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Business News
for 01/19/2009

(last updated 7:30am EST 01/19/2009)

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• Editors and Publishers in a Revolving Do... Editors and Publishers in a Revolving Door
01/18/2009
The cost pressures prevailing in the newspaper business have led to rapid turnover at the top. (10 h ago)

• Hip-Hop Magazine No Longer Accepts Ads f... Hip-Hop Magazine No Longer Accepts Ads for Lewd Products
01/18/2009
The Source hopes to gain more than it loses by chasing mainstream advertisers that do not want their ads alongside the adults-only kind. (10 h ago)

• Amid Talk of a Departure, CNN Grooms a T... Amid Talk of a Departure, CNN Grooms a Team of Health Experts
01/18/2009
New talent will be handy if CNN’s star medical expert, Dr. Sanjay Gupta, becomes the surgeon general. (10 h ago)

• Endorsement at a Crime Scene: A Book Plu... Endorsement at a Crime Scene: A Book Plugged in ‘Scarpetta’
01/18/2009
Patricia Cornwell, the best-selling crime fiction writer, uses her latest Kay Scarpetta novel to promote “American Rust,” a first novel by Philipp Meyer. (10 h ago)

• After Steve Jobs Acknowledges Ill Health... After Steve Jobs Acknowledges Ill Health, Doubts for Reporters
01/18/2009
For many months, the media munched on denials from Apple that Mr. Jobs was in poor health, despite visual evidence to the contrary. (10 h ago)

• At Sundance, IFC Prepares to Go on a Sho... At Sundance, IFC Prepares to Go on a Shopping Spree
01/18/2009
IFC Entertainment will probably turn out to be one of the most aggressive buyers at the Sundance Film Festival when it comes to the number of films bought, if not the prices paid. (10 h ago)

• Billionaire Seeks Deal in Times Co. Billionaire Seeks Deal in Times Co.
01/18/2009
Carlos Slim Helú is near a deal to invest about $250 million in The New York Times Company, according to people briefed on the transaction. (10 h ago)

• The Media Equation: Can Sundance Get a B... The Media Equation: Can Sundance Get a Break?
01/18/2009
While creator Robert Redford is criticized that the film festival is far too commercial, the knock on Sundance this year has been that it is will not be commercial enough. (10 h ago)

• Fox News Primes Itself for a Shift Fox News Primes Itself for a Shift
01/18/2009
Far from being subdued by the shift in the country’s mood, the cable news network of choice during the George W. Bush years seems re-energized. (11 h ago)

• And How Do I Know You? Oh, the List And How Do I Know You? Oh, the List
01/18/2009
Some parents are using their children’s class lists and school directories as marketing resources. (18 h ago)

• Can CNN, the Go-to Site, Get You to Stay... Can CNN, the Go-to Site, Get You to Stay?
01/18/2009
CNN.com ranks first in news and the site is trying to extend that reach through more experimental forays. (1 d ago)

• Ping: At First, Funny Videos. Now, a Ref... Ping: At First, Funny Videos. Now, a Reference Tool.
01/17/2009
YouTube is rapidly morphing into a popular search engine and a new entry point into the Web. (1 d ago)

• The Popular Newsweekly Becomes a Lonely ... The Popular Newsweekly Becomes a Lonely Category
01/17/2009
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. (1 d ago)

• In Book World, Caroline Kennedy Is a Pow... In Book World, Caroline Kennedy Is a Powerhouse
01/17/2009
As the publisher of five books, writing and editing is the work Caroline Kennedy has pursued most energetically and, arguably, most successfully. (2 d ago)

• SAG Leader, in Shift, No Longer Seeks St... SAG Leader, in Shift, No Longer Seeks Strike Authorization
01/17/2009
The union’s executive director proposes a vote on the latest contract offer, not on authorizing a walkout. (2 d ago)

• Global Music Sales Fell 7% in ’08 as CDs... Global Music Sales Fell 7% in ’08 as CDs Lost Favor
01/17/2009
Another sizable jump in digital sales failed to make up for a deepening decline in the compact disc market. (2 d 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. (2 d 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. (2 d 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. (2 d 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. (2 d ago)

• U.K. launches second bank rescue plan U.K. launches second bank rescue plan
01/18/2009
Britain threw its troubled banks another multi-billion dollar lifeline by allowing them to insure against steep losses and guaranteeing their debt to stop the credit crunch pushing the economy into a deep slump. (8 h ago)

• Earnings reports to hit Wall Street this... Earnings reports to hit Wall Street this week
01/18/2009
As hundreds of fourth-quarter earnings reports stream in this week, Wall Street's reaction will turn on companies' answers to one question: When will the recession end? (16 h ago)

• Marketers look to cash in on Obama mania Marketers look to cash in on Obama mania
01/18/2009
The guys hawking T-shirts and trinkets on the corners of downtown Washington have some new competition in the selling frenzy building up to the inauguration — Corporate America. (19 h ago)

• Burden of homeownership spread unequally Burden of homeownership spread unequally
01/18/2009
When it comes to homeownership, Hispanics in New Jersey, single parents in California and senior citizens in Rhode Island all have something in common: More than a third have an unaffordable mortgage. (20 h ago)

• Stimulus bill to fuel Obama's priorities Stimulus bill to fuel Obama's priorities
01/18/2009
The economic crisis that will dominate Barack Obama's first 100 days as president, and beyond, will give him a rare chance to enact big portions of his agenda that otherwise might have languished. (22 h ago)

• Slump casts pall over Chinese New Year Slump casts pall over Chinese New Year
01/18/2009
In China, where many businesses count on a New Years shopping boom for a big share of annual sales, the global slowdown hurts and could further depress its falling growth rate. (1 d ago)

• Report: Microsoft CEO met Yahoo chairman Report: Microsoft CEO met Yahoo chairman
01/17/2009
Microsoft's chief executive, Steve Ballmer, met with Yahoo chairman Roy Bostock in New York this week, according to a report in The New York Times. (1 d 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. (2 d 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? (2 d 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. (2 d 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. (2 d 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. (2 d 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. (2 d 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. (2 d 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. (2 d 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. (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. (2 d 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. (2 d 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. (2 d 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. (2 d ago)

• Official: China reaffirms to expand Chin... Official: China reaffirms to expand Chinese-African economic, trade cooperation
01/19/2009
Visiting Chinese Commerce Minister Chen Deming said here on Monday that China will continuously expand Chinese-African economic relations and trade to reach a new higher level, although the ongoing financial recession prevails the world and cause side effects on the China-Africa two-way economic and trade cooperation. In an exclusive interview with Xinhua, the minister said the Chinese government will consolidate and expand the China-Africa two-way economic relations and trade cooperatio ... (3 h ago)

• Macao receives over 2,600 investment res... Macao receives over 2,600 investment residency applications
01/19/2009
A total of 2,688 cases of investment residency applications were submitted to the government of Macao Special Administrative Region (SAR) in 2008, according to the figures released on Monday by the SAR's Trade and Investment Promotion Institute (IPIM). Among the cases, some 2,072 were fixed asset applications, 596 were applications of managerial personnel, technical and professional qualification holders, and 20 renewal and extension applications for family members, the IPIM said. ... (3 h ago)

• Holiday traveler numbers forecast to ris... Holiday traveler numbers forecast to rise in HK
01/19/2009
Hong Kong Immigration Department estimates about 8.62 million people will pass through land, sea and air control points in Hong Kong over the coming Lunar New Year holiday, which is up about 8 percent on that of 2008. The department forecast that the busiest period would fall between Jan. 22 and Feb. 2 with about 3.2 million passengers crossing the Lo Wu control point between Hong Kong and Shenzhen city in the south of Guangdong Province. That means a daily average of 266,000 people will ... (3 h ago)

• HK's composite interest rate falls in De... HK's composite interest rate falls in December
01/19/2009
The composite interest rate in Hong Kong fell to 0.69 percent at the end of December, 2008, from 0.86 percent at the end of November in 2008, Hong Kong Monetary Authority said on Monday. Following a fall of 42 basis points in November, the 18-basis-point fall in the December composite interest rate reflected drops in interbank and time-deposit rates, the authority said. "The ample liquidity in the interbank market, following the substantial increase in the aggregate balance of t ... (3 h ago)

• Chinese-African trade volume hits all ti... Chinese-African trade volume hits all time high to reach $106.8 bln
01/19/2009
Visiting Chinese Commerce Minister Chen Deming said here on Monday that China-Africa trade volume hit an all time high in 2008, reaching a historic new level of 106.8 billion U.S. dollars. In an exclusive interview with Xinhua, Chen said the past eight years have witnessed a super fast growth of 30 percent since China-Africa trade volume reached more than 10 billion dollars in 2000. He added that in recent years, especially since 2006 when China hosted the Beijing Summit of the F ... (3 h ago)

• Hong Kong eyes opportunities in RMB busi... Hong Kong eyes opportunities in RMB business pilot scheme
01/19/2009
The pilot scheme recently announced by China to settle trade outside the mainland with renminbi (RMB) can help affirm Hong Kong's position as the only international financial center linking the Chinese mainland and Asia, Hong Kong Special Administrative Region (HKSAR) Chief Executive Donald Tsang said here on Monday. Speaking at the second Asian Financial Forum in Hong Kong, Tsang said the pilot scheme will make it possible to settle trade between the economic powerhouses of Guangdong pr ... (3 h ago)

• China's power plants forecast profit plu... China's power plants forecast profit plunge on higher coal price
01/19/2009
China's power producers are expected to record a 50 percent to 60 percent drop in net profit --or even losses -- compared with the previous year due to soaring coal prices, according to statements to the Shanghai and Shenzhen stock exchange markets over the weekend and on Monday. SDIC Huajing Power said its 2008 net profit fell more than 60 percent. That was compared with the 550 million yuan (80.48 million U.S. dollars) net profit in 2007 with earnings per share at 0.63 yuan, according ... (3 h ago)

• Hong Kong stocks close higher following ... Hong Kong stocks close higher following Wall Street's gains
01/19/2009
Wall Street's gains Friday sent Hong Kong's benchmark index higher Monday, but heavyweight HSBC continued to fall on persistent concerns over the funding needs ofthe banking giant. Turnover shrank to 37.92 billion HK dollars (4.89 billion U.S. dollars) from 47.07 billion HK dollars (6.07 billion U.S. dollars)on Thursday. The blue-chip Hang Seng Index rose 84.48 points, or 0.6 percent, to 13,339.99 after earlier rising to a high of 13,519.18. The intraday low was 13,097.50. ... (3 h ago)

• China's think tank forecasts 8.3% GDP gr... China's think tank forecasts 8.3% GDP growth in 2009
01/19/2009
China's Gross Domestic Product (GDP) growth is expected to drop to 8.3 percent in 2009, the country's major think tank said Monday. The report, issued by the Chinese Academy of Sciences (CAS), predicted China's economy slowdown in the first half year due to the unfavorable international economic environment. The report also said that the unprecedented stimulus package of4 trillion yuan (586 billion U.S. dollars) will poise China for an early recovery in the third quarter. ... (7 h ago)

• China to start three new ultra-high volt... China to start three new ultra-high voltage power lines this year
01/19/2009
The State Grid Corp. of China (SGCC), the country's biggest power supplier, said it would start building three more ultra-high voltage (UHV) power lines this year. The plan, announced Sunday, came after the company successfully put into operation the country's first UHV power line last week. The building of two other direct current UHV lines is still underway. The newly announced plan would bring the number of China's UHV lines to six. UHV, defined as voltage of 1,000 kv ... (7 h ago)

• Chinese shares slightly up amid worries ... Chinese shares slightly up amid worries in shrinking corporate profits
01/19/2009
Chinese share prices closed 1.65 percent higher on Monday amid worries in shrinking corporate profits. The Shanghai Composite Index gained 1.65 percent to 1,986. The Shenzhen Component Index climbed 0.94 percent to 6,982. Combined turnover reduced to 120.45 billion yuan (17.2 billion U.S. dollars) from 147.14 billion yuan on the previous trading day. &$ &$Source:Xinhua&$ &$ ... (7 h ago)

• Hong Kong expects negative economic grow... Hong Kong expects negative economic growth for three quarters
01/19/2009
Hong Kong expects negative economic growth for the last quarter of 2008 and the first two quarters of 2009, Hong Kong Special Administrative Region (HKSAR) Chief Executive Donald Tsang said Monday. Addressing the Asian Financial Forum in Hong Kong, Tsang said whether there will be clear signs of recovery in the latter part of 2009 will depend on how the global economy responds to various stimulus packages and savior policies. "We have a long and difficult road ahead of us in term ... (7 h ago)

• NY Times, Mexican mogul in talks on resc... NY Times, Mexican mogul in talks on rescue investment
01/18/2009
The New York Times Co. is in talks with Mexican billionaire Carlos Slim about a further investment of millions of dollars in the newspaper group to help it through financial difficulties. The talks are ongoing and could still end without an agreement, The Wall Street Journal said on its website Saturday evening, citing anonymous sources familiar with the situation. One possible plan could involve issuing preferred stock that wouldn't offer voting rights but would pay a dividend, t ... (8 h ago)

• Qatar to start tender offers for Indosat... Qatar to start tender offers for Indosat shares
01/18/2009
Qatar Telecommunication said that it would begin tender offers for shares of Indonesia's second biggest telecommunication firm PT Indosat on Tuesday to raise its ownership up to the maximum limit of 65 percent, a paper said here Monday. The Indonesian government restricts foreign ownership in the telecommunication sector to a maximum of 65 percent for mobile phone operators and 49 percent for fixed-line operators. Two tender offers would begin concurrently in the United States a ... (8 h ago)

• Bank of China report: China to see more ... Bank of China report: China to see more interest cuts in 2009
01/18/2009
China will continue to see more interest cuts throughout 2009 to enhance market fluidity, according to an economic outlook released by the Bank of China (BOC) here on Monday. The country's major lender expected the People's Bank of China (PBOC), or the central bank, to lower the benchmark interest rates of both deposit and credit to 1.44 percent and 4.5 percent respectively. The benchmark deposit and credit rates now stand at 2.25 percent and 5.31 percent respectively after five ... (9 h ago)

• Global IT spending could suffer first de... Global IT spending could suffer first decline in 7 years
01/18/2009
US-based Forrester Research recently predicted in a report that after continuous growth over the past six years, global IT (information technology) spending valued in US dollars is likely to drop for the first time in 2009. According to Forrester's estimate, the spending on IT products and services by enterprises and government departments worldwide will reach approximately 1.66 trillion USD in 2009, a decline by 3% from last year, marking the first annual drop since 2002. In both 2001 and 2 ... (9 h ago)

• Global economic crisis fails to diminish... Global economic crisis fails to diminish Vietnamese car sales in 2008
01/18/2009
Sale of cars in Vietnam recorded 110,000 units in 2008, a jump of about 49 percent over the 2007's figure despite the global financial crisis, the local newspaper Vietnam Investment Review reported Monday, citing the source with the Viet Nam Automobile Manufacturers' Association (VAMA). The increase in car sales in Vietnam during a challenging 2008 showed that the domestic automobile market would sooner or later explode with Vietnamese consumers' appetite for cars, said Vietnam-based Mer ... (10 h ago)

• China establishes firm to produce jet en... China establishes firm to produce jet engines for commercial aircraft
01/18/2009
A company was set up in Shanghai Sunday to make engines for jumbo aircraft in a move intended to help China reduce reliance on foreign suppliers. The AVIC Commercial Aircraft Engine Co. Ltd. (ACAE) will be involved in "research, design, production, sales, maintenance, service and technological consulting for jet engines and related products," said Zhang Jian, manager of the company. The government-owned Aviation Industry Corp. of China (AVIC) holds a 40 percent stake in ACAE, whi ... (10 h ago)

• Chinese shares up 2.3% at midday, led by... Chinese shares up 2.3% at midday, led by banks
01/18/2009
Chinese shares ended Monday's morning session 2.3 percent higher after report of state-backed share purchases of the country's top three lenders. The benchmark Shanghai Composite Index rose 45.01 points to 1999.45. The Shenzhen Component Index added 127.7 points, or 1.85 percent, to 7045.18. The Central Huijin Investment Co., Ltd., an investment arm of the China Investment Corporation (CIC), had been "continuously" buying shares of China's top three commercial banks, said Lou Ji ... (10 h ago)

• S Korean conglomerates, banks to financi... S Korean conglomerates, banks to financially support smaller firms
01/18/2009
South Korean banks and conglomerates have agreed to forge a loan support deal to parts suppliers which will allow them to access 700 billion won (514.7 million U.S. dollars) in fresh loans, the government said Monday. "The new SME support scheme is different from other funds as both conglomerates and banks are making investments, which they know can be lost, while helping the conglomerates' parts suppliers," said Deputy Minister Kim Young-hak, head of the ministry's industrial policy off ... (12 h ago)

• Long and Deep Recession Forecast in Euro... Long and Deep Recession Forecast in Europe
01/19/2009
The 16 nations that use the euro will shrink by 1.9 percent in 2009, with the entire E.U. contracting 1.8 percent, the European Commission forecasts. (4 h ago)

• Britain Announces New Bank Bailout Britain Announces New Bank Bailout
01/19/2009
The government of Prime Minister Gordon Brown on Monday announced a new bailout for the British financial system that increases its control over lenders. (4 h ago)

• Russia and Ukraine Reach Deal on Gas Russia and Ukraine Reach Deal on Gas
01/18/2009
The prime ministers of Russia and Ukraine agreed to a resolution of their countries’ gas dispute early Sunday. (10 h ago)

• Music Industry Imitates Digital Pirates ... Music Industry Imitates Digital Pirates to Turn a Profit
01/18/2009
Online and mobile services offering listeners unlimited “free” access to millions of songs are set to proliferate in the coming months, according to music industry executives. (11 h ago)

• Indian Executive Is Said to Have Siphone... Indian Executive Is Said to Have Siphoned Cash
01/17/2009
The founder of Satyam is said to have skimmed huge amounts of cash from the company, rather than padding its books as he has claimed. (1 d ago)

• A County in China Sees Its Fortunes in T... A County in China Sees Its Fortunes in Tea Leaves Until a Bubble Bursts
01/17/2009
After a boom and a bust in the market for Pu’er tea, a region in China’s southwest has learned a lesson about gullibility, greed and speculation. (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. (2 d 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. (2 d 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. (2 d 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. (2 d 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. (2 d 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. (2 d 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. (2 d ago)

• SUMMERS EYES SHIFT FOR TARP SUMMERS EYES SHIFT FOR TARP
01/18/2009
Barack Obama will focus more on helping consumers, local governments and businesses than banks as his administration deploys the second half of the $700 billion rescue fund, said Lawrence Summers, the president-elect's top economic adviser. "The... (10 h ago)

• HUNKERED DOWN HUNKERED DOWN
01/18/2009
Thanks to the freezing temperatures outside, and our increasingly emaciated wallets, we're spending a lot more time at home these days. That's made us realize our homes are in dire need of some freshening up. Here's a look at some magazines that... (10 h ago)

• BUSINESS BRIEFS BUSINESS BRIEFS
01/18/2009
Fed head Fed Governor Kevin Warsh, once a leading contender to succeed Timothy Geithner as president of the New York Fed, will remain Chairman Ben Ber nanke's chief liaison with the Treasury Depart ment and other regula tors, a source said. War... (10 h ago)

• AMEX PLANS TO DUMP STAKE IN CHINA BANK AMEX PLANS TO DUMP STAKE IN CHINA BANK
01/18/2009
American Express's Ken Chenault plans to sell its stake in Chinese bank Industrial & Commercial Bank of China when a restriction on unloading shares in the Shanghai-based institution is lifted in three months. According to sources who have spoken... (10 h ago)

• ADS & DISTR-ACT ADS & DISTR-ACT
01/18/2009
Facing the worst ad downturn in a decade, Madison Avenue is eager to avoid any labor strife in its upcoming negotiations with commercial actors. The ad industry's contract with two Hollywood unions - the Screen Actors Guild and the American... (10 h ago)

• THE WEEK'S WINNERS AND LOSERS THE WEEK'S WINNERS AND LOSERS
01/18/2009
WINNERS CHESLEY SULLENBERGER As a US Airways jet crash lands, hero pilot gives airline a good name. CAROL BARTZ Veteran tech sector executive tapped to be new CEO at Yahoo! ANDREW CUOMO New York's AG issues subpoenas to charities claiming... (1 d ago)

• CHARNEY NOW WAGING BIZARRE CYBER-BATTLE CHARNEY NOW WAGING BIZARRE CYBER-BATTLE
01/18/2009
AMERICAN apparel's legal battles have taken a weird turn onto the Web. Facing a string of well-publicized worker lawsuits with charges ranging from sexual harassment to accounting fraud, the trendy retailer appears to be mounting an unusual... (1 d ago)

• DEAR CEOS: LEARN FROM US AIRWAYS PILOT DEAR CEOS: LEARN FROM US AIRWAYS PILOT
01/18/2009
MESSAGE to the incoming Obama administration: As we begin to salvage what's left of Wall Street, the nation needs some new captains of industry that truly embody the qualities of skill, honor and devotion to their profession - that is, executives... (1 d ago)

• WELCOME PARTNER WELCOME PARTNER
01/18/2009
Citigroup CEO Vikram Pandit finds himself facing an unsettling figure across the boardroom table: Uncle Sam. While Citi hasn't been officially nationalized, the once-sprawling financial institution is showing signs that its top brass is no longer... (1 d ago)

• NEWSDAY EDITORS 'MISSING' NEWSDAY EDITORS 'MISSING'
01/17/2009
Chaos reigns at Newsday, where Editor John Mancini and his top two lieutenants have not been seen since a closed-door meeting on Wednesday - sparking rumors that Cablevision boss Jim Dolan axed them. Mancini, reached by phone on Friday, declined... (1 d ago)

• Consumers still splurging on furry frien... Consumers still splurging on furry friends
01/19/2009
Shoppers may be holding back spending on themselves as the economy goes into recession but they are apparently still willing to splurge on their furry friends. The nation's largest retailer of pet products, Pets at Home, said today that it experienced strong sales growth over Christmas, at a time when other retailers were struggling. It sold more than a quarter of a million Christmas-themed cat and dog toys over the festive season and customers bought over 300,000 special Christmas stockings for their favourite animals. Overall the company, acquired by buy-out group Bridgepoint for £230m in 2004, said like-for-like sales were up 10.4% over the six weeks to January 8. As a result, for the financial year to date – the 41 weeks from March 28 – like-for-like sales are up 7.2% and total sales are up 13.4%. "While the economic environment is challenging for all retailers, the continued strengthening of our offer coupled with our store-opening programme and the exceptional talent and dedication of our people gives us confidence for the future," said Pets at Home's chief executive, Matt Davies. The cold winter has also seen strong sales of the company's wildlife range as homeowners worried about their local wildlife start stocking up their bird tables. Sales of foods rich in fat and protein that help birds combat the freezing temperatures have been particularly strong. Pets at Home Retail industry Private equity Recession Animals guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (3 h ago)

• Northern Rock gets back to mortgages Northern Rock gets back to mortgages
01/19/2009
Northern Rock is set to become a major player in the mortgage market again a year after falling into nationalisation, as part of the government's efforts to stimulate lending. The Treasury announced this morning that it is ditching the plan for Northern Rock to reduce its customer base drastically and repay its debts to the taxpayer by 2011. Instead, it is likely to increase its loans to homeowners and take on more workers – only months after making a quarter of its staff redundant. Sources had already said that ministers were keen to use the Newcastle-based lender as a "good bank" to drive mortgage lending, which has plummeted in recent months as the economy shrank and house prices fell. The Treasury confirmed today that it has taken the first step – halting the push to drive existing borrowers away. "Northern Rock is no longer actively pursuing a policy of rapidly reducing its existing mortgage book," the Treasury said. The company's original business plan was drawn up by chairman Ron Sandler when he took control a year ago. Alistair Darling explained that it was no longer appropriate, at a time when other banks and building societies are reluctant to offer mortgages. "In the current climate, asking people to move their loan elsewhere is not the right thing to do," the chancellor told a Downing Street press conference. Last year Northern Rock made around 1,500 people redundant, leaving it with 4,500 workers, and until today it had been aiming to reduce this to 4,000 through natural wastage. "We are reviewing our business plan with the Treasury at the moment," said a Northern Rock spokesman. "If we decide to increase our activity in one sector we might require more staff in that area." The U-turn means it will take Northern Rock longer to repay the £27bn it borrowed from the Bank of England after the credit crunch struck. Darling said that Northern Rock was still ahead of its repayment schedule. It is unclear whether customers who fall behind with their repayments will be helped by the change of policy. It emerged last November that Northern Rock's repossession rate was three times the industry average , something seen as evidence that it was racing to cut its loan book. The Northern Rock spokesman, though, insisted that there was no change to its policy on repossession. "It is absolutely our last resort," he said. "It's not in our interests to repossess." Northern Rock Recession Credit crunch Mortgages Economic policy guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (4 h ago)

• Darling warns of economic collapse witho... Darling warns of economic collapse without latest banking bail-out
01/19/2009
Alistair Darling today insisted he was right to use hundreds of billions of taxpayers' money in a fresh bail-out of the banking sector, saying the recession would be much worse if he did not act. The new measures to support mortgage lending and consumer loans were attacked as a "blank cheque" by critics this morning, but the chancellor warned that the consequences of inaction would be grim. "If the banking system collapses, every single one of us would see the obvious problems. The economy would come down with it," he told the BBC. "The cost of not doing anything would be far, far greater. If we don't get lending going, the recession will be longer, deeper and more painful". "It may seem a very wet, miserable January morning, things out there look very grim, but we will get through this," Darling added. Darling was speaking after the Treasury released details of a second banking bail-out, and Royal Bank of Scotland announced it will make a loss of up to £28bn for 2008 - the biggest loss in UK corporate history. Gordon Brown told a Downing Street press conference that the loss showed the consequences of "irresponsible lending". Under the new plans , the government will insure bank loans for corporate and consumer debt. By offering to cap potential losses, the government hopes to encourage banks to lend again. Economists said the Asset Protection Scheme looks like a form of quantitative easing - effectively pumping more money into the economy. The government is also making a three-pronged effort to stimulate the mortage market: up to £100bn will be provided to underwrite new mortgage lending, the existing £200bn scheme will be extended, and state-owned Northern Rock is being given a new mandate to increase its lending. And the Bank of England is also being given new powers, in addition to its control of interest rates. It has been authorised to spend up to £50bn buying a range of assets from the banks, both to increase corporate credit and for monetary policy purposes. The government said it was taking the measures - just three months after its first £37bn bail-out - after the global financial and economic situation continued to deteriorate. It said that it was "essential" to meet demand for lending from businesses, homeowners and consumers. The plan means that the taxpayer is exposed to billions of pounds of potential losses. In return, the government plans to force the banks to increase their lending to help the UK economy through the recession. Banks will be charged a fee, which can be paid in cash or shares - suggesting that companies like Barclays and HSBC could soon be partially owned by the government. Vince Cable, Liberal Democrat Treasury spokesman, said the original bail-out had failed because the government had not forced the banks to increase their lending in return for their capital injections. "It's now clear that the money was not used for lending, but was instead used to cover bad debts," said Cable. "I don't like to talk about blank cheques, but I fear that's where we are now," he added. And Peter Spencer, from the Item Club, said that "it sounds like heads the banks win, tails the taxpayer loses". Binding measures The chancellor insisted today that the banks will have to pass the money on offer into the wider economy. "If the banks use the measures we are offering today then they will have to enter into legally binding measures to increase lending. Just hoarding the money doesn't help us as businesses or individuals," Darling said. The Treasury is also changing the terms of the first banking bail-out, which has failed to revitalise the sector. It will swap its existing preference shares in RBS, which carried a high rate of interest, for ordinary shares, taking its stake in the bank to almost 70%. In return, RBS has promised to increase its lending over the next 12 months by £6bn - another attempt to get money flowing to borrowers. The City gave today's measures a broad welcome, with the FTSE 100 up by 76 points, or 1.8%, to 4223 this morning. But RBS plunged by nearly 30% to 24.8p, extending the taxpayer's losses since taking a large stake in the bank. The new measures, which come three months after the first banking bail-out , were announced this morning following a weekend of talks between the government and bank chiefs. The banking crisis reared up again last week when America's Merrill Lynch posted an unexpectedly large loss and which culminated with Barclays shares plunging by 25% in the last hour of trading on Friday afternoon. It insists, though, that it made a profit of at least £5.3bn last year. RBS sees huge loss RBS said this morning that it expected to make a full-year loss of between £7bn and £8bn before goodwill is taken into account, having taken more writedowns on so-called toxic assets, some based on mortgage loans that turned sour in the credit crunch. It expects to take a goodwill impairment charge of between £15bn and £20bn - an admission that assets such as ABN Amro, which it bought in 2007, are worth much less than it paid for them. A full-year loss of £22bn, the best-case scenario according to today's numbers, would exceed the previous biggest loss - made by Vodafone. Chief executive Stephen Hester , who took office late last year, said RBS had suffered a difficult end to 2008. "The dislocation of credit markets and the global economic downturn continue to hit RBS hard, as with many other banks," he said. Banking Economic policy Credit crunch Banks and building societies guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (5 h ago)

• Rail services under threat after passeng... Rail services under threat after passenger growth hits buffers
01/18/2009
Concerns for the financial health of the rail industry were mounting last night after figures confirmed a sharp slowdown in passenger growth. They came as the chief executives of the five largest public transport groups - Stagecoach, National Express, Go-Ahead, Arriva and FirstGroup - prepare for a summit with transport secretary Geoff Hoon tomorrow, where the impact of the economic downturn will be on the agenda. Go-Ahead, Britain's busiest train company, has warned that rail services might have to be cut if the slump worsens, while bus services across the UK are under threat from a proposed reform of fuel subsidies. It is understood that the chief executives will discuss allowing "flexibility" in their rail contracts, which guarantee huge payments to the government over the next decade including £1.4bn from National Express East Coast and £1.2bn from Stagecoach's South West Trains. The Department for Transport is adamant that it will not renegotiate contracts and reacted to the financial troubles of the previous east coast operator, GNER, by stripping the company of its £1.3bn deal in 2006 and putting the contract out to auction. A government source told the Guardian last week that the franchise owners had yet to approach the DfT with a proposal and, until then, they will be expected to honour contracts that were signed when the rail sector was riding on the coat tails of an economic boom. The executives will attend the meeting armed with evidence that a boom period for the railways could be drawing to a close. According to figures seen by the Guardian, the number of rail journeys last year rose by less than 5%, down from 7.8% in 2007 and 6.7% in 2006. The tail-off in passenger growth follows an even steeper fall in revenue growth in the final two months of last year, with fare income rising by just 4% - prompting fears that some franchise contracts are coming under pressure. Analysts have warned that some recently awarded contracts need revenue growth closer to double figures to keep pressure off their owners. "This is a material slowdown and, if it continues, then the business plans of certain franchises may start to look too optimistic. Trouble is, the slowdown could conceivably last for several years," said Douglas McNeill, analyst at Blue Oar Securities. Franchise owners have slashed more than 1,500 jobs recently, with National Express cutting 750 across its business, South West Trains shedding 480 and Go-Ahead's Southeastern losing 300. National Express also admitted this weekend that its East Coast operation is considering charging passengers at least £1 to reserve a seat. Other franchises have expressed private sympathy, saying that too many customers make multiple reservations and never use them, but they have disregarded it after deciding that the public would react badly to extra charges when many fares are rising by as much as 10%. The cost-cutting is taking place against the backdrop of a gradual elimination of the net government subsidy to franchise owners over the next three years. The government's subsidy of eight major franchises - including South West Trains, National Express East Coast and Southeastern - totalled £811m last year but that is scheduled to become a state profit of £326m by 2012. However, those numbers are predicated on consistently strong passenger and revenue growth. Fare growth, say analysts, is dependent on the economy being strong enough for passengers to swallow inflation-busting rises in off-peak fares and on enough commuters staying in work to maintain season ticket sales. The financial resilience of the franchise system, and whether it represents value for money to passengers, will come under parliamentary scrutiny on Wednesday when the Public Accounts Committee grills senior DfT officials, including the department's head of rail. The hearing caused controversy two years ago when Dr Mike Mitchell, the DfT director general of railways, said it was "acceptable" for commuters to stand for half an hour in a journey even if they pay up to £5,000 a year for a season ticket. Go further in Serbia Off-peak rail fares are higher in Britain than anywhere else in Europe, the Liberal Democrats are to say today. They looked at "anytime" single rail tickets across Europe, and found that in Britain, £10 only takes travellers an average of 26 miles. In contrast, £10 in Serbia provides 512 miles of rail travel. Even with an off-peak return ticket in Britain, £10 only buys 56 miles of travel. The Lib Dem transport spokesman, Norman Baker, said: "In Serbia, £10 will take you almost the distance between London and the Swiss Alps while an English ticket will take you only as far as Basildon." Press Association Transport Transport policy Travel & leisure Geoff Hoon Recession Credit crunch guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Obama needs to act fast - but America's ... Obama needs to act fast - but America's problems won't be solved overnight
01/18/2009
After a seemingly endless transition period, Barack Obama has a daunting to-do list when he finally takes office tomorrow. He inherits an economy where the recession is deepening daily, the banking system is shot, the Detroit car industry is in effect bankrupt, the housing market is in the advanced state of meltdown and the budget deficit is going through the roof even before he announces an $800bn stimulus package. He is having trouble getting his choice of treasury secretary, Tim Geithner, approved by Congress because of questions being asked about his tax affairs and the work papers for a domestic employee. Geithner's expertise as the former head of the New York branch of the Federal Reserve is needed at a time when Wall Street has lurched back into crisis mode. Since August 2007, there has been a distinct rhythm to events: bursts of turmoil followed by weeks or months of beguiling tranquillity. Last week's fresh $20bn bail-out of Bank of America and the rumours surrounding Citigroup marked the end of the rally that followed the market mayhem of the autumn. To make matters worse, he is expected to solve all these problems - and more - instantly. Not since Franklin Roosevelt was sworn in, in March 1933, has the in-tray been so full; it is unlikely even FDR carried Obama's crushing burden of expectations. If America believes that the new president can solve his economic problems in a whirlwind of activity that apes Roosevelt's first 100 days 76 years ago, it is in for a rude awakening. By 1933, the US was past the nadir of the Great Depression, although few realised that at the time. Most of the recent evidence - be it jobs, real estate, consumer spending, industrial output - suggests that Obama takes over with the economy still going backwards. The new president is aware that he can't do everything. He will make the economy his priority, putting some issues on the back-burner and leaving others in the hands of senior members of the cabinet. It is improbable that Obama will take personal control of the situation in Gaza or of plans to reform health care. Those who believe that the president's Kenyan roots will reap an instant dividend in terms of a huge increase in US spending on development are likely to be disappointed. While there is no evidence that Obama will renege on his pledge to double aid, the timetable for doing so has already slipped. Focus Making the economy a priority makes sense. Hilary Clinton will be able to advise her boss on the perils of a lack of focus in the honeymoon period of his presidency, because that is what left her husband Bill hamstrung after his inauguration in 1993. If Obama can get the economy right, he will have both the money and the moral authority to fix all the other problems. If he can't, nothing else he does will really matter. This is going to prove tougher than it sounds. As the crisis of the past 18 months has unfolded, policymakers have had to confront the fact that this is a downturn entirely different in its origins from any other in the post-war era. As Stephen Lewis of Monument Securities notes, other contractions since 1945 were the result of a temporary mismatch between demand and supply. This one has been caused by a breakdown in the financial system that has unleashed wealth destruction on a colossal scale. Central banks and finance ministries knew how to handle the traditional sort of crisis: they jacked up interest rates to deal with the overheating and cut them once inflation had been purged from the system. They are still struggling to find a solution to find a way of unblocking credit channels when it is clear that the financial system is still at death's door. The US briefly flirted with the "nature's cure" option when it allowed Lehman Brothers to go to the wall in September, but the ensuing mayhem means it is unlikely to try that cure again. Instead, policymakers - not just in the US but around the globe - are moving bit by bit towards the other extreme of full-scale nationalisation. Though this is proving the toughest of nuts to crack, it at least falls into the category of a "known unknown", since it must be pellucid to even the slowest of policymakers that there will be no lasting or meaningful economic recovery while the root cause of the problem remains untreated. If it was possible to identify the "unknown unknowns" they would not be unknown, but it is possible to speculate on what they might be. One is that the collapse in global energy prices leads to economic - and eventually political - crises in the more vulnerable producer nations. Iran and Venezuela fall into this category, but so does Russia, where last week's series of rouble devaluations provided evidence of just how dependent the economy is on high oil and gas prices. Stripped of the windfall from its energy sector, Russia's lack of diversification and industrial inefficiency is being laid bare: hence the attempts to push down the value of the currency. Russia's spat with Ukraine highlights how the economics or energy can quickly turn into geo-political tension. An even bigger potential threat to Obama comes from China, where the government is struggling to cope with a rapidly cooling economy. Given that China's stupendous growth rate in the past decade has been the result of an investment boom to produce goods for export, it is hardly surprising that the economy is in trouble. Nor is it surprising that Beijing is doing its utmost to reverse the trend. Wen Jiabao, the Chinese prime minister, was recently reported as saying that without high levels of growth "factors damaging social stability will grow". The government's real fear is of 100,000 unemployed graduates taking to the streets during the course of this year, demanding political and economic reform. Devaluation Fearful of stirring up protectionist pressure in the US, Beijing has so far eschewed the obvious policy response - a devaluation to make Chinese exports cheaper. But it is spending prodigiously on subsidies to prevent investment programmes from being mothballed. World output of steel has fallen by a quarter since the middle of last year, but the adjustment is concentrated outside China. "Nothing", says Charles Dumas, of Lombard Street Research, "could be more emblematic of the distortion of China's grossly excessive emphasis on exports and capital expenditure than its modest cuts to date in steel output." Resistance to such cuts becomes a lot more explicable if the ruling communist party believes economic slowdown will trigger unrest on a scale not seen since the crackdown in Tiananmen Square in 1989. And if backed far enough into a corner, that could well mean devaluation. Beijing has form in this area. It devalued by 33% in 1993, helping to lay the foundations of the subsequent export boom. In the US, this would be seen as economic Pearl Harbor and it would prompt swift retaliation in the form of tariffs on Chinese goods. Beijing knows that, and throughout the crisis so far has tried to play the part of a model global citizen. It would use devaluation only as a last resort. Throughout the crisis, policymakers have comforted themselves with the thought that whatever difficulties they face, at least there is no prospect of a 1930s-style trade war. But faced with the choice between political survival and upsetting the new president, Beijng will plump for the latter. larry.elliot@guardian.co.uk Obama White House Barack Obama US economy US economic growth and recession Global recession Economics guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Unemployment to soar, Item Club warns Unemployment to soar, Item Club warns
01/18/2009
Unemployment will reach 3.4 million as the financial crisis deepens, experts warned today before official figures are released this week. The Ernst & Young Item Club said the number of people out of work will pass 3.25 million by the end of 2010 and hit 3.4 million the year after . In its quarterly report on the state of the UK economy, the thinktank predicted that GDP would slump by 2.7% this year, the sharpest contraction since 1946. The official unemployment total reached a 10-year high of 1.86 million last October and some analysts expect the figure to increase to two million when the latest data is published on Wednesday. "All the economic statistics are in freefall," the group said. "Without additional government intervention a deep recession could evolve into a depression." Peter Spencer, its chief economic adviser and an economics professor at the University of York, said: "It is easy to criticise and conclude that none of the government's policies are working. "We must not lose sight of the fact that they have prevented the collapse of the monetary system. But more needs to be done urgently otherwise the economy will remain in recession." Lawrence Summers, incoming director of the US National Economic Council, said he expected further job losses but President-elect Barack Obama's economic rescue plan should help limit the rise in joblessness. In its latest forecast, Item predicted inflation and interest rates will stay close to zero, helping some homeowners. But it said these conditions will do little to aid the housing market, set to fall 22% more over the next 18 months. Meanwhile banks will be unable to lend to companies and consumers until the US sorts out its own banking problems. Item predicts business investment will fall by nearly 17% this year, dropping almost 6% in 2010. In addition, consumer spending is expected to shrink 2.6% in 2009 as employees fearing for their jobs become "much more cautious" consumers. In a rare note of optimism, it added that the weak pound offers opportunities for manufacturers by encouraging exports, leaving them in a good position for the recovery in international trade next year. Figures out on Friday will reveal that the economy shrank for a second successive quarter, the official definition of a recession. Recession Credit crunch guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (19 h ago)

• Head of M&S China store leaves job Head of M&S China store leaves job
01/18/2009
The head of Marks & Spencer's first store in China, which has been beset with problems since opening in October, has left the company. The store in Shanghai — its biggest in Asia and its first in mainland China — has had a far from smooth start. Not only did the launch coincide with the worldwide financial crisis, but the store has been burdened with problems on the ground, including the supply of food hit by hold-ups at customs. The retailer said that Richard Sweet, who had worked for M&S for more than 20 years, is leaving as part of extensive cuts to the company's head office operations. He had been involved in previous overseas ventures in eastern Europe, India and the Middle East. M&S said the shop was getting over stock problems and was proving to be one of its most successful overseas ventures. "We're happy with the performance — it's in the upper quartile of our international portfolio," a company spokesman said. "Ninety-five per cent of stock will be in the store by the end of next week." Following Sweet's departure, the store will be run by the management team for M&S's 10 stores in Hong Kong. "As part of the cost-cutting exercise announced by M&S at the end of third quarter, Richard has already left the business," the spokesman said. This month, M&S decided to dismiss up to 450 people from its head office operations, about 15% of the workforce in those offices. Across the whole business, it is laying off more than 1,200 people to cut costs in the face of a dire slowdown on the high street. International expansion is a key part of M&S's strategy, with nearly 300 stores in 40 territories already open. The group's executive chairman, Sir Stuart Rose, believes the international arm has the potential to account for a fifth of sales. The group is particularly keen to build its presence in the Asian powerhouses of China and India. It wants to have up to 50 stores in China in the long term and hopes to open its doors in Beijing within the next two years. Retail industry Marks & Spencer China guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (20 h ago)

• Private equity firm CVC considers Royal ... Private equity firm CVC considers Royal Mail bid
01/18/2009
Union leaders and MPs have reacted angrily after it emerged that the private equity group CVC is considering a bid for a minority stake in Royal Mail. CVC, which has stakes in three European postal services, is at the early stages of working on a bid. Its other investments have included the Debenhams store chain and Formula One sports rights. The potential involvement of a private equity company has intensified anger felt by trade unions and the growing ranks of MPs opposed to the plans. "This move, by a private equity company, shows how dangerous the part-privatisation of the Royal Mail is," said Billy Hayes, the general secretary of the Communications Workers Union. "We are opening the British public mail service to the dangers of profiteers. "Around the world there are a number of private equity firms who have stakes in postal services ... they're not interested in public service but in the biggest possible profit." Geraldine Smith, the Labour MP for Morecambe and Lunesdale, who is leading the campaign against the part-privatisation, warned that private equity involvement would make Royal Mail's services more expensive. "Private equity companies are just looking for a fast return on their money and the only way they can do that is through higher prices and postage." She said the fact that bidders were emerging suggested Royal Mail did not need outside help. "It's pretty telling how quick off the mark interest is coming once the government says it's a possibility. That doesn't happen if it's a business that's in such dire straits." CVC could team up with TNT, the Dutch group that has already expressed an interest in the plans for part-privatisation, announced by the business secretary, Lord Mandelson. But the company may prefer to go it alone, having just completed raising ¤11bn (£9.9bn) to fund new European deals. CVC's chairman, Michael Smith, has said there is enough money in place to make investments without needing debt financing from banks. Mandelson's scheme to bring in private investors to the Royal Mail has been hugely controversial. An early day motion put down by Smith last week, has already attracted more than 90 signatures, while Jim McGovern, a ministerial aide in Mandelson's department, has resigned over the plans. Last month, the government backed the findings of a report by the former Ofcom deputy chairman, Richard Hooper, that Royal Mail should forge "strategic minority partnership" with a private company as part of a range of measures to safeguard its future, though it should remain in public ownership. Aside from TNT, bidders for the Royal Mail stake could include the parcel courier DHL, part of Deutsche Post. CVC's experience in the European postal market dates back to 2005, when it bought a 22% stake in Post Danmark from the Danish government. It later teamed up with Post Danmark to acquire half of the Belgian post office. Last year Post Danmark was merged with the Swedish post office, Posten, giving CVC a minority stake in the new combined company based in Stockholm. A spokesman for CVC declined to comment. Postal service Private equity guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (21 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 (3 d 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. (2 d 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. (2 d 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. (2 d 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. (2 d 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. (2 d 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. (2 d 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. (2 d 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. (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. (2 d ago)

• Students Covering Bigger Share of Costs ... Students Covering Bigger Share of Costs of College
01/18/2009
College students are covering more of what it costs to educate them, even as colleges are spending less on them. (11 h ago)

• For the Brave, the Moment Is Now For the Brave, the Moment Is Now
01/17/2009
Spurred by falling real estate prices and low mortgage rates, first-time buyers are cracking open the piggy bank earlier than planned. Traffic at open houses has stepped up. (1 d ago)

• Geithner’s Mistake on Tax Is Common, Exp... Geithner’s Mistake on Tax Is Common, Experts Say
01/17/2009
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. (2 d ago)

• Patient Money: Health Care You Can’t Aff... Patient Money: Health Care You Can’t Afford Not to Afford
01/17/2009
As the recession intensifies, more Americans are delaying doctor visits and medical treatments. What can you safely postpone, and what must be treated now? (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? (2 d 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. (2 d 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. (2 d ago)

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• Lessons from Siemens Lessons from Siemens
01/19/2009
Siemens is upbeat about its chances of getting its insurers to pay a big chunk of the $1.3 billion it paid to settle corruption probes in the United States and Germany. And that's a worry because... (1 h ago)

• How to make a killing in the crisis How to make a killing in the crisis
01/19/2009
It sounds counter-intuitive but there is money to be made out of debt. If you have the stomach for risk.One of the most fascinating trends of late has been the booming corporate bond market .... (1 h ago)

• Beware of Twitter: lawyers Beware of Twitter: lawyers
01/16/2009
The micro-blogging Twitter might be gaining 5,000 to 10,000 new accounts a day but lawyers are warning that it could be dangerous.Tresa Baldas in the National Law Journal says lawyers are warning... (3 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... (3 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. (2 d 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. (2 d 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. (2 d 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. (3 d ago)

• Banks' Moves Drag Down Stocks Banks' Moves Drag Down Stocks
01/17/2009
U.S. stocks fell last week, led by financial companies after Citigroup said it would split in two to stanch losses and after Bank of America required emergency federal funds for its takeover of Merrill Lynch. (1 d ago)

• Entrepreneurial Edge: Businesses Find a ... Entrepreneurial Edge: Businesses Find a Silver Lining in Inland California’s Downturn
01/18/2009
Universities and nonprofits in San Bernardino and Riverside Counties are extending support to small businesses. (11 h ago)

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