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February 2009

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for 02/01/2009

(last updated 7:30am EST 02/01/2009)

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• In downturn, federal work force grows In downturn, federal work force grows
01/31/2009
Companies are cutting jobs by the tens of thousands. State and local governments are penny-pinching, too. So what about Uncle Sam? (14 h ago)

• End of line for four generations at GM? End of line for four generations at GM?
01/31/2009
For four generations, the Greens have built Chevys, Oldsmobiles, Buicks, Pontiacs and Cadillacs. But with GM's future uncertain, the family may have reached the end of the line. (16 h ago)

• NBC sells out Super Bowl ads for record ... NBC sells out Super Bowl ads for record $206M
01/31/2009
Game is premier advertising event with an U.S. audience of 100 million (17 h ago)

• GOP govs break with party over stimulus GOP govs break with party over stimulus
01/31/2009
Most Republican governors have broken with their GOP colleagues in Congress and are pushing for passage of President Barack Obama's economic aid plan that would send billions to states. (20 h ago)

• Adding up the Super Bowl by the numbers Adding up the Super Bowl by the numbers
01/31/2009
Recession is gripping the country, but the Super Bowl is the Super Bowl — that annual holiday from reality that grips the country every year. (1 d ago)

• Obama promises plan to cut mortgage cost... Obama promises plan to cut mortgage costs
01/31/2009
President Barack Obama promised on Saturday to help lower Americans' mortgage costs with a new plan, coming soon, that would revive the financial system and "get credit flowing again." (1 d ago)

• Bailout plan will clamp down on bonus pa... Bailout plan will clamp down on bonus pay
01/30/2009
Washington moved to crack down on Wall Street bonuses as a Democratic senator proposed capping employee salaries at companies receiving government aid. (1 d ago)

• Stocks stumble on economy, earnings worr... Stocks stumble on economy, earnings worries
01/30/2009
Wall Street ended its worst January ever by stumbling again over the banking system and the economy. (1 d ago)

• Need a job? Try the Border Patrol Need a job? Try the Border Patrol
01/30/2009
Job seekers, head for the border. (1 d ago)

• Recession appears to be picking up steam Recession appears to be picking up steam
01/30/2009
The latest reading on the economy is just one more indication that as the recession has spilled over into the new year, it may be picking up speed. (1 d ago)

• Economy shrank at fastest clip since '82 Economy shrank at fastest clip since '82
01/30/2009
The country logged its worst economic performance in a quarter-century during the final three months of last year as battered consumers and businesses throttled back spending. (1 d ago)

• For economy, January proves cruel For economy, January proves cruel
01/30/2009
Over the past month, Americans have been inundated with a seemingly daily drumbeat of massive layoff announcements. No sector seems to be safe. The biggest names have been hit. (1 d ago)

• Coke dropping 'Classic' tagline from log... Coke dropping 'Classic' tagline from logo
01/30/2009
Coca-Cola Corp. is ending its almost 25-year experiment with the "Classic" label on its flagship cola, The Wall Street Journal reported Friday. (1 d ago)

• Even in hard times, don't ignore the IRS Even in hard times, don't ignore the IRS
01/30/2009
You've lost your job and your mortgage company is threatening foreclosure. Then, when it seems that things can't get any worse, the tax man comes calling. What's a person to do? (1 d ago)

• Exxon Mobil posts record $45.2 billion p... Exxon Mobil posts record $45.2 billion profit
01/30/2009
Exxon Mobil reported a profit of $45.2 billion for 2008 Friday, breaking its own record for full-year earnings by a public U.S. company, but fourth-quarter profits tumbled 33 percent. (1 d ago)

• Consumers more upbeat in January Consumers more upbeat in January
01/30/2009
Consumer confidence rose to a four-month high in January but improved less than economists had expected and remained weak overall, a survey showed on Friday. (1 d ago)

• Electronics giant NEC to cut 20,000 jobs Electronics giant NEC to cut 20,000 jobs
01/30/2009
Japanese electronics giant NEC Corp. said it will cut 20,000 workers worldwide as it tries to stanch losses from semiconductors and other businesses. (1 d ago)

• Super Bowl advertisers seek balance Super Bowl advertisers seek balance
01/30/2009
Super Bowl advertisers must grapple with how to strike the right tone for an audience stung by recession, yet perhaps not wanting to be hammered by that reality on Super Bowl Sunday. (1 d ago)

• Caterpillar laying off 2,110 more worker... Caterpillar laying off 2,110 more workers
01/30/2009
Caterpillar Inc said Friday it is laying off an additional 2,110 workers, bringing the week’s total to about 22,000, as the company scrambles to cope with the economic downturn. (2 d ago)

• Obama slams Wall Street on bonuses Obama slams Wall Street on bonuses
01/29/2009
President Barack Obama said it is irresponsible and shameful for Wall Street bankers to be paid huge bonuses while the American public is dealing with economic hardship. (2 d ago)

• Guidelines on Bailouts Said to Be in the... Guidelines on Bailouts Said to Be in the Works in Europe
01/31/2009
The European Central Bank is working on guidelines to prevent bailout plans from one country from being significantly more generous than plans from another. (11 h ago)

• Chinese Cautious on Treasury Notes Chinese Cautious on Treasury Notes
01/31/2009
China’s willingness to continue buying United States Treasury securities in large numbers will depend on its need to protect the value of its foreign investments, the Chinese premier said. (11 h ago)

• Medvedev Meets Editor of Newspaper Where... Medvedev Meets Editor of Newspaper Where Slain Journalists Worked
01/31/2009
The Russian president held a surprise meeting on Thursday with the editor of Novaya Gazeta 10 days after a reporter was shot in what was apparently a contract killing. (23 h ago)

• Japan’s Latest Woes Include Layoffs at N... Japan’s Latest Woes Include Layoffs at NEC
01/31/2009
The plight of Japan’s economy deepened as the computer maker announced 20,000 job cuts and Honda lowered its profit forecast. (1 d ago)

• Hero’s Welcome for Turkish Leader After ... Hero’s Welcome for Turkish Leader After Davos Walkout
01/31/2009
Prime Minister Recep Tayyip Erdogan of Turkey walked off the stage after an exchange with the Israeli president at the World Economic Forum, vowing never to return. (1 d ago)

• British Unions, Angry Over Use of Foreig... British Unions, Angry Over Use of Foreign Workers, Stage Walkouts
01/30/2009
The disruption underscored rising fears of labor unrest across Europe as job losses across the Continent mounted into the hundreds of thousands with the global financial crisis. (1 d ago)

• The Saturday Profile: Where Officials Se... The Saturday Profile: Where Officials See Fraud, Colombia’s Masses See a Folk Hero
01/30/2009
David Murcia Guzmán has been charged with creating a hydra-headed enterprise that laundered money and enticed thousands of Colombians into a pyramid scheme. (1 d ago)

• Off the Charts: A Rise in Pessimism in t... Off the Charts: A Rise in Pessimism in the Corner Office
01/30/2009
Corporate bosses across the globe fear that this downturn may be fundamental, not just cyclical. (1 d ago)

• Roche’s Genentech Bid Turns Hostile Roche’s Genentech Bid Turns Hostile
01/30/2009
Roche said it would pay a lower price than it had offered last July for the 44 percent of Genentech it does not already own and that it would go directly to shareholders with its offer. (1 d ago)

• Warning Sounded as France Moves Ahead on... Warning Sounded as France Moves Ahead on Reactor
01/30/2009
New evidence emerged to suggest that industry and governments might be unprepared to handle the toxic waste from nuclear reactors. (1 d ago)

• Global Worries Over U.S. Stimulus Spendi... Global Worries Over U.S. Stimulus Spending
01/30/2009
The long-term fallout from increased borrowing by the U.S. government seems to getting more attention in Davos than in Washington. (1 d ago)

• High & Low Finance: A Global Credit Sque... High & Low Finance: A Global Credit Squeeze Is Felt Unevenly
01/30/2009
The recession in the U.S. has revealed a downside to globalization, and poorer countries fear their access to credit will be stymied. (1 d ago)

• Canadian Auto Workers to Reopen Talks Canadian Auto Workers to Reopen Talks
01/29/2009
The union, which has long resisted offering concessions, said Thursday that it would begin special contract talks with the automakers based in Detroit. (2 d ago)

• Financial Crisis Dims Hopes for Giant Cr... Financial Crisis Dims Hopes for Giant Cross-Border Banks in Europe
01/29/2009
Because of the financial crisis, banks are retrenching and refocusing on their home markets, all but abandoning ambitions of banking on a Continental scale — or bigger. (2 d ago)

• As Bailouts Mount, Monetary Fund Weighs ... As Bailouts Mount, Monetary Fund Weighs Issuing Its Own Bonds
01/29/2009
The International Monetary Fund, which has become a major source of financing for emerging-market nations, is expected to borrow $100 billion from Japan. (2 d ago)

• Britain Looks to Expand Broadband and Li... Britain Looks to Expand Broadband and Limit Piracy
01/29/2009
The British government outlined plans to bring broadband to every home in Britain by 2012 and crack down on online piracy. (2 d ago)

• Putin’s Grasp of Energy Drives Russian A... Putin’s Grasp of Energy Drives Russian Agenda
01/29/2009
Vladimir V. Putin has long built his strategy for the rebirth of Russia around the export of natural resources. (2 d ago)

• Russia and China Blame Capitalists Russia and China Blame Capitalists
01/29/2009
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. (3 d 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. (3 d 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. (3 d ago)

• Big spenders become bargain hunters as a... Big spenders become bargain hunters as austerity beckons
01/30/2009
Welcome to what one retail boss has called "the new age of austerity". The self-indulgence and conspicuous consumption of the last decade, fuelled by easy credit and celebrity culture, is over, says Asda boss Andy Bond. The economic downturn has prompted a sea-change in consumers' aspirations and shopping habits, thinks the chief executive of the Wal-Mart-owned grocer. "We are moving into an era of the frivolous being unacceptable, and the frugal being cool. This won't be a recession where it is a blip and then we are back to where things were." Bond likened the change in thinking to the way postwar austerity shaped a generation, and predicted "a fundamental shift that will see the emergence of a new breed of customer". To be fair, the man who runs Asda, which sells party dresses for less than a tenner and "satin chemise" nighties for £2.45, is unlikely to advocate buying luxury labels and last-a-lifetime quality. But there are real signs that a transformation may be underway; that decadence, for the time being at least, is dying out and saving is the new spending. It is not just that demand for allotments is at a record high or that spending in the haberdashery department at John Lewis is up 20% after decades of decline as we all make do and mend. From food to high fashion, champagne to Swiss watches and cars to motor cruisers, there is evidence that spenders are becoming bargain hunters and that consumers are starting to question whether they really want - or need - that handbag hanging on Katie Holmes's arm or a supercar from Top Gear. One sign of the change in attitudes was highlighted recently by Claire Kent, a former City analyst and now a consultant to a luxury label businesses. Kent reckons "luxury fatigue" has taken hold, and fuelled by the credit crunch and fear of unemployment it spells the end for the "it bag" - those handbags that otherwise sane women, urged on by fashion and celebrity magazines, will hand over hundreds or thousands of pounds to acquire. "An 'it' handbag will become an embarrassment," said Kent. Her view is shared by Katrin Magnussen, a fashion analyst with market research group Mintel. She predicts sales of designer bags will fall rapidly. "It is the end of ostentatious spending and flashing designer labels," she said yesterday. Department store Liberty is reducing the space it devotes to such bags from next month. Ferragamo, whose shoes were worn by Greta Garbo and Marilyn Monroe, is also scaling back its expansion plans, halting half of its planned store openings, while LVMH has cancelled a new Tokyo flagship store. It will be bad news indeed for the big European fashion houses, from Chanel and Balenciaga to Burberry and Mulberry. There are already plenty of signs of stress. Just a year ago the Burberry Warrior handbag - priced from £850 to £13,000, depending on whether it was cut from leather or gold alligator skin - was the handbag for which even wives of hedge fund managers and Premier League footballers had to join a waiting list. A quick glance at the Burberry website now shows that they are seriously out of fashion. The alligator skin Luxury Warrior, once £11,000, is now available online for £4,400. A £1,200 version is down to £777, a £700 version is less than £300. Trawl the current range and there isn't a handbag on sale for more than £1,500. Mulberry, meanwhile, has broken the first law of branding - don't slash prices or produce cheaper versions - and come up with a £95 red canvas version of its Bayswater bag in a deal with Gap. Magnussen reckons its a smart move: "It is keeping the brand alive and in front of people when they can't afford the top end." The problem, said a rival, will be persuading customers to go back to paying the normal £595 for the leather versions. At the top of the fashion market, business is still brisk. At last week's haute couture shows in Paris, houses like Chanel and Dior said their made-to-measure business - frocks from £10,000 and a wedding dress for £200,000 - is booming. Magnussen, however, believes the mainstream designer fashion businesses aimed at the rich is changing rapidly: "Just look at the Golden Globes dresses. The stars were still all wearing designer labels, but they were so much more subdued". French luxury goods company Hermes recently posted sales growth of just 4% last year. That might sound good, but when compared to the 12% it achieved a year earlier. LVMH (Louis Vuitton-Moët Hennessy) has witnessed a similar slowdown, which has gained pace since the collapse of Lehman Brothers last year. Management consultants Bain & Co expect sales of high-end goods to drop as much as 7% this year, which would wipe more than £10bn off the £165bn market for luxury goods. "Inevitably, some labels are going to disappear," said Magnussen. Much of the switching brands and trading-down is due to shoppers finding themselves strapped for cash. But even those in secure employment are changing the way they shop - partially out of fear of unemployment, but partly as a result of what Jim McCarthy, the chief executive of Poundland, calls "a big psychological change". McCarthy's stores are among the few high street chains witnessing booming sales, and a big part of the growth is coming from the wealthiest shoppers. More than one in 10 Poundland shoppers is now from the AB demographic groups - up nearly a quarter in the last year. The same is true at Aldi, the German discounter which is now the fastest-growing grocer in the UK. Half of Aldi's customers are now in the ABC1 social category - 17% up on a year ago. Sales of premium food labels and organic fruit and vegetables have gone into reverse. And the higher up the ladder of luxury spending, the more pronounced is the downturn. Twelve months ago the biggest labels reckoned that this recession would pass them by, calculating that while Europe, Japan and the US might suffer, they would carry on expanding as a result of fast-growing ranks of wealthy Chinese and Russians. "But the shocking economic news has now hit consumer confidence everywhere and sales at almost all price points," said one analyst. Tiffany is seeing far fewer customers walk away with one of their blue gift boxes. Sales over the Christmas period, when most jewellers do about 90% of their annual trade, were down more than a fifth on 2007 levels. Last week rival jeweller Bulgari reported a 10% decline in sales, while Swatch, which owns the Omega brand, said sales have fallen 6%. The Federation of Swiss Watchmakers said that November sales, which should be the strongest of the year, were down 12% on October levels. Bulgari boss Francesco Trapatoni said there was little point in cutting prices to stimulate demand. "When the market is so bad, these activities have very little effect, and they can damage the prestige of the brand," he said. Closer to home, Theo Fennell, the celebrity's jeweller of choice, had a disastrous Christmas, with sales in December 21% lower than the year before on a like-for-like basis. The jeweller, which counts David Beckham, Elton John and Naomi Campbell among its customers, warned it would make a loss for the year to 31 March. The company is now cutting costs and looking for new investors to help cut its debts. "There is a real crisis of confidence," said John Guy, a London-based luxury goods analyst at brokerage MF Global Securities. "2009 will be the most difficult year luxury goods makers have faced in a long time." It is, however, the businesses which have reached down to the middle income shoppers that are likely to be hurt worst, as these shoppers reassess the need to impress. There was little sign of any new austerity at the Monaco yacht show last autumn, where boats start at about £10m and climb to £200m for vessels such as Roman Abramovich's planned liner, which will come complete with an anti-attack submarine so that, if necessary, guests can make a hasty undersea escape. But exhibitors at the London Boat Show earlier this month, which displays relatively run-of-the-mill yachts and gin palaces, found business tough. At least one major UK boat-builder, Kidderminster-based Sealine, didn't even bother to show up. Sealine, together with rivals such as Fairline and Princess, have all slashed jobs as demand for £200,000-to-£1m cruisers - much of which had come from credit-fuelled self-employed businessmen and bonus-driven City bankers - has hit the rocks. Suddenly it looks far more sensible to charter a boat for an annual holiday in the Med rather than own one outright. Those selling cars to the banker class are also hurting. Aston Martin, which had seen demand soar in recent years, sold 1,000 fewer cars in 2008 than 2007 and has laid off 600 of its 1,800 staff as sales continue to decline. Bentley sales were down a quarter in the UK last year, and Land Rover saw a 30% decline. But 2008 sales of the tiny Smart cars were up 43%. The biggest luxury brands will survive. After all, they have been around through previous financial crises and world wars. But they may emerge as far smaller businesses in an era where labels and brands mean so much less. Retail industry Credit crunch Recession Consumer spending guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Citigroup under fire over baseball spons... Citigroup under fire over baseball sponsorship
01/30/2009
Just days after bowing to pressure to cancel a new corporate jet, the cash-strapped bank Citigroup is facing calls to axe a $400m (£278m) deal to lend its name to a new stadium for the New York Mets baseball team. Politicians are questioning whether it is appropriate for the bank to splash out on christening the arena as Citi Field after swallowing $45bn of emergency bail-out funds from the US treasury to avert financial collapse. The nearly completed 42,500-seat stadium, in the borough of Queens, looms over the city's LaGuardia airport with the word "Citi" shimmering in huge silver letters under a sponsorship worth $400m over 20 years. A former Democratic presidential candidate, Dennis Kucinich, has written a joint letter with Republican congressman Ted Poe asking the US treasury secretary to force an end to the sponsorship. "It's just totally unacceptable that Citigroup should be able to spend $400m on naming rights when they're recipients of a massive federal bail-out," Kucinich told Long Island's Newsday newspaper. The controversy comes amid mounting anger over perceived profligate spending by Wall Street banks. On Thursday, president Obama railed against "irresponsible" bonus payments to bank staff. Earlier in the week, the treasury secretary, Timothy Geithner, told Citigroup to cancel an order for a new $50m executive jet. Two New York City councillors have suggested a compromise name for the baseball stadium – they have proposed that it should be called Citi/Taxpayer Field. A Citigroup spokesman said the bank remained committed to the "legally binding" deal with the Mets, which was signed two years ago. "Citi Field continues to provide a very positive way for us to support our community and to connect with present and future customers," said the bank. US economy Citigroup Credit crunch Banking guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• US economy slows at fastest pace in 26 y... US economy slows at fastest pace in 26 years
01/30/2009
The American economy shrank at its fastest pace since 1982 during the final quarter of last year amid a worsening slump in activity described as a "disaster" by president Barack Obama. The US commerce department said gross domestic product, which measures total output of goods and services, plummeted at an annualised rate of 3.8% in the three months to December. Consumption of durable goods such as cars and furniture plunged by 22.8%. Overall consumer spending dropped 3.5%. Speaking at the White House as he launched a taskforce on aiding the middle classes, President Obama described the contraction as "a continuing disaster for America's working families". "The recession is deepening and the urgency of our economic crisis is raw," said Obama, who noted that US unemployment claims had reached their highest level on record. "Every day it seems there's another round of layoffs, another round of jobs lost and families' lives turned upside down." The fall in GDP, which followed a third-quarter drop of 0.5%, was less severe than economists had expected with many forecasting a contraction of 5.4%. Experts said the slower decline was due to a rise in stocks on shops' shelves as businesses struggled to cut output. "The consumption side of the equation is the worst we've seen since the 1960s and there's no evidence that things are getting any better," said Steve Ricchiuto, chief economist at Mizuho Securities in New York. "It's a very, very weak, deteriorating economy and there's very little indication of things turning around." Although the figure marks the first time in the present slowdown that the US economy has declined for two consecutive quarters, many pundits, including the National Bureau of Economic Research, believe that a recession truly started in late 2007 and is likely to last for much of this year. Brian Bethune, chief US financial economist at IHS Global Insight, said all indications point to a recession of at least 15 to 16 months, which would rival a severe downturn in the early 1980s. "It's severe by any standard," said Bethune. "In terms of depth, it's going to be comparable to what we've seen in relatively deep recessions of 1982 and 1975." For the whole of 2008, America's gross domestic product rose by 1.3%, the slowest pace of growth since 2001 when the economy expanded by 0.8%. The slowdown appears to have defused fears of inflation. The core price index of personal consumption expenditure rose only 0.6% in the fourth quarter, its smallest gain since 1962. At the core of the Obama administration's effort to reignite the economy is an $819bn stimulus plan which was passed by the lower house of Congress this week. The plan, which comprises a mixture of tax cuts and public spending measures intended to create jobs, is due to go before the US senate shortly and could be enacted by mid-February. The economic data contributed to a gloomy mood on Wall Street where the Dow Jones Industrial Average was down 118 points to 8,030 at midday. Recession is popularly defined as at least two quarters of negative economic growth but the US has its own method of assessment, with the National Bureau of Economic Research 's business cycle dating committee making a judgment. US economy Credit crunch Barack Obama Global recession United States guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• Loss leaves Jessops needing debt restruc... Loss leaves Jessops needing debt restructure
01/30/2009
Jessops posted a £50m loss today and admitted that it needs a major restructuring of its debt to keep going. The camera chain's shares crashed by more than 27% to 2p on the news. Two years ago, they were worth more than 150p. The company warned that it was close to breaching its covenants under its existing banking facilities with HSBC. But executive chairman David Adams, who was brought in from House of Fraser to turn the business around, was confident the debt restructuring would happen within "weeks rather than months". "The bank are supportive of the position and want to work with us to find a solution to the balance sheet problem and that's why we're confident of it happening," he said. "We can't carry on carrying £57m worth of debt on a business which is generating £4m." He hinted that this could take the form of HSBC swapping a chunk of the debt for equity. The bank already holds warrants over 15% of the retailer's shares since extending Jessops' banking facilities to 2011 in September. Jessops made a loss before tax of nearly £50m in the year to 30 September. This comes after a £70m loss in 2007 , when the retailer teetered on the brink of bankruptcy, forcing it into store closures. Sales on a like-for-like basis, which excludes new stores, were down 6.5% last year. In the past two months, sales rose 3.8%, but the increase was achieved only through price promotions that damaged profit margins. Jessops said the digital camera market grew by 7.9% in volume last year but was flat in value terms as customers went for cheaper models and retailers discounted heavily. "This is the first time for many years that the digital camera market as a whole has seen such a slowdown," the firm said. Jessops specialises in more expensive cameras priced at an average £229, compared with the market average of £133. Over the last six months it finally reacted to demand and introduced a range under £100. In a desperate attempt to revive the business , Jessops is refitting its stores. It has opened a shop in the new Westfield shopping centre in west London, which serves as the blueprint for the refurbishments and future new stores. Retail industry HSBC Recession guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• HSBC chief says widening pay gap contrib... HSBC chief says widening pay gap contributed to collapse of trust in banks
01/30/2009
The head of HSBC has blamed excessive pay for a collapse in trust in the financial sector, as executives lined up at the World Economic Forum in Davos to stress that the economic crisis would prompt curbs on boardroom rewards. Stephen Green, HSBC's chairman, said there had been a "huge and growing disparity between different levels of income," and that one positive aspect of the current crisis was that the problem would now be addressed. Other leading business figures also admitted that the outrage expressed by Barack Obama at the bonuses paid on Wall Street after one of its worst ever years meant reform of pay was inevitable. Duncan Niederhauer, chief executive of NYSE Euronext, said: "It is quite clear that some of the compensation models at these firms have to be not just incrementally changed but completely overhauled." Regulators have already indicated that they will look unfavourably on companies that provide short-term incentives for traders to behave recklessly. Mark Tucker, chief executive of the Prudential, said: "[The focus] is moving away from the short into periods of time of three-plus years." Green said: "Banks have clearly done things wrong. Some of the practices did not contribute, by any reasonable standards, to human welfare." He added that banks needed to focus more on real customer generated business and less on risky speculative trading. The HSBC chairman said the growth of the financial sector had helped to make the UK economy unbalanced. Jobs in financial services and construction had been mirrored by a fall in employment in manufacturing. "More of that [growth in the financial sector] has happened than is consistent with the health of the economy," he said. "We have not had enough saving and we need more investment in real goods and services." With reform of the financial system high on the Davos agenda, the German chancellor, Angela Merkel, used a keynote address to float the idea of a UN economic council modelled on the existing security council. She said the crisis had exposed the need for better international coordination. "All of these issues … need to be enshrined in a charter for the global economic order," she said. "This may even lead to a UN economic council, just as the security council was created after the second world war." The business secretary, Lord Mandelson, admitted that the unprecedented nature of the crisis meant that the government was feeling its way, trying out ideas without certainty that they would work. "We are in new territory, virgin territory when it comes to public policy," he said. The former EU trade commissioner urged a rapid conclusion to the stalled Doha trade talks, and said there was a risk of financial protectionsim – banks lending only to their own home markets. Mandelson said it was vital the government retained the confidence of the financial markets for its massive anti-recession spending boost. He said that any loss of the support the markets had shown up until now would jeopardise the chance of the tax and spending package working. "We must make sure that in the medium term we are rebalancing our public finances so that we can meet market requirements and sustain the fiscal stimulus. "If we don't continue to enjoy the confidence of the markets in what we are doing in our fiscal stance and our borrowing, then it would make it very much more difficult, if not impossible, to sustain the stimulus. Mandleson told a lunch for UK business leaders that one way the government would seek to reassure markets was by ensuring that help for business would be selective, conditional and temporary. "We are not going back to 1970s interventionism, heaven forbid. I am not in the business of the government picking the winners, nor am I keen on the losers picking the government." Davos Economic policy Banking Global recession Recession HSBC guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• Strikes spread across Britain as oil ref... Strikes spread across Britain as oil refinery protest escalates
01/30/2009
A series of unofficial strikes broke out across Britain today over plans by a major oil company to give jobs to construction workers from Portugal and Italy. The contractors were to work on the giant £200m Lindsey oil refinery at North Killingholme, Lincolnshire. Workers at refineries and power stations in various parts of the UK walked out, some holding placards quoting the words of Gordon Brown: "British jobs for British workers". The wildcat strikes mark the latest in a series of protests over the use of foreign rather than domestic labour by large companies in the UK. More than 700 BP and INEOS workers at the Grangemouth oil refinery in Scotland walked out this morning after an 8am union meeting. Police were called to the Aberthaw power station, near Barry, South Wales, and 400 workers at a refinery in Wilton near Redcar, Teesside, have also downed tools. Workers walked off the site at Total's Lindsey oil refinery on Wednesday, after weeks of discontent over the contract to build the plant's HDS-3 de-sulphurisation unit. The plant's owners put the contract out to tender with five UK firms and two European contractors bidding for the work. The Italian company IREM won the contract and supplied its own permanent workforce, accommodating them in large, grey housing barges moored off Grimsby docks. It is understood 100 Italian and Portuguese workers are already on the site and 300 more are expected next month. Asked about the refinery strikes at a news conference in Davos today, the prime minister said: "I understand people's worries about their jobs. I understand people's anxieties about employment across the country. But we are doing everything we can both to get economic growth moving in our country and to help people who are unemployed, to help them into new jobs." Brown also stressed that protecting jobs was one of his key political aims. He said: "I came into politics to help people out of unemployment, to help people who were poor by building an economy that was confident and strong to weather this storm. I believe that the action we have taken to help people in work stay in work, to help people who lose their jobs get jobs again ... is the way to do it." Protesters at the Lindsey refinery ended their action at around 10am, but vowed to be back on Monday morning. Bobby Buirds, a regional officer for Unite in Scotland, said the workers at Grangemouth were striking to protect British jobs. "The argument is not against foreign workers, it's against foreign companies discriminating against British labour," he said. "If the job of these mechanical contractors at INEOS finishes and they try and get jobs down south, the jobs are already occupied by foreign labour and their opportunities are decreasing. This is a fight for work. It is a fight for the right to work in our own country. It is not a racist argument at all." Around 500 workers walked out at Scottish Power's Longannet power station, and just over 100 at its Cockenzie power station, while around 80 stopped work at British Energy's Torness facility. In Lincolnshire, several hundred protesters gathered in a car park opposite the sprawling Lindsey refinery. Clutching placards and banners, two of which read "Right to Work UK Workers" and "In the wise words of Gordon Brown UK Jobs for British Workers", they listened as union leaders called on them to stand together in their protest. Unite union regional officer Bernard McAuley addressed the men from a flat-bed truck. "There is sufficient unemployed skilled labour wanting the right to work on that site and they are demanding the right to work on that site. Our general secretary of Unite and the GMB have called upon the prime minister to call an urgent meeting with the heads of industry in the engineering and construction industry to clients and the trade unions to get round the table," he said. "We want fairness. We want the rights of our members to have the opportunity to be employed, not just on this job but on all jobs around the United Kingdom." In heated exchanges, some protesters called on their colleagues to march on Downing Street to protest at the situation. Shop steward Kenny Ward addressed the crowd and told them they had to stand together and take on the "greedy employer". He said: "This is what it's about, it's about collective strength. I'm a victim, you are a victim, there are thousands in this country that are victims to this discrimination, this victimisation of the British worker." He said colleagues across the country in Scotland and Wales were "standing shoulder to shoulder" with the protesters here. Total issued a statement about the Lindsey strike this morning. It said: "We recognise the concerns of contractors but we want to stress that there will be no direct redundancies as a result of this contract being awarded to IREM and that all IREM staff will be paid the same as the existing contractors working on the project. "It is important to note that we have been a major local employer for 40 years with 550 permanent staff employed at the refinery. There are also between 200 and 1,000 contractors working at the refinery, the vast majority of which work for UK companies employing local people. "On this one specific occasion, IREM was selected, through a fair and competitive tender process, as the most appropriate company to complete this work. We will continue to put contracts out to tender in the future and we are confident we will award further contracts to UK companies." Oil and gas companies Trade unions Economic policy guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• We must not resort to protectionism, war... We must not resort to protectionism, warns Brown
01/30/2009
The international community must not resort to protectionism as it tries to find solutions to tackle the global financial crisis, Gordon Brown said today. Speaking at the World Economic Forum in the Swiss town of Davos, the prime minister said policymakers had three priorities: to prevent further bank collapses, to use fiscal and monetary policy to stimulate economies and to boost lending to businesses and individuals. He said recapitalisation of banks around the world amounted to around $900bn, while countries had underpinned their banking systems with $7tn of guarantees. Governments had agreed a joint $1.5tn of fiscal stimuli to boost their economies. Brown said was not the time for countries to retreat from globalisation into protectionism. "Protectionism protects nobody," he said. "This is a time not just for individual, national measures to deal with the global financial crisis. This is the time for the world to come together as one." He expressed concern at a collapse in lending by commercial banks to emerging markets, which he said had fallen from $1,000bn last year to around $150bn, and said he hoped that international institutions such as the International Monetary Fund and World Bank could help to fill the gap. "I hope countries will move forward with these proposals. The international institutions must be more proactive, he said. Brown said the world needed to establish a proper early warning system for future crises, replace the largely national mix of financial regulation with a global system with clear accountability and responsibilities, and to reform global institutions. "We have to take the necessary action immediately. Not to make a decision, the policy of doing nothing, will allow this crisis to start a retreat from globalisation with huge implications for prosperity in every part of the world in the years to come," he said. Brown rejected accusations that Britain was worse placed than other countries to withstand the credit crunch, insisting that the UK's national debt was lower than most other countries. The IMF said earlier this week that Britain would suffer the biggest contraction in its economy of any major country. "We have been better placed because of our low debt, low interest rates and low corporate debt," said Brown. Speaking alongside the prime minister, UN secretary general Ban Ki-Moon said it was crucial the world did not forget about climate change or extreme poverty as it battled the financial crisis. "Now more than ever we need to keep our eyes on the big picture – climate change, hunger and extreme poverty. We need to stand in solidarity and redouble our efforts," he said. He added that the financial crisis could be "turned into an opportunity" to "kill two birds with one stone" by converting to green, low-carbon economies, thereby creating jobs and boosting growth. He repeated his call for a "green new deal" to turn aspiration into reality. "Scaling up green technologies to make low carbon economies is the best investment we can make," he said. Davos Gordon Brown Global recession Recession United Nations World Bank Economic policy guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• Japan heads for worst recession since th... Japan heads for worst recession since the second world war
01/30/2009
Japan could be heading for its worst recession since the second world war after figures released today showed industrial output fell almost 10% last month and unemployment rose at its fastest pace for more than 40 years. Production fell 9.6% in December, the trade ministry said, surpassing November's huge drop by more than one percentage point. The global recession has sent shock waves through Japan's economy, forcing once-powerful exporters to rein in production, slash jobs and close factories in response to plummeting demand for cars and consumer electronics. NEC, the computer chip maker, announced it would make 20,000 workers redundant worldwide as it struggles to cope with falling demand, while carmakers Toyota and Honda said their losses would worsen this year. Today's figures, however, offered evidence that the malaise had spread to the domestic economy. Unemployment rose to 4.4% in December, its biggest monthly rise for 42 years, from 3.9% a month earlier. The jobless total has risen over the last year by 390,000 to 2.7 million, as the spectre of deflation and flat consumer spending returned to haunt companies and their employees. Household spending fell by 4.6% in December, the 10th consecutive monthly fall, while core consumer inflation edged up a mere 0.2%. "Companies are not only cutting production but also cutting employment, which is deeply unsettling for households," Martin Schulz, senior economist at the Fujitsu Research Institute, told guardian.co.uk. "We are now looking at a domestically driven recession. The domestic economy is at risk of falling apart, and if that happens we are looking at a really deep, long recession. Even if that doesn't happen, things are already bad enough." With Japan's non-regular employees, who now comprise a third of the workforce, at increasing risk of being laid off, families are refusing to spend, and analysts say the government's much-derided handout of ¥12,000 (£94) for every individual is unlikely to have any impact. Predictions of further falls in production in the coming months are making prime minister Taro Aso's boast that Japan will be the first to emerge from the recession look increasingly hollow. The economics minister, Kaoru Yosano, admitted the economy was "in a very grave situation". "Japan is being hit by a wave of weakening global demand," he said. The plight of Japan's exporters was underlined yesterday when Toshiba forecast record annual losses. Toyota, meanwhile, could be heading for an operating loss - its first for more than 70 years - of about ¥400bn for the year to the end of March, reports said today, while Sony is bracing itself for record losses this year. Although factory production is at its lowest level for 20 years, cuts in output have barely dented bloated inventories, prompting speculation there could be more reductions. Exporters' desperate attempts to climb out of the crisis are being hampered by the strength of the yen, which gained 23% against the dollar and 29% against the euro last year. Economists predict that fourth-quarter GDP figures, due out next month, would show the world's second biggest economy shrinking at a double-digit annual rate. In addition, the International Monetary Fund warned that Japan's GDP would contract by 2.6% this year, the gloomiest prediction of all the G7 countries except Britain. If the IMF forecast is correct, it would be the worst contraction since the end of the second world war. "As output adjustments continue, weakness in the overall economy will persist from January to March, and the degree of worsening depends on how exports turn out," said Tatsushi Shikano, senior economist at Mitsubishi UFJ Securities. "It is already a consensus view that core consumer inflation will turn negative soon, but we must watch if a worsening of the economy pushes Japan into a deflationary spiral, even though the Bank of Japan sees no signs of that happening right now." The gloomy data stopped in its tracks a three-day rally by the Nikkei, sending the benchmark index tumbling 3.1% in Tokyo. Nintendo shares sank 12% after the video game maker cuts its earnings and sales forecasts. The company, which had enjoyed huge sales of its DS and Wii game consoles, said yesterday that annual operating profit would fall by 16%. Honda, Toyota, Sony and Toshiba were also down. The Nikkei has lost more than 10% this year after shedding more than 40% last year. The Bank of Japan is buying up corporate debt and recently brought interest rates down to just above zero, while the government this week passed a $53bn stimulus package and launched a $16.7bn fund to buy shares in struggling firms. But Schulz said Japan's financial authorities were running out of options to save the economy from a deeply damaging recession. "The government has few tools left to deal with this. Japan managed to shield failing companies during the last recession – the so-called zombie firms – but you cannot protect companies from a breakdown in demand in the domestic economy." Global recession Japan guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• Honda shuts UK factory in Swindon for fo... Honda shuts UK factory in Swindon for four months
01/30/2009
Japanese carmaker Honda will shut its British factory for four months this evening, after a slump in sales. Production at the plant in Swindon, Wiltshire , will be halted at the end of today's shift until 1 June. The 4,200 workers will receive full basic pay for the first two months, falling to 60% for the rest of the shutdown. "Everyone is feeling a bit down as we're all facing four months off, and we're all a bit worried that it might be more," said Paul Wiseman, 33, who works in the engine plant. "Honda is trying their best, and there's always a fear that we could lose our jobs, but Honda have told the staff its future is in Swindon," Wiseman said. Dave Hodgetts, senior director of planning and business administration at Honda UK, said some staff would remain at work developing the new Honda Jazz, which should go into production when factory staff return in June. "After the four-month break, the plan is for all the staff to come back and their jobs will be secure," said Hodgetts. Honda today announced a 90% fall in third-quarter profits to 20.2bn yen (£158m). It more than halved its full-year profit forecast to 80bn yen. Revenues dropped 17% in the third quarter, and the yen took its toll on earnings after hitting 13-years lows against the dollar. Honda also blamed the higher cost of raw materials such as steel. Carmakers around the world have been hit hard by the recession. Storage areas and docksides are packed with vast numbers of unsold cars as demand plummets. Yesterday, US car giant Ford posted the worst performance in its history - a $14.6bn annual loss. Toyota, the world's biggest car maker, expects to make its first annual operating loss in 70 years and Nissan is also reported to be facing a deficit. A number of British car factories have cut production and laid off thousands of workers, which has had a knock-on effect on supplier firms. In Britain, the number of cars rolling off production lines nearly halved to 53,823 last month, with many manufacturers on extended Christmas shutdowns. The car industry has been lobbying the government to help improve the availability of credit to boost demand. "Everyone knows cars aren't selling. And it's not just Honda, it's other manufacturers as well, so what's the point in producing cars if no one is buying them?" said Paul North, who works in Honda's Swindon factory. Honda Automotive industry guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• Henderson prepares £115m buy-out of aili... Henderson prepares £115m buy-out of ailing New Star
01/30/2009
Fund manager Henderson has sealed a £115m deal to buy rival New Star Asset Management, the troubled firm founded by John Duffield . The deal is the final chapter in the eight-year history of New Star, which was set up by Duffield after he sold his Jupiter fund management operation to Commerzbank amid a very public row with the German bank . He will leave at the end of March, when the takeover is due to be completed, along with New Star's chief executive, Howard Covington. Henderson offered to pay £21.6m for New Star's ordinary shares - 2p a share - and £73m for its preference shares, as well as paying off its remaining debt of £20m. New Star had run up debts of £240m to return £383m to shareholders - mainly Duffield and his staff - forcing it into a radical restructuring last month. A debt-for-equity swap left a consortium of banks, led by HBOS, with control over the fund manager. New Star shareholders will receive £5.4m under the deal, with the bulk of the money going to its creditors. The firm had already warned investors that they would get very little from any deal. New Star was forced to suspend dealings in several unit trusts after investors made huge withdrawals, leaving it with about £10bn of assets under management. The firm saw its shares plummet over the past year, taking its stockmarket value to under £8m. A year ago, the shares were worth 240p. Andrew Formica, Henderson's chief executive, said: "We're taking out all the debt and buying 100% of the equity. The business will go from one of the most highly geared fund management businesses to one of the strongest in balance sheet terms." Other investment houses, including Schroders , had also approached New Star. Formica said: "There were several bidders who were prepared to pay a higher price." But price came second, he said, because New Star "needed someone who could move quickly" to restore confidence in the business, and Henderson offered the "perfect fit". He added that Duffield was "extremely supportive" of the deal. Duffield, who is known in the City for his habit of dressing in woolly jumpers and for spending time on his farms in Newbury and Oxford, said: "Henderson Group is an excellent partner for New Star offering strong support and certainty to New Star's clients and staff in these times. This deal will join together two managers with a similar culture and investment approach." The Anglo-Australian firm will take on just under half of New Star's 310 staff. "Very rarely will you find an opportunity to significantly enhance your strategic position at compelling financial terms," Formica said. "It's a great deal on a number of fronts. It gives us a really great footprint in the UK retail market." The combined group will become the fifth-largest retail fund manager in Britain, with more than £15bn of funds under management. Henderson is today placing up to 72.3m shares - amounting to nearly 10% of its existing shares - with investors to help fund the deal. Henderson New Star Asset Management Investments guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• Companies warned: no new cash unless boa... Companies warned: no new cash unless boardroom pay cut
01/29/2009
Companies asking shareholders to back multimillion-pound cash calls are being warned by one of the most powerful investors in the City that they will need to moderate executive pay and even change their management teams to win support. In a stark warning to the increasing numbers of companies asking shareholders to shore up their finances, Legal & General wants boardroom pay packets to show "moderation, alignment [to shareholders' interests] and a longer time scale". At a time when investors are being accused by the government of failing to exert their influence, Tim Breedon, chief executive of L&G, said: "There'll be something to pay for new capital - better governance, better risk management and better management in certain cases." Executive bonus schemes usually run for three years but Breedon has indicated that the fund management arm of the insurance company will be expecting longer-term pay deals for the bosses at the companies asking for new funds. L&G is regarded as one of the most influential investors on the stockmarket. It owns around 5% of the FTSE 100 and can help to sway sentiment because of the number of votes it holds. Last November, for example, it backed the controversial £7bn fundraising by Barclays - which tapped Middle Eastern governments for cash - because had it not done so, the scheme might have been voted down by shareholders, which would have destablised Barclays. Earlier this week L&G sought to defend investors against criticism by Lord Myners, the City minister, that they had not done enough in the run-up to the credit crunch. L&G told the Treasury select committee that it had repeatedly asked for the resignations of Royal Bank of Scotland chairman and chief executive Sir Tom McKillop and Sir Fred Goodwin but neither would quit. The government eventually forced out the pair as part of its £20bn capital injection. Aviva Investors, the fund management arm of the insurer Aviva, is also demonstrating its determination to seek change in companies. It has written to the lawyers and consultants who devise pay deals for executives to demand a "moratorium on pay rises" and "considerable restraint and prudence" towards bonuses. Lloyds Banking Group, formed after Lloyds TSB rescued HBOS, has already been forced to rethink a new pay deal for its executives after shareholders expressed concern. Big City investors are braced for attempts by other companies to force through executive pay rises and earlier this month vetoed the bonus scheme for executives at housebuilder Bellway. Breedon did not provide any update on L&G's intentions towards its dividend as the insurer published new business figures showing a forecast-beating rise in sales last year. The shares, which have lost half their value in 12 months, were off 9% at 60.7p on disappointment that L&G had not updated its capital position. Breedon said information about the dividend and the capital position would be announced with the profits due in March. By repeating its estimate, first published in October, that its capital surplus of £2.9bn would fall to £2bn if the FTSE 100 index fell 30%, the insurer was attempting to reassure the market. L&G's sales in the UK, which were up 3%, were driven by retail investment products and buyouts of company pension schemes. Worldwide sales were £1.5bn in 2008, up from £1.4bn. Legal and General Executive salaries Banking guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• Obama lets rip at banks over executive p... Obama lets rip at banks over executive pay
01/29/2009
President Barack Obama let rip at troubled Wall Street banks yesterday for paying out billions of dollars in bonuses to staff, accusing them of displaying "the height of irresponsibility" and of letting down the American people. In a sign that the new administration intends to take a far tougher line on financial excess than the Bush regime, Obama expressed outrage that banks spent $18.4bn (£12.8bn) on bonuses last year despite receiving emergency bail-out funds from taxpayers to avert bankruptcy. "That is the height of irresponsibility. It is shameful" said Obama after a meeting his new treasury secretary, Timothy Geithner. "Part of what we're going to need is for the folks on Wall Street who are asking for help to show some restraint and show some discipline, show some sense of responsibility." Figures published by New York state's comptroller general on Wednesday showed that although bonuses fell by 44% the total payout on Wall Street was still the sixth largest ever, with bankers typically receiving $112,000 each. "They have to start acting in a more responsible fashion if we are going to get this economy moving again," Obama said. "There will be a time for them to make profits and there will be a time for them to get bonuses. Now is not that time." He singled out Citigroup for criticism, attacking the bank for trying to buy a $50m executive jet after receiving $45bn in rescue money from the Treasury's troubled asset relief program (Tarp). "Secretary Geithner has already had to pull back one institution that was going ahead with a multimillion-dollar jet purchase at a time when it was receiving Tarp money. We should not have to do that." He added: "The American people understand that we've got a big hole we've got to dig our way out of. But they don't like the idea that people are digging a bigger hole even as they're being asked to fill it up." Banks argue that their staff get relatively small basic salaries and bonuses are essential in retaining key talent. But critics say this explanation is hard to swallow after a year of large-scale layoffs in the financial industry, leaving precious few opportunities for bankers to seek better compensation at rival firms. Goldman Sachs yesterday estimated that it could cost as much as $4tn to restore the financial industry to health. The sum would be needed to buy up bad assets if the US treasury presses ahead with plans to create a "bad bank" to cleanse balance sheets by swallowing up toxic financial instruments. Executive salaries Banking Obama White House US economy Credit crunch guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• Bank of England to use £50bn of taxpayer... Bank of England to use £50bn of taxpayers' money to ease credit crunch
01/29/2009
Mervyn King, the governor of the Bank of England, has been given the green light to spend £50bn of taxpayers' money, buying company debts and other assets, in the clearest signal yet that Britain is moving towards the desperate recession-busting tactics of "quantitative easing". In an exchange of open letters with King, made public today, the chancellor, Alistair Darling, set the rules for the £50bn "asset-purchase facility" he announced as part of the Treasury's latest bank bail-out plan last week. He made it clear that the same approach could be used to turn on the cash taps once interest rates get close to zero. "This facility provides a framework for the monetary policy committee of the Bank of England to use asset purchases for monetary policy purposes, should the [committee] conclude that this would be useful for meeting the inflation target," the chancellor said. King and his colleagues have already slashed borrowing costs to 1.5%; another rate cut is widely expected when the nine-member monetary policy committee meets next week. Both King and the chancellor want to send a powerful message to financial markets about not yet having run out of weapons. Darling also indicated that he was preparing to keep King on a close rein, as the boundaries between government spending and monetary policy blur in the coming months. Full-blown quantitative easing would mean buying billions of pounds of government bonds to pump cash into fragile banks and drive down interest rates. If the MPC decides on this, King will have to go back to No 11 Downing Street, and ask for specific permission. Details of the plans emerged as David Blanchflower, the maverick outgoing MPC member who voted for rate cuts throughout 2008, issued a stern critique of economists – including those inside the Bank's headquarters in Threadneedle Street – who failed to see the crisis coming. In a speech in Nottingham, the labour market expert warned that the downturn could well be worse than that of the 1980s recession; he pointed out that even once the credit crunch was under way last summer, the Bank failed to grasp the seriousness of its potential consequences. "There was no mention at all of the word 'recession' in the monetary policy committee's August 2008 inflation report. The central projection was for output to be 'broadly flat over the next year or so, after which growth gradually recovers'," he said. The governor defended the Bank's handling of the crisis in a speech last week, pointing to the collapse of Lehman Brothers last September as the key shock that drove the world economy over the brink. But Blanchflower stressed that, "of course, economic output in the UK, and in many other economies, had started to contract long before" Lehman went bust. Blanchflower made it clear that he would be voting for another rate reduction at February's MPC meeting, saying: "I believe monetary policy needs to be loosened further and quickly." The Bank is expected to release more details of exactly what it will buy under the £50bn asset purchase scheme as soon as next week. It will set up a new, arms-length company to hold the assets and report quarterly to the Treasury about how the scheme is going. Business groups have warned that large companies are struggling to finance their day-to-day operations, as banks rein in lending and rebuild their shattered balance sheets. By buying corporate bonds, and the "commercial paper" some firms use to borrow funds, as well as asset-backed securities, the Bank hopes to unlock the frozen markets for these assets and make it easier for firms to borrow. King will have to agree the list of eligible assets he can buy under the scheme with the Treasury, and refer any changes to officials. "Asset transactions by the Bank could increase liquidity and trading activity in some UK financial markets, and could stimulate issuance by corporate borrowers and the resumption of capital market flows," the chancellor says in his letter. For the moment, the scheme will be funded by issuing government bonds. That means the government will not be "printing money" but raising it in the financial markets. Graham Turner, of the consultancy GFC Economics, said that by insisting on only buying the highest quality corporate bonds, the Bank would be protecting taxpayers' money – but at the risk of the policy being less effective. "High-quality assets are not where the problem is," he said, pointing out that corporate bond yields have actually risen since the £50bn facility was first announced. Britain's approach echoes that of the US, where the Federal Reserve chairman, Ben Bernanke, has coined the phrase "credit easing" for his multibillion-pound spree in the financial markets. The Fed has bought asset-backed securities, commercial paper and a range of other hard-to-sell securities in an effort to get lending flowing again. Credit crunch Bank of England Economic policy Recession Banking Economics guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• Fresh round of job cuts Fresh round of job cuts
01/29/2009
The global economy suffered a fresh series of job losses today as companies from pharmaceuticals to photography and the law to London Underground announced cutbacks. The drug maker AstraZeneca said it was extending its rationalisation programme with the loss of 6,000 jobs over the next four years in addition to 9,000 which have gone over the last two years. Chief executive David Brennan, whose company employs about 65,000 people including a number in Britain, said the job reductions were "not a reaction to the recession" but the group admitted it was facing tougher conditions. Japanese glass maker NSG, which bought St Helens-based Pilkington in 2006, said its decision to cut 5,800 jobs over the next year was a direct response to the global downturn. The company said all three of its business units had been hurt by the credit crunch, with its automotive division taking the worst hit. It was also scaling back production of float glass – the process used to make large sheets of glass – removing the equivalent of two production lines in Europe and a 15% cut in capacity elsewhere. In the US, photography group Eastman Kodak said it was cutting up to 4,500 jobs this year after a slump in demand for digital cameras and commercial printing equipment. The company had said it would shed up to 1,500 jobs this year but raised the total after a fourth quarter loss from continuing operations of $137m. British-based industrial materials company Cookson said it was cutting 1,250 jobs – some 7% of its staff – and axing its dividend as it called on shareholders for £240m through a deeply discounted rights issue. Cookson, which supplies products used in the steel and ceramics industries, said its key markets had fallen by a quarter over the last two months. Electrocomponents, which trades as RS Components and is based in Corby, Northamptonshire, blamed the downturn for 430 job cuts. It said the redundancies were part of £15m of cuts worldwide. The job losses would hit its warehouse in Corby and small outlets nationwide, it said. Entertainment store Zavvi – formerly Virgin Megastore – shed 295 staff today as administrators failed to find buyers for another 15 stores. There was better news for the steel industry with the announcement that Corus has reached a preliminary agreement to sell a majority stake in its Teesside plant to the Italian family-owned company Marcegaglia and Dongkuk Steel. The two companies are members of a four-firm consortium which already buys the Teesside plant's output. The deal is subject to due diligence. Last night Antonio Marcegaglia, chief executive officer of Marcegaglia, said the aim was to invest in the plant over the longer term. "In principle we would look to retain the people and secure the future of Teesside." Solicitors Linklaters said the firm was cutting its UK staff by 100-120 lawyers and up to 150 business services staff. Managing partner Simon Davies said: "There have been significant changes in the financial markets and the wider economy. This has affected the clients we serve." London Underground plans to cut 1,000 jobs this year in non-operational areas such as finance and administration but said no tube drivers or other frontline staff would be affected. E.ON, one of Britain's big six energy suppliers, became the latest utility to announce job cuts. The company said it was reducing its workforce by 450. Paul Golby, chief executive, said: "These redundancies are part of an ongoing process that we started last year to ensure that we have a sustainable retail business in the UK." Another utility, Southern Water, said that to avoid job losses it was looking at a pay freeze for its 1,600 staff. Credit crunch Zavvi Transport Recession Global recession guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• Shell makes first quarterly loss in a de... Shell makes first quarterly loss in a decade
01/29/2009
Shell has slumped to its first quarterly loss in 10 years on the back of plummeting oil prices, but the Anglo-Dutch oil group was still able to report the biggest annual profit in UK corporate history, of $31.4bn (£21.9bn) – the equivalent of £2.5m an hour – leading to renewed calls for a windfall tax. The union Unite expressed anger that the petrol supplier was still raking in record profits while motorists and others suffered. "Shell is still feasting while the rest of us face famine," said joint general secretary Derek Simpson. "A compelling case still remains for a windfall tax on the greedy energy companies. Working families are struggling in the face of the recession; the redistribution of windfall profits would help support Britain through these difficult times." Shell's profits were made when oil prices were soaring last year, reaching a record high of $147 a barrel last July – the price has since fallen to below $50. The energy group, which is the second biggest publicly quoted oil company in the world, reported a net deficit of $2.8bn for the fourth quarter of 2008, compared with an $8.5bn profit during the same period 12 months earlier. "Combined cycle" earnings – the ones most watched by City analysts – fell 28% to $4.7bn in the three-month period, but Shell's full-year figure of $31.4bn was up 14% on the year before. Jeroen van der Veer, Shell's chief executive, said industry conditions remained "challenging" and that the company would slow down some of its projects, such as the controversial tar sands operation in Canada. But he added that shareholders were still benefiting, with the dividend raised for both the last and the forthcoming quarter. "Our strategy remains to pay competitive and progressive dividends, and to make significant investments in the company for future profitability. Industry conditions remain challenging and we are continuing the focus on capital and cost discipline," he said. The tar sands business, which has attracted huge criticism from green groups because of its heavy carbon footprint, made a $30m quarterly loss. Van der Veer refused to admit that investing in tar sands was a mistake, saying it was a long-term business that would become profitable when global crude prices recovered. Shell admits the tar sands business needs crude oil prices of $70-$80 a barrel to make money. James Marriott, a partner at environmental group Platform, said: "The tar sands are a disaster and should be abandoned. They are making a substantial financial loss for Shell while taking an even bigger toll on the environment." Shell did not announce job cuts today, but the company did say it expected 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 City was split over the results and the share price dipped during the day but the "A" shares ended 25p up at £18.01. Andy Lynch, who runs the Schroders European Dynamic Growth Fund, welcomed the results, and Gordon Gray of broker Collins Stewart said the dividend increase showed Shell could ride out the downturn. "We are not that positive on the major oils as a group, but think Shell has the balance sheet to take it through this period of peak investment and weak pricing." There had been speculation that the Anglo-Dutch group would reveal significant cutbacks in its 2009 exploration and production budget and could make job losses. The results should keep Shell ahead of main rival BP, which will report next Tuesday and is expecting full-year profits 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 – a comparison flattered by the difficulties following the Texas City fire. 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 (3 d 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 (3 d ago)

• Chinese gov't pledges better quality sup... Chinese gov't pledges better quality supervision over farm products
02/01/2009
China pledged on Sunday to step up efforts for stricter quality supervision over farm products in the government's first document this year. The country would prepare for the introduction of the long-awaited food safety law with new and modified regulations on farm product quality, according to the first document of the year jointly issued Sunday by the Central Committee of the Communist Party of China (CPC) and the State Council. The government would build a mechanism which coor ... (4 h ago)

• Holiday housing sales get cold shoulder ... Holiday housing sales get cold shoulder in major Chinese cities
02/01/2009
Housing sales in major Chinese cities like Beijing, Shanghai and Guangzhou failed to rebound during the weeklong Spring Festival holiday, as homebuyers bet on further price cuts following last year's sluggish performance. In Guangzhou, capital of south China's Guangdong Province, home sales from Jan. 25 to 31 fell by 20 percent from last year's lunar New Year holiday, the Guangzhou-based Nangfang Daily reported. "The real estate market was particularly dismal during this year's S ... (4 h ago)

• China moves to tap rural market potentia... China moves to tap rural market potential
02/01/2009
China on Sunday extended it rural subsidy scheme for home appliance purchases nationwide in an effort to boost rural consumption, the Central Committee of the Communist Party of China and the State Council announced in the first joint document this year. The document said the government would provide a 13-percent subsidy to all rural buyers of home appliances, including color TVs, refrigerators, mobile phones, washing machines and freezers. A trial scheme had been conducted in 12 ... (4 h ago)

• Kim Jong Il calls for measures to boost ... Kim Jong Il calls for measures to boost electricity production
02/01/2009
&$ &$Kim Jong Il (C), top leader of the Democratic People's Republic of Korea, inspects the Ryesonggang Youth Power Station No. 1 plant in North Hwanghae province, DPRK, in this undated photo released by Korean Central News Agency (KCNA) on Feb. 1, 2009.(Xinhua Photo)&$ &$ Kim Jong Il, top leader of the Democratic People's Republic of Korea, called for efforts to boost the country's electricity output, state ... (5 h ago)

• China's gov't warns 2009 to be "the toug... China's gov't warns 2009 to be "the toughest" year since 2000
02/01/2009
China's government Sunday warned 2009 will be "possibly the toughest year" since the turn of the century in terms of securing economic development and consolidating the "sound development momentum" in agriculture and rural areas. The lingering global financial crisis and the slowdown of the world economy had exerted an increasingly negative impact on the Chinese economy, said the first document of the year issued jointly by the State Council and the Central Committee of the Communist Par ... (5 h ago)

• Bolivian government fires state oil chie... Bolivian government fires state oil chief
01/31/2009
The head of Bolivia's state oil company YPFB was sacked on Saturday amid reports that he was involved in a corruption scandal. Bolivian President Evo Morales replaced Samtos Ramirez with Carlos Villegas, current planning minister and former energy minister. Earlier this week, Jorge O'Connor, a Bolivian businessman, was murdered while carrying 450,000 U.S. dollars in cash and assailants fled with the money. Local media quoted prosecutors and police sources as saying the money was going t ... (10 h ago)

• Ecuadorian president tells Repsol to dro... Ecuadorian president tells Repsol to drop World Bank claim or leave
01/31/2009
Ecuadorian President Rafael Correa has threatened to expel Spanish oil firm Repsol YPF unless the company drops a lawsuit against the country over a tax dispute, reports said. "If Repsol wants to continue in Ecuador they have to drop the arbitration," Correa said Saturday in his weekly radio address. "We would like them (Repsol) to stay ... but they can't stay in a state they are suing," he added. Correa vowed to keep pursuing a fee-for-service contact with the company instead of the cu ... (10 h ago)

• S Korean company seeks investment in min... S Korean company seeks investment in mineral exploration in Myanmar
01/31/2009
A South Korean leading private company is seeking investment in mineral exploration in a major mine in Myanmar's northern Shan state, the local weekly Yangon Times reported in this week's issue. Confirmed by the South Korean Embassy here, the Korean HC Company has coordinated with the Myanmar mining authorities to make investment in the Yadanar Theinki mining block on a mutually-beneficial basis and a field survey running for a period of up to one year will be conducted by Korean experts soon ... (12 h ago)

• Trade officials call for Doha deal to fi... Trade officials call for Doha deal to fight protectionism
01/31/2009
Finishing the Doha Round of global trade talks is the best step global leaders can take to avoid a destructive protectionist backlash from the current economic crisis, trade officials said on Saturday. By reaching a global trade deal, the world's major economies can demonstrate that their commitment to cooperation and coordination to fight the crisis is more than just an empty promise, the officials said at a session of the World Economic Forum annual meeting. "It would send the right sign ... (14 h ago)

• Philippines eyes to become "dive capital... Philippines eyes to become "dive capital" of Asia
01/31/2009
Local officials were urged on Saturday to help in the efforts by the national government to make the Philippines into a "dive capital" of the Asian region. Ronaldo Puno, Interior Secretary of the country, asked the local government units to take measures that would standardize the collection of recreational diving fees and utilize such revenues to implement marine conservation and coastal livelihood programs. He asked the executives of areas where dive sites are located to set up coastal r ... (15 h ago)

• China offers incentives to stimulate hyb... China offers incentives to stimulate hybrid cars
01/31/2009
China is to offer policy incentives to speed up spread of energy-saving cars in 13 pilot cities. The ministries of finance and science and technology jointly issued a circular on providing subsidies to users of hybrid, electric and fuel cell cars in Beijing, Shanghai and another 11 major cities, the Ministry of Finance said on its website on Sunday. Public transport, taxi companies, post services and public offices were encouraged to use more energy-saving vehicles, the circular said. T ... (15 h ago)

• China's natural gas output continues to ... China's natural gas output continues to rise, up 12.3% in 2008
01/31/2009
China's production of natural gas rose 12.3 percent year on year to 76.1 billion cubic meters in 2008 as the government promoted cleaner energy, an industry association said. The annual growth rate was down from 23.1 percent in 2007, the China Petroleum and Chemical Industry Association (CPCIA) said. China consumed 67.3 billion cubic meters of gas in 2007, an annual increase of 19.9 percent, according to statistics from BP. This compared to 55.6 billion cubic meters in 2006, up 21.6 per ... (15 h ago)

• China to begin sunset review of anti-dum... China to begin sunset review of anti-dumping duties on imported phenol
01/31/2009
China's Ministry of Commerce said Saturday it will start a sunset review of its five-year anti-dumping duties on phenol imports from Japan, the Republic of Korea, the United States and Taiwan. The review, beginning Sunday, will evaluate the effectiveness and continued need for duties on imports of phenol, also known as carbolic acid, which is chiefly used as a disinfectant or an antiseptic and in organic synthesis. The ministry would continue to impose anti-dumping duties on the imports un ... (15 h ago)

• China Customs: Imports and exports in bo... China Customs: Imports and exports in bonded zones up 17%
01/31/2009
China Customs has said the total value of imports and exports in its specially-supervised areas, mainly bonded zones, were up 17 percent year-on-year to almost 300billion U.S. dollars in 2008. Exports grew 21.7 percent to 152.6 billion U.S. dollars and imports rose 12.2 percent to 146.9 billion U.S. dollars. The total value of imports and exports in these special areas accounted for 28 percent of the country's processing trade volume last year, according to the Customs figure. The gover ... (15 h ago)

• S. Korean president vows to boost domest... S. Korean president vows to boost domestic demand
01/31/2009
South Korean President Lee Myung-bak vowed that his administration will focus on reviving domestic demand this year in a bid to spur the sagging economy, the Korea Times reported on Saturday. At an live-broadcast discussion TV program Friday night, Lee said the global economic downturn was expected to continue this year, forcing firms to reduce exports and creating additional downside risks for South Korea, which is heavily dependent on trade for economic growth. "We believe policies expan ... (15 h ago)

• PM: Japan to provide $17 bln for Asian c... PM: Japan to provide $17 bln for Asian countries to boost growth
01/31/2009
Japanese Prime Minister Taro Aso announced here Saturday his country will provide 1.5 trillion yen (17 billion U.S. dollars) to help other Asian countries boost growth amid the global financial crisis. "Japan is ready to provide ODA (overseas development assistance) no less than 1.5 trillion yen in total," Prime Minister Taro Aso announced the package in a speech to the World Economic Forum held in the renowned Alpine resort. He also pledged Japan's own efforts of stimulus packages worth a ... (15 h ago)

• TV Sports: N.F.L. Stars Who Took the Pit... TV Sports: N.F.L. Stars Who Took the Pitch and Ran With It
01/31/2009
While it is tempting to crown Peyton Manning the greatest N.F.L. commercial star, other players from the past, like Joe Namath, could be considered. (10 h ago)

• Coca-Cola Deleting ‘Classic’ From Coke L... Coca-Cola Deleting ‘Classic’ From Coke Label
01/31/2009
After 24 years, one of the most famous blunders in marketing history is quietly coming to end. (19 h ago)

• Malcolm MacPherson, 65, War Reporter, Di... Malcolm MacPherson, 65, War Reporter, Dies
01/30/2009
Mr. MacPherson was a former foreign correspondent for Newsweek whose novels and nonfiction books dealt with subjects as varied as Disneyland, the Iraq war and special operations in Afghanistan. (1 d ago)

• Newspaper Companies to Make More Cutback... Newspaper Companies to Make More Cutbacks
01/30/2009
Gannett said it planned a $5 billion write-down while The Los Angeles Times and the A. H. Belo Corporation announced job cuts. (1 d ago)

• Consumed: Dumb and Dumber 2.0 Consumed: Dumb and Dumber 2.0
01/30/2009
An old joke gets a digital remake — and attracts consumers in a down economy. (1 d ago)

• Advertising: Upbeat but Sympathetic: A F... Advertising: Upbeat but Sympathetic: A Fine Line for Super Bowl Ads
01/29/2009
Advertisers for the Super Bowl are walking a tightrope this year, trying to entertain and sell products, while not appearing insensitive to the economic environment. (2 d ago)

• A Former MTV Executive Will Lead Oprah N... A Former MTV Executive Will Lead Oprah Network
01/29/2009
Christina Norman, a 17-year veteran of MTV Networks, will be chief executive of OWN: The Oprah Winfrey Network. (2 d ago)

• Disney’s TV Unit Will Cut 400 Jobs Disney’s TV Unit Will Cut 400 Jobs
01/29/2009
The move is part of a cost-cutting effort to deal with what it called “a weakening economy.” (2 d ago)

• At Reader’s Digest, Layoffs Are Part of ... At Reader’s Digest, Layoffs Are Part of ‘Recession Plan’
01/29/2009
The company said it would lay off close to 300 people, as well as put employees on unpaid furloughs and suspend contributions to their 401(k) plans. (2 d ago)

• Washington Post’s Book World Goes Out of... Washington Post’s Book World Goes Out of Print as a Separate Section
01/29/2009
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. (2 d ago)

• Digital TV Beckons, but Many Miss the Ca... Digital TV Beckons, but Many Miss the Call
01/29/2009
For viewers who still use set-top rabbit ears, the switch to digital television has often proven a bewildering and cumbersome burden. (2 d ago)

• YouTube Said to Be Near Hollywood Deal YouTube Said to Be Near Hollywood Deal
01/29/2009
The deal between YouTube and the William Morris Agency would place the company’s clients in made-for-the-Web productions. (3 d 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. (3 d 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. (3 d ago)

• Refinery Workers Set To Go On Strike Refinery Workers Set To Go On Strike
01/31/2009
With a third contract offer rejected, some 24,000 refinery workers from the Gulf of Mexico to Montana prepared to head to the picket lines Saturday just hours before an existing labor agreement expires. (12 h ago)

• Under Armour Takes Chance On Shoe Market Under Armour Takes Chance On Shoe Market
01/31/2009
The relatively young athletic apparel company Under Armour is launching its first running shoe line, betting it can compete against the likes of Nike in one of the biggest categories in the shoe world and in the midst of a recession. (15 h ago)

• Economy Logs Worst Showing In 25 Years Economy Logs Worst Showing In 25 Years
01/30/2009
The economy shrank at a 3.8 percent pace at the end of 2008, the worst showing in a quarter-century, as the deepening recession forced consumers and businesses to throttle back spending. (1 d ago)

• Famed Waterford Crystal Shutters Doors Famed Waterford Crystal Shutters Doors
01/30/2009
Waterford Crystal workers have mounted a sit-down protest in their world-famous factory after union leaders informed them that the debt-crippled company is closing immediately. (1 d ago)

• Tech Ads Shoved To Sidelines For Big Gam... Tech Ads Shoved To Sidelines For Big Game
01/30/2009
With price tags that can reach nearly $3 million, Super Bowl ads are something that could disappear quickly from a budget amid financial panic. (1 d ago)

• ExxonMobil Shatters Annual Profit Record ExxonMobil Shatters Annual Profit Record
01/30/2009
ExxonMobil Corp. reported a profit of $45.2 billion for 2008, breaking its own record for a U.S. company, even as its fourth-quarter earnings fell 33 percent from a year ago. (2 d ago)

• Wireless Savior: Cells Keep Industry Ali... Wireless Savior: Cells Keep Industry Alive
01/29/2009
Two of the nation's largest Internet service providers are expected to be among a group of ISPs that will cooperate with the music industry in battling illegal file sharing, three sources told CNET News. (2 d ago)

• OPEC Poised For More Oil Production Cuts OPEC Poised For More Oil Production Cuts
01/29/2009
OPEC is readying to make further production cuts if prices don't rise in the coming weeks, its secretary-general said. (2 d ago)

• Madoff Paper Trail Leads To NYC Warehous... Madoff Paper Trail Leads To NYC Warehouse
01/29/2009
The paper trail in the Bernard Madoff fraud case has led investigators to a warehouse containing boxes and file cabinets stuffed with documents that could reveal more clues about the $50B Ponzi scheme, an official said. (2 d ago)

• New Home Sales Slow At Record Pace New Home Sales Slow At Record Pace
01/29/2009
The hobbled homebuilding industry posted its worst annual sales results in more than two decades. (2 d ago)

• Jobless Claims For Americans Hit Record Jobless Claims For Americans Hit Record
01/29/2009
The number of people receiving unemployment benefits has reached an all-time record, the government said Thursday, as layoffs spread throughout the economy. (3 d ago)

• Ford Posts $5.9B Loss, But Won't Seek Ai... Ford Posts $5.9B Loss, But Won't Seek Aid
01/29/2009
Ford Motor Co. said Thursday it lost $5.9 billion in the fourth quarter as auto sales slumped, but it has no plans to seek federal aid unless economic conditions worsen. (3 d ago)

• THE WEEK'S WINNERS AND LOSERS THE WEEK'S WINNERS AND LOSERS
02/01/2009
WINNERS JEFF BEZOS Amazon.com chief defies the recession with a 4Q profit of $225 million. MARY SCHAPIRO In line to receive $5M to $25M in benefits upon leaving Finra for SEC. STEPHON MARBURY Disgruntled NY Knick opens Starbury.com - an... (5 h ago)

• WHEN TO START DISTRIBUTIONS WHEN TO START DISTRIBUTIONS
02/01/2009
Dear John: I have been given different answers to this question by a number of experts: When do I have to start taking my mandatory withdrawals from my Individual Retire ment Account? I was born in 1939 and will turn 70 in July - and 70&frac12... (7 h ago)

• PECKER FINALLY PULLS IT OUT PECKER FINALLY PULLS IT OUT
02/01/2009
After weeks of feverish negotiations, American Media's bondholders yesterday reached a bailout agreement with the publisher of the National Enquirer, Star and Shape, The Post has learned. The deal cuts $227 million off the company's debt and... (7 h ago)

• LAWYERS CAN TEACH WALL ST. FINANCE LAWYERS CAN TEACH WALL ST. FINANCE
02/01/2009
NEW York's law firms are bleeding. Business is drying up, billable hours are way down and associates are being laid off at a rapid clip. Sounds like a recipe for a government bailout, right? Wrong. Instead, as The Wall Street Journal reported... (7 h ago)

• BATTERY LOSES JUICE BATTERY LOSES JUICE
02/01/2009
He had earned roughly $480 million by the time he was 31. He cofounded PayPal, which he sold to eBay, and started an online software company that netted him another bundle. Then he founded the only electric car company producing autos, Tesla... (7 h ago)

• NETS CEO BRINGS THE 'MADNESS' TO THE BOA... NETS CEO BRINGS THE 'MADNESS' TO THE BOARDROOM
02/01/2009
BRETT Yormark , the inventive CEO of the New Jersey Nets, will try anything to stir up interest in his struggling, sub-.500 team. His latest idea: You get to play. Not on the actual team, unfortunately, but in a March Madness-style 64-team... (7 h ago)

• DR. DOOM'S REAL 'ASSETS' DR. DOOM'S REAL 'ASSETS'
02/01/2009
New York University professor and famed economist Nouriel Roubini is at it again - simultaneously making news for his doomsday financial predictions and his colorful social life. The 49-year-old professor of economics - nicknamed "Dr. Doom" -... (7 h ago)

• TOP OBAMA OFFICIALS SPAR ON BANK PLANS TOP OBAMA OFFICIALS SPAR ON BANK PLANS
02/01/2009
In politics as well as finance timing is everything. And the timing of FDIC Chairwoman Sheila Bair's "bad bank" rescue plan was troubling on both fronts - leaking out just as Treasury Secretary Tim Geithner was in the hot seat with the Senate and... (7 h ago)

• SURVEY: WE DON'T TRUST BIZ SURVEY: WE DON'T TRUST BIZ
02/01/2009
In the wake of tanking stock markets, crippled banks paying out billions in bonuses and investment advisers being accused of running Ponzi schemes, Americans' trust in business has plunged to a 10-year low, a shocking new survey has found. The... (7 h ago)

• A BAD (BANK) IDEA A BAD (BANK) IDEA
02/01/2009
The prospects of the Obama administration creating a $4 trillion "bad bank" stocked with the toxic assets of the country's ailing banks are, well, bad. The White House plan has run into trouble over concerns on how Washington would price the... (7 h ago)

• Your Money: American Express Kept a (Ver... Your Money: American Express Kept a (Very) Watchful Eye on Charges
01/31/2009
Until this week, American Express scrutinized how its cardholders spent money, searching for similarities to other customers with bill-paying problems. (20 h ago)

• Fundamentally: It’s a Great Time for a M... Fundamentally: It’s a Great Time for a Makeover
01/31/2009
Some planners say the bear market has given investors a rare opportunity: they can completely refashion their portfolios with little or no tax consequence. (21 h ago)

• Patient Money: Making the Most of Flexib... Patient Money: Making the Most of Flexible Spending Accounts
01/31/2009
Flexible spending accounts offer a tax break and can stretch health care dollars, if used wisely. (23 h ago)

• Market Values: Finding Market Bargains i... Market Values: Finding Market Bargains in Shrinking Companies
01/30/2009
When a sour economy causes middle-cap companies to shrivel into small caps, an investment opportunity may emerge. (1 d ago)

• Shortcuts: The Popular Practice of Putti... Shortcuts: The Popular Practice of Putting Stuff Off
01/30/2009
There’s a little procrastinator in all of us, but delaying some tasks can be costly. (1 d ago)

• What Red Ink? Wall Street Paid Hefty Bon... What Red Ink? Wall Street Paid Hefty Bonuses
01/30/2009
Despite crippling losses in 2008, financial employees in New York collected an estimated $18.4 billion in bonuses for the year. (1 d ago)

• For Home Buyers, More Bank Roadblocks For Home Buyers, More Bank Roadblocks
01/30/2009
Norman Calvo, the president of Universal Mortgage, says banks are now requiring documentation from buildings as well as home buyers.Many banks are refusing to make loans if they don’t like what they find when they review the finances and bylaws of the building where the purchaser hopes to live. (1 d ago)

• Mortgages: Banks Bypassing Mortgage Brok... Mortgages: Banks Bypassing Mortgage Brokers
01/30/2009
Some brokers are concerned that they might become marginalized, as some of the nation’s largest lenders move to block them from offering their loans. (1 d 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. (3 d ago)

• Could Britain become another Iceland? Could Britain become another Iceland?
01/30/2009
Critics are questioning Britain's second multibillion-pound bailout of its banks. Some say another bailout is unnecessary and could make the U.K. the next Iceland -- a bankrupt nation. Stephen Beard reports. (1 d ago)

• Leaders in Davos discuss politics, trust Leaders in Davos discuss politics, trust
01/30/2009
World leaders converged in Davos, Switzerland, this week for the World Economic Forum. But there was one notable absence -- the United States. Kai Ryssdal speaks with Bloomberg's Tom Keene about the happenings in Davos. (1 d ago)

• Weekly Wrap: From bad to worse Weekly Wrap: From bad to worse
01/30/2009
The GDP number was pretty bad and things could get worse. Kai Ryssdal talks about the GDP and nationalization with Portfolio.com's Felix Salmon and The Atlantic's Meghan McArdle. (1 d ago)

• Program to help foreclosed borrowers Program to help foreclosed borrowers
01/30/2009
In an effort to slow evictions resulting from the housing crisis, Freddie Mac is starting a new program to let homeowners and tenants stay in foreclosed homes. Will private lenders follow suit? Nancy Marshall Genzer reports. (1 d ago)

• Exxon's pumping profit in downturn Exxon's pumping profit in downturn
01/30/2009
Exxon Mobil's fourth-quarter earnings fell 33% from a year ago, but it still reported a record profit for 2008. What's it doing that other companies aren't? Sam Eaton reports. (1 d ago)

• House GOP explains 'no' stimulus vote House GOP explains 'no' stimulus vote
01/30/2009
House Republicans, none of whom voted for President Obama's stimulus plan, are mounting a campaign to defend their positions as pressure from critics and constituents builds. Jeremy Hobson reports. (1 d ago)

• GDP numbers signal more slowdown GDP numbers signal more slowdown
01/30/2009
The U.S. economy suffered its biggest slowdown in more than 25 years, according to last quarter's GDP figures. And with inventory piling up and consumers slow to buy new things, the outlook's not good. Mitchell Hartman reports. (1 d ago)

• Airlines see losses continue to pile up Airlines see losses continue to pile up
01/29/2009
Deep capacity cuts, checked bag fees and aggressive fare sales couldn't stop the airline industry's bleeding from the impact of bad bets on fuel hedges and the drop-off in demand. (2 d ago)

• Madoff paper trail leads to NYC warehous... Madoff paper trail leads to NYC warehouse
01/29/2009
The paper trail in the Bernard Madoff fraud case has led investigators to a warehouse containing boxes and file cabinets stuffed with documents. (2 d ago)

• Bailout transparency problems continue Bailout transparency problems continue
01/31/2009
The Financial Times reports that the Obama administration is expected to come out with a "big bang" announcement next week that will see a bank clean-up, measures to reduce home... (1 d ago)

• Rupert Murdoch's downturn blues Rupert Murdoch's downturn blues
01/30/2009
Rupert Murdoch is blaming the spending binge for the crisis, and warns that it will probably take some time until we emerge from it.But the reality is that his News Corporation has been hit hard by... (1 d ago)

• Winter of discontent: will the Paris rio... Winter of discontent: will the Paris riots spread?
01/30/2009
Paris has broken out in violent protests over the French government's handling of the economic crisis with 65,000 demonstrators joining a march from the Place de la Bastille towards the center of... (1 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... (2 d 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... (2 d ago)

• Need a job? Try the Border Patrol Need a job? Try the Border Patrol
01/30/2009
Job seekers, head for the border. (1 d ago)

• Your Career: More companies using furlou... Your Career: More companies using furloughs
01/29/2009
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)

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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

• Chicken wing panic turns out to be basel... Chicken wing panic turns out to be baseless
01/29/2009
Buffalo's football team won't have a place in this year's Super Bowl hoopla, but don't worry, its chicken wings will. (2 d ago)

• Start Saving Money on Heating This Winte... Start Saving Money on Heating This Winter
01/30/2009
Photo courtesy of iStockphoto, Image# 3940432 Hopefully by now you have already taken some steps to save money on your heating bills. If you haven't, it is not too late to do something now.... (2 d ago)

• Tips On How to Save Money Right Away Tips On How to Save Money Right Away
01/29/2009
Photo courtesy of iStockphoto, Image# 3425801 Being able to save money is something that you must make up your mind to do. While this has already been said, it needs to be repeated. Otherwise - it... (3 d ago)

• Video: Is it last call for British pubs? Video: Is it last call for British pubs?
01/30/2009
Jan. 30: The world economic blues have hit British watering holes in a big way as beer sales are down ten percent causing an average of six pubs per day to close. NBC's Dawna Friesen reports. (MSNBC) (2 d ago)

• Social media and social entrepreneurship Social media and social entrepreneurship
01/31/2009
First of all, a note on the previous blog: Jill Finlayson kindly provided more links to the Bill Drayton's presentations/lectures which are pretty cool (check the comments for previous blog to... (19 h ago)

• Hedge Fund Manager Surrenders to Police Hedge Fund Manager Surrenders to Police
01/29/2009
Missing hedge fund manager Arthur Nadel, who disappeared last week along with an estimated $350 million of investor's money, turned himself in to the FBI yesterday. The Sarasota resident, 76,... (2 d ago)

• After a Promising Start, a Down Week After a Promising Start, a Down Week
01/31/2009
U.S. stocks fell for the fourth straight week, capping the market's worst January retreat, after companies from Procter & Gamble to Caterpillar and Allstate reported earnings that trailed estimates. (11 h ago)

• Recession Has Landlords of Retail Tenant... Recession Has Landlords of Retail Tenants Extending Discounts of Their Own
01/31/2009
Some small businesses are finding a silver lining in the recessionary clouds: they suddenly have leverage with their landlords. (10 h ago)

• Make $6 million sitting on your couch Make $6 million sitting on your couch
01/30/2009
Recessions can be a great time to start your own business. Thanks to the Web and a variety of other resources, it's cheaper and easier than ever to start one at home. (2 d ago)

• Facebook Becomes (Even More) Business Fr... Facebook Becomes (Even More) Business Friendly
01/31/2009
Josh Peters had a good piece over at Mashable earlier this month on the growing number of Facebook applications that can help you with your business. Josh seems to think that Facebook's app... (23 h ago)

• A Conversation with Larry Guevel of Unis... A Conversation with Larry Guevel of Unisys
01/29/2009
Photo courtesy of iStockphoto, Image# 3294058 A few days ago, I had the opportunity to chat with Larry Guevel, Vice President of Strategic Business Planning for Unisys Global Outsourcing and... (2 d ago)