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Business News
for 01/29/2009

(last updated 7:30am EST 01/29/2009)

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• MARTS BULLISH ON BAM'S 'BAD BANK' MARTS BULLISH ON BAM'S 'BAD BANK'
01/29/2009
President Obama's "bad bank" became Wall Street traders' new best friend yesterday, sparking a rally over hopes of better rewards ahead in a banking rescue. Also yesterday, the Federal Reserve left the benchmark interest rate as low as zero, and... (4 h ago)

• PUTIN BLOWS LID AT DELL IN DAVOS PUTIN BLOWS LID AT DELL IN DAVOS
01/29/2009
Years of duking it out with business rival Steve Jobs was little help for Dell Computer chief Michael Dell, who got publicly smacked down by Russian Prime Minister Vladimir Putin yesterday in Davos, Switzerland. Putin had just delivered a... (7 h ago)

• SEC SET TO PROBE MUSIC CITY MAN SEC SET TO PROBE MUSIC CITY MAN
01/29/2009
The Securities and Exchange Commission yesterday accused a Nashville, Tenn., man of using the government's $700 billion rescue program to con unsuspecting investors. Gordon Grigg, an unregistered investment adviser, allegedly defrauded clients... (7 h ago)

• AOL FORCED TO CUT 700 JOBS AOL FORCED TO CUT 700 JOBS
01/29/2009
The media-and-technology layoff train made a stop at AOL yesterday, picking up 700 passengers from Time Warner's perpetually realigning Internet unit. In an internal memo obtained by The Post, AOL boss Randy Falco blamed both the economy and a... (7 h ago)

• STILL PINCHED FOR CASH, TIMES TO PITCH R... STILL PINCHED FOR CASH, TIMES TO PITCH RED $OX
01/29/2009
The New York Times, which is scrambling to raise cash after downplaying its debt woes, reported a steep plunge in profit and said it hired an investment bank to sell its stake in the Boston Red Sox. Fourth-quarter earnings fell 48 percent as... (7 h ago)

• LAZARD'S MORAL HAZARD LAZARD'S MORAL HAZARD
01/29/2009
Lazard Capital Markets employees are in an uproar over a demand by the boutique investment firm's bosses that workers sign a questionable sexual-harassment contract or forfeit their bonuses. According to a Jan. 20 company-wide memo written by CEO... (7 h ago)

• EINHORN IS BUYING GOLD EINHORN IS BUYING GOLD
01/29/2009
Greenlight Capital founder David Einhorn, 40, is finally taking his grandfather's advice. The $5.1 billion hedge fund is buying gold for the first time on fears of inflation from increased government spending. Since Einhorn was 10 years old... (7 h ago)

• EVERYTHING YOU WANTED TO KNOW ABOUT THE ... EVERYTHING YOU WANTED TO KNOW ABOUT THE GDP
01/29/2009
DID you know that the govern ment counts the free checking you get at the bank as part of your income? Not a big part, to be sure, but it adds up. Tomorrow at 8:30 a.m. Washington will report its first estimate of how the nation's economy did in... (7 h ago)

• SI'S FALLING DOMINO SI'S FALLING DOMINO
01/29/2009
Condé Nast Chairman S.I. Newhouse Jr. yesterday unleashed his annual so-called "January surprise," pulling the plug on Domino after four years of publication and losses that were believed to have reached $12 million last year. Though the... (7 h ago)

• BOFA BOSS DODGES YET ANOTHER BULLET BOFA BOSS DODGES YET ANOTHER BULLET
01/29/2009
Bank of America chief Ken Lewis' embattled career lived to see another day yesterday after the bank's directors voiced support for him despite a growing sense on Wall Street that BofA bungled its merger with Merrill Lynch. Many Wall Street eyes... (7 h ago)

• WEILL PITCHES IN WEILL PITCHES IN
01/29/2009
With its fortunes crumbling, Citigroup has received a helping hand from a figure from the past. The banking giant's former chairman and CEO, Sanford Weill, has agreed to give up millions of dollars in perks he has received since stepping down in... (7 h ago)

• CITI BANS LAVISH TRIPS FOR TOP PRODUCERS CITI BANS LAVISH TRIPS FOR TOP PRODUCERS
01/29/2009
Citigroup has pulled the plug on a series of plush, private-equity conferences and spa getaways intended to reward the highest-earning retail brokers at investment house Smith Barney. The hobbled banking giant, run by chief Vikram Pandit, is... (7 h ago)

• BUSINESS BRIEFS BUSINESS BRIEFS
01/29/2009
Boeing, gone Boeing said it plans to cut 10,000 jobs, or more than 6 percent of its workforce, including 4,500 that were previ ously announced. The new target was disclosed on a conference call after the company reported a net loss of $56 million... (7 h ago)

• BRIDGEHAMPTON, LI BRIDGEHAMPTON, LI
01/28/2009
From this "circa 1900s" traditional Mitchells Lane "landmark," you'll be able to walk to the Hampton Classic (no need to ride your horse!). It features five bedrooms (including a master suite with its own fireplace), 4½ bathrooms, a living... (10 h ago)

• UPPER EAST SIDE UPPER EAST SIDE
01/28/2009
Why not stay at the Carlyle? No, really, like, stay at the Carlyle - for as long as you want. Just be the first one to close the deal on this apartment at the "coveted" Carlyle House - the co-op conjoined to the hotel (where you can enjoy a "state... (10 h ago)

• LAUREL HOLLOW, LI LAUREL HOLLOW, LI
01/28/2009
The century has turned twice since this Queen Anne Victorian rose along these shores in 1898, but the concept of luxurious waterfront living hasn't changed all that much. The "compound" is still highly prized for its size (4 landscaped acres) and... (10 h ago)

• UPPER EAST SIDE UPPER EAST SIDE
01/28/2009
Most of us don't have a "domed ceiling," but this 2,400-square-foot, "triple-mint" classic six on Fifth Avenue does - in the foyer! So you can imagine what the rest of the rooms in this two-bedroom, 2½-bathroom co-op are like. For example... (10 h ago)

• GRAMERCY GRAMERCY
01/28/2009
Bedrooms: 1 Bathrooms: 1 Square feet: 600 Maintenance: $926 -- Some apartments are notable for floor-to-ceiling windows, but this East 17th Street townhouse co-op offering 12-foot ceilings makes quite an impression with floor-to-ceiling... (10 h ago)

• NORWALK, CONN. NORWALK, CONN.
01/28/2009
Bedrooms: 4 Bathrooms: 3 Square feet: 3,564 -- Though it was built in 2006, this "sophisticated" Colonial is marketed as "better than new," thanks in part to all the "embellishments" and "custom details." The master suite boasts a gas fireplace... (10 h ago)

• MIDTOWN MIDTOWN
01/28/2009
Bedrooms: 2 Bathrooms: 2 Square feet: 1,129 Common charges: $1,053 -- Forget the view from the Empire State Building - with this condo, you can step out onto your private terrace, 28 floors above Fifth Avenue, and enjoy a perfect view of the... (10 h ago)

• Albania cuts interest rates to 4.75% Albania cuts interest rates to 4.75%
01/29/2009
Albania's central bank cut on Wednesday its interest rates by half a point for the first time in two years, local media reported. The cut, from 6.25 percent to 5.75 percent, came amid the global financial crisis and was meant to stimulate the country's economy, central bank governor Adrian Fullani told reporters. Albanian Prime Minister Sali Berisha has said on the sidelines of the World Economic Forum in Davos, Switzerland, that his country's exports would be "severely affected" ... (7 h ago)

• Spain enters recession for first time in... Spain enters recession for first time in 16 years
01/29/2009
The Spanish economy is in recession for the first time since 1993 after its gross domestic product (GDP) contracted during the final two quarters of 2008, according to figures released by the Spanish central bank on Wednesday. The Spanish GDP fell 1.1 percent in the final quarter of 2008, following a 0.2 percent decline in the previous three-month period, the Bank of Spain said. The traditional definition of recession is two consecutive quarters of negative growth. "Acco ... (7 h ago)

• Amsterdam airport to cut up to 25% workf... Amsterdam airport to cut up to 25% workforce
01/29/2009
Amsterdam's Schiphol airport, one of the top five airports in Europe, announced plans on Wednesday to slash its workforce by 10 to 25 percent by the end of 2010. "A strong decline in traffic and increasing international competition have forced Schiphol Group to implement organizational adjustments," the airport operator said in a statement. The staff reduction will be achieved through natural attrition, outsourcing and job cuts, the group said, adding that it will draw up a redun ... (7 h ago)

• EU economy commissioner cautious about "... EU economy commissioner cautious about "bad bank"
01/29/2009
The European Union's chief economy official said here on Tuesday that it was too soon to start work on a "bad bank" to remove toxic assets and reactivate lending. Joaquin Almunia, Economic and Monetary Policy Commissioner, urged EU member states to coordinate at EU level on what the 'bad assets' need to be dealt with and "what is the best way to value them" before rushing into creating it. "The recent announcement of huge losses by some European banks has shown us that we are not ... (7 h ago)

• New York gold futures close below 900 do... New York gold futures close below 900 dollars
01/29/2009
The gold market in New York clearly disappointed the bull camp with its action on Wednesday. Gold fell for a second straight day despite rising oil futures and the moderately softened dollar. Apparently investors' appetite for higher risk portfolios like stocks undermined the gold market. The Dow Jones Industrial Average climbed 200.72 points, or 2.5 percent, to 8,375.45. As usual, strong gains in the equity market siphoned off money from the gold market. Surprisingly the sharp s ... (7 h ago)

• Wall Street rallies on bad bank plan, st... Wall Street rallies on bad bank plan, stimulus vote
01/29/2009
Wall Street rallied on Wednesday on reports of U.S. government's new plan to stabilize the banking sector and the prospect of the U.S. Congress' approval of the economic stimulus package. The financials got a huge boost after a White House official said that the government prepared to set up a so-called bad bank to absorb toxic investments. U.S. President Barack Obama's team may announce the outlines of the plan next week. The market also got a lift by the optimism that t ... (7 h ago)

• Crude prices rebound on U.S. stimulus pl... Crude prices rebound on U.S. stimulus plan
01/29/2009
Crude prices rebounded on Wednesday as the U.S. House of Representatives was expected to approve an 816-billion-U.S.-dollar economic stimulus plan. The U.S. Energy Department's Energy Information Administration said on Wednesday that U.S. commercial crude oil inventories jumped 6.2 million barrels from the previous week, almost twice what was expected. U.S. crude stocks have increased by more than 44 million barrels in the past four months, the biggest four-month rise since1990, ... (7 h ago)

• Boeing loses $56 mln in fourth quarter o... Boeing loses $56 mln in fourth quarter on strike impact
01/29/2009
The Chicago-based Boeing company's fourth-quarter net income declined to a loss of 56 million U.S. dollars, or 8 cents per share, mainly due to the now-settled machinists' strike. According to the fourth quarter financial report released by Boeing Wednesday, the revenues for the quarter declined 27 percent to 12.7 billion dollars, under the effects of the strike which reduced commercial airplane deliveries by approximately 70 units and revenues by an estimated 4.3 billion dollars. ... (7 h ago)

• Tokyo stocks close higher Tokyo stocks close higher
01/29/2009
Tokyo stocks closed higher Thursday with the key Nikkei index jumping 1.79 percent. The benchmark Nikkei 225 Average advanced 144.95 points to 8,251.24. The broader Topix index rose 14.14 points, or 1.76 percent, to 818.47. On the First Section, advancing issues outnumbered declining ones 1,096 to 495, with 123 others remaining unchanged. Value leader Sumitomo Mitsui Financial Group gained 450 yen, or more than 13 percent, to 3,810 yen while volume leader Mizuho F ... (7 h ago)

• Toshiba logs 1st operating loss in 7 yea... Toshiba logs 1st operating loss in 7 years
01/29/2009
Toshiba Corp. projected Thursday that the company will record 280 billion yen (3.11 billion U.S. dollars) in net and operating loss in fiscal 2008 as flash memory prices were slumping and global economic situation worsening. If that proves to be the case, the predicted loss will be the first since fiscal 2001. In fiscal 2007, Toshiba logged a net profit of 127.41 billion yen and an operating profit of 238.10 billion yen (2.64 billion dollars). Meanwhile, the company also ... (7 h ago)

• S Korea's manufacturing sentiment up in ... S Korea's manufacturing sentiment up in February
01/29/2009
South Korean business survey index (BSI) posted 49 in February, up from a record low of 44 in January, the Bank of Korea (BOK) said Thursday. "A set of rate cuts and economic stimulus plans helped lift manufacturers' confidence for February," said Chang Young-jae, a BOK official. Chang said, however, the rebound came like a reflex as the index for January severely worsened, adding that manufacturers' sentiment is expected to remain weak amid the deepening economic downturn. ... (7 h ago)

• Japanese firms in Thailand cut costs by ... Japanese firms in Thailand cut costs by sending Japanese staff back home
01/29/2009
Amid the rising global economic slump, some Japanese firms operating in Thailand have sent Japanese staff back to Tokyo to cut cost. Japanese firms are the largest foreign investors in Thailand, with up to 7,000 firms established in the country. Most of them are in the automotive, auto parts, electronics and steel industries. According to a recent joint survey in Japanese companies by the Japan External Trade Organization (JETRO) and Japanese Chamber of Commerce, Japanese firms e ... (7 h ago)

• Thai parliament approves economic stimul... Thai parliament approves economic stimulus package
01/29/2009
Thai Parliament approved an economic stimulus package worth 116.7 billion baht (3.4 billion U.S. dollars) on Wednesday night, said the Nation website on Thursday. Prime Minister Abhisit Vejjajiva said the government aimed to boost domestic demand to keep the economy buoyant in the wake of the global economic slowdown. The package includes handout money 2,000 baht (58 U.S. dollars)to low-income group, free tap water and electricity, free rides on public buses and trains, free educ ... (7 h ago)

• Philippines growth down to 4.6% amid glo... Philippines growth down to 4.6% amid global crisis
01/29/2009
The Philippines' economic growth slowed to 4.6 percent in 2008 amid the financial crisis which gripped the economies worldwide, the government said on Thursday. Last year's growth rate is lower than the 7.2-percent hike posted in 2007 when the economy grew at its fastest pace in more than 30 years. For the fourth quarter 2008 alone, the gross domestic product (GDP), which measures the value of goods and services produced by an economy, grew by 4.5 percent compared with 6.4 percen ... (7 h ago)

• Toyota to recall 3000 cars in New Zealan... Toyota to recall 3000 cars in New Zealand
01/29/2009
More than 3,000 late model Toyota Yaris cars are to be recalled in New Zealand due to a potential seatbelt fault, New Zealand media reported on Thursday. The move was part of a global recall by Toyota of more than 1.35 million Vitz, Belta, and Ractis cars. The Vitz is marketed in New Zealand as the Yaris. The potential fault is in the gas-fired pre-tensioner in the front seatbelts which, in a worst case scenario, could cause a fire after a collision. There have been no r ... (7 h ago)

• New Zealand's central bank cuts interest... New Zealand's central bank cuts interest rate to 3.5%
01/29/2009
The Reserve Bank of New Zealand on Thursday cut its Official Cash Rate from 5.0 percent to 3.5 percent, the lowest level in a decade. "Today's decision brings the cumulative reduction in the OCR since July 2008 to 4.75 percentage points. Lower interest rates will have a positive impact on growth, alongside a lower exchange rate and fiscal stimulus, provided firms and households do not unnecessarily contract their spending," said Reserve Bank Governor Alan Bollard. &$ &$Source: Xin ... (7 h ago)

• China tightens control on administrative... China tightens control on administrative spending
01/28/2009
China's central and local governments will be required to keep some administrative fees this year no higher than last year as the global financial crisis builds fiscal pressure in the country. Zero-growth must be maintained in government spending on car purchases, meetings, receptions and overseas travels this year, the Ministry of Finance (MOF) told Xinhua on Thursday. The MOF said it would strengthen oversight on government funds and investment and fight resolutely against ille ... (9 h ago)

• Xinjiang to invest heavily in rural high... Xinjiang to invest heavily in rural highways
01/28/2009
Northwest China's Xinjiang Uygur Autonomous Region is planning to invest 3.5 billion yuan (512 million U.S. dollars) this year in its rural highways, the regional transport department said Thursday. The money will be used to build and upgrade 11,000 km highways in rural areas, enabling 80 towns to have access to asphalt roads and 400 villages to be connected in the highway network, the department said. Xinjiang invested 3.2 billion yuan in rural highways last year, and about 2 mi ... (9 h ago)

• New guidelines keep Chinese cars on road... New guidelines keep Chinese cars on road
01/28/2009
In a freezing mid-winter gale, sales manager Li Hao is working overtime to handle loads of order sat Tengyuan Auto Selling Company off Beijing's Fourth Ring Road. "Many customers are anxiously waiting to drive a new car back home before the Spring Festival, so I've to make it so, around-the-clock," he says, wiping the sweat off his face. Like Li, the Chinese auto sellers, buyers and producers have seen a sign of hope in the Chinese government's new stimulus policies for the auto ... (9 h ago)

• Merrill Lynch:China not entering deflati... Merrill Lynch:China not entering deflation
01/28/2009
China's consumer prices will fall in February from a year earlier, but the falling year-on-year inflation doesn't mean deflation, Merrill Lynch said in a recent research report. "We do expect CPI inflation to turn negative in Feb. 2009," the investment bank said. But it noted a falling year-on-year inflation doesn't mean that China will enter a deflationary period, it said. "Both CPI and PPI inflation could decline further on higher bases due to the snowstorm and soaring energy p ... (9 h ago)

• Domino, Shopping and Decorating Magazine... Domino, Shopping and Decorating Magazine, Closes
01/29/2009
The three-year-old Conde Nast magazine will publish its final issue in March. (7 h ago)

• Times Co. Results Reflect Ad Slump Times Co. Results Reflect Ad Slump
01/29/2009
The company posted fourth-quarter income of $27.6 million, down 47.5 percent from a year ago. For the year, the company lost $57.8 million, after more than $300 million in non-cash charges. (7 h ago)

• Advertising: NBC Making the Most of Its ... Advertising: NBC Making the Most of Its Super Bowl Coverage
01/28/2009
NBC will get $30 million of free promotional time during the Super Bowl, but it is also banking on the opportunity for more than a temporary advertising jolt. (8 h ago)

• James Brady, Columnist Chronicling the P... James Brady, Columnist Chronicling the Power Elite, Dies at 80
01/28/2009
Mr. Brady helped start the Page Six gossip column at The New York Post, chronicled the doings of the New York power elite and wrote a gripping memoir of his combat experience in the Korean War. (8 h ago)

• Promising Fans at Game a View From the C... Promising Fans at Game a View From the Couch
01/28/2009
In football, the best seat in the house may be in the living room, not at the game. Now sports officials are trying to bring the screen to the stadium, not the other way around. (9 h ago)

• Digital TV Beckons, but Many Miss the Ca... Digital TV Beckons, but Many Miss the Call
01/28/2009
For older and low-income viewers who still use set-top rabbit ears or rooftop antennae, the switchover to digital television has often proven a bewildering and cumbersome burden. (9 h ago)

• ABC Said to Consider ‘Kimmel’ in ‘Nightl... ABC Said to Consider ‘Kimmel’ in ‘Nightline’ Slot
01/28/2009
The network has held discussions about moving its comedy star to compete directly with Conan O’Brien. (10 h ago)

• YouTube Close to Video Deal for Pro Tale... YouTube Close to Video Deal for Pro Talent
01/28/2009
YouTube and the William Morris Agency, the Hollywood talent agency, are close to signing a deal that would place the company’s clients in made-for-the-Web productions. (10 h ago)

• Washington Post’s Book World Goes Out of... Washington Post’s Book World Goes Out of Print as a Separate Section
01/28/2009
The Washington Post has decided to shutter the print version of its Sunday stand-alone book review section and shift reviews to space inside two other sections of the paper. (10 h ago)

• Congressional Quarterly Is for Sale Congressional Quarterly Is for Sale
01/28/2009
The move by the owner of the St. Petersburg Times is an attempt to separate the most profitable part of the business from the more troubled flagship newspaper. (11 h ago)

• Advertising: Advertisers Change Game Pla... Advertising: Advertisers Change Game Plans for Super Bowl
01/28/2009
Advertisers that have purchased commercial time on networks during the Super Bowl are pondering changes to the ads they plan to run in those spots on account of the economy. (18 h ago)

• Self-Publishers Flourish as Writers Pay ... Self-Publishers Flourish as Writers Pay the Tab
01/28/2009
Companies that charge writers to publish are growing while many mainstream publishers are losing ground. (19 h ago)

• For Iraqi Journalists, Free Press vs. Fr... For Iraqi Journalists, Free Press vs. Free Land
01/28/2009
Iraq’s land-for-journalists program illustrates the challenges democratic principles face when they clash with entitlements that were never before questioned. (1 d ago)

• Film Channel Has Name, but No Network Ca... Film Channel Has Name, but No Network Carrier
01/27/2009
Epix, backed by Paramount Pictures, MGM and Lionsgate premium movie channel, will launch online in May, having not yet found a television distribution deal. (1 d ago)

• New Analysis: Change at Union May Re-ene... New Analysis: Change at Union May Re-energize Hollywood Talks
01/27/2009
The firing of Doug Allen, the executive director of the Screen Actors Guild, could mean a return to long-stalked talks on a labor contract. (1 d ago)

• Movie Production Incentives Are Said to ... Movie Production Incentives Are Said to Help New York
01/27/2009
The revenues yielded by New York’s tax incentives for film and television production more than cover their costs, a study found. (1 d ago)

• BBC Assailed for Refusing to Carry Gaza ... BBC Assailed for Refusing to Carry Gaza Appeal
01/27/2009
Citing concern with protecting its impartiality in the Arab-Israeli dispute, the BBC declined to broadcast an appeal by aid agencies for victims of the recent conflict. (1 d ago)

• Advertising: Teaching Teenagers About Ha... Advertising: Teaching Teenagers About Harassment
01/27/2009
Digital harassment has gotten to be such a problem that it’s now the focus of a campaign from the Advertising Council. (1 d ago)

• William Kristol’s Column in the Times En... William Kristol’s Column in the Times Ends
01/27/2009
A single sentence printed below Mr. Kristol’s weekly column in the Monday issue broke the news: “This is William Kristol’s last column.” (1 d ago)

• Senate Approves Digital TV Delay Senate Approves Digital TV Delay
01/27/2009
The Senate voted to delay next month’s transition to June 12 because some viewers would not be ready for the switch. (1 d ago)

• Royal Dutch Shell Reports Q4 Net Loss Royal Dutch Shell Reports Q4 Net Loss
01/29/2009
Royal Dutch Shell, one of the biggest oil companies, posted a $2.81 billion net loss in the final quarter of 2008, the company said. (7 h ago)

• Santander Offer Pressures Rivals to Matc... Santander Offer Pressures Rivals to Match It
01/29/2009
Banco Santander offered to pay $1.8 billion to reimburse private banking clients for money lost in Bernard Madoff’s alleged Ponzi scheme. (7 h ago)

• Europe Ponders Its Next Step in Intel In... Europe Ponders Its Next Step in Intel Inquiry
01/29/2009
Intel’s decision to defy European antitrust investigators raised questions about how to handle the remainder of the investigation. (7 h ago)

• Sony and Toshiba Report Losses for Quart... Sony and Toshiba Report Losses for Quarter
01/29/2009
Sony and Toshiba reported losses for the last quarter and Nintendo lowered its profit forecast as the earnings season revealed the extent of the erosion in demand. (7 h ago)

• Putin’s Grasp of Energy Drives Russian A... Putin’s Grasp of Energy Drives Russian Agenda
01/28/2009
Vladimir V. Putin has long built his strategy for the rebirth of Russia around the export of natural resources. (9 h ago)

• Breakingviews.com: China and U.S. in Cur... Breakingviews.com: China and U.S. in Currency Spat
01/28/2009
A war of words is flaring between China and the United States that could leave both sides losers. (9 h ago)

• In Davos, Russia and China Blame Capital... In Davos, Russia and China Blame Capitalists for Crisis
01/28/2009
At the World Economic Forum, the leaders of the former bastions of the Communist bloc rebuked the U.S. and other capitalist countries for dragging the world into crisis. (10 h ago)

• Siemens Profit Drops 81%, but Revenue Is... Siemens Profit Drops 81%, but Revenue Is Up
01/28/2009
The falling profits were caused by the sale last year of one of Siemens’s businesses, but the sale helped boost the company’s revenues. (23 h ago)

• Canon’s Quarterly Profit Tumbles Canon’s Quarterly Profit Tumbles
01/28/2009
The world’s largest digital camera maker announced profits 81.5 percent down compared to the year before. (23 h ago)

• European Court Refuses to Delay Intel In... European Court Refuses to Delay Intel Inquiry
01/27/2009
European regulators have been investigating Intel’s business practices since the start of the decade, after a complaint by a rival, Advanced Micro Devices. (1 d ago)

• Japan Moves to Take Stakes in Ailing Com... Japan Moves to Take Stakes in Ailing Companies
01/27/2009
The country outlined a plan to inject state funds into ailing companies in exchange for stakes in them, a move that echoes the partial nationalization of some troubled financial firm in the U.S. and Europe. (1 d ago)

• Britain Offers $3.2 Billion in Aid to It... Britain Offers $3.2 Billion in Aid to Its Carmakers
01/27/2009
After months of pleas from unions and executives of Jaguar Land Rover and General Motors’s Vauxhall, Britain joined other governments bailing out their auto industries. (1 d ago)

• W.T.O. Finds China Copyright Law Lacking W.T.O. Finds China Copyright Law Lacking
01/27/2009
China was found to have failed to protect and enforce copyrights and trademarks on a wide range of goods. (1 d ago)

• Olhão Journal: From a Portuguese Marsh, ... Olhão Journal: From a Portuguese Marsh, Salt, the Traditional Way
01/27/2009
What to do when a dream of marketing microalgae goes bust? One group of entrepreneurs found an answer in the salt marshes of Portugal’s Algarve region. (1 d ago)

• Barclays to Write Down £8 Billion, but A... Barclays to Write Down £8 Billion, but Asks for No Help
01/26/2009
After investors punished its stock last week, Barclays attempted to restore trust in its earnings, saying it did not need fresh capital. (2 d ago)

• France Looks to Help Airbus With Loan Gu... France Looks to Help Airbus With Loan Guarantees
01/26/2009
The move is squarely aimed at helping Airbus and its parent company, European Aeronautics Defense and Space, maintain production during the current credit crunch. (2 d ago)

• Siemens Quits Venture to Build Reactors Siemens Quits Venture to Build Reactors
01/26/2009
The decision by Siemens, the German engineering company, to withdraw from a venture with Areva adds financial challenges to the French nuclear reactor builder. (2 d ago)

• In India, Clues Unfold to a Fraud’s Fram... In India, Clues Unfold to a Fraud’s Framework
01/26/2009
As investigators seek a clearer picture of Satyam’s accounting, many wonder whether its executives had help. (2 d ago)

• UBS Is Said to Have ‘Weeks’ to Release D... UBS Is Said to Have ‘Weeks’ to Release Documents
01/26/2009
Federal prosecutors have given UBS “several weeks” to hand over scores of United States client names or face possible indictment over its offshore banking services. (2 d ago)

• OPEC Achieves Cuts in Output, Halting Pr... OPEC Achieves Cuts in Output, Halting Price Slide
01/26/2009
Members of the oil cartel have slashed their output by more than three million barrels a day in recent months, temporarily stopping the slide in oil prices. (3 d ago)

• If Money Is Cheap, Why Can't I Get A Loa... If Money Is Cheap, Why Can't I Get A Loan?
01/28/2009
Even after the banks have been given more than half-a-trillion dollars in bailout funds, the Fed said Wednesday that credit conditions "remain extremely tight," reports Anthony Mason. (12 h ago)

• Japan Airline Boss Sets Exec Example Japan Airline Boss Sets Exec Example
01/28/2009
He's out to set an example: a Japanese airline CEO who takes no corporate perks. Barry Petersen meets the executive who rides the bus, eats in the cafeteria, and even cut his own salary. (14 h ago)

• The Impossible-To-Track Bank Bailout The Impossible-To-Track Bank Bailout
01/28/2009
It's been impossible to track what the banks are doing the federal billions of tax dollars they got from the bailout, as Sharyl Attkisson found out when she tried to follow the money. (14 h ago)

• Fed Keeps Rates Near Zero, Vows More Mov... Fed Keeps Rates Near Zero, Vows More Moves
01/28/2009
The Federal Reserve says the economy has weakened further and signaled it will keep a key interest rate near zero for quite "some time" to cushion the fallout. (18 h ago)

• GM To Cut Controversial "Jobs Bank" GM To Cut Controversial "Jobs Bank"
01/28/2009
General Motors Corp. said Wednesday that its "jobs bank" program will end Monday, following a similar move at Chrysler LLC that helps satisfy the conditions the government imposed when it lent the automakers $17.4 billion late last year. (19 h ago)

• Boeing Posts Loss, Slashes 10,000 Jobs Boeing Posts Loss, Slashes 10,000 Jobs
01/28/2009
Boeing Co., the world's second-largest airplane maker, swung to a surprise fourth-quarter loss, hurt by a labor strike that disrupted deliveries. It also announced job cuts totaling 10,000 and forecast 2009 earnings that missed analyst expectations. (20 h ago)

• Toyota Announces Recall Of 1.3M Cars Toyota Announces Recall Of 1.3M Cars
01/28/2009
Toyota is recalling 1.3 million vehicles worldwide due to a seat belt defect. The recall includes more than 130,000 Yaris models sold in the U.S. (22 h ago)

• Time To Buy House May Be Approaching Time To Buy House May Be Approaching
01/28/2009
An expert explained her thinking, and offered some buying strategies, on The Early Show. (22 h ago)

• Senate Grills SEC Officials On Madoff Senate Grills SEC Officials On Madoff
01/28/2009
A multibillion-dollar pyramid scheme allegedly spawned by Bernard Madoff is being probed by a Senate panel that will question federal regulators responsible for inspecting investment firms and enforcing action against violations. (1 d ago)

• Dire Warnings Hang Over Davos Dire Warnings Hang Over Davos
01/28/2009
The worst financial crisis since the Great Depression cast gloom over the opening of the World Economic Forum with warnings against creeping protectionism and expectations that government bailouts alone will restore the world's economies. (1 d ago)

• Treasury Weighs Hard Choices To Save Ban... Treasury Weighs Hard Choices To Save Banks
01/28/2009
President Obama's top advisers are in the final stages of debating several perilous options to right the financial system, all of which are likely to prove unpopular and in some cases carry a significant risk of failure. (1 d ago)

• Starbucks Stops Brewing Decaf After Noon Starbucks Stops Brewing Decaf After Noon
01/27/2009
Starbucks customers who are used to getting their decaf grande mochachino after lunch will have to wait a little longer than usual to get their fix. (1 d ago)

• Treasury Doles Out $386M To 23 Banks Treasury Doles Out $386M To 23 Banks
01/27/2009
The Treasury Department said Tuesday it has distributed another $386 million to 23 banks, the first awards from the federal bailout fund since President Barack Obama took office. (1 d ago)

• Investors Robbed Of $370M In Ponzi Schem... Investors Robbed Of $370M In Ponzi Scheme
01/27/2009
The owner of a New York investment firm ran a $370 million Ponzi scheme, luring in clients with promises of astronomical returns while secretly blowing tens of millions of dollars on bad trades and conspicuous spending, federal authorities said. (1 d ago)

• Yahoo Swings To Loss, But Beats Street Yahoo Swings To Loss, But Beats Street
01/27/2009
Yahoo handily cleared Wall Street's pessimistic earnings expectations for a grim fourth quarter and matched anticipated revenue, but charges swung the Internet pioneer to a net loss for the quarter. (1 d ago)

• Congress Takes Aim At Wage Discriminatio... Congress Takes Aim At Wage Discrimination
01/27/2009
Congress sent the White House what is expected to be the first legislation that President Barack Obama signs into law, a bill that makes it easier for women and others to sue for pay discrimination. (1 d ago)

• State Farm To Fla.: We're No Longer Ther... State Farm To Fla.: We're No Longer There
01/27/2009
Florida's largest private homeowners insurer - State Farm Florida - is planning to stop selling property insurance in the state. (1 d ago)

• Missing Hedge Fund Mgr. Surrenders To Fe... Missing Hedge Fund Mgr. Surrenders To Feds
01/27/2009
A Florida hedge fund manager who disappeared after agreeing to an independent audit turned himself in to authorities to face securities and wire fraud charges. Arthur Nadel is accused of bilking investors of over $300 million. (1 d ago)

• After Bailout, Lavish Spending Lives On After Bailout, Lavish Spending Lives On
01/27/2009
Citigroup has received so much bailout money to date that the American taxpayer is now its major stockholder. So there was outrage when it was reported that the company is taking delivery of a new, $50 million luxury corporate jet. (1 d ago)

• Bank Execs Still Clock In Despite Failur... Bank Execs Still Clock In Despite Failures
01/27/2009
At banks that are receiving federal bailout money nearly nine out of every 10 of the most senior executives from 2006 are still on the job, according to an Associated Press analysis of regulatory and company documents. (1 d ago)

• Ford reports $5.9 billion fourth-quarter... Ford reports $5.9 billion fourth-quarter loss
01/29/2009
Ford Motor Co. said Thursday it lost $5.9 billion in the fourth quarter, but also said it has no plans to seek federal aid unless economic conditions worsen. (3 h ago)

• NYT: Stimulus components vary in speed, ... NYT: Stimulus components vary in speed, efficiency
01/28/2009
Analysis: The impact of the $819 billion economic stimulus package will be felt within weeks once the final version becomes law, but estimating its effectiveness is far more complex. (11 h ago)

• Starbucks to cut 6,700 jobs, close 300 s... Starbucks to cut 6,700 jobs, close 300 stores
01/28/2009
Starbucks Corp. said Wednesday that it would cut as many as 6,700 jobs as it closes hundreds more stores and eliminates more positions at its corporate headquarters. (15 h ago)

• House passes Obama economic stimulus pla... House passes Obama economic stimulus plan
01/28/2009
The House of Representatives approved $819 billion in spending increases and tax cuts at the heart of President Barack Obama's economic recovery program Wednesday evening. (15 h ago)

• Postal service considers cutting deliver... Postal service considers cutting delivery day
01/28/2009
Postmaster General John Potter says the massive deficits facing the post office could force the agency to cut out one day of mail delivery per week. (15 h ago)

• Even Super Bowl not recession-proof Even Super Bowl not recession-proof
01/28/2009
In years past, the Super Bowl was so much more than a game. It was an outright orgy of football, glitz and gluttony, a celebration of excess where too much was never enough. (16 h ago)

• Rough ride but worth it for the self-emp... Rough ride but worth it for the self-employed
01/28/2009
As Perry Weaver fixes problems beneath the hood of a customer's pearl white 1968 Corvette, his biggest worry is the country's financial engine. (18 h ago)

• AOL axing 700 jobs in cost-cutting move AOL axing 700 jobs in cost-cutting move
01/28/2009
Time Warner Inc.'s AOL business is cutting up to 700 jobs, or about 10 percent of the Internet unit's work force, in a bid to cut costs. (19 h ago)

• Administration vows bailout overhaul Administration vows bailout overhaul
01/28/2009
The Obama administration is increasing transparency in the government's controversial $700 billion financial rescue program and said more reforms are in the works. (19 h ago)

• Fed, citing weak economy, holds rates fa... Fed, citing weak economy, holds rates fast
01/28/2009
The Federal Reserve says the economy has weakened further and signaled it will keep a key interest rate near zero for quite “some time” to cushion the fallout. (19 h ago)

• The home you save could be your own The home you save could be your own
01/28/2009
A growing number of American homeowners in foreclosure are representing themselves as what are called pro se – a Latin phrase meaning “for oneself” -- litigants in court proceedings. Msnbc.com's Mike Stuckey explains why. (22 h ago)

• IMF slashes global economic growth outlo... IMF slashes global economic growth outlook
01/28/2009
The world economy will essentially come to a halt this year as more than $2 trillion of bad assets clog the financial system, the International Monetary Fund said Wednesday. (22 h ago)

• Fed moves to help distressed homeowners Fed moves to help distressed homeowners
01/28/2009
With home foreclosures spiking, the Federal Reserve is taking steps to try to keep some distressed borrowers in their homes. (23 h ago)

• U.S. wading deeper into banking industry U.S. wading deeper into banking industry
01/28/2009
The Obama administration is drawing up a new plan to save the banking system, sparking talk of a government "nationalization" of the industry. Here is what is at stake. (23 h ago)

• Newsweek: Workforce shifts to more part-... Newsweek: Workforce shifts to more part-time jobs
01/28/2009
In this economy, a job isn't just a job: It's a pastiche of part-time gigs, project contracts and freelance work. In the last year alone, the number of people working part-time because they couldn't find full-time work jumped from 4.5 million to nearly 8 million. (23 h ago)

• Oil rises on positive company earnings Oil rises on positive company earnings
01/28/2009
A ripple of market optimism supported oil prices Wednesday as major U.S. companies announced profits despite the worst recession since the 1930s. (1 d ago)

• Toyota to recall over 1 million cars wor... Toyota to recall over 1 million cars worldwide
01/28/2009
Toyota Motor Corp said Wednesday it would recall more than 1.35 million Vitz and two other models globally to fix a defect in the seatbelt, a component in the exhaust system or both. (1 d ago)

• Risky options weighed to save banks Risky options weighed to save banks
01/27/2009
President's advisers debate perilous choices to right economy, all of which may prove unpopular and even carry a significant risk of failure. (1 d ago)

• Dark side of Wall Street at center stage Dark side of Wall Street at center stage
01/28/2009
The dark side of American business was on full display Tuesday as four men accused of defrauding investors were arrested, investigated, surrendered or sentenced. (1 d ago)

• Target to cut jobs, close distribution c... Target to cut jobs, close distribution center
01/27/2009
Target said on Tuesday that it will cut roughly 600 jobs at its headquarters, leave another 400 positions unfilled and close a distribution center that employs 500 workers. (1 d ago)

• SEC regulators on defense at Madoff hear... SEC regulators on defense at Madoff hearing
01/27/2009
Government and industry regulators were on the defensive Tuesday at a hearing over their failure to uncover the multibillion-dollar fraud allegedly carried out by Bernard Madoff. (1 d ago)

• The wealthy turn stealthy as economy wea... The wealthy turn stealthy as economy weakens
01/27/2009
Call it stealth wealth. As the economy weakens, the wealthy and the businesses that cater to them say it's chic to scale back extravagant spending and play down affluence (1 d ago)

• Chastised Citigroup grounds plans for pl... Chastised Citigroup grounds plans for plane
01/27/2009
Citigroup Inc. has no plans to take possession of a new $50 million business jet aircraft, a spokesman said after the bank's plan to take delivery of the plane raised political hackles. (1 d ago)

• AP: 9 in 10 execs at bailout banks keep ... AP: 9 in 10 execs at bailout banks keep jobs
01/27/2009
At banks that are receiving federal bailout money nearly nine out of every 10 of the most senior executives from 2006 are still on the job, according to an Associated Press analysis of documents. (1 d ago)

• Thain to pay back office decorating cost... Thain to pay back office decorating costs
01/26/2009
Former Merrill Lynch Chief Executive John Thain said Monday he plans to reimburse Bank of America for a $1.2 million renovation of his office a year ago. (2 d ago)

• Big U.S. companies announce massive job ... Big U.S. companies announce massive job cuts
01/26/2009
A slew of American heavyweight companies, including Caterpillar, Pfizer, Sprint Nextel, Home Depot and General Motors, announced cuts Monday adding up to 45,000 jobs lost. (2 d ago)

• The top 10 Super Bowl ads of all time The top 10 Super Bowl ads of all time
01/26/2009
Nothing makes the economy appear sound like scores of corporations lining up to spend $3 million for a 30-second advertisement that may or may not help their company. (2 d ago)

• Super Bowl feels, and ignores, down econ... Super Bowl feels, and ignores, down economy
01/26/2009
The economy has put a hit on plans for this year's Super Bowl, not that visitors to Tampa for the game and hundreds of millions watching on TV will be able to tell the difference. (2 d ago)

• Pfizer to buy Wyeth for $68 billion, cut... Pfizer to buy Wyeth for $68 billion, cut jobs
01/26/2009
Pfizer Inc., the world’s largest drugmaker, will pay $68 billion for rival Wyeth in a move that will consolidate two of the industry’s largest drug developers. (2 d ago)

• Libel trial begins over mortgage scam ch... Libel trial begins over mortgage scam charges
01/26/2009
A libel trial scheduled to begin Monday is the latest chapter in a Texas-sized legal battle between a mortgage-servicing firm and a wealthy family that has raged for years. (3 d ago)

• Schaeffler asks Germany for bail-out Schaeffler asks Germany for bail-out
01/29/2009
She's one of Germany's richest and most powerful businesswomen. Now Maria-Elisabeth Schaeffler, the fur-clad owner of the eponymous car-components firm , is asking Berlin to bail it out with up to €4bn (£3.7bn). And today, in an interview with the country's best-selling tabloid, Bild , the 67-year-old worth an estimated £6bn refuses to dip into her considerable wealth to help pay off the family firm's huge debts. Schaeffler, which makes ball-bearings, won control of tyre-maker Continental last year with a €10bn hostile takeover partly secured by alleged stealth through the use of obscure options. Conti was then three times bigger than Schaeffler. But with the global car industry in meltdown, Schaeffler and her executive team find themselves with a mountain of debt they are unable to finance and stand accused of over-reaching themselves with the takeover. Only hours after crisis talks with government ministers in Berlin last night about the state taking a stake in Conti, she told Bild: "Our wealth is bound up with the company. We have always invested the profits to grow and develop the company." Having bought Conti at a big discount, she said nobody could have anticipated the collapse in its shares and she could not call the deal off on legal grounds. But Peer Steinbrück, the arch-conservative finance minister forced to run up Germany's biggest post-war budget deficit, has already rejected Schaeffler's request for a helping hand from the government's latest stimulus package . Other ministers are reportedly more receptive. Steinbrück said: "We simply cannot explain to people how we can use taxpayers' money to support firms enjoying billions in wealth." But Schaeffler can rely on powerful political allies, including former chancellor Gerhard Schröder and Lower Saxony premier Christian Wulff, who recently helped her and her son gain seats on Conti's supervisory board. Conti is based in Hannover, Lower Saxony's capital, where Schröder was premier in the early 1990s. Automotive industry Germany Global recession Entrepreneurs Europe guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (3 h ago)

• Nintendo slashes profit forecast as Wii ... Nintendo slashes profit forecast as Wii sales slide
01/29/2009
Nintendo has slashed its profit forecast in another sign that the strength of the yen is wounding Japan's exporters. The Japanese computer games giant said it expects to sell 1m fewer Wii consoles this financial year than last, down from 27.5m to 26.5m. Its overseas earnings have been eroded by unfavourable exchange rates, as well as the drop in consumer demand. It slashed its profit forecast for the 12 months to the end of March by 16% to ¥530bn (£4.15bn), down from ¥630bn. Nintendo had enjoyed buoyant demand for both the Wii – whose wireless controllers appeal to a broad audience – and its DS handheld game player. Some analysts had expected the company to announce that it would sell more Wiis than expected, thanks to the popularity of games such as Wii Sports and Mario Kart Wii. Other Japanese technology companies are also suffering from the strong yen, which has risen by 20% against the dollar in the last year. Toshiba warned today that it expects to post its first operating loss in seven years, having suffered a slump in demand for its computer chips and electronic devices. It is cutting 4,500 jobs worldwide. And Sony reported a 95% plunge in quarterly net profits earlier today, with sales slipping by 25% in the last three months of 2008. It has seen a rapid deterioration in demand for core products such as flat-screen TVs and digital music players. Analysts had expected very poor numbers from Sony, which last week said it expects to post a record operating loss for the year to March . Nintendo's warning, though, was a surprise. Earlier this week Goldman Sachs had predicted it ought to grow profits next year. "The DS cycle may be on the wane but we believe it is only beginning to reap rewards on high-priced Wii software," its analysts said. On a brighter note, Nintendo did say that it expects to sell 31.5m DS consoles this financial year, 1m more than previously forecast. The wider Japanese economy is also suffering from the twin threat of a strong currency and a global economic downturn. Exports have been falling for months, and tumbled by 35% in December . The yen has strengthened from ¥113 to the dollar at the start of 2008 to less than ¥90 to the dollar today, making Japanese-made products more expensive overseas. Global recession Nintendo Sony Japan Profit warnings guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (6 h ago)

• Shell posts biggest drop in quarterly pr... Shell posts biggest drop in quarterly profits in a decade
01/29/2009
Royal Dutch Shell today posted its biggest drop in quarterly profits in a decade, as the slump in the oil price sent earnings sliding. The energy giant made profits of $4.8bn (£3.4bn) in the fourth quarter of last year, a 56% drop on the $10.9bn profits it achieved in the previous three months. But Shell still set a new UK record for annual corporate profits of $31.4bn (£22.3bn). That equates to more than £2.5m an hour, and may spark fresh calls for a windfall taxes on such large profits. Shell benefited from the unprecedented surge in the oil price, which hit an all-time high of $147 per barrel last summer Chief executive Jeroen van der Veer called the performance "satisfactory", and warned that the global economic downturn was cutting demand for oil and gas. Despite that, Shell is raising its shareholder dividend by 11% to $0.40 per share, and pledged to increase it by a further 5% in the current quarter. "Industry conditions remain challenging, and we are continuing the focus on capital and cost discipline in Shell," said Van der Veer, Andy Lynch, who runs the Schroders European Dynamic Growth Fund, welcomed the results. Shares in Shell slipped slightly this morning, losing 7p to £17.69. Analysts had been expecting Shell to turn in quarterly profits of $4bn on a replacement cost basis - which strips out changes in the value of stocks of oil held within the company. Despite the economic slowdown Shell did not announce any job cuts today. But the company did say it expects to spend slightly less on capital investment this year than last, as it balances its "commitments to projects under construction and growth, with the more challenging economic landscape in 2009." The company, which will see a change of leadership this summer when Van der Veer hands over to the current finance director Peter Voser, has already trimmed spending on its controversial oil sands schemes which need an oil price of at least $70 to make real profits compared with today's price of little over $40. Shell is more vulnerable than many on its portfolio because it has deliberately moved into other "unconventional" hydrocarbon schemes such as gas-to-liquids which is also costlier than traditional methods of producing fuel. Today's annual profits will probably keep Shell ahead of rival BP. It will report next Tuesday and is heading for a full-year income of $26.5bn. BP is expected to produce a final-quarter profit of $2.98bn which would be flat on the same period 12 months ago. The comparison is flattered by the difficulties BP encountered with its refining business following the Texas City fire. The service sector that supports the oil companies has already started major cutbacks with the largest, Schlumgerger, announcing 5,000 redundancies last week. But oil companies are aware that the last time they slashed their own budgets when the oil price was low - in 1998 - they left themselves unable to grow their production for many years after. The other alternative for oil companies is to cut their dividends but Shell has not done this since the second world war. Royal Dutch Shell Oil and gas companies Oil Energy guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (7 h ago)

• Carphone Warehouse introduces new tariff... Carphone Warehouse introduces new tariff for hard-up broadband customers
01/29/2009
Carphone Warehouse is introducing an emergency broadband tariff for cash-strapped existing TalkTalk customers struggling to pay their monthly bills. Under its emergency plan, TalkTalk will waive its £6.49 monthly charge for six months. Customers will only pay £10.50 a month line rental, although the service offered is slower than TalkTalk's basic offering, at 512Kb per second compared with "up to" 8Gb per second. The plan also comes with a monthly download limit of just 1GB compared with the usual 40GB. It does, however, also include inclusive UK weekend calls and anytime calls to other TalkTalk customers. Premium, international and mobile calls will be barred to help customers limit their expenditure. "We want to help our customers as much as we can as we know many face financial difficulties this year," said the chief executive, Charles Dunstone, who last year charged his staff with creating a plan to help hard-up consumers. "If they are worried about their household finances or their ability to pay for whatever reason, we encourage them to call us," he said. "If you're anticipating hardship, perhaps as part of a job loss, your home phone and broadband service has never been more important in helping you get back on your feet. We hope our emergency plan will keep people connected, and give them the opportunity to apply for jobs and learn new skills." The plan is available to customers who have been with TalkTalk for six months or more. Once they have been on the plan for six months, they will be automatically moved back to the standard myTalkTalk package. Customers will not be asked to "pay back" the rest of the standard monthly tariff at any point and their normal contract will not be extended. Carphone's offer comes ahead of the release of Lord Carter's Digital Britain report later today which will highlight the growing importance of broadband services to the UK economy. Carphone Warehouse Telecommunications industry Telecoms Broadband Internet Internet, phones & broadband Recession Mobile phones Digital media Consumer affairs guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (7 h ago)

• US House of Representatives passes Obama... US House of Representatives passes Obama's $819bn economic bill
01/28/2009
The US House of Representatives last night approved a $819bn stimulus plan in an early congressional victory for Barack Obama - although no Republicans voted for the package. The bill, providing $544bn in public spending and $275bn in tax cuts for individuals and businesses, was passed with a 244-188 majority. A total of 177 Republicans and 11 Democrats opposed it, dashing the president's hopes of bipartisan support. It now goes to the Senate, which could begin debate as early as Monday. Democratic leaders have pledged to have legislation ready for Obama's signature by mid-February. Obama said after the vote: "This recovery plan will save or create more than three million new jobs over the next few years." He later welcomed congressional leaders of both parties to the White House for drinks as he continued to lobby for the legislation. Asian markets rose, following the vote with Hong Kong jumping more than 5%. Republican leader John Boehner said the measure "won't create many jobs, but it will create plenty of programmes and projects through slow-moving government spending". The stimulus bill was approved hours after the Federal Reserve pledged to keep interest rates at "exceptionally low levels," and use "all available tools" to jolt the US out of recession, as it warned that the outlook for the world's largest economy has weakened further. After its regular rate-setting meeting, the Fed said it would leave interest rates unchanged at their historical low of 0-0.25%, and pointed to evidence that the economic outlook is still deteriorating. "Industrial production, housing starts, and employment have continued to decline steeply, as consumers and businesses have cut back spending. Furthermore, global demand appears to be slowing significantly," it said. The Fed said it was not yet ready to take the more radical step of buying government bonds outright to pump more cash into banks but could do so, if it thought such measures would be "particularly effective in improving conditions in private credit markets". One member of the Fed's decision-making committee, Jeffrey Lacker, voted for the Fed to start buying treasury bills immediately. On Wall Street the Dow Jones industrial average closed nearly 2.5% up, led by bank shares. Obama's stimulus package includes funding for job-creation programmes such as road building and public transport. Republicans said they do not include enough tax cuts for businesses and are an excuse for growing government and expanding the budget deficit. The Democrats countered that without rapid state action, the crisis would get worse. On its side, the Fed has exhausted its conventional ammunition of interest rate cuts. "The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. "The focus of the committee's policy is to support the functioning of financial markets and stimulate the economy through open market operations and other measures that are likely to keep the size of the Federal Reserve's balance sheet at a high level," the central bank said. United States Barack Obama Global economy Credit crunch guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (11 h ago)

• Cheap debt junkies have to go cold turke... Cheap debt junkies have to go cold turkey as supply dries up
01/28/2009
It has become a depressingly familiar tale. On Monday, the shoe chains Barratts and PriceLess filed for administration, as did Sofa Workshop and the gay retail chain CloneZone. Land of Leather and childrenswear retailer Adams, already in administration, announced a swathe of store closures. The high street is beginning to look like a smile with missing teeth. But it is not just retailers that are buckling under the weight of recession. In recent months there have been company failures in industries from oil exploration to car dealerships, newspapers and the leisure industry, including the first new racecourse in Britain for 80 years. Just as consumers became addicted to borrowing, so much of corporate Britain has become bloated by cheap debt. Private equity firms have been widely condemned for loading debt on to the balance sheets of businesses such as Debenhams to pay themselves hefty dividends. But shareholders have also acted as cheerleaders, encouraging boards to "sweat" their balance sheet or face being condemned as poor managers. Many are also guilty of raising debt for deals at the top of the market, others with a nervous glance over their shoulder, ramping up their borrowings and handing money to shareholders to avoid being victims of a private equity takeover themselves. Like previous recessions most companies are facing a sharp drop off in demand. Unlike previous recessions the banks are at the heart of the crisis and are unwilling to lend more or even to refinance debts. Many of Britain's companies are like junkies being forced to go cold turkey after their dealers, the banks, have suddenly cut off supplies. Figures published by accountants Deloitte yesterday showed the number of firms in administration in the fourth quarter of 2008 was up 30% on the same months in 2007. "We started to see an increase in the number of insolvencies at the beginning of last year, starting with small regional property firms," said Richard Fleming, head of restructuring at the accountants KPMG. "But we are only just starting here. In two years' time, there will be an awful lot more insolvencies. The difference between this and the previous recession is that the financial services sector is in utter turmoil. It is the repayment and refinancing of debt that is the big issue faced by corporations now." He said companies had been going under in the past few months at "hyper-speed". The first hit have been in the front line of consumer spending. Notable casualties have included the music retailer Zavvi, furniture retailer Ilva, fashion groups MK One and Miss Sixty, which controls the Energie brand, home decor chains Fads and MFI and of course Woolworths, the collapse of which has scarred almost every high street in Britain. "Customers are short of spare money and are nervous of spending what spare money they have got – especially now that many people have fears about their jobs," said Richard Dodd at the BRC. What begins on the front line soon spreads to suppliers. That is already becoming evident in house building, which has been thrown into turmoil. The building materials group Wolseley admitted this week its debt has climbed to £3bn amid a profit slump. The company has already cut about 15,000 jobs since the middle of 2007 and is likely to need further cash if it is to survive. Darwinian The beginning of a recession at least can be characterised as a Darwinian exercise, a winnowing out of the weakest businesses. Chris Higson at the London Business School posed the question of whether the "right" companies are failing. "The first ones that go are the fragile ones, the ones that were hanging on by their fingernails," he said. "Woolworths is everyone's favourite example. No one could really understand how it had survived so long. It had lost its franchise. Its profit margin in the past few years was so low it had no margin for error." The other reason for the failure of Woolworths, Higson said, is common to many retailers. When the business was still owned by Kingfisher, it sold off its property and leased it back to Woolworths, stripping equity from its balance sheet, saddling the chain with high ongoing commitments on lease payments and offering it very little flexibility in a downturn. "Woolworths is not the only one that sold its shops and leased them back," he said. "This is very much something that has happened over the past 10 years. It is often blamed on private equity but everyone was doing it." But the "true disaster", he said, had been the withdrawal of the banks. A 20% drop in sales would have pushed Woolworths further into loss, but in normal circumstances "it could have survived with the help of a friendly bank. Traditionally the banks have absorbed the shock of a recession but they are not now able to do that. The banks have exited the scene. There is nobody to help." In the last recession, interest rates were at 15%, making even small debts difficult to deal with. Even so, he said, there is "no doubt" that many companies are more vulnerable in this recession than in previous downturns. Recession also cuts off other sources of cash: there is little appetite in the equity markets and companies trying to sell assets are doing so at just the moment when there are few buyers. Governments are showing some willingness to step in, but resources are limited. Who's next? Some of the most highly indebted quoted companies include Sports Direct, Ladbrokes, Next and Intercontinental Hotels. "Consumer debt is so stratospheric that any business that has dependency on the consumer will have trouble," said Fleming. "We are starting to see hotel groups under pressure, travel and leisure, anything associated with the consumer." The sectors that tend to suffer are those that have high fixed costs and can't quickly be reshaped. The classic examples are airlines and hotels. XL, the third largest package holiday group, has been the first domino to fall. After the last recession, accounting firms became the largest hotel operators in the country. The head of restructuring at one large investment bank said there was some complacency among boards until Lehman Brothers went under in September. "People suddenly thought if it could happen to Lehman, it could happen to them." Investors that specialise in buying distressed debt at a discount in the hopes of profiting from a restructuring, are looking widely – at auto parts firms, chemicals, financial services, retail, media, property and construction. "There will be very few sectors that don't get adversely affected," said Kevin Hewitt, head of FTI Corporate Finance. One of the most heavily indebted industries is house building. During the boom, builders were encouraged to use debt to expand more quickly, buying land and leveraging their return on investment. "There was a backdrop of a supply and demand imbalance, there was a low stable interest rate environment. It felt like you didn't need to make moribund returns, you could leverage up and sweat your assets," said Mark Hughes, an analyst at the City firm Panmure Gordon. "The sensible ones like Bellway or Berkeley kept a lid on it." Oakdene Homes became the first publicly quoted house builder to file for administration last week after failing to negotiate new debt terms with its banks, which were demanding repayment. Barratt Homes and Taylor Wimpey, both involved in consolidation at the peak of the market, are shouldering the heaviest debt: Barratt has £1.4bn and Taylor Wimpey £1.5bn. The absolute number is not necessariliy the one that counts. Banking covenants are often tied to gearing – debt as a proportion of capital or assets – so even if the homebuilders continue to pay off their debts, they might still be in danger of defaulting as the value of their land falls. Hughes reckons the banks could step in by exchanging the debt for a stake in the firm, potentially seizing control. The behaviour of the banks is also likely to limit the growth of many businesses as recession ends. Perversely, the companies that have been best managed are now having their banking facilities curbed. Bovis is having its facility cut from £220m to £160m by 2011, leaving it with less flexibility to pursue opportunities as they arise. So far it has been mostly small or medium sized firms that have gone bust. In downturns larger companies tend to turn the screws on smaller firms. But in previous recessions, large corporations have also gone down and experts think this will be no different. As it wears on, it won't only engulf badly run companies. It is not about virtue, said Higson. "When a hurricane arrives, where your house happens to be and how it is built determines whether it will collapse." Retail industry Credit crunch 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)

• Britain's economy faces worst year since... Britain's economy faces worst year since 1930s, warns IMF
01/28/2009
The International Monetary Fund added to Gordon Brown's woes last night when it warned Britain will be at the bottom of the league table of major developed countries this year, in the weakest year for the global economy since the second world war. After seeing activity collapse in every continent over the past three months, the Washington-based fund said it expected the UK economy to contract by 2.8% this year – its worst single-year performance since the Great Depression of the 1930s. The IMF said Britain would be especially hard-hit by a slump in the west that would see a 2.5% contraction in Germany, a 2.6% drop in output in Japan and a 1.6% retrenchment in the US. Developed nations would suffer a recession as severe as those of the mid-1970s and early 1980s, and for the first time in the post-war era collectively suffer a year of falling output. A separate report yesterday from the International Labour Organisation said a worsening economy could see 50 million more people out of work worldwide as a result of the financial and economic crisis that began in 2007. Brown was forced to admit for the first time yesterday that the UK is in "a deep recession", sounding a very different note from his claims in the autumn that Britain was better prepared than other countries to resist the downturn. The forecasts from the two organisations came as business leaders gathered in sombre mood for the annual meeting of the World Economic Forum in Davos. News International chief Rupert Murdoch told delegates the crisis was getting worse: "It's going to take drastic action to turn it around, if it can be turned around quickly. I believe it will take some time. We've been living in the western world way above our means. We've been on a great binge and it's come to an end; and we have to live though the correction." Howard Davies, director of the London School of Economics, said: "People in the UK and the US are going to get poorer. They will have to spend less than their income for a while." No 10 resisted claims that the IMF report showed Britain was going to fare worse than all other large economies, pointing out that Japan and Italy were predicted to do worse than Britain over the full 2008 to 2010 forecasting period. The IMF highlighted the rising risk of deflation and said there were signs of a "pernicious feedback loop" between the crisis-stricken financial markets and the real economy, as it cut its global growth forecast from the 2.2% forecast two months ago to 0.5%. Although growth in the rest of the world is also expected to slow sharply, the fund said expansion in China and India would spare the global economy as a whole from shrinking this year. For the UK, the IMF said it was revising down its growth forecast from -1.3% to -2.8%, and had also become gloomier about the prospects of recovery in 2010. With the government obliged to call a general election by the spring of 2010, ministers have been hoping that the economy will bounce back from the middle of this year to record growth of around 1.75% next year. The IMF said it expected the UK to register virtually no growth at all in 2010, with GDP expanding by 0.2%. Alistair Darling will present updated Treasury forecasts for the economy in his spring budget, but the chancellor is already reconciled to revising down his prospects for the UK. George Osborne, the shadow chancellor, said: "Gordon Brown cannot answer the simplest question of all: if Britain is well prepared, as he claims, why are we facing the worst recession in the world?" Recession Economics IMF Global recession Unemployment and employment statistics guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Starbuck's closes 300 more shops in US a... Starbuck's closes 300 more shops in US as recession hits coffee market
01/28/2009
Thousands of baristas are to lose their jobs as Starbucks shuts stores to cope with dwindling sales of lattes, cappuccinos and frappuccinos as cash-strapped consumers lose their thirst for coffee. The Seattle-based chain tonight revealed a 70% slump in quarterly profits to $64.3m and announced that it intends to shed 6,700 employees this year. It is closing 300 stores, two thirds of which will be in the US, on top of 660 shutdowns last year. As the global economy turns sour, appetite for Starbucks' premium-priced drinks appears to be waning. Like-for-like sales fell by 10% at American stores and dropped by 3% elsewhere in the world - including a decline in the UK during the three months to December. Starbucks' chief executive, Howard Schultz, is joining in the belt-tightening by asking the company's board to cut his basic salary from $1.2m to $10,000. Schultz, 55, dropped off Forbes' list of the world's billionaires last year as the value of his stake in Starbucks plunged. In a statement, Schultz blamed the "weakening global consumer environment" for Starbucks' problems. He said the company was following a "well developed plan to strengthen our business through more efficient operations and by preserving the fundamental strengths and values of our brand". Starbucks' share dropped 2.5% in after-hours trading on the New York Stock Exchange. The architect of Starbucks' growth during the 1980s and 1990s, Schultz returned as chief executive a year ago to try reignite flagging momentum. He has made a series of changes including improving customer loyalty cards, reviving in-store coffee grinding and axing hot sandwiches which obscure the aroma of coffee in stores. In another money-saving ruse reported this week, Starbucks' US stores will stop brewing decaffeinated coffee during the afternoons unless a customer specifically asks for it. Analysts say Starbucks' market has been eroded by improved coffee offerings at fast-food stores such as McDonald's which typically charge much lower prices. Starbucks has 16,875 stores globally. It once boasted of an ambition to have 20,000 outlets in the US and a further 20,000 overseas, although expansion plans have since been radically scaled back. Starbucks Retail industry Global recession United States guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (16 h ago)

• Aviva warns companies over pay rises Aviva warns companies over pay rises
01/28/2009
One of the City's largest investors has warned companies that it does not expect any rises in boardroom pay this year at a time of heightened scrutiny of executive behaviour. Aviva Investors, which owns 2% of the stockmarket, said it wanted a "moratorium on pay rises" together with "considerable restraint and prudence" towards bonuses as the economy deteriorates rapidly and employees face redundancy. With investors facing mounting criticism for failing to prevent the collapse of boardroom standards in Britain's banks, Aviva has taken the initiative and written to the pay consultants and City lawyers who devise remuneration for top bosses to say they must put the brake on pay. The letter notes that basic pay for directors has risen by 94% since 2000 and total cash pay, which includes short-term bonuses, is up 259%. Aviva said there was no justification for rises based on increased company size or share price. The new Lloyds Banking Group, which is 44% owned by the government, has had to withdraw plans to give pay rises to its executives after shareholders said no. The bank had argued that the pay rises were justified because it had doubled in size after its rescue takeover of HBOS. Aviva said many companies had "paid little more than lip service" to pay and conditions for staff but said "particular attention" should be given to employees, especially where a "company is retrenching and/or making redundancies". Special awards and retention packages will also be rejected by Aviva, which believes such deals for key executives are "inappropriate, ineffective ... and poorly designed". The fund management group, which prides itself on its corporate governance record, is also urging consultants and lawyers to look for ways to change bosses' contracts so bonuses can be clawed back if it becomes clear they were earned on an "illusory performance". It makes special reference to bankers – the subject of most criticism after profits were wiped out by credit crunch write-downs and share prices shattered by government bail-outs – whose pay it argues should be "risk-adjusted". Aviva also wants companies to compare pension benefits for directors with those available for staff and said it wanted a say in pay issues, rather than just being presented with "a fait accompli". It warns companies "the sensitivity of executive pay issues should be obvious". The letter was signed by Iain Richards, Aviva Investors' regional head of corporate governance. But the fund manager declined to comment on its contents. It is understood that Aviva sounded out other investors about the tone of the letter, which reflects sentiment among most major investors. The investment community has been stunned by criticism of its inability to rein in corporate excess in the run-up to the credit crunch. Lord Myners, City minister, has suggested shareholders were not doing their job properly. Legal & General tried to defend institutional investors at a frank meeting with MPs this week, insisting it had repeatedly asked for the resignations of Royal Bank of Scotland's chairman, Sir Tom McKillop, and chief executive, Sir Fred Goodwin. The two men refused to quit until the government made their departure a condition of a £20bn taxpayer bail-out. Executive pay is also being discussed in the House of Lords, where the Labour peer Lord Gavron has introduced a private members' bill that would require firms to state the ratio of bosses' to workers' pay at the front of the annual report. Aviva is also objecting to attempts to retrospectively reduce performance targets to ensure bonuses are paid out. Earlier this month shareholders threw out the remuneration report of the housebuilder Bellway after it made such adjustments. It was only the second time that a vote had gone against a remuneration report since GlaxoSmithKline five years ago. Other firms trying to push through pay rises are being warned that they stand to be treated the same way as Bellway. Similarly, Aviva has warned firms they will need permission to change any targets. Aviva Executive salaries Market turmoil Credit crunch Lloyds Banking Group Legal and General guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (18 h ago)

• US Federal Reserve keeps interest rates ... US Federal Reserve keeps interest rates at near-zero
01/28/2009
The Federal Reserve tonight pledged to keep interest rates at "exceptionally low levels," and use "all available tools" to jolt the US out of recession, as it warned that the outlook for the world's largest economy has weakened further in recent weeks. In a statement issued after its regular rate-setting meeting, the Fed said it would leave interest rates unchanged at their historical low of 0-0.25%, and pointed to evidence that the economic outlook is still deteriorating. "Industrial production, housing starts, and employment have continued to decline steeply, as consumers and businesses have cut back spending. Furthermore, global demand appears to be slowing significantly," it said. The Fed said it was not yet ready to take the more radical step advocated by many economists, of buying government bonds outright to pump more cash into banks - but it could do so, if it thought such measures would be, "particularly effective in improving conditions in private credit markets." One member of the Fed's decision-making committee, Jeffrey Lacker, vote for the Fed to start buying Treasury bills immediately. Share prices on Wall Street soared, as investors welcomed the Fed's renewed commitment to tackling recession, and the House of Representatives prepared to pass President Obama's ambitious $825bn economic rescue plan. Although the Fed has exhausted its conventional ammunition of interest rate cuts, it is enacting a series of unconventional measures to drive down interest rates across the economy. "The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability. The focus of the Committee's policy is to support the functioning of financial markets and stimulate the economy through open market operations and other measures that are likely to keep the size of the Federal Reserve's balance sheet at a high level," the statement said. The Fed has expanded its balance sheet massively, as it struggles to keep cash flowing to families and businesses. It is buying billions of dollars of assets, including mortgage-backed securities issued by the state lenders Freddie Mac and Fannie Mae, and the "commercial paper" used by many large companies to fund their day-to-day operations. The Fed chairman describes this approach as "credit easing," targeting specific markets where lending has frozen - contrasting that with the "quantitative easing" pursued by the Japanese government to drag itself out of a decade-long spiral of recession and deflation, which focused on pumping more reserves into the banking system. Mervyn King, the governor of the Bank of England, recently signalled that Britain, too, is readying a programme of "unconventional measures". As a first step, Alistair Darling's latest bailout package for Britain's banks, unveiled last week, included a £50bn fund to purchase corporate bonds. King is expected to exchange letters with the Chancellor by the end of the week, laying down a framework for exactly how the money will be spent. US economy United States 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 (20 h ago)

• Larry Elliott: At Davos, there seems lit... Larry Elliott: At Davos, there seems little appetite for contrition, let alone for the radical measures we need now
01/28/2009
In normal times, the World Economic Forum at Davos kicks off with a tub-thumping session in which executives congratulate themselves on another record-breaking year, claim none of it would have been possible without free markets, privatisation and de-regulation, and warn governments not to blunder in and ruin everything. These, though, are not normal times and this year one of the opening sessions in Davos featured Benjamin Zander , the conductor of the Boston Philharmonic Orchestra, showing how it was possible for the former masters of the universe to cheer themselves up by singing along to Beethoven's Ode to Joy. But it would be wrong, dangerously wrong, to assume that the events of the past 18 months have changed the world forever. Sure, there is a recognition that things went badly awry during the bubble. Yes, there is the mantra – always familiar at the bottom of any economic cycle – that this must never be allowed to happen again. But there is, as yet, little evidence of an action plan and – to be honest – little real appetite for radical measures either. Gerard Lyons, the chief economist at Standard Chartered Bank, says the problems of the global economy can be summed up as the three G's – Glass-Steagall, Greenspan and greed – and it is a compelling argument. Glass-Steagall was the enforced split between retail and investment banks forced on Wall Street by Roosevelt in the 1930s, but after years of lobbying it was repealed by Bill Clinton in the late 1990s. The repeal of Glass-Steagall allowed commercial banks to forget about their ordinary customers and act like high-rolling investment banks. Alan Greenspan's over-lax monetary policy meant there was plenty of cheap money sloshing around the global economy. And greed meant that a very large chunk of this excess liquidity ended up, not in productive uses, but in risky speculative plays. How much of this has changed? Not much. Far from severing investment banks from retail banks, the crisis of the past year has created a small number of megabanks. Interest rates are heading for zero, or are already at zero, across the developed world. And there has been scant evidence of an end to the corrosive bonus culture of the past decade. Such contrition as is in evidence in Davos is tempered by a plea from banks, hedge funds and private equity that government should not "throw the baby out with the bath water" through excessive regulation. That, it is said with an apparent straight face, would risk killing the goose that lays the golden egg. Three thoughts spring to mind. The first is that there were no second chances for big labour when it was blamed for the stagflation of the 1970s; regulation – and plenty of it – was imposed and been kept in place. Second, the sort of regulations required – global action to clamp down on tax havens, legal curbs on bonus packages that encourage systemic risk, the banning of new products until they have been approved in the way that new drugs have to be sanctioned – are a long way off. Third, the sad fact is that real reform will not take place unless this crisis gets a whole lot worse. Which, if the mood in Davos is anything to go by, it easily could. Davos Global recession Banking guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (23 h ago)

• Spanish police arrest six over £420m Lan... Spanish police arrest six over £420m Langbar fraud allegations
01/28/2009
Spanish police have arrested six people in connection with a $600m (£420m) alleged fraud involving the falsification of assets of a company on the London Stock Exchange's junior market. Police in Barcelona confirmed today they had arrested five Spaniards and an Argentine at the request of Britain's Serious Fraud Office, which has spent three years investigating allegations of fraud at Langbar International, formerly known as Crown Corporation. Officers from City of London police and staff from the Serious Fraud Office travelled to help their Spanish colleagues when the arrests were made and the six men were interviewed last week. "Six people were arrested and interviewed as part of the ongoing investigation into certain inviduals previously associated with Crown Corporation Limited," an SFO spokeswoman confirmed. She said the search and arrest operations had been carried out at four homes and two business addresses in Madrid, Barcelona and Alicante. A Barcelona police spokesman told the Guardian the six men had appeared before an investigating magistrate but had not being remanded in custody. The operation had been sparked by their inability to produce International Certificates of Deposit to prove their right to £370m of bank deposits, Spanish police said. The SFO would not comment on whether it would try to extradite the men, who are aged between 56 and 76. Corporate governance Spain guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Alistair Darling receives Institute for ... Alistair Darling receives Institute for Fiscal Studies warning
01/28/2009
Alistair Darling will be forced to raise taxes or cut spending by an extra £20bn to plug the black hole in the public finances blown by the credit crunch – and it will still take a generation for government debt to return to pre-crisis levels, according to the Institute for Fiscal Studies (IFS). In the Green Budget, the IFS's annual assessment of the choices facing the chancellor, the thinktank calculates that public debt has risen by £10,000 for every family in the country as a result of the collapse in tax revenues from the ailing financial sector and housing markets, and the costs of the Treasury's £20bn fiscal stimulus package. Darling announced a tough financial squeeze from 2010-11 onwards in November's pre-budget report , to help get the public finances back on an even keel, but the IFS says he will have to do much more, raising taxes or cutting spending by an additional £20bn – the equivalent of a 4p rise in the basic rate of income tax. The Treasury has conceded that public debt is set to rocket to 57.4% of GDP by 2013-14 as recession takes its toll, busting through the 40% ceiling set by Gordon Brown under his "sustainable investment" rule, but the IFS believes even that forecast is too optimistic and debt will actually peak at 62.1% of GDP. Even if Darling followed the IFS prescription for an extra £20bn of tax rises or Whitehall cuts, the thinktank reckons it will still take until 2030 to wrestle borrowing back below the 40% ceiling. It warns that the continuing price of this borrowing for future taxpayers will depend on the whims of the financial markets: "If investors lose confidence in the government's willingness and ability to implement the tough decisions necessary to get the public finances back into shape and borrowing costs rise, the fiscal arithmetic will become increasingly unattractive." The IFS infuriated Brown throughout his decade-long stint as chancellor by repeatedly pointing to a "black hole" in the public finances, which would eventually have to be filled with higher taxes or lower public spending. It likens the evolution of the public finances since 1997 to the Conservatives' record, characterising it as "three years of impressive fiscal consolidation, eight years of drift (masked by economic overconfidence), and then a big jump in borrowing thanks to recession and newly discovered structural weaknesses". Despite the thinktank's dire warning about the health of the public finances in the years ahead, it does offer some support for the government's fiscal-stimulus measures, in particular the 2.5% temporary cut in VAT announced in the pre-budget report. It argues that the decision may have boosted consumption by up to 1.2% and says: "Those dismissing it as a failure ignore the likelihood that things would have been even worse without it." Economics Economic growth (GDP) Economic policy Alistair Darling Government Borrowing Tax and spending Tax Credit crunch Recession Thinktanks guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Santander offers to compensate private b... Santander offers to compensate private banking clients in Bernard Madoff case
01/28/2009
Santander has offered to compensate private banking clients who lost €1.38bn (£1.3bn) in the alleged fraud by US broker Bernard Madoff to try to ward off a class action lawsuit and rebuild its tarnished reputation. Spain's largest bank is the first institution to make such an offer. Investors in its Optimal Strategic fund are thought to be some of the biggest victims and Santander said it had made the move "on the basis of purely commercial reasons" to help "maintain its business relationships with those clients". Spanish legal firm Cremades & Calvo-Sotelo has teamed up with America's Labaton Sucharow to represent victims. Both filed a class action lawsuit on Monday in a district court in southern Florida. "The putative class seeks a recovery of billions of dollars in damages," the law firms said. Javier Cremades, a partner at Cremades & Calvo-Sotelo, reportedly said last night that the Santander offer "went in the right direction". Santander counts some of Spain's richest people as its private clients, as well as a high number of Latin American investors. The offer will not apply to institutional investors. It means Santander's private clients will only lose the interest they expected to have accrued through Madoff's funds. They will be able to exchange their investments in Optimal for preference shares in Santander, with an annual coupon of 2%. The move will cost the bank €500m – a figure that will be absorbed in last year's results, which will be announced next Thursday. The Spanish bank previously announced that Optimal had a total exposure of €2.33bn to Madoff's alleged $50bn fraud while Santander itself only lost €17m . Santander shares rose 1.4% this morning. Reports from Spain have shown that many small Spanish investors put their savings into Madoff Securities via Optimal, including a retired school teacher who put half her savings in the fund, and a street vendor who invested more than $400,000 in lottery winnings in the fund. Victims who lost money investing with Madoff range from financial firms to charities and celebrities around the world. The latest to emerge was Hungarian-born actor Zsa Zsa Gabor, who has lost about $7m. US regulators now believe Madoff may never have made a single trade . He is accused of running a massive pyramid scheme, using cash from new investors to fund payments to earlier clients. He is still on bail in New York and wore a bullet-proof vest on his last court appearance. Bernard Madoff Banco Santander Banking Spain guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Industry accused of abusing EU's carbon ... Industry accused of abusing EU's carbon trading scheme
01/27/2009
Britain's biggest polluting companies are abusing a European emissions trading scheme (ETS) designed to tackle global warming by cashing in their carbon credits in order to bolster ailing balance sheets. The sell-off has helped trigger a collapse in the price of carbon, making it cheaper to burn high-carbon fossil fuels and leading to a fall in the number of clean energy projects. The moves were seized on by environmentalists and other critics who have previously criticised the European Union's ETS for delivering more windfall profits for business than climate change. "This [ETS] was not designed as a scheme to give corporates cheap short-term funding options in the face of a credit crunch meltdown where banks are not lending, but that appears to be what's happening," said Mark Lewis, a carbon analyst at Deutsche Bank. Steel, concrete and glassmakers are believed to be the main sellers along with financial speculators such as hedge funds. The sell-off of the pollution permits has led to carbon prices plunging 60% – from over €30 to around €12 per tonne. The EU's emissions trading scheme was set up as a market solution to cut greenhouse gas pollution from industry. Polluters were issued with permits that can be traded between companies and countries as a way of encouraging an overall reduction in carbon output. However, companies are now cashing them in for their own financial benefit. Up to €1bn-worth of carbon emissions permits are said to have been sold off in recent months as industrial companies see an opportunity to bring in funds at a time when their carbon output is expected to fall due to lower production. Environmentalists expressed anger last night about the way the ETS was being used. "The ETS has bowed to corporate self-interest at every stage of its design and implementation, so there is no surprise that it is now being used as a cash cow to see firms through a difficult financial phase," said Oscar Reyes, a researcher with Carbon Trade Watch. Point Carbon, an information provider and consultancy, claims the sell-offs are only one of a number of factors that are influencing prices and argues it is "rational" for companies to be selling off credits at this time. The falling price of oil – from $147 per barrel last summer to less than $40 now – has dragged down the cost of gas, making it relatively cheap to burn in power stations, it argues. "Recession in Europe is bringing a slowdown in manufacturing meaning less production and less emissions. Companies are doing exactly what is the rational thing to do in these circumstances which is to sell if they are long on credits. It is right that if they are emitting less then they do not need the credits so much and the price of carbon will fall," said Henrik Hasselknippe, global head of carbon at Point Carbon. But the price collapse brings echoes of 2006 when it emerged that EU states had given industry too many carbon credits, creating a glut that made them almost worthless. Since then the European commission has amended the scheme and some of the credits have been auctioned rather than given away. A study commissioned by the WWF environmental organisation from Point Carbon, published in March last year, estimated that "windfall profits" of between €23bn (£21.4bn) and €71bn would be made under the ETS between 2008 and 2012 on the basis that the price of carbon would be between €21 and €32. Up to €15bn could be made by British companies that were given credits they did not need. Analysts said it was very hard to identify on an individual basis which companies were selling their credits but easier to say which sectors they came from such as cement, whose production is expected to drop 20% this year and steel where volumes could fall by 15%. Lafarge, the world's biggest cement maker and owner of Blue Circle Cement in Britain, said last night that it had only sold a small number of credits on the open market. "We mainly sell our credits from one country to another, for example if we have too many in France then we might sell them to Romania if we don't have enough there. Very few credits are being sold on the [open] market," said a spokeswoman at its Paris headquarters, while steelmaker Corus was unavailable for comment. The collapse in the price of carbon has also caused a slowdown in clean energy projects in developing countries against which western firms can gain credits. The price of Clean Development Mechanism (CDMs) offsets has slumped by nearly 30% over the last couple of weeks. CantorC02e, a broker in the field, says it is scaling back its operations. The emissions trading firm has no immediate plans to cut its 40 staff, but says this cannot be ruled out while EcoSecurities, a stock-listed carbon offsetting company, has seen its share price collapse from £1.50 to less than 30p. The low price of UN-approved offsets, known as Certified Emissions Reductions, is slowing the number of clean energy projects being developed in China. "I'd say there is half the number of players now than there was a year ago. Banks have cut back considerably," said a small Chinese project developer. James Thompson, finance director of EcoSecurities, says he is confident that the price of carbon will rebound along with a wider economic recovery in 12 or 18 months' time. "The short-term price will also recover when the flow of credits stop coming on to the market and long-term pressure will come from governments realising they need a strong carbon price for environmental reasons." Emissions trading Climate change European Union Pollution Carbon emissions guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Banking crisis brings down Iceland gover... Banking crisis brings down Iceland government
01/26/2009
Iceland's prime minister today announced the immediate resignation of his government because of the country's severe financial crisis, which saw the collapse of the currency and banking system. Geir Haarde announced as recently as Friday that his coalition administration would remain in office until early elections called for May 9 after violent protests at its handling of the economic situation. Today he said his Independence party and its Social Democrat partners were quitting immediately after a disagreement over whether he should step down as prime minister. "I really regret that we could not continue with this coalition. I believe that that would have been the best result," he told reporters at parliament. "We couldn't accept the Social Democratic demand that they would lead the government. That is not something we agreed on in 2007." Haarde said he would speak to Iceland's president, Olafur Ragnar Grimsson, to arrange the formal dissolution of the coalition, which has ruled since May 2007. Haarde himself has been in office since mid-2006. The 57-year-old becomes the first world leader to leave office as a direct result of the financial crisis. Announcing the election date last week, Haarde revealed he had been diagnosed with throat cancer and would not be seeking re-election anyway. The prime minister's previous national popularity was obliterated in October when the global credit crisis ravaged Iceland's hugely indebted economy, leading to a collapse in the country's currency, the crown, and forcing the government to take control of its three major banks. The population of 320,000 – who had enjoyed years of rising incomes and high growth rates, thanks in no small part to an economy burdened with a foreign debt that peaked at 10 times the annual national GDP – now face a potential economic contraction of up to 10% this year, with unemployment rising rapidly. After months of rallies outside the parliament building, last week protesters pelted Haarde's car with eggs while riot police using teargas for the first time in the country since 1949. The protests continued at the weekend despite Haarde's announcement of the early election. Yesterday the country's commerce minister, Bjorgvin Gudni Sigurdsson, resigned, apologising for the collapse. "I accept my part of responsibility in the collapse of the banking sector even if numerous other people have their share of responsibility," Sigurdsson, a Social Democrat, told a press conference. Who will take over from Haarde is unclear. The leader of the Social Democrats, Ingibjorg Solrun Gisladottir, currently Iceland's foreign minister, immediately ruled herself out. She has only just returned to Reykjavik after undergoing treatment for a brain tumour in Sweden. Gisladottir has called for another senior member of her party, Johanna Sigurdardottir, the social affairs minister, to lead a new government. Iceland Credit crunch Global recession Banking guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (3 d ago)

• Miami's homeless inhabit vacant homes Miami's homeless inhabit vacant homes
01/28/2009
As many bank-owned homes in Miami stand vacant, activists are encouraging homeless people to move in as squatters. And no one's complaining. Dan Grech reports. (21 h ago)

• 'Buy American' clause creates conflict 'Buy American' clause creates conflict
01/28/2009
A "Buy American" clause in President Obama's economic stimulus proposal would require infrastructure projects to use U.S. raw materials, like steel. The clause has created a gap between free-market supporters and manufacturers looking to protect domestic industry. John Dimsdale reports. (21 h ago)

• D.C. newsletters rise as newspapers fall D.C. newsletters rise as newspapers fall
01/28/2009
The nation's newspapers are struggling. Many have closed their Washington bureaus to cut costs. But D.C. journalism is alive and well -- in the form of newsletters. Tamara Keith reports. (21 h ago)

• Ban lobbying from bailed-out firms Ban lobbying from bailed-out firms
01/28/2009
The Obama administration is looking for ways to change the financial rules that got us into this mess. But many of Wall Street's financial giants continue to finance Washington lobbyists. Commentator Robert Reich says the influence of those lobbyists needs to be squelched. (21 h ago)

• 'Bad bank' idea gaining steam 'Bad bank' idea gaining steam
01/28/2009
The idea of setting up a bad bank to soak up toxic assets is gaining traction. If it works, it could help usher in more lending from banks. But there's a lot standing in its way. Ashley Milne-Tyte reports. (21 h ago)

• EU pushes for global climate change EU pushes for global climate change
01/28/2009
The European Union is proposing to pay poor countries to get them to sign a climate change pact that will reduce carbon dioxide emissions. Will the money be enough of an incentive? Sam Eaton reports. (21 h ago)

• One person's pork is another's steak One person's pork is another's steak
01/28/2009
The House has approved President Obama's stimulus package. But the package is drawing complaints that it includes too many pork-barrel projects. But what's pork these days? Janet Babin reports. (21 h ago)

• Fed digs into toolbox for more solutions Fed digs into toolbox for more solutions
01/28/2009
The Federal Reserve says the economy has gotten worse since December. With interest rates already hovering around zero, what more can it do to get money moving again? Jeremy Hobson reports. (21 h ago)

• Phone Smart: Free Internet-Calling Servi... Phone Smart: Free Internet-Calling Services Join the Cellphone App Market
01/29/2009
Telephony providers like Skype and Fring make themselves available as apps. (7 h ago)

• What Red Ink? Wall Street Paid Hefty Bon... What Red Ink? Wall Street Paid Hefty Bonuses
01/28/2009
Despite crippling losses in 2008, financial employees in New York collected an estimated $18.4 billion in bonuses for the year. (8 h ago)

• Stimulus Plan Would Provide Flood of Aid... Stimulus Plan Would Provide Flood of Aid to Education
01/28/2009
Schools, universities and child care centers would receive $150 billion in new spending in the stimulus package scheduled for a vote in Congress. (16 h ago)

• It’s the Economy, Girlfriend It’s the Economy, Girlfriend
01/28/2009
A group called Dating a Banker Anonymous offers support to women whose romantic relationships have suffered from the economic downturn. (17 h ago)

• Relief Seen for Jobless and States in He... Relief Seen for Jobless and States in Health Care Plan
01/28/2009
For Democrats, the stimulus bill is also a tool for rewriting the social contract with the poor, the uninsured and the unemployed. (20 h ago)

• Annuities: What You Need to Know Annuities: What You Need to Know
01/27/2009
Annuities are a basic staple of modern portfolios, the financial equivalent of a backstop to guarantee a minimum of income in retirement. (1 d ago)

• Estate Planning: What You Need to Know Estate Planning: What You Need to Know
01/26/2009
Deciding what happens to whatever is left of your money when you die rarely gets the attention it should get. (2 d ago)

• Mutual Funds: What You Need to Know Mutual Funds: What You Need to Know
01/26/2009
Mutual funds are the building blocks of your investment portfolio. (2 d ago)

• Wall Street bonus time, despite recessio... Wall Street bonus time, despite recession
01/29/2009
The recession has not hurt the bankers. Not one bit. The New York Times reports that despite all the losses and taxpayer-funded bailouts, financial companies in New York collected an estimated $18.4... (1 h ago)

• CEO pessimism CEO pessimism
01/29/2009
Chief executive officers are a glum lot. According to the latest PricewaterhouseCoopers survey, most CEOs around the world are expecting a long and hard recovery. The survey found that only 15% of... (1 h ago)

• Ponzi schemes proliferate Ponzi schemes proliferate
01/28/2009
When the Bernard Madoff scandal broke, it was inevitable more Ponzi schemes would come to light. For a good reason too. With every bubble there is fraud. Look behind every bubble and you'll find... (8 h ago)

• Sarbanes-Oxley: It's crunch time for sma... Sarbanes-Oxley: It's crunch time for small companies
01/28/2009
It looks like the honeymoon is over for small companies.Incoming Securities and Exchange Commission chairwoman Mary Schapiro says she wants small public businesses to start complying with the... (8 h ago)

• The axe man cometh: get ready for a shor... The axe man cometh: get ready for a shorter working week
01/27/2009
It's the year of the axe with companies axing more than 75,000 jobs, led by Caterpillar which is sacking 20,000. For a good breakdown, check this little table from the Financial Times.The news... (1 d ago)

• Guess who's coming to Davos Guess who's coming to Davos
01/26/2009
The financial meltdown has hit the world's most prominent gabfest which kicks off in Davos today. Last year's event included Bill Gates, Bono and Queen Noor (pictured above) but this... (2 d ago)

• Obama's options Obama's options
01/26/2009
What are Obama's options to breathe life back into the banks and get the economy going again?Basically, it boils down to three options, says the New York Post's Michael Gray.The first is to... (3 d ago)

• The meltdown's rogue gallery The meltdown's rogue gallery
01/26/2009
So who is responsible for the financial crisis?The Guardian's City editor Julia Finch picks out the 25 who were at the heart of the meltdown.The list is headed by former Fed chairman Alan... (3 d ago)

• More Tips On Saving Money On Your Food B... More Tips On Saving Money On Your Food Bills
01/28/2009
Photo courtesy of iStockphoto, Image# 3000673 One thing that a lot of us love to do more than about anything is to eat. We love to eat and we love to eat a lot. It's definitely easier, too, to... (1 d ago)

• Saving Money on Food Tips Saving Money on Food Tips
01/27/2009
Photo courtesy of iStockphoto, Image# 1589114 When you fall into the habit of spending money regularly, it does not take long before you begin to ignore it altogether. Even worse, it becomes possible... (2 d ago)

• 7 More Ways to Save Money 7 More Ways to Save Money
01/26/2009
Photo courtesy of iStockphoto, Image# 2172516 When the winter comes and money is tight because of heating costs, finding ways to save money becomes a little tougher. Here are some simple tips about... (3 d ago)

• Congress sends Obama pay discrimination ... Congress sends Obama pay discrimination bill
01/27/2009
Congress sent the White House its first legislation of Barack Obama's presidency Tuesday, a bill that makes it easier for women and others to sue for pay discrimination. (1 d ago)

• Your Career: More companies using furlou... Your Career: More companies using furloughs
01/26/2009
Many companies, universities and governments across the country are forcing their workers to take time off. There’s one catch — no pay. (2 d ago)

• Out of work? Try self-employment Out of work? Try self-employment
01/26/2009
If you're among the thousands of unemployed now trying to go it alone, where do you start? (2 d ago)

Business

Technology

Sports

Entertainment

This is abundant, look forward to looking into ea...
John gogs :: 12/28/2009

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

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

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

out of control
staystrong :: 02/23/2009

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

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

• 6 held over $600 million stock fraud 6 held over $600 million stock fraud
01/28/2009
Spanish police have arrested six people in connection with a $600 million fraud on the London Stock Exchange, Spain's Interior Ministry said Wednesday. (1 d ago)

• The world’s most valuable pro sports tea... The world’s most valuable pro sports teams
01/27/2009
This may be hard to believe: In 2003, no pro sports team in the world was worth a billion dollars. By the end of 2008, there were 24. (1 d ago)

• Is Your Business Mentor or Idol on Twitt... Is Your Business Mentor or Idol on Twitter? How 'Bout your Competitors?
01/28/2009
Twitter has gotten a lot of hype and free press over the last few weeks. Some was good (it seems to have passed social bookmarking site Digg in market share) and some of it bad (a few dozen celebrity... (15 h ago)

• Will Employee Micro-Blogging Help Busine... Will Employee Micro-Blogging Help Business?
01/26/2009
Yammer: it's not a rare type of woodpecker or a new cocktail for yuppies. It's a micro-blogging tool similar to Twitter - but designed for businesses. VentureBeat ran a story last week on the... (2 d ago)

• Financing, With Strings Attached Financing, With Strings Attached
01/28/2009
Small business owners should think carefully before accepting an investor’s offer of cash. (9 h ago)

• All Dressed Up Like Art Galleries All Dressed Up Like Art Galleries
01/28/2009
Artists and merchants across the country are becoming more flexible in their attitude about where art should be sold. (10 h ago)

• A health care headache A health care headache
01/28/2009
Your Biz blog: It’s getting ugly out there for small business owners struggling to keep on paying high health insurance premiums for themselves and their workers. (19 h ago)

• The Market for MBA Grads Tightens Up The Market for MBA Grads Tightens Up
01/26/2009
National Public Radio ran a story today on the job prospects for MBA graduates these days. While it is harder to find a job than it used to be, many businesses evidently learned a lesson from the... (2 d ago)

• Obama's Aunt Has Immigration Hearing in ... Obama's Aunt Has Immigration Hearing in April
01/27/2009
Her name is Zeituni Onyango. She is the half-sister of President Obama's late father and she has been living in the U.S. illegally since for about four years now. In April she will get a hearing... (1 d ago)

• Focus on Strength Focus on Strength
01/27/2009
Black in Business ran in encouraging piece earlier this month on how to develop a positive outlook on your business activities. It's a simple message. Manage your weaknesses; we all know that. But... (1 d ago)

• Profit Reports Give Wall Street a Lift Profit Reports Give Wall Street a Lift
01/27/2009
NEW YORK, Jan. 27 -- Some of Wall Street's earnings anxiety eased Tuesday after companies including United States Steel and American Express managed to post profits in a difficult recession. (1 d ago)

• Forecasters see historic drop in retail ... Forecasters see historic drop in retail sales
01/27/2009
The nation’s retailers had a rough 2008, but this year will likely be even scarier, according to a sales forecast released Tuesday from the world’s largest retail trade organization. (2 d ago)

• Geithner on Currency Manipulation, and C... Geithner on Currency Manipulation, and China's Reaction...
01/26/2009
China is manipulating the value of their currency, the yuan renminbi. At least that's what Obama's new Treasury Secretary, Tim Geithner says. The statement came as part of his 102-page... (2 d ago)

• Bill Gates on Philanthropy in Crisis Bill Gates on Philanthropy in Crisis
01/26/2009
In a letter scheduled to be released today, January 26th, Bill Gates is offering insight to the world both about the current financial crisis as well as what his foundation has been able to do despite... (3 d ago)

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