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Business News
for 01/16/2009

(last updated 7:30am EST 01/16/2009)

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• World Stocks Gain as U.S. Helps Bank World Stocks Gain as U.S. Helps Bank
01/16/2009
World stocks rebounded from the previous day’s rout, with Tokyo’s index gaining nearly 3 percent, as the U.S. bailed out Bank of America again. (4 h ago)

• Third Runway Approved for Heathrow, Ange... Third Runway Approved for Heathrow, Angering Critics
01/15/2009
The approval, in an especially heated session in Parliament, came despite mounting opposition from residents, lawmakers and environmental campaigners. (8 h ago)

• Russia-Ukraine Gas Dispute Enters 10th D... Russia-Ukraine Gas Dispute Enters 10th Day
01/15/2009
In the latest dust-up, the two sides argued over the shipment of gas for Moldova, the Balkans and Slovakia. (8 h ago)

• U.S. Freezes Assets of 2 Burmese Busines... U.S. Freezes Assets of 2 Burmese Businessmen
01/15/2009
The U.S. has frozen the assets of two Burmese businessmen and their companies for aiding the military junta in Myanmar. (9 h ago)

• European Central Bank Cuts Key Rate European Central Bank Cuts Key Rate
01/15/2009
The European Central Bank decided to lower its main interest rate by half of a percentage point to 2% amid mounting evidence of lower prices and weaker activity. (9 h ago)

• Airbus Sees Soft Year for Orders and Del... Airbus Sees Soft Year for Orders and Deliveries
01/15/2009
The European aircraft maker forecast drops in both deliveries and orders in 2009 even if world air traffic recovered. (11 h ago)

• Deutsche Bank in Deal to Diversify Its B... Deutsche Bank in Deal to Diversify Its Business
01/15/2009
The global economic downturn weighed heavily on fourth quarter earnings at Germany’s biggest bank. (12 h ago)

• News Media Run by China Look Abroad for ... News Media Run by China Look Abroad for Growth
01/15/2009
Plans include the creation of a 24-hour news channel modeled on Al Jazeera, the Arabic language network. (16 h ago)

• Nortel Seeks Bankruptcy Protection Nortel Seeks Bankruptcy Protection
01/15/2009
Nortel has struggled to recover from the collapse of technology stocks early in the decade as well as an accounting scandal. (17 h ago)

• Chávez Lets West Make Oil Bids as Prices... Chávez Lets West Make Oil Bids as Prices Plunge
01/15/2009
The financial crisis is hurting Venezuelan President Hugo Chávez’s efforts to establish a Socialist-inspired state. (1 d ago)

• A Second Day of Job Cuts at Barclays A Second Day of Job Cuts at Barclays
01/15/2009
A day after the bank said it would cut 2,100 positions at its investment banking unit, it announced 2,100 job cuts in its retail, commercial banking and credit card businesses. (1 d ago)

• Where Is Oil Going Next? Where Is Oil Going Next?
01/15/2009
As demand for oil has plunged, companies up and down the energy pipeline are acting in ways that would have been unimaginable until recently. (1 d ago)

• German Economy Shrank in Last Quarter German Economy Shrank in Last Quarter
01/14/2009
The German economy contracted by up to 2 percent in the last quarter of 2008 as tumbling exports took their toll. (1 d ago)

• Board Tries to Chart Recovery for Scanda... Board Tries to Chart Recovery for Scandal-Ridden Indian Firm
01/14/2009
The newly appointed board of Satyam is scrambling to get money and new managers while also trying to determine how deep the company’s problems are. (1 d ago)

• Sony and Toshiba Shares Fall Sharply Sony and Toshiba Shares Fall Sharply
01/14/2009
News reports projected that Japan’s leading electronics companies would see an operating loss in the current financial year as plummeting demand and a strong yen take their toll on sales. (2 d ago)

• Executive at UBS Is Deemed a Fugitive Executive at UBS Is Deemed a Fugitive
01/13/2009
A top executive at UBS was declared a fugitive, two months after he was indicted in connection with an investigation of UBS’s offshore private banking services. (2 d ago)

• British Media Company Sells German Holdi... British Media Company Sells German Holdings
01/13/2009
Burdened with debt, Mecom sells its German newspapers for $204 million. (2 d ago)

• Flow of Dollars to China Slows Flow of Dollars to China Slows
01/13/2009
China’s foreign reserves grew in the fourth quarter of last year at the slowest pace since the summer of 2004, as the country’s central bank found itself with fewer dollars to buy Treasury bonds and other foreign assets. (2 d ago)

• A Small Showing, but With Big Dreams A Small Showing, but With Big Dreams
01/13/2009
For the first time, two Chinese carmakers are exhibiting this year on the main floor of the Detroit auto show. (3 d ago)

• Town Mourns Typical Businessman Who Took... Town Mourns Typical Businessman Who Took Atypical Risks
01/13/2009
The suicide of the German billionaire Adolf Merckle shocked the nation as much as it angered his tiny town, where he was eulogized at a service that overflowed the church. (3 d ago)

• Tsang Yam-kuen: Hong Kong able to meet c... Tsang Yam-kuen: Hong Kong able to meet challenges of financial crisis
01/15/2009
With its position as an international financial center, Hong Kong has already proved able to overcome the challenges of the financial crisis, the Chief Executive of the Government of the Hong Kong Special Administrative Region of the PRC Donald Tsang Yam-kuen said during the Legislative Council's Question Time on the afternoon of January 15. Tsang noted that Hong Kong will make full efforts to advance its development as an international financial center in the future. China's central governm ... (8 h ago)

• Long winter ahead for European auto sect... Long winter ahead for European auto sector as sales slump
01/15/2009
European carmakers are struggling to survive a long and tough winter in the face of slumping vehicle sales as the economic downturn continues to batter the beleaguered industry. New car sales in Europe slumped by 7.8 percent in 2008, marking the biggest annual drop in 15 years, the European Automobile Manufacturers' Association (ACEA) reported Thursday. In Western Europe, new car sales contracted by 8.4 percent in 2008. The downturn was most prominent in the last quarter when new ... (10 h ago)

• Obama urged to develop new energy econom... Obama urged to develop new energy economy
01/15/2009
Environment California, an influential environmental group, urged President-elect Barak Obama on Thursday to make "green" energy and "green" infrastructure a cornerstone of his economic stimulus plan. If the federal government invested 142 billion U.S. dollars in clean energy and transportation, 3 million jobs would be created or sustained and global warming would be reduced, the group said in a report entitled "Clean Energy, Bright Future." The report recommends that the federal ... (10 h ago)

• China shares rise 2.2% in morning trade China shares rise 2.2% in morning trade
01/15/2009
Chinese share prices gained 2.2 percent before noon break Friday after the country's state-assets watchdog plans to monitor stake sales of state-owned listed companies. Investors began to cut stock holdings from late 2008 on concerns that sales of a huge amount of shares by state-owned firms would increase supply and drive down the market. The benchmark Shanghai Composite Index, which covers both A and B shares, closed the morning trade up 42.88 points, or 2.23 percent, at 1,963. ... (10 h ago)

• Agricultural Bank of China becomes share... Agricultural Bank of China becomes shareholding company
01/15/2009
The state-owned Agricultural Bank of China (ABC) officially become a shareholding company Friday. It is the last of the "big four" state-owned commercial banks to complete the restructuring. The Central Huijin Investment Co., an arm of China's sovereign wealth fund, and the Ministry of Finance each held 50 percent stake in the new bank. Former ABC President Xiang Junbo was appointed chairman of board of directors, and former ABC Vice-President Zhang Yun was appointed president of ... (10 h ago)

• Metal futures cool down after price rebo... Metal futures cool down after price rebound
01/15/2009
The latest spurt in the prices of key metals in the Shanghai commodity futures market has many traders and users wondering if prices that went on a free fall in the past several months have touched bottom. Not so fast, say the leading analysts and economists interviewed by China Daily. Their reservation, they said, was based on spot price projections that were influenced by supply and demand estimates, producers' inventory levels and established industry practice. The surge in pr ... (12 h ago)

• Myanmar to hold gems emporium in March Myanmar to hold gems emporium in March
01/15/2009
Myanmar will hold an annual gem show here in March this year to encourage national gem traders to sell more quality gems, jade, pearl and jewelry, according to the Central Committee for Holding Myanmar Gems Emporium Friday. Without specific date set, the 46th annual Myanmar gems emporium will take place at the Myanmar Convention Center on the basis of competitive bidding, the sources said. In the last 45th annual gems emporium held in March 2008, 7,000 lots of jade, 300 lots of g ... (13 h ago)

• Baosteel inks deal with CACC Baosteel inks deal with CACC
01/15/2009
Baosteel, one of China's largest steel producers, has secured a contract from Commercial Aircraft Corporation of China Ltd (CACC) to research and develop specialized steel plates for China's large aircraft program, a company official said. "The contract is a breakthrough for Baosteel, which has never developed steel sheets for large aircraft," said Chen Ying, the company's board secretary. Although the Shanghai-based company is not expected to profit from the contract for some ti ... (13 h ago)

• Nortel wave may hit mainland Nortel wave may hit mainland
01/15/2009
China operations of Nortel Networks Corp are not involved in the bankruptcy protection application filed Wednesday by North America's largest maker of telecom equipment, but their impact here is inevitable nonetheless. The company submitted the filing a day before an interest payment of about 107 million U.S. dollars was due, according to Reuters. Nortel in November reported a 3.4 billion dollars loss in the third quarter of 2008. Affiliates in Asia, the Caribbean and Latin Ameri ... (13 h ago)

• Mengniu stepping up the ante Mengniu stepping up the ante
01/15/2009
The country's top milk producer is slowly recovering from the devastation of the melamine scandal last year that has thrown the entire dairy industry into disarray. It has been a rough process, forcing, at one time, the flamboyant chairman of Mengniu Dairy, Niu Gensheng, to go hat in hand asking for financial handouts from his powerful friends and corporate peers. Part of that money was spent on mounting a huge publicity campaign to regain consumers' confidence in the company's products. ... (13 h ago)

• EU threatens WTO action against U.S. ove... EU threatens WTO action against U.S. over beef trade sanctions
01/15/2009
The European Commission warned Thursday of taking action at the World Trade Organization (WTO) against a U.S. decision to expand sanctions in a 13-year dispute over beef trade with the European Union (EU). "It is clear that this move by the U.S. administration means that we will have no choice but to start preparations in order to take this to the WTO," the Commission said in a statement. "A great deal of effort had been put into finding a mutually agreed settlement to this ongo ... (13 h ago)

• Volkswagen dismisses 150 employees in Br... Volkswagen dismisses 150 employees in Brazil
01/15/2009
Volkswagen announced Thursday that it will not renew the contracts of 150 temporary employees at its factory in southeastern Brazil's Taubate. The workers were part of a group of 800 temporary employees whose contracts were due to end in January and February, the automaker said. About 200 workers in the group will have their contracts renewed, while the remaining 450 will be permanently hired by the company, it said. Volkswagen also announced a draft agreement with the Me ... (13 h ago)

• GM sees U.S. auto sales drop in 2009 GM sees U.S. auto sales drop in 2009
01/15/2009
General Motors said Thursday it is adopting more conservative industry volume assumptions than those presented to Congress in light of the ongoing uncertainty of global market conditions. GM said U.S. total vehicle sales would reach 10.5 million units in 2009. The initial plan included a downside scenario of 10.5 million U.S. sales in 2009 with a baseline scenario of 12 million sales. GM said global sales would fall to 57.5 million vehicles in 2009, down 6.3 million from the prev ... (14 h ago)

• FDA opens offices in India FDA opens offices in India
01/15/2009
The U.S. Food and Drug Administration (FDA) opened two offices in New Delhi and Mumbai, India, as part of a new initiative to ensure safety and quality of drugs and food products flowing from India into the United States, the FDA said Thursday in a press release. The FDA will post 10 experienced officials in India to work closely with industries that ship food and medical products to the United States, to improve safety and quality, which will facilitate the smooth flow of trade. ... (14 h ago)

• Dollar mixed against major currencies Dollar mixed against major currencies
01/15/2009
The dollar was mixed against major currencies on Thursday as optimism on a proposed economic stimulus program was offset by worries over the U.S. bank sector. The House of Representatives unveiled the 825 billion U.S. dollars economic stimulus plan on Thursday, proposing 275 billion dollars in tax cuts and credits to jump-start the economy and 550 billion dollars in spending for clean energy, road construction, social welfare programs and emergency assistance to states. It was re ... (14 h ago)

• Bank of America may get more aid Bank of America may get more aid
01/15/2009
Bank of America Corp, the biggest US bank by assets, may get more aid from the government to help absorb losses tied to this month's acquisition of Merrill Lynch & Co, three people familiar with the matter said. Details are likely to be disclosed on Jan 20, the people said. That's when Bank of America may post its first quarterly loss in 17 years as it digests the purchases of Merrill Lynch and Countrywide Financial Corp The combined company has already received $25 billion from the US. ... (15 h ago)

• Capital flows out at faster pace Capital flows out at faster pace
01/15/2009
China experienced continuous capital outflow in the fourth quarter of 2008, with the scale expanding in a "larger-than-expected" pace in December, said a report released by the Chinese Academy of Social Sciences (CASS). "The capital outflow was much severe in December," said Zhang Ming, a CASS economist and the report's author. More than $25 billion fled China in December, up from $17.5 billion two months ago, said Zhang. A report released by Morgan Stanley Asia estimated that the capit ... (15 h ago)

• Three more nuke plants this year Three more nuke plants this year
01/15/2009
China National Nuclear Corp (CNNC) said it expected to start construction of three nuclear power plants with a total of five reactors in 2009. CNNC, the country's largest nuclear power company, will start construction of the Sanmen nuclear power plant in Zhejiang in March. The project will have two 1,250-megawatt reactors, said a source with the company. The company will start building another nuclear power plant in Haiyang, Shandong province, at the end of September, said the source, who ... (15 h ago)

• CNPC to develop Azadegan oilfield CNPC to develop Azadegan oilfield
01/15/2009
China National Petroleum Corp (CNPC), the country's largest oil and gas company, yesterday signed a $1.76 billion agreement to develop an oilfield in Iran. The company will develop the North Azadegan oilfield, located in Iran's western province of Khuzestan. The field has estimated reserves of 6 billion barrels of oil and can produce 75,000 barrels per day for 25 years, according to the Iranian Oil Ministry. The deal is in the form of buy-back terms, under which CNPC will develop the fie ... (15 h ago)

• House prices may cool House prices may cool
01/15/2009
Property prices in China may see a huge downward pressure this year as economic uncertainties worsen and more affordable housing enters the market, experts said. Beijing is planning to construct 28.3 million sq m of residential buildings this year, and 43 percent of this would be affordable housing. Shanghai, too, has a similar plan, with affordable housing accounting for 45 percent of the newly constructed dwellings this year. Qi Ji, vice minister of housing and urban-rural construction, ... (15 h ago)

• Minneapolis' Star Tribune Bankrupt Minneapolis' Star Tribune Bankrupt
01/15/2009
Less than two years after it was bought by a private equity group, the Star Tribune has filed for bankruptcy. (9 h ago)

• Bank Of America To Get $20B More From Fe... Bank Of America To Get $20B More From Feds
01/15/2009
Bank of America has reached an agreement for an additional $20 billion in support from the government's emergency bailout fund, plus guarantees against losses on up to $118 billion in troubled assets. (9 h ago)

• Jobless Numbers Jump While Prices Drop Jobless Numbers Jump While Prices Drop
01/15/2009
New U.S. claims for jobless benefits increased more than expected last week. That was coupled with news that producer prices dropped for the fifth straight month on the heels of a huge plunge in energy prices. (14 h ago)

• Where Did The Bailout Billions Really Go... Where Did The Bailout Billions Really Go?
01/15/2009
Billions of bailout money - your tax dollars - went to banks to buy up troubled mortgages. So why did so many of the banks that benefitted simply buy other banks? Sharyl Attkisson Follows the Money in an exclusive report. (19 h ago)

• Report: Bank Of America To Get More Aid Report: Bank Of America To Get More Aid
01/15/2009
The U.S. government is nearing a deal to inject Bank of America Corp. with billions of dollars in more aid, The Wall Street Journal reported, citing people familiar with the situation. (23 h ago)

• Retail Sales Take December Plunge Retail Sales Take December Plunge
01/15/2009
U.S. retail sales plunged far more than expected in December, a record sixth straight monthly decline as consumers were battered by a prolonged recession, a severe credit crisis and soaring job losses. (1 d ago)

• Annual Home Repossession Numbers Double Annual Home Repossession Numbers Double
01/15/2009
The number of Americans who faced foreclosure proceedings shot up by 81 percent in 2008, and twice as many people actually had their homes repossessed by lenders than in the previous year. (1 d ago)

• Motorola To Hang Up On 7,000 Workers Motorola To Hang Up On 7,000 Workers
01/14/2009
Mobile handset maker Motorola Inc. said it will cut 4,000 more jobs in 2009, in addition to 3,000 it announced last year. (1 d ago)

• Judge: Madoff Not A Flight Risk Judge: Madoff Not A Flight Risk
01/14/2009
Disgraced money manager Bernard Madoff has won the latest round in his battle with prosecutors over his bail package. (1 d ago)

• Fed: Economy Weaker, Outlook Dim Fed: Economy Weaker, Outlook Dim
01/14/2009
The U.S. economy started the new year on weaker footing as recession-shocked Americans retrenched further, forcing retailers to ring up fewer sales and factories to cut back production. (1 d ago)

• Long-Struggling Nortel Claims Bankruptcy Long-Struggling Nortel Claims Bankruptcy
01/14/2009
Telecommunications equipment maker Nortel Networks Corp. filed for bankruptcy protection in Canada and the U.S. on Wednesday, becoming the first major technology company to take that step in this global downturn. (1 d ago)

• Yahoo Names New CEO Yahoo Names New CEO
01/13/2009
Former Autodesk CEO Carol Bartz has been named Yahoo's new CEO. (2 d ago)

• Citigroup, Morgan Merge Brokerage Arms Citigroup, Morgan Merge Brokerage Arms
01/13/2009
A deal to combine the brokerages of Citigroup and Morgan Stanley - which would give Citi more cash, and Morgan Stanley more manpower - appears just days away. (2 d ago)

• Sales Slump Leaves Sony At A Loss Sales Slump Leaves Sony At A Loss
01/13/2009
Sony is sinking into its first yearly operating loss in 14 years as sales fizzle for digital cameras, flat-panel TVs and other gadgets taking a hammering from the global recession and a soaring yen, analysts said Tuesday. (2 d ago)

• Pfizer Makes Deep Cuts To Research Staff Pfizer Makes Deep Cuts To Research Staff
01/13/2009
Pfizer Inc., the world's biggest drug company, is laying off up to 800 scientists this year in its latest effort to refocus disappointing research efforts and cut its massive overhead ahead of an anticipated crash in revenue. (2 d ago)

• Treasury Short On Bailout Answers Treasury Short On Bailout Answers
01/13/2009
Just months ago, the government spent hundreds of billions to rescue financial institutions. What's become of that money? That's what an oversight committee's trying to find out - but haven't, Sharyl Attkisson reports. (2 d ago)

• Obama Shelves Jobs-Credit Proposal Obama Shelves Jobs-Credit Proposal
01/13/2009
Bowing to widespread Democratic skepticism, President-elect Barack Obama will drop his bid to include a business tax break he once touted in the economic stimulus bill now taking shape on Capitol Hill, aides said last night. (2 d ago)

• Bernanke: Obama Stimulus A Good First St... Bernanke: Obama Stimulus A Good First Step
01/13/2009
Fed Chairman Ben Bernanke said the stimulus package being crafted by President-elect Barack Obama and Congress could provide a "significant boost" to the economy, but warned that other steps must be taken. (3 d ago)

• Honda to halt production in April and Ma... Honda to halt production in April and May as well as February and March because of falling demand
01/16/2009
Honda said this morning it was halting production at its Swindon plant in April and May, extending the two-month closure announced before Christmas to four months. The company said in November that it would halt production in February and March, with 4,800 workers receiving full basic pay. Today the company said that because of the continuing fall in demand it was extending the closure, with workers getting 50% of their pay. Honda's move adds to the deepening gloom in the UK car industry. Nissan has announced plans to cut its Sunderland workforce by 1,200 people, and earlier this week Jaguar Land Rover said 450 jobs would go. Manufacturers' cuts will have a ripple effect on companies in their supply chains, where many firms are struggling with the fall-out from the credit crunch. The latest developments will add to pressure on business secretary Lord Mandelson to help the struggling industry. Earlier this week, in evidence to the House of Commons business and enterprise committee, Mandelson acknowledged the importance of the automotive sector to the UK's research and development capability and its manufacturing base. The government could provide assistance by allowing car makers' finance arms access to the financial support put in place for the banking system or with help with R&D. A Honda spokesman said it had decided to extend the closure rather than making people redundant. "These are skilled people we want to retain. This is our way of managing the business, we believe this is the best way," he said. The company is set to begin production of the new Jazz model in the Autumn, and is keen to preserve its production capacity for the longer term. Honda Jaguar Land Rover Automotive industry Recession guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (3 h ago)

• Celebrity jeweller Theo Fennell says sal... Celebrity jeweller Theo Fennell says sales for December 21% lower than a year earlier
01/16/2009
The credit crunch has seen off crazy house prices, investment banking and most of the world's car industry. So could bling be the next victim? Theo Fennell, the celebrity's jeweller of choice, had a disastrous Christmas, with sales in December 21% lower than a year earlier on a like-for-like basis. The jeweller, which counts David Beckham, Elton John and Naomi Campbell among its customers, warned it would make a loss in the year to 31 March. In a further blow to its standing, it will no longer run the luxury watch counters at Harrods. Sales at its flagship store in Chelsea and at its store in the Royal Exchange in the City, where you can buy an emerald cut three-stone diamond ring for £39,500, were "significantly" down. International sales were flat. Theo Fennell said it had agreed with Harrods not to renew its contract to run counters at the London department store. However, Theo Fennell's jewellery counters at Harrods will remain, and it has negotiated a longer three-year contract. After putting its international expansion plans under review last month, the Aim-listed company has now decided to downsize its business to cut costs, which will "significantly" reduce its borrowing needs. It will focus on the Theo Fennell brand in the UK and internationally where it already has franchises and concessions, such as the Middle East, Russia and other former Soviet Union countries. Talks with a potential investor resumed after Christmas, but Theo Fennell reiterated that there was no guarantee of success. It hopes to secure a "significant" cash injection through new equity. The firm slumped to a loss of £840,000 in its first half compared with a profit of £434,000 a year ago, partly because of the cost of international expansion. Sales plunged 20% to £10.2m in the six months to 30 September. It expects a better performance next year following the revamp of the business. Founded in 1982 , Theo Fennell soon expanded beyond the original workshop in Fulham Road and became established in the heart of London. Its flagship store opened in 1996 in Chelsea, doors away from the first site. Other luxury groups, including Switzerland's Richemont and Italy's Bulgari, are also feeling the chill of recession, and champagne sales are fizzling out . Retail industry Credit crunch Recession guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (4 h ago)

• Merrill Lynch reports record fourth-quar... Merrill Lynch reports record fourth-quarter loss
01/16/2009
Merrill Lynch, which has been taken over by Bank of America, today reported a record loss of $15.31bn for the fourth quarter. Merrill's loss amounted to $9.62 a share, driven by what its new owner called "severe capital markets dislocations". BoA alone posted a loss of $1.79bn for the quarter, or 48 cents a share, compared with a profit of $268m a year earlier. The bank was thrown a $20bn lifeline by the US government earlier today and a guarantee of $118bn on potential losses on toxic assets, which it inherited from Merrill. Citigroup today unveiled plans for a broad restructuring to shed troubled assets as it reported an $8.29bn loss for the fourth quarter, its fifth quarterly loss in a row. The bank lost $1.72 a share, which compares with a loss of $9.8bn, or $1.99 cents, a year ago. Citigroup said it was splitting into two units, one focusing on universal banking, the other on brokerage and retail asset management, local consumer finance, and a pool of assets that require special management. Merrill Lynch Citigroup Banking United States guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (4 h ago)

• Bank of America given $138bn rescue pack... Bank of America given $138bn rescue package
01/16/2009
Bank of America was today given a new injection of $20bn (£13.5bn) by the US government and a guarantee of $118bn on potential losses on toxic assets that have threatened to overwhelm the financial system. The move came as Merrill Lynch, which has been taken over by BoA, reported a $15.3bn loss for the fourth quarter. BoA lost $1.79bn in the quarter. Citigroup, another stricken banking giant, posted a loss of $8.29bn today and said it would split in two. BoA, which received $25bn after buying the ailing investment bank Merrill Lynch in September , will take the money from the controversial $700bn troubled asset relief programme (Tarp) agreed by Washington at the end of last year. BoA employs more than 8,000 people in the UK and has begun slashing jobs, with 1,900 jobs set to go at Merrill Lynch in London, according to reports. Last night the US Senate voted to release the remaining $350bn of emergency funding after lobbying by the president-elect, Barack Obama. The US government will take a stake in BoA in return for the aid, which is designed to absorb the losses on mortgage-related assets inherited from Merrill Lynch. The bailout makes BoA the biggest recipient of taxpayer money next to Citigroup. The deal follows heavy losses on Wall Street yesterday , when BoA saw its share price slump 20% at one point, before closing down 18% at $8.32, while Citigroup dived 18% and closed down 15.5% at $3.83. The falls wiped out the gains the two banks had made since a faltering recovery began in November. Stockmarkets in Asia rebounded today as investors welcomed the BoA bail-out, with Japan's Nikkei climbing 2.6%. The BoA rescue matches that given to Citigroup. In return for the bail-out, BoA agreed to cut its dividend to 1 cent a share from 32 cents, and cap executive pay – mirroring a concession made by Citigroup when it was rescued in November. The dividend cannot be increased without government approval in the next three years. Majority Democrats yesterday also proposed increasing to $825bn Obama's plan for a second package to stimulate the economy through a combination of federal spending and tax cuts. Passage of both measures would leave Obama with a $1.175tn war chest to use against the most dramatic slide in the US economy since the Great Depression in the 1930s. In another attempt to shore up the banks, the US government's Federal Deposit Insurance Corp said it would propose lengthening the term on bank debt that it is prepared to guarantee to 10 years from three years. Banks must use the proceeds for new consumer lending. "They'll be back for more money" from Tarp, said Senator Bob Corker, a Tennessee Republican. He said "our banking system is going to lose hundreds of billions of dollars" and taxpayer money was "going down the drain". Concerns that the US banking system was in bigger trouble than politicians and regulators had previously thought sent UK bank shares tumbling yesterday , dragging down the FTSE 100 index by 1.4% to 4121. Economic data in recent days showing that the US and Europe faced a long and deep recession appeared to be at the heart of the decision by investors to sell bank shares. Analysts said hopes of a recovery in the latter half of the year were hit by figures showing sharp declines in manufacturing output and services coupled with rising unemployment. A prolonged recession would delay any recovery in the value of assets held by banks, in particular property, which is expected to continue falling this year and possibly into next year. Without a recovery in asset values, banks would be forced to make further write-downs. Citigroup is expected to hive off riskier businesses as part of a rescue package, while BoA could be forced to sell parts of Merrill Lynch. Citigroup could create a "bank within a bank" to contain its worst-performing assets to try to protect the rest of the operation and allow a revival in lending. Unwanted assets worth as much as $600bn – a third of its asset base – could be ringfenced, according to US reports. Nick Parsons, chief strategist at the capital-markets house NabCapital, said: "Many investors held firm last year and saw their investments decline by 30% or 40%. They have learned from that and when they see a longer recession looming they are more prepared to sell." US economy Banking Citigroup Lloyds TSB Barclays HSBC Merrill Lynch HBOS Credit crunch United States guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (5 h ago)

• Irish prime minister defends decision to... Irish prime minister defends decision to nationalise Anglo Irish Bank
01/16/2009
Ireland's prime minister, Brian Cowen, today defended his government's decision to nationalise the troubled Anglo Irish Bank because of concerns over loans to directors and the serious erosion of confidence in the institution. Speaking in Japan at the end of Irish trade mission, the taoiseach said: "We have decided moving this bank into full public ownership is the right approach, is the correct decision in these circumstances. We are satisfied that we can see this bank continue on in its business as before. "I had been in close touch with the Minister for Finance, monitoring this situation, even since the time before Christmas and indeed in the last few days particularly. "We have a situation where if we didn't make our move, you have the EGM still on the table, the €1.5bn offer [to recapitalise the bank] that was being made. "We decided that would not now be on the table in respect of the EGM, which legally is required to be held this morning and the chairman of the bank will answer all questions at that." Last night the Fianna Fail-led coalition nationalised the Anglo Irish Bank with a promise to safeguard its €100bn (£88.66bn) deposit base and shares were suspended at the bank's request. The Guardian understands that the Irish government took the unprecedented measure also because of fears that the bank's collapse would have had a major negative impact on the Republic's wider economy. Had the bank gone out of business, a number of sectors of the economy would have been under threat – particularly health insurance, sources said in Dublin. The majority of Irish people pay insurance to get access to the country's health service. It is understood that the Anglo-Irish's collapse would have had dire consequences for at least one major shareholder in the bank who also has major interests in the country's insurance industry. The declining fortunes of the Anglo Irish Bank, which had a reputation for funding key players in the Irish construction business, can be tracked via its share price. In 2007 shares in Anglo-Irish Bank were worth €17 but when trading stopped yesterday they were prices at only 22 cents. At a hastily convened press conference yesterday evening in government buildings Dublin, the Irish finance minister, Brian Lenihan, confirmed the bank would be taken into public ownership. In advance of Lenihan's announcement, the Republic's Department of Finance said in a statement that "Anglo Irish Bank is a major financial institution whose viability is of systemic importance to Ireland. Anglo has a balance sheet of some €100bn with a substantial deposit base which the State is determined to safeguard. The government has made clear that it will ensure its continued viability. Anglo Irish Bank will continue to trade normally as a going concern, with appropriate government support as necessary. All Anglo employees remain employed by the company." Lenihan later said the funding position of the bank has weakened and that the recent admission that former chairman Sean FitzPatrick had loans of over €87m taken off the bank's books over an eight-year period, had caused "serious reputational damage" to the bank at a time when overall market sentiment towards it was negative. He said that the Irish government believes that the recapitalisation "is not now the appropriate and effective means to secure its continued viability". "The government believes that the prospects for the institution are solidly underpinned in the new structure, with the benefit of state ownership and a renewed management and board. In the current circumstances the state is the only available potential owner," said Lenihan. The recently appointed chairman of the board, Donal O'Connor, is to stay on as chairman of Anglo Irish Bank. Lenihan said the Bank would "be managed on an arms length basis as a commercial entity" and that shareholders's rights would be respected. "All customers of Anglo Irish Bank can be assured that the full amount of their deposits and savings are further safeguarded by this action. They can also be assured that they can and should continue transacting with Anglo as normal and there is no need for customers to take any steps as a result of this announcement. Anglo Irish Bank will communicate directly with all customers in the coming days," said Lenihan. The government has prepared legislation to put its decision into effect and this will be presented to the two houses of the Irish parliament this coming Tuesday. Lenihan added that the Irish government remained "fully committed" to recapitalising two other banks that remained privately owned, the Allied Irish Bank and the Bank of Ireland. In relation to the Anglo Irish Bank, Lenihan stressed that it will continue to operate commercially as normal for depositors and creditors alike. Banking Ireland guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (5 h ago)

• Bellway to come under fire over director... Bellway to come under fire over directors' bonuses
01/16/2009
Housebuilder Bellway is expected to come under fire from shareholders today after the company ditched previous performance targets to pay out huge bonuses to directors. The Association of British Insurers (ABI), which represents major investors, recently issued its strongest "red-top" warning ahead of the group's annual meeting in Newcastle later today. The group's top three directors were paid £632,500 in bonuses - 55% of their combined annual salaries - in the year to 31 July. Bellway's annual report said a "rapidly deteriorating" housing market "necessitated a review" of its bonus structure. Pre-tax profits plunged 30% to £165.7m over the period, and its latest update in December said sales rates were down more than 50% on last year in "extremely testing" conditions. But the ABI's head of investment affairs, Peter Montagnon, said: "One of the most important principles of directors' remuneration is that targets should be linked to performance. "What they have done is torn up the targets and paid the bonuses anyway. Quite a number of shareholders are likely to vote against this." The ABI monitors about 700 companies and only issues red-top warnings in 2-3% of cases. Bellway's shares have falenl by more than a quarter during a disastrous year for the industry as mortgage availability dried up. But the company argued it had performed strongly compared with ailing peers such as Taylor Wimpey and Barratt Developments, which suffered even heavier damage. "The (remuneration) committee took into account the company's financial performance in its own right and also compared to other housebuilders, and considered that management's own performance had been very good in extremely challenging conditions," the annual report said. Bellway intends to operate a "less formulaic" bonus structure this year, it added. But Montagnon said: "It is important at the stage we have got to in the economic downturn that companies do not go on paying large salaries and bonuses regardless. "Executive remuneration is becoming a hot political topic. They must be more sensitive to the situation because if they don't the whole system falls into disrepute." Bellway Executive salaries Housing market guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (6 h ago)

• No evidence Madoff traded a single share... No evidence Madoff traded a single share for clients, says regulatorff traded a single share for clients, says regulator
01/15/2009
The mystery surrounding Bernard Madoff's $50bn Ponzi scheme deepened further last night as it emerged there was no evidence the alleged fraudster traded a single share on behalf of his clients. America's financial industry regulatory authority, told the Guardian that in more than 40 years examining the books of Madoff's brokerage, investigators never saw a share traded on behalf of his investment advisory business. Madoff is said to have confessed that his investment business was a Ponzi scheme that siphoned $50bn from friends, charities and thousands of others. The brokerage, meanwhile, was a legitimate business trading shares wholesale on behalf of investment banks, mutual funds and other institutions. "Our investigations of Bernard Madoff's broker dealership showed no evidence that any shares were ever traded on behalf of his investment advisory business," a spokesman for Finra said, adding that the regulator had been looking at his books since 1960. Clients of Madoff's investment advisory business received statements that showed hundreds if not thousands of trades made by the brokerage every year. Richard Rampell, an accountant from Florida who had several clients who were victims of Madoff's alleged scam, saw dozens of statements. "Everything I saw on those statements told me that Madoff was clearing his own trades. There was no third party mentioned on any of those statements," Rampell said. "Different firms do things differently. For example, if I saw a statement from Bear Sterns, it would show that the trades were cleared by a third party like Goldman Sachs. If I saw a statement from Merrill Lynch, it would show that the trades were cleared in house. Madoff's statements were just like Merrill Lynch statements. They showed the trades were cleared by his own firm." Rampell saw his first Madoff statement in 1985, describing it as "just incredible". He said the document showed dozens and dozens of the 1099 and 1099B tax forms required every time a security is bought and sold for a profit. It now appears the statements were fictitious as there is no evidence to prove Madoff bought and sold a single share on behalf of his clients. Steve Harbeck, the chief executive of the Securities Industry Protection Corporation who is overseeing the Madoff bankruptcy to ensure clients get compensation, said: "I do not have any evidence to contradict that. This is an amazing story that something like this could have gone on undetected for so long." Harbeck said he believed Madoff was defrauding clients at least 28 years ago. "I have seen evidence to that end and I have nothing to contradict it," he said. The securities and exchange commission, America's financial regulator, had been warned about Madoff's firm since at least 1996. Sources close to the investigation said last night that had the SEC asked Finra for evidence of how Madoff was making such profitable trades, the fraud would have been uncovered more than a decade ago. Madoff's lawyer, Ira Sorkin, declined to comment. Bernard Madoff US economy United States guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Equitable Life apology for all but only ... Equitable Life apology for all but only a few will get redress
01/15/2009
Policyholders with Equitable Life could be entitled to compensation under a scheme announced by the government yesterday - but it could take at least two years for the payments to be made. In a statement to MPs the Treasury minister, Yvette Cooper, apologised to more than a million policyholders on behalf of regulators and successive governments for the "maladministration" that had led to the insurer's near collapse in 2000. Cooper said the government would set up a fair payment scheme for policyholders which would focus on helping investors who had been "disproportionately affected" by the events at the mutual insurer, which was brought to its knees after a court ruled it had to honour guarantees made to pensions customers. "It is clear that people have been affected, and have experienced significant distress due to events at Equitable Life," she said. "I wish to apologise to policyholders on behalf of the public bodies and successive governments responsible for the regulation of Equitable Life between 1990 and 2001, for the maladministration we believe has taken place." Yesterday's statement came in response to a scathing report last summer by the parliamentary ombudsman, Ann Abraham, who found that regulators, including the Treasury and Financial Services Authority, had made significant mistakes. While Cooper accepted some of the criticisms, she rejected the ombudsman's recommendation that the government offer compensation to all Equitable members, saying the taxpayer could not be responsible for bailing out all investors with poorly regulated firms. "It would have serious repercussions for the taxpayer, for the relationship between governments and financial markets, and for the nature of regulation, were the taxpayer to provide a remedy for all losses every time the regulator fails to prevent a financial institution getting into trouble," she said. Instead, the government has asked appeal court judge Sir John Chadwick to study Equitable's books to work out which policyholders have been hardest hit. He has been asked to examine the relative losses suffered by each policyholder, and to determine what proportion could be attributed to the maladministration accepted by the government and what was a result of the actions of Equitable Life. Cooper told MPs that compensation would be based on the extent of a policyholder's losses and their ability to make up those losses from other income. She suggested that those who had already retired would be more likely to receive payouts than those still in work. The decision to limit payments was criticised by the shadow treasury minister, Mark Hoban, who said it was "means-testing a compensation rather than compensating people for injustice". Ann Berry, a policyholder who has been forced to move to a cheaper property after the payouts on her £110,000 pension pot were cut, said she was outraged by the announcement. Equitable Life Pensions Economic policy Investments guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Debt forces shoppers to rein in their sp... Debt forces shoppers to rein in their spending after Christmas last hurrah
01/15/2009
The crisis facing the British high street was laid bare yesterday by results from quoted retailers which confirmed that margins are being squeezed at the leading chains amid growing evidence that shoppers are cutting spending because of huge debts. Dismal results from DSG, which trades as PC World, Currys and Dixons, and from Argos and Homebase owner Home Retail Group, showed consumers were avoiding big-ticket items after cancelling moves and refurbishments in response to the economic downturn. Although there were encouraging results from chains such as Primark and Mothercare, consumers hunted down bargains, daring retailers to cut prices again and again. The brinkmanship that consumers employed with retailers played well for some, such as Debenhams, which was set up for a cut-price Christmas, but played havoc with the margins of others. Some, such as Woolworths, Zavvi and Adams childrenswear, never made it to the new year. John Browett, chief executive of DSG, where sales were down 10% over the Christmas period compared with last year, yesterday revealed that sales were even worse in the run-up to the holiday but had been rescued as shoppers rushed for bargains in the clearance sale. "It was so slow that it was slightly concerning, really ... We started asking customers in stores why they weren't buying," he said. The answer they gave was that they were waiting for the sale and would not buy before Christmas, even at discounts, because they wanted to compare sale prices. The same pattern was seen by another major retailer, Carphone Warehouse, which reported yesterday that its Christmas performance was up 13%. Chief executive Charles Dunstone said: "People have got money to spend if you give them very strong offers. But you have got to work very hard to get their money." However, in a development that could have a dramatic impact on high street sales, there is growing evidence that Christmas was the last hurrah for consumers as December's credit card bills force them to confront their debts against a backdrop of rising unemployment. Despite bumper Christmas sales of 8.8%, home-shopping group N Brown said more shoppers, especially younger ones, were failing to settle bills, and that debt collectors were too busy chasing bigger overdue payments, such as mortgage and credit card arrears, to be interested in its far smaller bad debt book. The company, which owns the JD Williams and Simply Be catalogues, usually sells customer debts on to a third party, but White said the economic turmoil meant they were less interested in buying its overdue accounts, which typically run to £500. "Previously, debt collection agencies were paying a higher rate in the pound - and paying upfront," said White. "But they are awash with higher value debt to collect, such as mortgage arrears or £2,000 credit card bills. "Also, because the risk of collection has gone up, they don't want to pay up front, they want to pay a proportion of what they collect. It has shifted from a sellers' to a buyers' market." Credit information group Experian added to the gloom with the news that more than 1 million UK consumers were paying a monthly fee to keep tabs on their credit rating, up 50% on the previous year. The Christmas spending peak also came later than ever, making it harder for retailers to read underlying demand and for the City to predict their profits. For many stores, including Marks & Spencer and Debenhams, the usual shopping frenzy started only on December 20, but continued right up to Christmas Eve. They had failed to lure shoppers throughout the previous month, despite slashing prices by up to half in promotions that began as early as November. Only Next refused to mark its stock down, sticking to its policy of a 5am start to its post-Christmas sale. But even if money was tighter than last year, consumers opted to eat well - and stayed at home playing computer games and watching DVDs. The big four supermarkets recorded sales growth, with Asda and Sainsbury's reporting their busiest days, and record takings, on 23 and 24 December. Discounters such as Aldi reported sales up more than a fifth as increasing numbers of shoppers traded down, including hard-up families from the top A and B social classes who until last year had probably never heard of the privately owned German supermarket business. The stores specialising in stay-at-home entertainment such as Game, HMV and Play.com pulled off some of the best trading figures as shoppers rushed to buy Nintendo DS and Wii consoles, games such as Wii Fit, Super Mario Kart and Grand Theft Auto IV and movies such as Mama Mia in their millions. There are now 5m Wiis and 8m DS users in Britain. For other retailers, such as DSG, Argos owner Home Retail and John Lewis, big sales of entertainment goods made up for poorer performances elsewhere. New Look reported a 2.8% increase in underlying sales, while Primark sales rose 21%. Retail industry Consumer affairs Borrowing & debt guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• South West Trains to axe 480 posts, whil... South West Trains to axe 480 posts, while Anglesey Aluminium warns of 500 job losses
01/15/2009
The jobs gloom engulfing the economy deepened today with almost 1,000 jobs being cut or at risk. South West Trains said it would axe 480 posts, while Anglesey Aluminium, which employs around 500 people, warned it expected to end smelting operations in September. South West Trains, which is owned by Stagecoach, said it faced "reduced passenger growth and an increasingly challenging economic climate". It said the job losses would include 480 management, administration and other roles. Train drivers, guards and front-line fleet maintenance staff would not be affected. "We are proposing to reduce the costs of our rail operation and make some changes to the way we manage our business, but we will continue to operate the same number of train services for our passengers," South West Trains said in a statement. Anglesey Aluminium said the threat of closure followed the failure to renew a power supply contract which runs out in September. Smelting aluminium is an energy intensive process, and the Anglesey plant is supplied from the nuclear facility at Wylfa, which is owned by the Nuclear Decommissioning Authority. David Bloor, managing director, said today today: "We have worked hard over many months in our efforts to extend the existing power contract beyond September of this year but have not yet been successful. "The operation is dependent for its power on the nearby Wylfa nuclear power station, which is itself due for closure within the next few years." Wales Nuclear power Mining Recession Rail travel Transport guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (22 h ago)

• Daily Mail editor Paul Dacre paid £1.6m Daily Mail editor Paul Dacre paid £1.6m
01/15/2009
Daily Mail editor Paul Dacre scooped a pay rise of more than 8% last year as he retained his long-held position as Fleet Street's most highly paid editor. But DMGT's remuneration committee signalled that the current economic downturn, which has led to the loss of 400 jobs across the firm, has brought their largesse to an end: executive salaries will rise just 3% this year. Dacre, editor-in-chief of Associated Newspapers and a board director at parent company Daily Mail & General Trust, received £1.62m in salary and cash payments for the year to 28 September 2008, up from £1.49m in 2007. But for the fourth year in a row he missed out on a bonus. Dacre received the largest salary – £1.1m – of any DMGT executive. His salary even outstripped that of Charles Sinclair, who retired as chief executive on 30 September. After bonuses, however, Sinclair was DMGT's highest paid executive, taking £1.87m. In its report and accounts, published Thursday, DMGT's remuneration committee said: "In setting the remuneration of executive directors, the committee is cognisant of the remuneration increases being given around the group. For 1 October 2008, where strict overall limits are being set on increases within the newspaper divisions, the committee has decided to increase all executive salaries by 3%." Dacre's total pay packet included a £467,000 cash payment in lieu of a pension and the company providing him with a London home. He also has 125,774 shares in the group's long-term incentive plan (LTIP) and a further 665,000 share options. But with DMGT's shares languishing at 264.5p all Dacre's options are "under water" – meaning the exercise price at which he must buy the shares is higher than the current market price, making the options effectively worthless. In fact the current economic downturn, which has led to dramatic falls among media shares on the stock market, has caused DMGT to dump its long-term incentive plan altogether. The company said: "In view of the exceptional trading conditions faced by the group and the lack of visibility into future trading, the committee's policy for 2008/09 is to make no LTIP award and focus all incentive pay on the annual bonus." The Remuneration Committee also defended Dacre's two-year notice period, which breaches the square mile's Combined Code on Corporate Governance that sets minimum standards of boardroom behaviour. It said the committee considers his notice period – which is twice the recommended length – "wholly appropriate for his particular responsibilities and for the industry in which he works". • To contact the MediaGuardian news desk email editor@mediaguardian.co.uk or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000. • If you are writing a comment for publication, please mark clearly "for publication". Paul Dacre Daily Mail Daily Mail & General Trust Daily Mail & General Trust Associated Newspapers Newspapers & magazines UK national newspapers Executive salaries guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (22 h ago)

• European Central Bank cuts eurozone inte... European Central Bank cuts eurozone interest rate to 2%
01/15/2009
The European Central Bank today responded to growing evidence that the economic recession is deepening by cutting interest rates to 2% from 2.5%. Its widely expected move, agreed unanimously, came amid growing fears that the 16-strong eurozone could implode as a result of widening divergences and experience a short period of deflation. It brings eurozone borrowing costs to a three-year low after four cuts in a row totalling 225 basis points (2.25 percentage points), including a record 75 points in December. But ECB president Jean-Claude Trichet, cautioned against expecting further deep cuts. The ECB, meeting in Frankfurt, made its decision after official figures confirmed that eurozone inflation had fallen last month to 1.6% from 2.1% in November 2008 – well below the "close to but below" 2% target. The central bank has been accused of being behind the curve and over-concerned about current and future inflationary pressures as the US Federal Reserve has slashed rates to 0.25% and the Bank of England to 1.5%, with suggestions both could go to zero. But Trichet said the ECB would do anything to avoid a "liquidity trap" – a central banker's coded rebuke to colleagues. Trichet told reporters that the latest cut came in the face of a further significant slowing down of the global economy and domestic demand and an easing of inflationary pressures. He even admitted that inflation could be very low at some stages this year. Howard Archer of Global Insight said average inflation in 2009 would be 0.7% and there could even be a very short period of deflation. He expects borrowing costs to be halved from today's levels to 1% by mid-year. Trichet, however, said the latest cut in borrowing costs took into account earlier evidence of economic slowdown and anticipated further weakening. Ruling out a further cut in February, he indicated the ECB could act again in March when new internal economic forecasts would be available. He also dismissed fears of deflation, suggesting that inflationary pressures could resume in the second half of this year. "Headline figures will possibly reach very low levels at mid-year but inflation rates are expected to increase again in the second half of this year ... We consider the risks to price stability to be broadly balanced." Fears over the continuing stability of the bloc have grown since agencies have questioned the credit rating of Greece, Ireland, Portugal and Spain in the wake of the financial crisis, with the focus on their swelling budget deficits. Greece in particular has been put on red alert – while credit default spreads with the zone's biggest economy, Germany, widen. Germany, where unemployment rose above 3 million towards the end of last year and could surpass 4 million people by late 2010, saw its economy shrink by 1.5-2% in the final quarter of last year. Economists say this year's contraction will be between 2 and 3% even with the new €50bn (£45bn) stimulus package adopted by Berlin this week. Industrial orders and output in the eurozone, which Slovakia joined on January 1, are collapsing as global trade growth slows. But exporters have been given some relief by the recent fall of the 10-year-old euro to around $1.30 – compared with a high of $1.60 last summer and $1.40 at the start of the year. Europe Banking Interest rates US Interest rates guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (23 h ago)

• Construction orders down 9% as property ... Construction orders down 9% as property market slumps
01/15/2009
New orders in the British construction industry have continued to plunge as building firms are battered by the credit crunch, data released this morning showed. The Office for National Statistics said that orders fell by 9% in the three months to November, compared with the previous three months. They were 27% down on a year-on-year basis. The figures showed that new construction orders were particularly weak in November itself, diving 38.6% year-on-year. The private housing sector was a major casualty, with new orders down by 55% compared with a year ago. All the UK housebuilders have dramatically reined in their activity and cut jobs as the housing market has slumped. Howard Archer, chief UK and European economist at IHS Global Insight, said the data showed that the construction sector's recession deepened markedly in the fourth quarter of 2008. He sees little prospect of conditions improving soon. "With housing market activity and prices likely to remain depressed for some considerable time to come and the commercial property sector in dire straits, the construction sector looks set for extended weakness, despite some support from the government bringing forward some public construction activity and infrastructure spending as part of its fiscal stimulus package," Archer said. Accountants Grant Thornton said that the construction and property sector was set to be the worst casualty of the economic downturn in 2009, plummeting by 75% in profitability and 71% in turnover from the same period last year. Clare Hartnell, head of property and construction at Grant Thornton, said: "Profitability and turnover within the construction and property sector are significantly driven by sales and market value; 2008 was a turbulent year as credit dried up and confidence plummeted, causing house prices and the number of properties sold to fall sharply. The decline in the residential market consequently has had a knock-on-effect on the construction sector, where problems have been exacerbated by huge debts as many proposed developments have been put on hold." "2009 is set to be a trying year to say the least. Part of the reason for this is the current state of the economy. Lack of available credit will have an adverse effect on the ailing construction and property sector." Construction industry Credit crunch Housing market Recession guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Apple boss Steve Jobs takes six months' ... Apple boss Steve Jobs takes six months' leave over health fears
01/14/2009
The future leadership of the Apple computer empire was unclear last night after its chief executive, Steve Jobs, took six months' medical leave to tackle deteriorating health. Nine days after reassuring staff and investors that he had nothing more than a hormonal imbalance, Jobs stunned the technology community by disclosing that his medical issues were "more complex" than he initially thought. In an email to staff, Jobs said Apple's chief operating officer, Tim Cook, was taking day-to-day charge of the business until the end of June. But Jobs said he would remain involved in "major strategic decisions" throughout his time out. On Wall Street, trading in Apple's shares was briefly suspended by the technology-dominated Nasdaq stockmarket while the company issued the news. When action resumed, the stock slumped by 9%. Jobs, 53, co-founded Apple in 1976 and is widely viewed as the driving force behind consumer electronics blockbusters such as the iMac, the iPod and the iPhone. His wealth is estimated at $5.4bn (£3.7bn) by Forbes magazine, ranking him as the world's 189th richest man. He had surgery for pancreatic cancer in 2004 and appeared to have beaten the disease. But Jobs' health has been the subject of intense speculation since he appeared at a technology conference in the summer looking gaunt and drawn. In his email to employees, Jobs said: "Unfortunately, the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well. In addition, during the past week I have learned that my health-related issues are more complex than I originally thought. In order to take myself out of the limelight and focus on my health, and to allow everyone at Apple to focus on delivering extraordinary products, I have decided to take a medical leave of absence until the end of June." Jobs' health is viewed as a critical issue by investors who are increasingly nervous about the company's lack of disclosure. For months, Apple insisted that Jobs was in good health until last week's announcement that his recent weight loss was down to a "nutritional problem" caused by an easily treatable hormone imbalance. Jobs is answerable to a heavyweight board of directors which includes the former US vice-president Al Gore, the Google chief executive Eric Schmidt, and the head of Avon cosmetics, Andrea Jung. Questions were mounting last night over the company's corporate governance. "People are going to be very frustrated with the way Apple handled this," said Gene Munster, a technology analyst at stockbroker Piper Jaffray. Munster added, however, that as Jobs' long-standing right-hand man, Cook was well qualified to fill in as chief executive: "He's very capable of running the company, although obviously, replacing the magic of Steve Jobs is impossible." With a market value of $75bn, Apple is one of the world's most successful technology firms. The business was established by Jobs and a friend, Steve Wozniak, in Jobs' parents garage in California. A university drop-out, Jobs has always eschewed the usual corporate uniform, typically preferring to appear in jeans and a polo-necked sweater. He is a vegetarian, Buddhist and a father of four. Under Jobs' leadership, Apple has stolen a march on its rivals through its simple, sleek, easy-to-use designs for music players, computers and phones. The company is highly profitable – it earned $4.8bn on sales of $32bn in the year to November. Steve Jobs Nasdaq Apple Apple Technology United States guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Private equity profits come from loading... Private equity profits come from loading firms with debt – report
01/14/2009
More than half the profits generated by private equity firms in recent years have been made by piling debt on to the books of the companies they invest in, according to a report published today. The findings of the first annual report on the industry, designed to increase transparency and improve the image of private equity, instead provided further ammunition for the industry's critics. The analysis by accounting firm Ernst & Young claims that just one fifth of the returns achieved come from strategic and operational improvements. But the report, published jointly with the British Venture Capital Association (BVCA) and covering 42 deals, does counter some of the other criticisms levelled at the industry. It suggests employment across the 42 firms grew organically by 3% between 2003 and 2007, adding 10,200 jobs and far from the blood letting commonly associated with private equity. The data includes 14 companies that were either sold or floated on the stockmarket between 2005 and 2007 and found the average return on investment was 330%. Of that, 100% reflected the growth in stockmarkets, 167% represented additional debt raised by the firms – over levels at comparable companies – and 62% was from improvements to the businesses. The higher the amount of debt used to buy a company, the better the return in a successful investment. If a private equity firm buys a company for £50m in cash and sells it for £100m, it makes a return of 100%. If it uses £10m in cash and £40m in debt, then the returns are far higher. The 28 companies still in private equity portfolios were acquired for £15bn in equity and £41bn in debt. Debt in the 14 companies exited was 72%, compared with 23% in companies in the same industry and quoted on the FTSE All Share index. Authors of the report claim however that the 14 firms "were able to support the debt levels that were introduced by private equity investors". Paul Kenny, general secretary of the GMB union and a vocal opponent of private equity, said the findings were of concern. He said the levels of debt had become a "source of dangerous instability" and that "drastic reductions" were needed. "Most of the excess borrowing has been undertaken by banks and private equity companies – and not by households and non-financial companies," he said. The private equity industry boasts that it is often able to run firms more efficiently than incumbent management. Critics have argued instead that the high returns for the industry are a matter of financial engineering – by raising large levels of debt to do deals and piling it on to the balance sheets of companies they invest in, leaving them more exposed in a downturn. The storm around private equity came to a head in 2007 when a series of headline-grabbing deals and job losses at companies including the AA and Birds Eye led to accusations of asset stripping. The Ernst & Young report is part of the implementation of a set of disclosure rules to temper the attacks. Simon Walker, chief executive of the BVCA, said he was "not apologetic" about the level of debt raised across the industry. "Debt did play a role in the value creation process but not at the cost of either investments or employment," he said. "Strategic and operational improvements were pivotal to success." He said the report showed that "many of the accusations made against private equity at that time were not – and are not now – remotely accurate". He added: "Money was not made during those years through 'asset strapping'. Indeed 'asset stripping' – acquisitions rather than disposals – were often a central feature of private equity activity." In a recent speech about private equity in the midst of the credit crunch, Walker admitted there had been some "lazy" reliance on debt to make high returns "with people falling over themselves to lend". But he said there would be more emphasis on "hard-won operational improvements and not clever financial engineering" in the future. • This article was amended on Thursday 15 January. We misquoted Simon Walker, chief executive of the British Venture Capital Association. He did not say: "Money was not made during those years through 'asset stripping'. Indeed 'asset stripping' - acquistions rather than disposals - were often a central feature of private equity activity." The central feature was "asset strapping", not "asset stripping". This has been corrected. Private equity guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Areva's nuclear plant in Finland faces m... Areva's nuclear plant in Finland faces more delays
01/14/2009
Areva, the French nuclear plant designer expected to be at the forefront of a British atomic power revival, has become embroiled in a war of words with a Finnish utility over delays at the site of Europe's first new nuclear station for 30 years. The latest setback will worry ministers in London who are trying to convince sceptics that nuclear can deliver quickly and efficiently to meet the looming energy "crunch" after 2015. Jarmo Tanhua, chief executive of Teollisuuden Voima Oy (TVO), the Finnish electricity provider, said he was "extremely disappointed" that Areva had told it that the Olkiluoto 3 facility was not going to be completed until 2012 – three years later than originally expected. But he also attacked Areva and its German consortium partner Siemens for suggesting the embarrassing problems that have given valuable ammunition to the anti-nuclear lobby had been caused by the Finns. "TVO is extremely disappointed that the consortium has not – regardless of its responsibility as turnkey supplier and its earlier promises – been able to complete the works on time or to mitigate its delays through effective acceleration measures," he said. "TVO totally rejects the consortium's accusations that TVO has any responsibility for the delay." "The consortium incorrectly claims delays in document handling and approval, despite the fact that a large number of the documents it is required to prepare have still not been submitted for first inspection although the plant unit should almost be complete by now." TVO has accepted for some time that the project was going to be blown off course but Areva said today that it could not be certain exactly when the station would be completed. Raising questions about whether the date could even be later than 2012, a spokesman said: "A major change in TVO's methods is required to set a definitive schedule for the project." Industry figures with close contacts to Areva complained that the delays were being caused by the Finns taking 12 months to review vital safety documents rather than the three months that were agreed in the original contract. This is one of a series of changes in the schedule that have shocked ministers and industrialists who want to see a new generation of atomic plants in Britain to meet an energy gap caused by old stations coming off line at a time when North Sea oil and gas is running out fast. EDF, the French electricity provider that has been most vocal about its desire to build new plants in this country, has said it would like to have at least one facility working by 2017. EDF has been working closely with Areva, which has submitted for approval to the UK safety authorities a third generation of its European Pressurised Water Reactor (EPR). Olkiluoto 3 is a 1,600-megawatt EPR and will be the first third-generation plant in the world. Work began on the project in 2005, when it was expected to take four years to complete. TVO announced in August 2007 that delays in construction had likely pushed the completion date into 2011. In December 2007 the company said that construction of the reactor would not be completed until summer 2011 and in October last year it predicted commissioning would not begin till 2012. Nuclear issues Energy Energy Nuclear power Utilities Finland guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• A glitz-free Detroit motor show? Some ca... A glitz-free Detroit motor show? Some carmakers didn't get the memo
01/13/2009
Some car manufacturers clearly didn't get the memo. With America's "big three" motor companies on life support, it was supposed to be a glitz-free, austere Detroit motor show this year in preparation for the possibility of mourning. General Motors and Chrysler are cutting staff salaries and slashing every cost to the bone as they struggle to survive on emergency loans as effective wards of the US state. GM can't even afford to run the escalators at its headquarters during evening hours while Ford has scaled back office cleaning from nightly to weekly, according to the New York Times. So was it appropriate for Mercedes to serve up lobster risotto, merlot and crème brûlée as it launched its new E-class sedan at Detroit's swankiest new hotel – the Westin Book Cadillac? Several swanky sports carmakers – including Porsche and Ferrari – discreetly pulled out of this year's show. But Lamborghini flew the flag with a decidedly unreconstructed exhibition stand featuring twig-thin models smiling seductively alongside rich boys' toys masquerading as modes of transport. Then there was Britain's Bentley, which for some reason decided that Detroit would be a good place to launch a £146,100 deluxe convertible featuring massage chairs and a lockable ski cabinet in the boot. Bentley's sales and marketing director, Stuart McCullough, helpfully showed me that the grain on the hand-made wood panelling matched perfectly on both front doors of the Continental GTC Speed. He was engagingly combative when I asked him whether he expected to sell many of the 200mph cars in down-at-heel Detroit. "That's a silly question," said McCullough. "At a Detroit show, you're aiming to put cars on sale for the rest of the world." He pointed out that he'd done interviews with Chinese, Russian and Middle Eastern television from the show. Fair enough, I suppose. After all, Bentley provides a livelihood for 4,000 British workers. Over on the Aston Martin stand, salesman Ron Pond was cheerfully chatty. He said the celebrity chef Wolfgang Puck, who owns an Aston Martin DB9, had popped round earlier for a look at the firm's latest range. When members of the public arrive to gawp at Aston Martin's stand, Pond has a polished technique for deciding who should be allowed beyond a plexiglass barrier to be treated as a serious buyer. "I say to them 'Well, sir, what kind of sports car do you currently enjoy?" Pond explains. "If they say a Mazda MX5, they're not going to spend the money for an Aston Martin." With a dozen or so manufacturers absent from the show this year, China's top carmakers – Brilliance and BYD – were elevated from their previous spot in the basement of Detroit's Cobo convention centre to take stands alongside America's loss-making elite. That meant there was a big gap to fill downstairs. So the organisers came up with a test track allowing visitors to try electric cars through an elaborate impromptu landscape of tropical trees, shrubs and waterfalls. After signing several forms and being rather pedantically breathalysed, your correspondent went for a spin in a Mitsubishi iMiEV – a nifty little plug-in car set to go on sale in Japan this year. I can report that the engine was disconcertingly silent but that the car was comfortable and smooth to handle. At least, that's as far as I could tell – I wasn't allowed to go above 15mph. The company may be teetering on the brink of financial oblivion but Chrysler has come up with some unusual ideas for dashboard gizmos. Chrysler displayed a "concept car" boasting something called "vehicle networking" which allows you to link up with your driving buddies. A map on the dashboard will show the location of "buddy" vehicles and will direct you to them. You can share instant messages, share directions and music and the car will even guide you to them. Then there's a "teen setting" which, in a slightly Big Brother way, allows parents to keep track of young drivers by limiting their speed and their distance from home – and even by alerting mum and dad when their movement becomes erratic. A year ago, Chrysler launched a new Dodge Ram truck at the motor show by herding a bunch of bulls through downtown Detroit. Chrysler's vice-chairman, Jim Press, apologised for the lack of cattle this year: "We had the cows all signed up but they were called to Washington to talk to the cow czar." For good measure, he added: "It's a bear market, anyway." Finally, the least convincing bit of spin at this year's motor show came from Ford's chairman, Bill Ford. "In spite of the many challenges we face, I can honestly say I've never been more excited about our prospects for the future," said the great-grandson of Henry Ford. Has anybody told Bill that Ford has lost $24bn since 2005 – and that US car sales are expected to plunge to a 27-year low this year? Automotive industry guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (3 d ago)

• Citi posts huge loss, splits up the comp... Citi posts huge loss, splits up the company
01/16/2009
Citigroup said Friday it is splitting up into two businesses as it reported a fourth-quarter net loss of $8.29 billion — its fifth straight quarterly loss. (3 h ago)

• Bank of America reports $2.39 billion lo... Bank of America reports $2.39 billion loss
01/16/2009
Charlotte-based Bank of America reported a quarterly loss after paying preferred dividends of $2.39 billion Friday, having secured an extra $20 billion in bailout cash. (3 h ago)

• Generation Y job-seekers hit hard Generation Y job-seekers hit hard
01/16/2009
With the unemployment rate soaring, employees with the most to worry about are those under 30. They have the highest rate of joblessness of any age group in this recession. (3 h ago)

• Obama pledges entitlement reform Obama pledges entitlement reform
01/15/2009
In Post interview, president-elect says Social Security and Medicare must be addressed in order to secure nation's long-term economic recovery. (8 h ago)

• Treasury and BofA reach bailout deal Treasury and BofA reach bailout deal
01/15/2009
Bank of America and the Treasury Department reached an agreement late Thursday that will provide $20 billion in new government support to the banking giant. (10 h ago)

• Minneapolis' Star Tribune files Chapter ... Minneapolis' Star Tribune files Chapter 11
01/15/2009
The Star Tribune says it has filed for Chapter 11 bankruptcy, less than two years after a private equity group, Avista Capital Partners, bought the paper for $530 million. (12 h ago)

• Clydesdales still tops in Super Bowl ads Clydesdales still tops in Super Bowl ads
01/15/2009
Anheuser-Busch's game plan for this year's Super Bowl is simple: More Clydesdales. The iconic symbols will likely appear in three spots for Anheuser-Busch. (15 h ago)

• Congress clears way for 2nd half of bail... Congress clears way for 2nd half of bailout
01/15/2009
Congress laid the foundation for President-elect Barack Obama’s economic recovery plan, moving ahead on a new infusion of bailout cash and an $825 billion stimulus bill. (15 h ago)

• Beer sales falling along with economy Beer sales falling along with economy
01/15/2009
Even the brewing industry is starting to go flat in the worldwide economic slump. Beer is "recession-resistant, not recession-proof," according to one beer marketing expert. (16 h ago)

• Oil tumbles to flirt with five-year lows Oil tumbles to flirt with five-year lows
01/15/2009
Oil prices flirted with five-year lows Thursday as unemployment benefit claims rose and OPEC cut demand expectations for 2009. (19 h ago)

• Mortgage rates fall for 11th straight we... Mortgage rates fall for 11th straight week
01/15/2009
Rates on 30-year mortgages set a record for a fifth straight week by dropping to below 5 percent, the lowest mark since Freddie Mac started tracking the data in 1971. (19 h ago)

• Newsweek: Will recession kill hybrids, e... Newsweek: Will recession kill hybrids, electrics?
01/15/2009
Falling gas prices could pose a major problem for beleaguered automakers that are shifting away from SUVs and banking on fuel-efficient hybrids and electric cars to stay in business. (19 h ago)

• Hedge fund operator tied to Madoff probe... Hedge fund operator tied to Madoff probed
01/15/2009
New York Attorney General Andrew Cuomo is investigating whether a hedge fund operator who lost big in the Bernard Madoff scandal misled schools and charities. (20 h ago)

• Is interim CEO on a trial run at Apple? Is interim CEO on a trial run at Apple?
01/15/2009
Tim Cook role as interim chief executive officer at Apple Inc. could be a trial run for a time when ailing Steve Jobs, who is going on medical leave, is no longer the driving force behind the company. (21 h ago)

• Sports Biz: Fan conventions on the rise Sports Biz: Fan conventions on the rise
01/15/2009
Fan conventions are on the rise in the sports world. More pro franchises are putting on the off-season event where players past and present hobnob with fans for a few days. (21 h ago)

• Race on for automakers to go electric Race on for automakers to go electric
01/15/2009
Just a few years ago, automakers took a scattershot approach to alternative fuels. But now a consensus is forming that the all-electric car is the wave of the very near future. (23 h ago)

• ConsumerMan: How to get out of debt ConsumerMan: How to get out of debt
01/14/2009
Getting out of debt isn’t easy. It takes enormous commitment, a lot of hard work and proper guidance – but it can be done. The key is to get help early. (1 d ago)

• UnitedHealth Settlement Near, but Faces ... UnitedHealth Settlement Near, but Faces a Protest
01/15/2009
The managed-care company said that it would pay $350 million to settle the class-action suit over reimbursement for out-of-network claims. (9 h ago)

• Students Covering Bigger Share of Costs ... Students Covering Bigger Share of Costs of College
01/15/2009
College students are covering more of what it costs to educate them, even as colleges are spending less on them. (12 h ago)

• Madoffs Shared Much; Question Is How Muc... Madoffs Shared Much; Question Is How Much
01/15/2009
Whether Ruth Madoff knew of her husband’s scheme or whether she didn’t are two unnerving possibilities. (19 h ago)

• Economix: Consumers Never Had It So Good Economix: Consumers Never Had It So Good
01/15/2009
Comparing the prices of typical household purchases in the 1940s versus today. (20 h ago)

• Geithner’s Mistake on Tax Is Common, Exp... Geithner’s Mistake on Tax Is Common, Experts Say
01/15/2009
Timothy F. Geithner and his accountant appear to have made an honest mistake concerning a confusing part of tax law, according to several tax experts. (21 h ago)

• Swindlers Find Growing Market in Foreclo... Swindlers Find Growing Market in Foreclosures
01/15/2009
A new breed of swindlers calling themselves “foreclosure rescue companies” is preying on desperate homeowners. (1 d ago)

• Citigroup Plans to Split Itself Up, Taki... Citigroup Plans to Split Itself Up, Taking Apart the Financial Supermarket
01/14/2009
Citigroup is moving to dismantle large parts of its troubled financial empire, undoing the landmark merger that created the company a decade ago. (1 d ago)

• College Abruptly Moves Up Deadline for A... College Abruptly Moves Up Deadline for Applications
01/14/2009
College-bound procrastinators, beware: When state budgets get tight, application deadlines can tighten up, too. (1 d ago)

• Some States in a Pinch May Raise Gasolin... Some States in a Pinch May Raise Gasoline Tax
01/14/2009
Several states are considering the rare step of raising gasoline taxes to help fill growing budget gaps and potholed roads. (1 d ago)

• Cost of Living: Making Frugality a Habit Cost of Living: Making Frugality a Habit
01/13/2009
The task of saving for a rainy day seems daunting, but finding specific areas to cut back can help. (2 d ago)

• Off the Charts: Investment Tax Cuts Help... Off the Charts: Investment Tax Cuts Help Mostly the Rich
01/13/2009
A lower tax rate on long-term capital gains and dividends doesn’t help most Americans. (2 d ago)

• How Safe Is That Nest Egg, Anyhow? How Safe Is That Nest Egg, Anyhow?
01/13/2009
In the wake of the Madoff scandal, do mutual fund investors actually have cause to worry that their nest eggs could disappear? (3 d ago)

• Wealth Matters: What to Do if UBS Is Out... Wealth Matters: What to Do if UBS Is Outing Your Secret Account
01/13/2009
A few things to consider if you are part of the group of Americans with undeclared accounts in Switzerland. (3 d ago)

• Off the Charts, in the Wrong Direction Off the Charts, in the Wrong Direction
01/13/2009
Most of the year’s decline was in the fourth quarter, as investors concluded that government efforts to rescue the economy were insufficient. (3 d ago)

• First, an Awful Year for Mutual Funds. N... First, an Awful Year for Mutual Funds. Now, the Tax Bill.
01/13/2009
After seeing their portfolios’ values melt away, many investors still need to pay taxes on their funds’ dividends. (3 d ago)

• Mortgages: Will Loan Limits Rise? Mortgages: Will Loan Limits Rise?
01/13/2009
If you’re in the market for a new home, especially in an area where housing prices are typically high, it might make sense to wait a few weeks. (3 d ago)

• Coca-Cola sued over VitaminWater claims Coca-Cola sued over VitaminWater claims
01/15/2009
A nutrition advocacy group on Thursday sued the Coca-Cola Co., the biggest beverage maker in the world, over what it calls "deceptive" claims about VitaminWater. (19 h ago)

• GM cuts 2009 U.S. sales forecast GM cuts 2009 U.S. sales forecast
01/15/2009
General Motors Corp. is cutting its 2009 industrywide U.S. sales forecast to 10.5 million vehicles. (19 h ago)

• Obama's SEC choice vows aggressive actio... Obama's SEC choice vows aggressive action
01/15/2009
President elect-Barack Obama's choice to head the Securities and Exchange Commission promised to act aggressively to revitalize the embattled agency's enforcement efforts. (20 h ago)

• Microsoft reportedly mulling job cuts Microsoft reportedly mulling job cuts
01/15/2009
Microsoft Corp is considering significant layoffs across its various divisions, The Wall Street Journal reported on Wednesday, citing people familiar with the company’s plans. (1 d ago)

• Apple CEO Jobs takes medical leave Apple CEO Jobs takes medical leave
01/15/2009
Apple CEO Steve Jobs said he is taking a medical leave — just a week after he tried to assure investors and employees his recent weight loss was caused by a hormone deficiency. (1 d ago)

• Judge rules Madoff to remain out of jail Judge rules Madoff to remain out of jail
01/14/2009
Besieged money manager Bernard Madoff avoided prison again Wednesday, when a judge ruled that he can remain on bail while the government investigates the case. (1 d ago)

• Microsoft’s shadow looms over new Yahoo ... Microsoft’s shadow looms over new Yahoo CEO
01/14/2009
Brandishing a disdain for things that aren't working, Carol Bartz clearly intends to shake up Yahoo Inc. as the new chief executive of the long-slumping Internet company. (1 d ago)

• Motorola to cut 4,000 more jobs in 2009 Motorola to cut 4,000 more jobs in 2009
01/14/2009
Mobile handset maker Motorola Inc. says it will cut 4,000 more jobs in 2009, in addition to 3,000 it announced in December. (1 d ago)

• Citigroup's death throes may take Pandit... Citigroup's death throes may take Pandit, too
01/14/2009
As Citigroup nears the end of a decade-long experiment to create a one-stop financial services shop, its chief executive may be running out of time to turn the company around. (1 d ago)

• Bankruptcy Protection Filing at Minneapo... Bankruptcy Protection Filing at Minneapolis Star Tribune
01/15/2009
The newspaper’s management had warned of a possible bankruptcy protection filing if labor concessions couldn’t be found. (9 h ago)

• Advertising: ‘Open Here’ to Peek at Esqu... Advertising: ‘Open Here’ to Peek at Esquire’s Articles and Ad
01/15/2009
The magazine is running a front cover advertisement in its February issue — taking the whole space behind a flap that opens from the middle of the cover. (9 h ago)

• Gannett to Furlough Workers for Week Gannett to Furlough Workers for Week
01/15/2009
The nation’s largest newspaper publisher said that it will force thousands of workers to take a week off without pay. (12 h ago)

• Advertising: This Is a Special Keepsake ... Advertising: This Is a Special Keepsake Inauguration Column
01/14/2009
As Barack Obama prepares to be sworn in, the hoopla among marketers is reaching new heights with a round of products and advertisements pegged to the inauguration. (1 d ago)

• A Text Arrives. Oh, It’s Just an ‘Idol’ ... A Text Arrives. Oh, It’s Just an ‘Idol’ Ad.
01/14/2009
AT&T sent out text messages to 75 million customers -- urging subscribers to tune into the season premier of “American Idol.” (1 d ago)

• Washington Post Names Two Managing Edito... Washington Post Names Two Managing Editors, One of Them a Rare Outsider
01/14/2009
The new editors are Elizabeth Spayd, who has held top posts in the paper’s digital and print newsrooms, and Raju Narisetti, who spent years at The Wall Street Journal. (1 d ago)

• British Media Company Sells German Holdi... British Media Company Sells German Holdings
01/13/2009
Burdened with debt, Mecom sells its German newspapers for $204 million. (2 d ago)

• Intel Shifts Image Advertising to a Smal... Intel Shifts Image Advertising to a Smaller Agency
01/13/2009
Intel is hiring Venables Bell & Partners in San Francisco as its lead global creative agency, replacing McCann Erickson Worldwide. (2 d ago)

• Screen Actors Guild Plans to Take Strike... Screen Actors Guild Plans to Take Strike Consent Vote
01/13/2009
The Screen Actors Guild appeared determined to go ahead with a strike authorization vote after a group of board members failed in an attempt to oust the union’s lead contract negotiator. (2 d ago)

• News Outlets Hope to Capitalize on Inaug... News Outlets Hope to Capitalize on Inauguration
01/13/2009
MSNBC will simulcast its coverage in movie theaters and Starbucks stores, and other screenings are being planned across the nation. (2 d ago)

• Advertising: A Taste for Breakfast and t... Advertising: A Taste for Breakfast and the Super Bowl
01/13/2009
Denny’s, the restaurant chain, is becoming a Super Bowl advertiser for the first time. (2 d ago)

• Hollywood Finds Headaches in Its Big Bet... Hollywood Finds Headaches in Its Big Bet on 3-D
01/13/2009
Studios have aggressively embraced the technology, but mass market 3-D releases are not tenable without expensive upgrades to projection equipment at the multiplex. (2 d ago)

• LORD & TAYLOR GETS $60M TO STAY AFLOAT LORD & TAYLOR GETS $60M TO STAY AFLOAT
01/16/2009
While a stormy shopping climate rocks retailers, Lord & Taylor is getting a lifeline. The upscale department store has received a $60 million cash injection from owner NRDC Equity Partners, an investment firm run by New York real-estate mogul... (6 h ago)

• BERNIE'S FAKE TRADES BERNIE'S FAKE TRADES
01/16/2009
The mystery surrounding Bernard Madoff's alleged $50 billion Ponzi scheme deepened further yesterday after the securities industry's watchdog said there was no evidence that the accused swindler ever traded a single share on behalf of his clients... (6 h ago)

• BANK WOES WEIGH ON US MARTS BANK WOES WEIGH ON US MARTS
01/16/2009
Jamie Dimon's JPMorgan Chase squeezed out a profit, but that wasn't enough to stop a banking sell-off triggered by continued fears about the health of Citigroup and Bank of America. JPMorgan chief Jamie Dimon yesterday said his bank's profit slid... (6 h ago)

• SIEBERT ON SPOT SIEBERT ON SPOT
01/16/2009
An employment dispute involving Muriel Siebert, the first woman to own a seat on the New York Stock Exchange, has taken a turn on new court allegations that the so-called FirstWoman of Finance has been involved in stock manipulation. The charges... (6 h ago)

• SAKS CUTS 9% OF STAFF, TRIMS INVENTORY SAKS CUTS 9% OF STAFF, TRIMS INVENTORY
01/15/2009
Saks said it will slash 9 percent of its workforce - or about 1,100 jobs - as it looks to cut costs amid dwindling demand for luxury goods. Among the laid-off workers is Michael Fink, the retailer's women's fashion director, sources said. Fink, a... (9 h ago)

• CLEAR CHANNEL PLANS REVAMP CLEAR CHANNEL PLANS REVAMP
01/15/2009
The new owners of radio giant Clear Channel Communications will next week begin implementing a massive restructuring plan that seeks to cut $400 million in costs at the company, The Post has learned. According to three sources with knowledge of... (9 h ago)

• YAHOO! SEARCH SALE NOT LIKELY YAHOO! SEARCH SALE NOT LIKELY
01/15/2009
Yahoo! Inc. Chief Executive Officer Carol Bartz told employees that she needs time to review the Internet company's search business and that her gut instinct is not to sell it, according to a person familiar with the matter. Bartz made the... (9 h ago)

• MAJOR STAKES RACE MAJOR STAKES RACE
01/15/2009
WORLD traveler George Green, someone many thought could one day run Hearst Corp.'s magazine empire, is instead retiring as president of Hearst Magazines International, effective Feb. 1. Green will be succeeded by Duncan Edwards, president of... (9 h ago)

• BOSTON GLOBE DOWNSIZES BOSTON GLOBE DOWNSIZES
01/15/2009
New York Times Co.'s Boston Globe newspaper plans to cut about 12 percent of editorial positions, or as many as 50 employees, through voluntary buyouts, because of declining revenue and circulation. Globe editor Martin Baron told news-division... (9 h ago)

• AIG IS SPENDING $150 MILLION MORE TO RET... AIG IS SPENDING $150 MILLION MORE TO RETAIN EMPLOYEES
01/15/2009
American International Group Inc., the insurer rescued by the US, is giving executives and employees at least $619 million in retention pay, $150 million more than previously disclosed. AIG is spending the money to prevent about 4,200 employees... (9 h ago)

• BUSINESS BRIEFS BUSINESS BRIEFS
01/15/2009
Mortgages The average US rate on a 30-year fixed mort gage fell below 5 percent this week for the first time on record going back to 1971 as a govern ment program to buy mortgage-backed bonds lowered borrowing costs. The fixed rate dropped to 4... (10 h ago)

• AMID OVERHAUL, CITI SEEKS SPIN-OFF SUPPO... AMID OVERHAUL, CITI SEEKS SPIN-OFF SUPPORT
01/15/2009
Citigroup is looking to hire one or more veteran bankers to work within the badly wounded firm and help lead a massive dismantling of the unwieldy financial supermarket. Run by CEO Vikram Pandit, Citi has hired executive recruiting firm Russell... (10 h ago)

• Beware of Twitter: lawyers Beware of Twitter: lawyers
01/16/2009
The micro-blogging Twitter might be gaining 5,000 to 10,000 new accounts a day but lawyers are warning that it could be dangerous.Tresa Baldas in the National Law Journal says lawyers are warning... (3 h ago)

• The big accounting issues for 2009 The big accounting issues for 2009
01/16/2009
With the world's markets in cardiac arrest, what are the major accounting hurdles for this year?According to a report from Moody's, How the Global Credit and Economic Crises are Affecting... (4 h ago)

• Why Obama should take up cricket Why Obama should take up cricket
01/15/2009
Here's a suggestion out of left field from Michael Fullilove at the Financial Times. As a cricket tragic, I agree with him totally.Fullilove argues that Obama should ditch baseball and turn to... (12 h ago)

• Former government officials in boardroom... Former government officials in boardrooms
01/15/2009
With the change in government and the new Obama administration coming in, we can expect to see many more government officials moving in to the private sector as company directors. What can they... (1 d ago)

• Recession to last a year - CFOs Recession to last a year - CFOs
01/14/2009
I have done numerous blog entries on how long the recession will last. At the moment, it's anyone's guess, no-one really knows for sure.According to the last Duke University/CFO Magazine... (1 d ago)

• Maths and the meltdown Maths and the meltdown
01/14/2009
One of the big drivers of this financial meltdown were the econometric models that saw mathematics guiding investor behavior.The reality is that the big drivers of bubbles are social and... (1 d ago)

• A treaty for the Arctic? A treaty for the Arctic?
01/13/2009
The Arctic has long been neglected in terms of international governance and management but that's likely to change for two reasons. First, there is the prospect of rising tensions with yet to be... (2 d ago)

• Hedging the bets Hedging the bets
01/13/2009
Hedge fund managers are now conceding that Bernard Madoff has probably achieved what the Securities and Exchange Commission's Christopher Cox could never do: usher in strict new regulations for... (2 d ago)

• An ordinary life outside the big top An ordinary life outside the big top
01/15/2009
Circus performers stun crowds with feats of skill, but the life of a circus performer can be pretty domestic. Sean Cole spent time with one performer in The Great Moscow State Circus. (22 h ago)

• DeFazio: TARP, stimulus still need work DeFazio: TARP, stimulus still need work
01/15/2009
Among the lawmakers unhappy with how the TARP funds are being administered is Oregon Democrat Rep. Peter DeFazio. He speaks with Kai Ryssdal about how the money's being spent and Obama's stimulus plan. (22 h ago)

• House Democrats unveil stimulus plan House Democrats unveil stimulus plan
01/15/2009
House Democrats unveiled their $825 billion stimulus plan today. The package devotes billions to new spending and tax cuts, and is likely to grow. Steve Henn reports on the details. (22 h ago)

• Senate votes to release rest of TARP Senate votes to release rest of TARP
01/15/2009
The Senate approved President-elect Obama's request to release the second half of the $700 billion bailout. Obama's team was scrambling to convince wary Senators that there would be more accountability for the rest of the bailout package. John Dimsdale reports. (22 h ago)

• 'Group of 30' calls for big reforms 'Group of 30' calls for big reforms
01/15/2009
Former Fed Chairman Paul Volcker and a group of international financial titans are calling for a series of reforms to fix the broken financial system. Amy Scott reports. (22 h ago)

• Will other big banks need more help? Will other big banks need more help?
01/15/2009
With Bank of America seeking more TARP money to ease acquisitions of smaller competitors, can we expect banks such as J.P. Morgan Chase and Wells Fargo to request more bailout funds as well? Mitchell Hartman reports. (22 h ago)

• B of A looks to be in some trouble too B of A looks to be in some trouble too
01/15/2009
Bank of America, considered one of the "good" banks in the financial meltdown, is now looking for help. As it's been closing the buyout of Merrill Lynch, the bank has been seeking more bailout funds from the government. Ashley Milne-Tyte reports. (22 h ago)

• European Central Bank cuts rates European Central Bank cuts rates
01/15/2009
The European Central Bank cut its interest rates by a half percentage point to 2 percent on Thursday, moving to protect the continent’s economy against a deep recession. (1 d ago)

• World stocks drop amid growing gloom World stocks drop amid growing gloom
01/15/2009
World stock markets dived Thursday, particularly in Asia where investors played catch-up with previous losses in Europe and the United States, after dismal U.S. retail sales data and fresh worries about the global banking system. (1 d ago)

• Nortel files for bankruptcy protection i... Nortel files for bankruptcy protection in U.S.
01/14/2009
Nortel Networks Corp. filed for bankruptcy protection in Canada and the U.S. on Wednesday, the first major technology company to file for protection during the global downturn. (2 d ago)

• Barclays planning thousands more job cut... Barclays planning thousands more job cuts
01/14/2009
Barclays PLC says it plans to cut up to 2,100 jobs in its retail and commercial banking units, adding to redundancies of the same size in its investment banking arms. (2 d ago)

• Russia: Ukraine is blocking Europe's gas Russia: Ukraine is blocking Europe's gas
01/13/2009
Russia's state gas monopoly accused Ukraine of blocking transit of Russian gas to Europe hours after supplies were restarted, extending the energy crisis that left parts of Europe cold and dark. (3 d ago)

• China's exports, imports fall sharply China's exports, imports fall sharply
01/13/2009
China's trade slump worsened in December as exports fell at their fastest rate in a decade, the government said Tuesday, aggravating a decline that has fueled a wave of layoffs and fears of unrest. (3 d ago)

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John gogs :: 12/28/2009

Who knows where to download XRumer 5.0 Palladium?...
CocoChanels :: 07/03/2009

Hi, my friends!! I want to get program XRumer 5.0 ...
MagicOPromotion :: 05/03/2009

Where is this money coming from except from the mo...
carl allen :: 04/11/2009

out of control
staystrong :: 02/23/2009

The poor thing! Once so high and mighty and far ab...
leaf :: 02/22/2009

It always amazed me how eagerly people flocked to ...
David :: 12/23/2008

• Gottschalks, Goody’s file for bankruptcy... Gottschalks, Goody’s file for bankruptcy
01/14/2009
Regional department store chain Gottschalks Inc said on Wednesday it filed to reorganize under bankruptcy protection. (1 d ago)

• U.S. retail sales slumped in December U.S. retail sales slumped in December
01/14/2009
Retail sales plunged far more than expected in December, a record sixth straight monthly decline as consumers were battered by the ongoing recession. (1 d ago)

• U.S. may outsip Italy in wine consumptio... U.S. may outsip Italy in wine consumption soon
01/13/2009
The world just can't get enough wine. (2 d ago)

• Online US Visa Waiver Forms Take Effect Online US Visa Waiver Forms Take Effect
01/13/2009
The online visa waiver form is now mandatory if you're planning a trip to the US and you come from a country covered by the visa waiver program. The new program, designed to improve U.S. security,... (2 d ago)

• Unemployment Benefits? One of the Risks ... Unemployment Benefits? One of the Risks of Going it Alone...
01/15/2009
National Public Radio had an interesting story yesterday that highlighted the plight of many people involved in entrepreneurship and home-based business. If their business fails, they are just as... (1 d ago)

• Looking to Start a Franchise? 2009 Trend... Looking to Start a Franchise? 2009 Trends...
01/13/2009
Joel Libava has a very enlightening piece over at Small Business Trends on franchise trends in 2009. Joel sees the current market climate as actually benefitting the franchise scene.The gyrations of... (2 d ago)

• Norwegian Electric Autonmaker Finds Fund... Norwegian Electric Autonmaker Finds Funding
01/14/2009
Treehugger is reporting that Norwegian automaker THINK has found the funding it needs to resume making cars.The Oslo-based company said that it had secured NOK 40 million ($5.7 million) in loans which... (1 d ago)

• Entrepreneurial Edge: Businesses Find a ... Entrepreneurial Edge: Businesses Find a Silver Lining in Inland California’s Downturn
01/14/2009
Universities and nonprofits in San Bernardino and Riverside Counties are extending support to small businesses. (1 d ago)

• Using Twitter smartly Using Twitter smartly
01/14/2009
Your Biz blog: There’s a lot of silliness on Twitter, but used smartly it’s an ideal place to get the word out about your service or product — for free. (1 d ago)

• In Wake of Alcoa Report, Dow Falls Agai... In Wake of Alcoa Report, Dow Falls Again
01/13/2009
NEW YORK, Jan. 13 -- Wall Street's growing angst about company earnings gave stocks a mixed finish Tuesday, with the Dow Jones industrials suffering their fifth straight loss. (2 d ago)

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