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for 01/17/2009

(last updated 7:30am EST 01/17/2009)

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• Ministers seek way of boosting loans to ... Ministers seek way of boosting loans to cash-strapped firms
01/16/2009
The government is expected to bring forward measures next week to support Britain's ailing high-street banks and encourage them to boost their lending to cash-strapped businesses. Ministers were understood to be piecing together a scheme to arrest a sharp decline in investor confidence. A repeat of yesterday's sell-offs in Barclays, Royal Bank of Scotland and Lloyds TSB-HBOS could push some of them into technical insolvency and force the government into making a further capital injection. It is understood measures for a separate bank to hold the industry's £200bn of toxic loans are under active consideration, but a review found it could take months to identify the worst sections of each bank's loan book. Among the ideas being discussed are: • Reworking the bail-out for RBS and the newly created Lloyds Banking Group. • Finding a way to release some £200bn of toxic assets from banks' balance sheets. • Helping leading companies by buying their commercial paper on the markets. • Adopting the Crosby report to put £100bn of taxpayers' money into guaranteeing mortgage bonds. • Extending the special liquidity scheme, which will expire this month. Last night Gordon Brown told the Financial Times he wanted banks to "come clean" over the extent of their bad assets. He said: "One of the necessary elements for the next stage is for people to have a clear understanding that bad assets have been written off. "We have got to be clear that where we have got clearly bad assets, I expect them to be dealt with." The government is preparing to defend the system of open financial markets when it hosts the G20 summit this year. A letter seen by the Guardian from the chancellor, Alistair Darling, to G20 ministers says: "The key to retaining faith in financial markets is to establish and maintain a consensus within the G20 and elsewhere as to the importance of open capital markets. We need to have a fuller explanation of the benefits of the financial system, and of financial globalisation in particular." The Treasury said there was no inconsistency between the UK's call for a commitment to open markets and its aim of reducing "the likelihood of systemic failures in the financial services industry". The length and severity of the credit crunch has prompted calls from Germany, France and Italy for a much tougher regime for finance, but the Darling letter signalled the prime minister's determination that the G20 meeting should not be hijacked by calls for a root-and-branch overhaul. Campaigners for reform of the world economic system expressed alarm. Peter Chowla, of the Bretton Woods Project, said: "It's surprising that the British government is interested in pursuing further and deeper deregulation, when it's clear that … exactly this policy has created the conditions for financial crisis." Banking Credit crunch Economics Recession Economic policy guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (14 h ago)

• Crisis deepens for leading Wall Street l... Crisis deepens for leading Wall Street lenders
01/16/2009
The financial black hole engulfing the US's banking industry deepened todayas three of Wall Street's top institutions revealed that their losses had swelled to a total of $25bn (£17bn) in three months. Citigroup, Bank of America and Merrill Lynch stumbled steeply into loss-making territory as the capital markets went into meltdown amid deteriorating economic conditions in the final quarter of 2008. Under severe pressure to stabilise their firms, banking bosses took radical action. Citigroup in effect ditched its strategy of becoming a "global universal bank" in favour of splitting its operations in two – a strategy dubbed as "good bank and bad bank". Meanwhile, Bank of America's decision to buy the brokerage Merrill Lynch looked increasingly ill considered as the firm nicknamed the "thundering herd" ran up losses of $15.3bn in its final quarter as an independent institution. The US government was obliged to step in with aid of $20bn to persuade Bank of America to stick with its purchase. Between them, Citigroup, Bank of America and Merrill lost a sum exceeding the annual gross domestic profit of Ethiopia. They haemorrhaged money at a rate of $280m a day – or $11m an hour. The size and speed of the losses indicated that the credit crunch is getting worse, rather than easing, with credit cards joining mortgages and credit derivatives among firms' most troublesome operations. Citigroup, which lost $8.29bn, said its results had been "clearly disappointing", although there was no sign of a rumoured boardroom putsch against its embattled chief executive, Vikram Pandit. "For much of the year, we've been dealing with dysfunctional markets which deteriorated even further after Labour Day," said Pandit, referring to a tumultuous few weeks in September sparked by the bankruptcy of Lehman Brothers. Citigroup is hiving off its brokerage, retail asset management business and "special asset" pool into a unit called Citi Holdings, to ring-fence its liabilities. It will keep its high street, corporate and mainstream investment banking in an entity called Citicorp. "Funding and capital markets have changed fundamentally," said Pandit, who defended his change of direction since telling investors in May that he was committed to an integrated corporation. "The world is a different place from May, especially post-Lehman Brothers." There was a similar degree of pressure on Bank of America's boss, Ken Lewis, whose firm had dodged the worst of the carnage wrought by the credit crunch. Bank of America revealed that it had suffered a quarterly loss of $2.3bn but this was dwarfed by the liabilities discovered at newly acquired Merrill Lynch . On a conference call, Lewis admitted that he had not anticipated a "significant deterioration" in Merrill's finances that occurred in mid to late December. He was persuaded to stick with the transaction by the treasury and the Federal Reserve, which are anxious to avert the failure of any more Wall Street firms. "The government was firmly of the view that terminating or delaying the closing of the transaction could lead to significant concerns and could result in significant systemic harm," said Lewis. "We just thought it was in the best interest of our company and our shareholders and the country to move forward." To shore up Bank of America's balance sheet, the Treasury pumped in $20bn in return for preferred stock, adding to a $25bn infusion last year. The government is also protecting the firm against losses of up to $118bn from bad loans and mortgages – largely within Merrill Lynch. Some believe that Lewis could pay a personal price from the deal. Paul Miller, an analyst at Friedman, Billings, Ramsey, told Bloomberg News that Bank of America's management had lost credibility. "This thing is unravelling so fast Lewis may know his job is lost." On top of a meltdown in the mortgage market, experts are becoming increasingly concerned about banks' exposure to bad debt on credit cards. As the unemployment rate rises, a surging number of jobless cardholders are struggling to make repayments. Late on Thursday, Congress voted to release the second half of the Treasury's $700bn bail-out fund to Barack Obama's incoming administration. Much of the money is likely to be needed to stabilise banks – Brian Bethune, chief financial economist at IHS Global Insight, estimated that $200bn to $250bn would need to go into the stricken banking system. "The main problem that we are dealing with now is a rapidly deteriorating economic environment that is putting additional downward pressure on bank capital," said Bethune. Fundraising through private sources has become virtually impossible for the banking industry, which commands little confidence among investors. Banking United States Credit crunch Citigroup Merrill Lynch Global recession guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (18 h ago)

• Barclays shares in new collapse as bank ... Barclays shares in new collapse as bank crisis enters second phase
01/16/2009
Shares in Barclays and Royal Bank of Scotland plummeted as huge losses at two of America's biggest financial institutions sparked fresh fears for the future of Britain's banking industry. In a frantic hour of trading, Barclays lost almost a quarter of its value - marking the second wave of a banking crisis that has already dragged the industry to the edge of collapse. The dramatic fall, which also shook the newly merged Lloyds TSB and HBOS, forced banking chiefs to cancel a planned summit in the City and triggered a flurry of emergency meetings in Whitehall. Alistair Darling, the chancellor, met Adair Turner, the chairman of the FSA, the main financial regulator, while Gordon Brown met Mervyn King, the governor of the Bank of England, to assess the damage after a week of devastating news for the banking industry. Barclays denied it faced financial problems and rushed out a statement to the New York stock exchange before trading closed. The bank, which is due to report its figures next month, said profits before tax for 2008 after all charges and costs should be well above forecasts of £5.3bn. The bank's tier one capital ratio should be 6.5% at the end of the year and the total capital ratio will be 9.1%, putting it in line with many of its peers. Analysts said Barclays had suffered a severe loss of confidence following speculation that it faces further losses on hundreds of billions of pounds worth of toxic investments. Concerns that the main City regulator had added to the bank's woes by lifting a ban on short-selling was dismissed by the government, but were leaped on by opposition MPs as an indication of government incompetence. Some City traders said the dive in Barclays shares had been fuelled by rumours of the bank's imminent nationalisation spread by short- sellers who profit from falling prices. Vince Cable, the Liberal Democrat treasury spokesman, said it was "absolutely extraordinary" that the ban had been lifted. "Another wave of speculative pressure is the very last thing that is needed," he said. But Barclays shares have been falling all week, along with those of the other major banks, as investors come to terms with further bailouts by the US government and a raft of gloomy predictions for the UK economy. Citigroup, Bank of America and Merrill Lynch revealed losses over three months of $25bn (£17bn) between them yesterday.Citigroup sought extra funds from the US treasury and is being forced to break itself up as the price of its rescue. Bank of America, which bought the largest mortgage lender in the US last year at the height of the sub-prime crisis, also announced large write-downs on its assets, mainly sub-prime home loans. The US government has promised $800bn of extra funds after the Senate released the second tranche of a $750bn bailout yesterday. The scale of the support for the US banking system has shocked even the hardened operators in the City and triggered soul-searching among investors, many of whom have seen the value of their holdings sink by 90% since a peak in early 2007. Many investors expect the banks' 2008 results next month will involve multi-million pound write-downs in a wide range of assets caused by the credit crunch. Auditors have already told the government they are reluctant to sign off the accounts of banks and many other companies because of funding worries. Analysts at RBS predicted banks would be unprofitable until 2011. The Treasury has become aware in recent days of a general loss of confidence in the banks' capacity to escape from with credit crunch. Last night it indicated that plans to bolster the industry would be brought forward, possibly to early next week. A range of options to kick-start lending, including a scheme ring fence $200bn in toxic assets, will be discussed with the big banks at a meeting on Sunday. Credit crunch Barclays Banks and building societies HBOS FTSE guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (18 h ago)

• Bellway loses shareholder vote over dire... Bellway loses shareholder vote over directors' bonuses
01/16/2009
The housebuilder Bellway lost a shareholder vote today over the company's controversial payment of more than £630,000 in bonuses to executives. Shareholders voted down the company's remuneration report amid anger that Bellway had ditched previous performance targets to pay the bonuses. Bellway told shareholders that it had been wrong not to consult investors earlier, adding that it would now review future policy. The Association of British Insurers (ABI), which represents major investors, had issued its strongest "red-top" warning ahead of today's annual meeting in Newcastle. Bellway'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 bonuses. 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. About 58% of shareholders participating in the vote were opposed to the company's remuneration report. It is highly unusual for a company to get less than 50% support for its pay report. The company has promised to liaise with shareholders over future pay policies. It did not say what will happen to the 2008 bonus payments. Howard Dawe, chairman, told today's meeting: "The board has noted shareholders' views on the report of the board on directors' remuneration and believes it was wrong in not consulting with major shareholders earlier. "It therefore proposes to review future policy on this matter, in consultation with them, in the coming months." Bellway's shares fell by more than a quarter in 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 were hit even harder. "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. 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." He said: "This is a very clear message that there must be a proper link between reward and performance, even in a sharp economic downturn. It is right that Bellway should consult with shareholders on its policy review. More broadly, shareholders expect all companies to be sensitive to the need for bonuses to be paid only if stretching targets are met." Co-op Asset Management said it was the first time a resolution on remuneration has been defeated in the UK since 2003, when it happened to GlaxoSmithKline. Abigail Herron, the Co-op's corporate governance analyst, who attended the meeting, said: "Bellway's shareholders have clearly indicated that it is not acceptable to scrap performance targets in difficult times and award bonuses in any event. The directors should listen to their members and repay these bonuses." 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 (21 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 the year before 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. Theo Fennell's jewellery counters at the department store will remain, and its contract has been extended by three years. Sales at Fennell's main store in South Kensington and at its City shop in the Royal Exchange, where you can buy an emerald-cut three-stone diamond ring for £39,500, were "significantly" down. The firm, known for its skull rings and diamond-encrusted crosses, blamed the "very depressed" consumer market in the UK. International sales were flat. After putting its international expansion plans under review last month, the Aim-listed company has now decided to scale back 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. It still hopes to open concessions in Dubai and Kuwait this year. 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 eponymous founder has been acting as a design consultant to the firm and retains a 15% shareholding. He stepped down from the board last February to set up his own design consultancy and develop "more unusual pieces that push the boundaries". His departure triggered a four-month war of words over the use of his name. His design contract with the company he founded comes up for renewal in June. A Theo Fennell spokeswoman said: "It's all going well." The company 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 present store in South Kensington opened in 1996. The designer jeweller, which opened a concession in the Brown Thomas department store in Dublin last year, has the two standalone London shops and concessions in Newcastle, Manchester and Birmingham. Other luxury groups, including Switzerland's Richemont and Italy's Bulgari, have also felt 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 (23 h 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 (1 d 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. Anglo Irish Bank Banking Ireland guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Bank of England's Sir John Gieve predict... Bank of England's Sir John Gieve predicts tough year ahead
01/16/2009
Bank of England deputy governor Sir John Gieve this morning predicted a tough year for the global economy, saying further monetary and fiscal action may be necessary to stave off a long and deep recession. Speaking a week after the Bank cut interest rates to an all-time low of 1.5% , Gieve said that while past rate cuts were still working their way through, the risks for the economy were clearly to the downside. "Therefore, in setting policy, the authorities both here and overseas need to consider whether further action on interest rates, or other monetary measures, or fiscal action is required," Gieve said in a speech in Manchester. "They need also to consider whether to do more to underpin the confidence among banks and among investors that is necessary to support the lending the economy needs to emerge from recession." He said he expected the British economy to contract at its sharpest rate in decades this year, and the main challenge was to prevent a deep recession. The Bank's monetary policy committee has cut borrowing costs from 5% in October in several stages. Lower interest rates have triggered a sharp fall in the pound, but this could help the economy. "No one who has lived through the 70s, 80s and early 90s will be complacent about a fall in sterling," he said. "But there is no doubt that an appreciable fall in the pound, such as we have seen, has been helpful both in supporting exports and import substitution in the short term and in encouraging the rebalancing of the economy that we need in the medium term." Bank of England Interest rates Interest rates Recession Global recession Global economy guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Santander speeds up integration of Allia... Santander speeds up integration of Alliance & Leicester, Abbey and Bradford & Bingley
01/16/2009
Alliance & Leicester has appointed Alison Brittain to take charge of its 254 branches and telephone network, in addition to her responsibilities for the branches of Abbey and Bradford & Bingley. The branches of A&L, Abbey and B&B are owned by Spanish bank Santander. Abbey and A&L said in a joint statement that there were "no current plans" to merge A&L's branches and telephone network with those of Abbey and B&B. "The decision accelerates the integration process," the two banks said. Brittain, an executive director, replaces Chris Rhodes, A&L's current director of retail distribution, who has decided to leave the business. He will stay on at A&L until March to ensure a smooth handover. Banco Santander Alliance & Leicester Bradford & Bingley Banking Banks and building societies guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d 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 (1 d 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 (1 d 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 (1 d ago)

• Commercial property 'will halve in value... Commercial property 'will halve in value'
01/15/2009
Commercial property values are likely to plunge by more than 50% by the end of the year from their peak in July 2007. The unprecedented collapse will heap further pressure on banks' shattered balance sheets and could lead to a wave of property-firm failures. Figures published yesterday by leading property analysts IPD showed values have so far plunged by 35.5% from their peak 18 months ago. But property derivatives broker Tradition Financial Services estimates values will fall another 18% during 2009, making an overall fall of 52.9%. The decline will alarm the banking industry. Banks have lent £208bn relating to commercial property, with £76bn needing to be refinanced before the end of 2010. The figures also suggest there will be another 12 months of sale inactivity and foreshadow the apparent inevitability of major quoted property companies breaching their loan agreements. The 18% fall predicted this year for Britain's commercial property market would be slightly less than 2008, which saw a fall in values of 27.5%, according to IPD figures. In the wake of the Lehman Brothers bankruptcy, the last three months of 2008 saw a dramatic 17.4% decline. IPD director Ian Cullen said: "The peak-to-trough decline in values of more than 35% in only 18 months is totally without precedent." The dire performance in commercial property is also being mirrored in the housebuilding sector. Barratt Developments yesterday reported that its forward sales fell from £1.263bn in 2007 to £456m last year. Profit margins have fallen to as low as 2% as Barratt makes huge discounts to ensure it gains housing sales in what is the worst market for many decades. • This article was amended on Friday 16 January 2009. We originally had the overall fall in values mentioned in the second paragraph as being one of 53.5%. This was incorrect; the correct figure is 52.9%. This has been corrected. Credit crunch Banking guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d 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 (1 d 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 (1 d 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 (1 d 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 (2 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 (2 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 (2 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 (2 d ago)

• Anglo Irish Bank Is Nationalized Anglo Irish Bank Is Nationalized
01/17/2009
Trading in Anglo Irish shares was suspended after the Irish government announced it was nationalizing the bank, saying an earlier capital-injection plan was not sufficient. (6 h ago)

• German Warning for Russia: Maintain Euro... German Warning for Russia: Maintain Europe’s Gas Flow
01/16/2009
Germany warned Russia to abide by its contractual relations while the European Commission threatened to review its entire relationship with Russia and Ukraine. (9 h ago)

• U.S. Freezes Assets of 2 Burmese Busines... U.S. Freezes Assets of 2 Burmese Businessmen Who Backed Military Junta
01/16/2009
The U.S. has frozen the assets of two Burmese businessmen and their companies for aiding the military junta in Myanmar. (9 h ago)

• Baltic Riots Spread to Lithuania in the ... Baltic Riots Spread to Lithuania in the Face of Deteriorating Economic Conditions
01/16/2009
A group of 7,000 gathered in Vilnius, the capital, to protest planned economic austerity measures, including pay cuts, falling pensions and rising taxes. (9 h ago)

• Microsoft Ordered to Delete Browser Microsoft Ordered to Delete Browser
01/16/2009
The European Union ordered Microsoft to untie its browser from its operating system, enabling rival browser makers to compete fairly. (9 h ago)

• Off the Charts: Sharp Trade Contraction ... Off the Charts: Sharp Trade Contraction Knows No Borders
01/16/2009
Among 43 countries with data available, only 3 had growth in exports for November. (10 h ago)

• Global Music Sales Fell 7% in ’08 as CDs... Global Music Sales Fell 7% in ’08 as CDs Lost Favor
01/16/2009
Another sizable jump in digital sales failed to make up for a deepening decline in the compact disc market. (12 h ago)

• Samsung Electronics Reorganizes to Fight... Samsung Electronics Reorganizes to Fight Slump
01/16/2009
Samsung Electronics said it will consolidate business operations into two divisions as it deals with the slowing global economy and expectations of looming red ink. (15 h ago)

• Sony Ericsson Swings to 4Q Loss Sony Ericsson Swings to 4Q Loss
01/16/2009
The mobile phone maker said it fell to a $245 million loss in the fourth quarter, mainly because of a 23 percent drop in sales due to the financial crisis. (15 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. (1 d 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. (1 d 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. (1 d 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. (1 d 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. (1 d 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. (1 d 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. (2 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. (2 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. (2 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. (3 d ago)

• Toyota to halve domestic output, suspend... Toyota to halve domestic output, suspends production
01/16/2009
Toyota Motor Corp. suspended operations at 11 of its 12 domestic factories on Saturday and aimed to halve domestic production from February to April from a year earlier to correspond to global economic recession, local media reported. Toyota set the production target for the period at about 9,000 units per operating day and will suspend operations for a total of14 days between January and March, Kyodo News reported Saturday. Toyota's domestic output for 2008 averaged about 20,000 ... (8 h ago)

• China's food export down in Nov. upon pr... China's food export down in Nov. upon product safety scandals
01/16/2009
China's food export decreased in November 2008, reversing the upward trend for each of the first 10 months of the year, as a result from September's tainted milk powder scandal and chemical-related egg contamination thereafter, the General Administration of Customs said Saturday. The export value was 3.02 billion U.S. dollars in November, down four percent from the same month of 2007. After the product safety scandals broke out, growth in the country's food exports slowed down t ... (8 h ago)

• Japan remains China's 3rd largest trade ... Japan remains China's 3rd largest trade partner
01/16/2009
Sino-Japanese trade amounted to 246.2 billion U.S. dollars in the first 11 months of 2008, a growth of 15.2 percent on the same period of 2007, the General Administration of Customs said on Saturday. The figure accounted for 10.4 percent of China's total externa trade for the Jan.-Nov. period of 2008, continuing to rank Japan third among China's trade partners. The total trade volume included 106.1 billion U.S. dollars in exports to Japan, up 14.9 percent, and 140.1 billion dolla ... (8 h ago)

• Zimbabwe unveils 100 trillion Zim-dollar... Zimbabwe unveils 100 trillion Zim-dollar banknote
01/16/2009
The Reserve Bank of Zimbabwe (RBZ) has introduced a new family of trillion Zim-dollar banknotes in denominations of 100 trillion, 50 trillion, 20 trillion and 10 trillion that go into circulation on Friday, starting with the 10 trillion notes, The Herald reported. The 20 trillion, 50 trillion and 100 trillion notes will be introduced gradually, the daily newspaper said. In a statement on Thursday, the Reserve Bank of Zimbabwe said the notes will ensure that those in formal employ ... (10 h ago)

• Singapore non-oil domestic exports drop ... Singapore non-oil domestic exports drop 7.9% in 2008
01/16/2009
Singapore's key non-oil domestic exports (NODX) declined by 7.9 percent in 2008 due to lower electronic and non-electronic exports, the government data showed on Friday. Electronic NODX contracted by 12 percent in 2008 while non-electronic NODX decreased by 5.2 percent, said International Enterprise Singapore (IE Singapore), the country's trade-promotion agency. The decline in electronic NODX was mainly due to lower sales of consumer electronics, telecommunications equipment and ... (11 h ago)

• Arab economic unity council proposes to ... Arab economic unity council proposes to enhance inter-Arab trade
01/16/2009
Arab Economy Unity Council called on Friday for strengthening efforts to boost bilateral trade exchange and free trade in the Arab world. The council has proposed a program to develop inter-Arab trade, especially in light of the global economic crisis, in a working paper to be submitted to the Arab Economic, Development and Social Summit scheduled to be held in Kuwait on Jan. 19-20, said Kuwait's official news agency KUNA. The council also made it clear in the program that the tra ... (11 h ago)

• Arab leaders meet in Doha as scheduled Arab leaders meet in Doha as scheduled
01/16/2009
The Arab leaders who have arrived in Doha began holding an emergency meeting on Friday as scheduled despite it did not reach the quorum of two thirds of the 22-member Arab League to hold such a summit. The meeting began after the Friday prayer. About 12 or 13 leaders of the Arab countries, such as Lebanon, Syria, Libya, and Sudan, attended the meeting, though regional heavyweights Egypt and Saudi Arabia refused to attend. According to al-Jazeera, leaders of Palestinian fa ... (11 h ago)

• Jordan lowers fuel prices for ninth time... Jordan lowers fuel prices for ninth time since last August
01/16/2009
Jordan government Thursday lowered fuel prices for the ninth time since last August. The prices of diesel and kerosene were lowered by 5.6 percent to 0.335 Jordanian dinar (about 0.473 U.S. dollar) a litre from 0.355 dinar, said Ministry of Energy and Mineral Resources Secretary General Farouk Hiyari. However, the prices of gasoline 90 and gasoline 95 do not change due to "stability in its prices on international markets," Hiyari added. Meanwhile, the price of cooking gas ... (11 h ago)

• Economic crisis forces through Heathrow ... Economic crisis forces through Heathrow expansion plan
01/16/2009
Despite claims by governments that the environment remains top of their agenda, they have often had to make a sacrifice as the economy becomes a greater priority. This is reflected by the recent decision by the British government, which gave the go-ahead to the controversial expansion of Heathrow airport in London, one of the busiest air hubs in the world. On Thursday the government endorsed the construction of a third runway at Heathrow, along with a high-speed rail link. Propo ... (11 h ago)

• Bank of France lowers growth forecast fo... Bank of France lowers growth forecast for Q4
01/16/2009
The Bank of France on Friday lowered its growth forecast for the last quarter of 2008, following falls in its business sentiment indicator and the business climate in December. In its monthly economic survey, the bank estimated the country's gross domestic product (GDP) to contract by 1.1 percent in the last three months of 2008, down from its previous prediction of a 0.7-percent contraction. It also expected the average annual GDP growth to stand at 0.7 percent for 2008, 0.1 per ... (11 h ago)

• Mining shares prop up London market by m... Mining shares prop up London market by midday
01/16/2009
The London stock market retained its upward trend by midday on Friday, encouraged by the performance of mining shares. The FTSE 100 index was up 117.18 points, or 2.84 percent, at 4238.29 by 1200 GMT. Mining firm Xstrata led the gainers by adding 10.29 percent in its shares, followed by Rio Tinto, up 9.99 percent. Aquarius Platinum Ld also went up by 8.50 percent as mineral prices bounced back. Travel firms were among the losers with Tui Travel down 2.74 percent, and Ent. ... (11 h ago)

• Argentina supports stockbreeders with $3... Argentina supports stockbreeders with $300 mln
01/16/2009
The Argentine government will provide 300 million U.S. dollars to stock breeders affected by the severe drought, local media reported Friday. The money will be distributed through the "Drought Plan II" in the provinces of Buenos Aires, Santiago del Estero, Entre Rios, Chaco, La Pampa and Santa Fe and municipalities that had been declared under "emergency state." Since the drought began, the government has given subsidies of about 70 million dollars. It is estimated that l ... (11 h ago)

• Dollar falls against most major currenci... Dollar falls against most major currencies
01/16/2009
The dollar fell against most major currencies on Friday as investors' risk appetite was boosted by government aid to Bank of America and European Central Bank (ECB) chief ruled out zero rates. The U.S. government entered into an agreement on Friday with Bank of America to provide a package of guarantees, liquidity access and capital as part of its commitment to support financial market stability. The U.S. Treasury Department and the Federal Deposit Insurance Corporation (FDIC) wi ... (11 h ago)

• U.S. consumer prices fall for 3rd straig... U.S. consumer prices fall for 3rd straight month in Dec.
01/16/2009
Consumer prices in the United States tumbled 0.7 percent in December, the third straight monthly fall, as energy prices continued to decline, the Labor Department reported on Friday. The fall followed steeper falls of 1.7 percent in November and 1.0 percent in October but was slightly smaller than the 0.9 percent decline economists had expected for the month. For December, energy prices decreased 8.3 percent, compared with a 17 percent plunge in November, marking the fifth consec ... (11 h ago)

• GM chops 2009 vehicle sales outlook GM chops 2009 vehicle sales outlook
01/16/2009
General Motors Corp. has slashed its 2009 U.S. auto sales estimate to 10.5 million vehicles amid continued uncertainty over the timing of an industry rebound, reports reaching here from Detroit said on Friday. The revised sales estimate was released on Thursday, one day before GM is to receive 5.4 billion U.S. dollars in cash as part of a federal loan package of 13.4 billion dollars approved last month to prevent the automaker's collapse. In the restructuring plan GM submitted t ... (11 h ago)

• Singapore stock market outlook dims in t... Singapore stock market outlook dims in the first half of 2009
01/16/2009
Singapore's benchmark Straits Times Index (STI) Friday closed at 1,730.45 points, down nearly 100 points two weeks after the stock market kicked off 2009 with 1,829.71 points. In retrospect of the stock market performance in 2008, experts expect the first half of 2009 could still be tough for investors. Singapore's stock market was hardly satisfactory from the beginning of 2008. The STI registered a high note in January but later fell to 2,745.96 points on March 17, the lowest in ... (11 h ago)

• Singapore to further revise 2009 GDP gro... Singapore to further revise 2009 GDP growth forecast
01/16/2009
Singapore Prime Minister Lee Hsien Loong said Friday that the government will revise its economic growth estimates for this year, according to local media's report. The Prime Minister said the situation is gloomier now than at the start of the new year when the growth estimates were announced, TV broadcaster Channelnewsasia said. Singapore's economy was estimated to grow between minus 2 percent and plus 1 percent in 2009 at the beginning of the year. According to the late ... (11 h ago)

• Official: Indonesian tourism to achieve ... Official: Indonesian tourism to achieve target in 2009 despite global crisis
01/16/2009
The Indonesian Tourism and Culture Minister Jero Wacik said that the global financial crisis will not be a major obstacle for the country in achieving the target of attracting 6.5 million foreign visitors in 2009. "Be honest, we are not so worried about the crisis after learning the situation in 2008. People are willing to release the pressure from the tough situation by travelling with limited budget," he told Xinhua on Thursday. He reiterated that the current financial crisis d ... (11 h ago)

• Indonesia to waive workers' tax burdens ... Indonesia to waive workers' tax burdens to help maintain jobs
01/16/2009
As the global economic crisis deepens, the Indonesian government plans to take over tax liabilities normally paid by companies to help maintain jobs, the Jakarta Post on Friday quoted Indonesian Acting Coordinating Minister for the Economy Sri Mulyani as saying. The government planned to waive workers' income tax liabilities which were regularly provided by the corporate sector via benefit packages that both parties managed to go through hard times, the minister said. "We want t ... (11 h ago)

• Japan's central bank lowers economic ass... Japan's central bank lowers economic assessments on all regions
01/16/2009
The Bank of Japan (BOJ) on Friday further lowered its assessments on the economic situations of all Japan's nine regions. During its quarterly meeting of its 32 branch managers, the central bank made the downgrading economic assessments of Hokkaido, Tohoku, Hokuriku, Kanto-Koshinetsu, Tokai, Kinki, Chugoku, Shikoku, and Kyushu-Okinawa in light of sluggish exports, declining corporate profits and shrinking individual consumption. The economic conditions of Japan "have been deterio ... (11 h ago)

• Circuit City to liquidate U.S. stores Circuit City to liquidate U.S. stores
01/16/2009
Circuit City became the largest retailer to fall victim to the expanding financial crisis, announcing it will shut down its remaining 567 U.S. stores at the cost of 34,000 more jobs. (14 h ago)

• Obama's stimulus plan promises jobs Obama's stimulus plan promises jobs
01/16/2009
Barack Obama said the No. 1 goal of his economic stimulus plan is to create 3 million new jobs in the next two years. What exactly, then, will these jobs be? (14 h ago)

• EU renews browser dispute with Microsoft EU renews browser dispute with Microsoft
01/16/2009
The EU accused Microsoft of stymieing competition by bundling its Internet Explorer Web browser with Windows systems, opening a new round in their expensive, years-long battle. (15 h ago)

• Wall Street closes seesaw session higher Wall Street closes seesaw session higher
01/16/2009
Wall Street seesawed Friday, closing the day higher, as the reality of rising losses at Citigroup Inc. and Bank of America Corp. sank in. (15 h ago)

• Oil prices fall as storage space grows t... Oil prices fall as storage space grows thin
01/16/2009
Burgeoning crude inventories pushed oil prices lower Friday with yet another major energy group predicting demand will fall again this year in a widening recession. (16 h ago)

• Nearly 40,000 new job cuts announced Nearly 40,000 new job cuts announced
01/16/2009
This is the point in the recession where one round of job cuts leads to another. (16 h ago)

• Ketchup, no pickle: Heinz changes its la... Ketchup, no pickle: Heinz changes its label
01/16/2009
Goodbye gherkin, hello tomato. After more than 110 years, H.J. Heinz Co. is giving the tomato top billing on its namesake ketchup and bumping the pickle. (17 h ago)

• Citi posts huge loss, splits up the comp... Citi posts huge loss, splits up the company
01/16/2009
Citigroup Inc. on Friday announced its latest attempt to become profitable again: Splitting the bank into two pieces. (17 h ago)

• Race on for automakers to go electric Race on for automakers to go electric
01/16/2009
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. (18 h ago)

• Chrysler Financial gets $1.5B loan from ... Chrysler Financial gets $1.5B loan from bailout
01/16/2009
The government says it will provide a $1.5 billion loan to the auto financing arm of Chrysler LLC. (19 h ago)

• Signs of credit market thaw begin to eme... Signs of credit market thaw begin to emerge
01/16/2009
Credit markets are beginning to thaw after months of a deep freeze. (20 h ago)

• Bush: Economy on track to recovery Bush: Economy on track to recovery
01/16/2009
President George W. Bush said Friday he believes steps taken by his administration have "laid the groundwork for a return to economic growth and job creation." (20 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. (22 h ago)

• Bank of America reports $2.39 billion lo... Bank of America reports $2.39 billion loss
01/16/2009
Escalating credit costs forced Bank of America Corp. to report a $2.39 billion fourth-quarter loss Friday, hours after it convinced the government it needed a multibillion-dollar lifeline. (22 h ago)

• Consumer prices fall for third straight ... Consumer prices fall for third straight month
01/16/2009
A record plunge in gasoline prices pushed overall consumer prices down for the third straight month in December. (22 h ago)

• Obama pledges entitlement reform Obama pledges entitlement reform
01/16/2009
In Post interview, president-elect says Social Security and Medicare must be addressed in order to secure nation's long-term economic recovery. (1 d 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. (1 d 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. (1 d 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. (1 d ago)

• Chrysler Finance Arm Gets $1.5B Loan Chrysler Finance Arm Gets $1.5B Loan
01/16/2009
The Treasury Department said it will provide a $1.5 billion loan to Chrysler LLC's financing arm to be used for new vehicle loans in hopes of boosting sales and ultimately returning the domestic auto industry to profitability. (16 h ago)

• Circuit City To Liquidate All U.S. Store... Circuit City To Liquidate All U.S. Stores
01/16/2009
Bankrupt Circuit City Stores Inc., unable to work out a sale of the company, said Friday it will go out of business - closing its 567 U.S. stores and cutting 30,000 jobs. (17 h ago)

• Consumer Prices Keep Falling Consumer Prices Keep Falling
01/16/2009
A record plunge in gasoline prices pushed overall consumer prices down for the third straight month in December, closing out a year in which the change in inflation was the smallest in more than a half-century. (21 h ago)

• Citigroup Splits Up Struggling Company Citigroup Splits Up Struggling 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. (23 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. (1 d 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. (1 d 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. (1 d ago)

• Coca-Cola Sued Over VitaminWater Coca-Cola Sued Over VitaminWater
01/15/2009
A nutrition advocacy group sued the Coca-Cola Co., the biggest beverage maker in the world, over what it calls "deceptive" health claims about VitaminWater. (1 d 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. (1 d 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. (1 d 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. (2 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. (2 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. (2 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. (2 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. (2 d ago)

• In the Book World, Kennedy Is a Powerhou... In the Book World, Kennedy Is a Powerhouse in Her Own Right
01/16/2009
As the publisher of five books, writing and editing is the work Caroline Kennedy has pursued most energetically and, arguably, most successfully. (7 h ago)

• Boxee, Used to View Web on TV, Generates... Boxee, Used to View Web on TV, Generates Buzz
01/16/2009
Some of Boxee’s fans say the free software allows them to give up their costly cable or satellite TV connection. (9 h ago)

• The Popular Newsweekly Becomes a Lonely ... The Popular Newsweekly Becomes a Lonely Category
01/16/2009
The business of telling people what happened in the last week is just about gone, in favor of telling them how to think about the news. (10 h ago)

• Fox Wins Battle Over ‘Watchmen’ Adaptati... Fox Wins Battle Over ‘Watchmen’ Adaptation
01/16/2009
20th Century Fox emerged victorious in its effort to get Warner Brothers to recognize its ownership rights on the comic book movie. (10 h ago)

• Digital TV Delay Runs Into Protest Digital TV Delay Runs Into Protest
01/16/2009
Some lawmakers have argued that a delay would only exacerbate the confusion about the transition to digital TV. (10 h ago)

• SAG Leader, in Shift, No Longer Seeks St... SAG Leader, in Shift, No Longer Seeks Strike Authorization
01/16/2009
The union’s executive director proposes a vote on the latest contract offer, not on authorizing a walkout. (12 h ago)

• Carpetbagger: The ‘Watchmen’ Legal Tussl... Carpetbagger: The ‘Watchmen’ Legal Tussle Is Called Off
01/16/2009
The legal sniping between 20th Century Fox and Warner Brothers over the upcoming “Watchmen” has come to an end. (22 h 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. (1 d 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. (1 d 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. (1 d 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. (2 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.” (2 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. (2 d ago)

• Signs of credit market thaw begin to eme... Signs of credit market thaw begin to emerge
01/16/2009
Credit markets are beginning to thaw after months of a deep freeze. (20 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. (1 d 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. (1 d 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. (1 d 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. (1 d 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. (2 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. (2 d ago)

• Your Money: Preparing Your Budget for Di... Your Money: Preparing Your Budget for Disaster
01/16/2009
What would happen to your finances if you lost your job tomorrow? (10 h ago)

• Shortcuts: Portfolio in Ruins, It’s Time... Shortcuts: Portfolio in Ruins, It’s Time to Pay for Summer Camp
01/16/2009
Camps say they are hearing from a number of parents who are wondering if they will be able to afford the tuition. (10 h ago)

• Market Values: Invest in Blue Chips and ... Market Values: Invest in Blue Chips and Cash at the Same Time
01/16/2009
Buying stocks of sound, blue-chip businesses and holding a lot in cash may be possible to do with a single transaction. (11 h ago)

• Patient Money: Health Care You Can’t Aff... Patient Money: Health Care You Can’t Afford Not to Afford
01/16/2009
As the recession intensifies, more Americans are delaying doctor visits and medical treatments. What can you safely postpone, and what must be treated now? (13 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. (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. (1 d 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. (1 d 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. (1 d 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. (1 d 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. (2 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. (2 d ago)

• WARNER'S SUPER BONU$ WARNER'S SUPER BONU$
01/16/2009
Arizona Cardinals quarterback Kurt Warner may earn as much as $4 million in bonuses, doubling his base salary, if he leads his team to its first Super Bowl championship, according to a person with access to his contract. Warner, a two-time... (8 h ago)

• BARCLAYS FALLS ON CAPITAL WORRIES BARCLAYS FALLS ON CAPITAL WORRIES
01/16/2009
Barclays Plc, the UK bank that declined to take government funding last year, dropped the most in two decades of London trading on speculation it would follow US banks in needing additional capital Barclays tumbled 25 percent to 98 pence, with... (8 h ago)

• US GIVES CHRYSLER $1.5B LOAN US GIVES CHRYSLER $1.5B LOAN
01/16/2009
Chrysler Financial, the credit arm of Chrysler LLC, received a $1.5 billion, five-year loan from the US Treasury, prompting the automaker to offer no-interest financing to buyers of some of its vehicles. As a condition of the aid, part of the... (8 h ago)

• CLOSEOUT AT CIRCUIT CITY CLOSEOUT AT CIRCUIT CITY
01/16/2009
Circuit City has shorted out for good. The nation's second-biggest electronics chain, which had filed for Chapter 11 in November, said it will begin liquidating its stores today after it failed to reach a deal to sell the company. The... (8 h ago)

• MADOFF'S MOM HAD STOCK-TRADING TROUBLES,... MADOFF'S MOM HAD STOCK-TRADING TROUBLES, TOO
01/16/2009
The feds did manage to crack down on a suspicious Madoff business - when they drove Bernie's mother out of the stock-trading firm more than 40 years ago. Sylvia Madoff was targeted by securities watchdogs in 1963 for failing to file documents for... (8 h ago)

• APPLE CEO MAY GET NEW LIVER APPLE CEO MAY GET NEW LIVER
01/16/2009
Apple Inc. CEO Steve Jobs is considering a liver transplant as a result of complications after treatment for pancreatic cancer in 2004, according to people who are monitoring his illness. Patients with Jobs' condition can survive for 20 years or... (8 h ago)

• TAKE-TWO'S COO TO EXIT TAKE-TWO'S COO TO EXIT
01/16/2009
Take-Two Interactive said COO Gary Dale will leave the company, a month after the publisher of the "Grand Theft Auto" videogames forecast a first-quarter loss. Dale's day-to-day duties will end immediately, the New York-based company said in a... (8 h ago)

• THE TOXIC AVENGER THE TOXIC AVENGER
01/16/2009
In his final hours as Treasury chief, Hank Paulson made a surprise roll of the dice by urging President-elect Barack Obama to set up a new government mega-bank to soak up junk assets from struggling banks. Paulson, backed as well by Federal... (8 h ago)

• UP TO 11,000 JOBS MAY GO AT GE CAPITAL UP TO 11,000 JOBS MAY GO AT GE CAPITAL
01/16/2009
Jeff Immelt is swinging the sharpest ax of his career at General Electric and may cut as many as 11,000 workers from the payroll at the conglomerate's finance arm. The average paycheck for the disappearing jobs at GE Capital is $175,000 and is... (8 h ago)

• BUSINESS BRIEFS BUSINESS BRIEFS
01/16/2009
Time Warner Shareholders of Time Warner voted in favor of a planned reverse stock split after the company separates its cable-televi sion systems business. Time Warner gained 18 cents to $9.61 on the New York Stock Ex change. Iger sanction Walt... (8 h ago)

• Hedge fund letters inform, entertain Hedge fund letters inform, entertain
01/16/2009
Hedge funds will soon send out year-end letters, most of them detailing how much they lost in the last year. Even though investors might not be looking forward to the missives, some of them can be pretty entertaining. Amy Scott reports. (21 h ago)

• Movie industry still stuck in 2D Movie industry still stuck in 2D
01/16/2009
A few years ago, 3D was supposed to be the next big thing in movies. But last time we went to the theater, most movies were flat on the screen. Stacey Vanek-Smith explains why the movie industry has yet to completely enter the third dimension. (21 h ago)

• Trade and production will lift economy Trade and production will lift economy
01/16/2009
All the talk about restarting the economy has focused on President-elect Obama's stimulus plan. Commentator Clyde Prestowitz says we need to focus on international trade imbalances and production for the stimulus to work. (21 h ago)

• Weekly Wrap: Bringing up the banks Weekly Wrap: Bringing up the banks
01/16/2009
A lot of news came from banking institutions this week, and very little of it was good. Kai Ryssdal takes a look at reports from Citigroup and Bank of America with T. Rowe Price's Andy Brooks and Wall Street columnist Heidi Moore. (21 h ago)

• OfficeMax makeover targets women OfficeMax makeover targets women
01/16/2009
The office-products chain says women make most of the supply-purchasing decisions in the workplace, so it's going to focus its marketing on them. Mitchell Hartman reports. (21 h ago)

• Are we hitting the point of deflation? Are we hitting the point of deflation?
01/16/2009
Consumer prices have dropped and inflation has slowed, which could push consumers to start spending again. But there's a potential downside that has some economists concerned -- deflation. John Dimsdale reports. (21 h ago)

• 'Bad banks' idea gaining traction 'Bad banks' idea gaining traction
01/16/2009
Many troubled banks are weighed down with mortgage and credit-card assets they can't sell or value. One solution that some are pushing for is creating "bad banks" to buy up toxic assets. Steve Henn reports. (21 h ago)

• When bailed-out banks turn to zombies When bailed-out banks turn to zombies
01/16/2009
The term "zombie bank" comes from the Japanese, who use it to describe banks kept on life support by the government. So when does a bank become a zombie -- beyond help and unable to get off the operating table? Ashley Milne-Tyte reports. (21 h ago)

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• 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... (1 d 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... (1 d 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... (1 d 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... (2 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... (2 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... (2 d 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. (2 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. (2 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. (3 d ago)

• 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. (2 d 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. (2 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. (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... (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... (2 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. (2 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. (2 d ago)

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