes–and the dogged work ethic to realize them–make Tilton a true standout in elite finance.

In an unrelated twist, Tilton is most easily recognized by her diamonds-and-decolleté look.

Business Pundit caught up with this most unique of PE principals to learn more about her work with Patriarch, her recent initiatives, and how America can self-rescue.

BP: You operated relatively unseen until the 2008 financial crisis. What made you step out and go public with your ideas on saving the American economy?

My rise from under the radar screen is motivated by my deep concern for the future of our nation and for the plight of the American worker. My position allows me my thumb on the pulse of America in ways far distinct and far more broad than most leaders. I believe that most fail to see the disconnect between financial markets and the real economy. I believe we are on the precipice of a nation beyond repair and that if we do not rapidly take action to save and support American industry, we will soon be a populace of the permanently unemployed.

BP: Can you briefly sum up what those ideas are and why they’ll work? What can people do to help get those ideas implemented?

Government focus needs to center upon access to capital for small and mid-sized companies that employ 80% of America’s workforce. I have an SME rescue loan program that can help facilitate access to capital in the form of rescue loans.

In addition, we must be an economy that is built upon industry. This means we must understand why we cannot compete in the global markets. If truth is told, it is not because of labor, environmental or currency exchange rates. Rather other countries subsidize raw materials up to 30%. This does not constitute “free trade,” so actions to even the playing field must be taken to include tariffs where such actions are prevalent. Every great empire, in recent centuries, has been built upon a manufacturing economy. The fall of these great empires has been the failure to remember this one fundamental fact.

BP: Appearance-wise, you buck the classic Wall Street image of a guy in a suit. What business advantages has your appearance given you?

My “fashionista style,” over my career, has cut both ways. But with wisdom and position, I believe my style gives me the advantage of capturing attention to allow my voice to be heard and my message received.

BP: What are some of the most important things you do when you fix a company?

Driving a company from loss to profitability and from dark to light requires both rationalization and innovation.

I say often, the path to recovery is the confluence of cash and creativity. The first step is the cutting of expenses to stop the losses.

Step two involves breathing new life into a company through innovation of products and processes.

BP: How do you decide whether a company is worth saving?

The qualities that predict success for deeply distressed businesses include a recognized brand name, products desired by market and a talented management team.

BP: What’s the hardest part of rebuilding a company?

Rebuilding a company is walking in the darkness, one foot in front of the other, every day until you see the glimmer of light. It takes vision, passion, perseverance and the ultimate certainty the light will come.

Lynn Tilton serves as Chief Executive Officer and sole Principal of Patriarch Partners, LLC and its affiliated entities (“Patriarch”), a distressed private equity firm managing $7 billion in assets and a portfolio of over 70 companies that range from helicopters to cosmetics. An advocate and a voice for small and middle-market enterprises, Ms. Tilton is well recognized by TV and print media alike for her modern day industrialist efforts to rebuild America one company at a time, one job at a time. Find Lynn on Facebook and Twitter: @LynnTilton.

Source: Business Pundit | 12 May 2010 | 11:45 am

So This Happened…

A rap by Syracuse University student “Delirium” (née) Marcus Neal about this weekend’s commencement, and its speaker, the honorable James Dimon.

Finally, a Rap About Jamie Dimon’s Forthcoming Commencement Address at Syracuse [Daily Intel]

Earlier: Syracuse Finance Major Would Like Jamie Dimon To Know He’s Pullin’ For The Guy
Syracuse University Students Under The Impression Jamie Dimon Is Not Good Enough For THEM (Update)

Syracuse University - Jamie Dimon - United States - Education - Colleges and Universities
Source: Dealbreaker | 12 May 2010 | 11:09 am

Washington Poses Big Risks to KKR Offering

We know every investor out there wants a chance to get a piece of Henry Kravis and George Roberts. But, KKR’s latest public filing, in which it seeks to sell $500 million worth of shares on the NYSE, is littered with “risk factors” that might make you a bit skittish.

The most significant come from Washington in the form of new tax policy, increased regulation and ongoing investigations by the Justice Department.

The Obama administration has delivered legislation to Congress that would require private pools of capital with over $30 million in assets under management to register under the Investment Company Act of 1940. While it’s unclear if the legislation will get passed, it could deal a huge blow to KKR’s business.

In the risks section of KKR’s S-1 filing, the firm says if it has to register as an official “investment company” under the Act, it “could make it impractical for us to continue our business as contemplated.”

New proposals to tax carried interest as ordinary income instead of capital gains, which were passed by the House in December, would also damage KKR’s profits as would a change in the firm’s effective tax rate.

If the changes suggested by the administration or any of the proposed legislation or similar legislation were adopted, income attributable to carried interest may not meet the qualifying income requirements under the publicly traded partnership rules, and, therefore, we could either be precluded from qualifying as a partnership for U.S. federal income tax purpose or be required to hold interests in entities earning such income through a taxable U.S. corporation. If we were taxed as a corporation, our effective tax rate would increase significantly. The federal statutory rate for corporations is currently 35%. In addition, we would likely be subject to increased state and local taxes. Therefore, if any such legislation or similar legislation were to be enacted and apply to us, it would materially increase our tax liability, which could well result in a reduction in the market price of our common units.

The firm also disclosed it has been asked by the Justice Department for documents related to how it values certain structured products and has also received requests regarding the long-running federal investigation into collusion among certain PE firms during the buyout boom.

In September 2006 and March 2009, we received requests for certain documents and other information from the Antitrust Division of the U.S. Department of Justice (“DOJ”) in connection with the DOJ’s investigation of private equity firms to determine whether they have engaged in conduct prohibited by United States antitrust laws. We are fully cooperating with the DOJ’s investigation.

In addition, in December 2009, our subsidiary Kohlberg Kravis Roberts & Co. (Fixed Income) LLC received a request from the SEC for information in connection with its examination of certain investment advisors in order to review trading procedures and valuation practices in the collateral pools of structured credit products. We are fully cooperating with the SEC’s examination.

There’s also this piece about lack of deal financing and griping from LPs about fees:

In particular, the current limited financing options for leveraged buy-outs resulting from the credit market dislocation has significantly reduced the pace and size of traditional buyout investments by our funds. Due primarily to this reduction in traditional buyout investments, the amount of committed dollars invested by our Private Markets Segment decreased to $2.1 billion for the year ended December 31, 2009, a decrease of $1.1 billion, or 33.5%, from the year ended December 31, 2008. In addition, we have confronted and expect to continue to confront requests from a variety of investors and groups representing investors to increase the percentage of transaction fees we share with our investors. To the extent we accommodate such requests, it would result in a decrease in the amount of fee revenue we earn.

Henry Kravis - United States - Kohlberg Kravis Roberts - Private equity - Business
Source: Dealbreaker | 12 May 2010 | 10:37 am

FTSE finishes session up (AFP)

AFP - David Cameron's confirmation as the new Prime Minister helped ease investor uncertainty and boosted the index of London's leading shares Wednesday.

Source: Yahoo! News: Stock Markets News | 12 May 2010 | 10:13 am

Does Libyan Plane Crash Indicate a Disturbing Trend?

An Afriquyah Airways (Libya’s state-owned airline) Airbus 330 crashed in Tripoli, Libya earlier today, killing 103 of the 104 people on board. The plane landed short of the runway and exploded on impact. The cause of the crash hasn’t been determined, but a technical defect is suspected.

A Dutch boy believed to be 10 years old is the only survivor. (Oddly enough, a 14-year-old girl was the only survivor on a 152-fatality A310 crash last year in the Comoros Islands.)

The Airbus 330 involved was less than 1 year old. It is the second A330-200 to be involved in a fatal crash during the past year. Last June, 228 people died in the Air France Flight 447 crash in the same model of plane.

Does Airbus have a flawed product on its hands? In 2007, the company did recommend that airlines change the pitot probes, which measure a plane’s airspeed, in A320 aircraft. The pitot probes were malfunctioning. Aerospace reporter Aubrey Cohen describes what happened next:

Just because Airbus recommends something to operators doesn’t mean that airlines have to comply. When flight safety is jeopardy, aviation authorities get involved and issue airworthiness directives, which makes changes mandatory. Airbus’ recommendation was not an airworthiness directive, and the recommendation did not involve A330s, which is the type of plane that crashed.

Starting in May 2008, Air France began noticing that airspeed data were becoming lost in flights on A340s and A330s that were in cruise phase. The airline notified Airbus, which determined that the airspeed loss was caused by icing of the pitot probes, the airline has said.

On April 27, Air France began replacing all of its probes with a new version that did not have high-altitude airspeed discrepancies because of icing. Following the crash of Flight 447, Air France has sped up its program to replace the probes, though the company says that nothing should be inferred from that

It could be that many airlines are shirking unnecessary maintenance in order to cut costs. According to The Economist, accidents resulting in “hull loss,” or the destruction of the plane, have risen since 2006:

…serious accidents that result in the destruction of a plane have fallen steadily for decades, but have been on the rise again since 2006. But the increase in accidents has not resulted in a growing number of fatalities. Some 692 passengers lost their lives in 2007, but this fell to 502 last year, a rate of 0.13 deaths for every million passengers carried.

It’s strange to see that the number of accidents involving the loss of a Western-built plane has actually risen in percentage terms over the last two years, after diminishing for the previous seven. Why might this be?

IATA says that “a total of 30% of all accidents in 2008 noted deficient safety management at the airline level as a contributing factor”, but does not suggest that safety management has got worse in recent years.

Only two years of data aren’t enough to indicate a trend, according to The Economist. During 2008-10, however, a number of A320, 330s, and Boeing 737-747 crashes were due to technical problems. There were also a disconcerting number of fatal crashes.

Could the global recession have affected airlines enough that fatal, preventable crashes have increased? I’d like to see The Economist run those statistics again.

Source: Business Pundit | 12 May 2010 | 9:28 am

Dick Bové Is Pissed About The Morgan Stanley Investigation

The government’s going to stick its nose in Morgan’s bidness, not inform anyone at the bank about what it’s up to and then leak the investigation to the press? OH NO, THEY DI’INT. This was not how Dick Bové wanted to start her morning but, damn it, you bitches have forced her hand.

5.12 MS [PDF]

Morgan Stanley - Business - Allegedly Unethical Firms - Financial Services - Banking Services
Source: Dealbreaker | 12 May 2010 | 9:01 am

How Goldman Trainees Used to Learn About Client Service

Anthony Scaramucci, a CNBC contributor and founder of SkyBridge Capital, has a new book out on how to find your fortune without turning into a douche. Scaramucci was once fired from Goldman, but he still absorbed some lessons from the firm’s training program.

Here’s a scene from the book, Goodbye Gordon Gekko:

It was the Friday beginning Memorial Day weekend in 1991 and Scaramucci was summoned to a conference room at 85 Broad St. with 40 of his fellow Goldman trainees. They were told to get there at 5pm and wait for a Goldman partner to show up to run the meeting.

Three hours later, still no Goldman partner and some of the trainees were getting restless. “What’s up? Where is this jerk? I have plans in the Hamptons and want to get going,” Scaramucci recalls one of them saying . At 9pm, three anxious recruits with “MBAs from top grad schools” got up and left, presumably on their way to the beach.

The “lanky and scrawny” partner finally showed up five hours late and delivered a harsh lesson to the minions left in the room. (The three who left were canned the next day.)

So, today’s lesson is about waiting patiently for those who are more important than you. Someday you may be in the lobby of a billionaire, and he or she may make you wait. Your job as a representative of Goldman Sachs is to wait there. We are in the client service business. We wait patiently and graciously.

Now, you may have a fancy degree from a fancy place, but that will never replace having the right attitude.

Goldman Sachs - Business - Anthony Scaramucci - CNBC - Gordon Gekko
Source: Dealbreaker | 12 May 2010 | 8:48 am

'Dead Presidents': Prosecutors Probe Morgan Stanley

By Jacob Goldstein

Federal prosecutors are investigating whether Morgan Stanley misled investors about mortgage-securities deals it helped design and, in some cases, bet against, the WSJ reports.

This is a bit Deja vu-ish: The WSJ broke a similar story about a criminal investigation of Goldman Sachs a few weeks back.

The Morgan Stanley investigation involves mortgage-related CDOs, including two named after Presidents James Buchanan and Andrew Jackson. Traders called them the "Dead Presidents" deals -- a detail that should play nicely in your ripped-from-the-headlines screenplay about Wall Street.

The bank says it didn't do anything wrong and hasn't been contacted by investigators.

"We have no reason to believe there is any substance behind any supposed investigation that appeared in the Wall Street Journal article," CEO James Gorman said today, according to Bloomberg News.

The criminal probe is still in its early stages, and no charges have been filed. It grew out of the SEC's civil investigation of the mortgage-bond business of more than a dozen Wall Street firms, according to the WSJ.

The SEC recently brought a civil case against Goldman; the bank has reportedly been in talks to settle that case. No criminal charges have been filed against Goldman.

Morgan Stanley doesn't face a civil case. And, at least as of late last month, the bank had not received the formal notice that the SEC sends banks when it is considering bringing civil charges.

Here's a brief item from today's Morning Edition on the investigation of Morgan Stanley.

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Source: NPR Blogs: Planet Money | 12 May 2010 | 8:07 am

Opening Bell: 05.12.10

US Probes Morgan Stanley (WSJ)
Among the deals that have been scrutinized are two named after U.S. Presidents James Buchanan and Andrew Jackson, a person familiar with the matter said. Morgan Stanley helped design the deals and bet against them but didn’t market them to clients. Traders called them the “Dead Presidents” deals.

Roubini Says Greece May Lead Euro Exodus, China Faces Slowdown (Bloomberg)
A “real depreciation” in the euro is needed to restore competitiveness in nations including Spain, Portugal and Italy, he said in an interview on Bloomberg Television today. The euro will remain the currency for a smaller number of countries that have “stronger fiscal and economic fundamentals,” Roubini said.

`Perfect Quarter’ for Four Banks Shows Fed-Linked Revival on Wall Street (Bloomberg)
“The trading profits of the Street is just another way of measuring the subsidy the Fed is giving to the banks,” said Christopher Whalen, managing director of Torrance, California- based Institutional Risk Analytics. “It’s a transfer from savers to banks.”

Market Inquiry Focuses On One Trader (NYT)
Gary Gensler, the chairman of the Commodity Futures Trading Commission, said at a Congressional hearing on Tuesday that during that crucial time period, the futures trader, whom he would not identify, accounted for about 9 percent of trading volume in the most actively traded stock-index derivative contract, known as the 500 e-mini futures contract.

Fragments from Goldman Sachs! The Musical (New Yorker)
John Paulson! Singing and dancing!

Miracle Boy (NYP)
A Libyan plane crashed Wednesday on approach to Tripoli’s airport, killing at least 96 people and leaving a field scattered with smoldering debris that included a large chunk of the tail painted with the airline’s brightly colored logo. A 10-year-old Dutch boy was the only known survivor.

Morgan Stanley - Wall Street - Andrew Jackson - Bloomberg Television - Gary Gensler
Source: Dealbreaker | 12 May 2010 | 7:45 am

Leveraged ETF Gains Vanish After Record Trading: Audio

Source: Bloomberg - All Podcasts | 12 May 2010 | 7:45 am

Lee on Oil Spill, Rosenstreich on Greece and Euro: First Word

Source: Bloomberg - All Podcasts | 12 May 2010 | 6:56 am

A Perfect Quarter For Four Big Banks

By Jacob Goldstein

Four of the nation's six biggest banks made a profit from trading on every single business day during the first quarter. Daily profit often clocked in at over $100 million per bank.

Goldman, Bank of America and JPMorgan Chase all reported the performance in their quarterly reports. Citigroup, which didn't break out these numbers, also had a perfect Q1, according to Bloomberg and the NYT.

It's rare (though not unheard of) for even one bank to have a perfect quarter like this -- let alone four. Banks usually make more money than they lose in their trading operations, but they typically have some down days mixed in with the up days.

It's not entirely clear why this happened last quarter, but here are a couple factors that may have played a role:

Ultralow interest rates set by the Fed

The near-zero short-term interest rate set by the Federal Reserve means that banks can borrow money essentially for free. When you can borrow for free, you can even lend money to the government and make a profit. Ten-year Treasury bonds paid an average interest rate of 3.7 percent last quarter, Bloomberg notes.

"The trading profits of the Street is just another way of measuring the subsidy the Fed is giving to the banks," ~~a guy from~~ the co-founder of a company called Institutional Risk Analytics told Bloomberg. "It's a transfer from savers to banks."

It's a good time to be a middle man.

Banks' trading business is not solely based on making bets with their own money; it's also acting as a market maker, buying from clients that want to sell, and selling to clients that want to buy. Banks profit from the gap between what buyers and sellers are willing to pay -- a difference known as the spread.

The fact that there are now fewer big banks -- Lehman's gone, Bear Stearns and Merrill Lynch were folded into JPMorgan and B of A -- means there's less competition for this business. And the banks said the flow of customer orders was particularly high during the quarter, the NYT says.

"This is not about hitting home runs," a risk management expert told the NYT. "This is just, as we call it, milking the market and your captive client base."

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Source: NPR Blogs: Planet Money | 12 May 2010 | 6:51 am

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