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Business News
for 04/09/2009

(last updated 7:30am EST 04/09/2009)

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• Hong Kong stocks end higher on Wall Stre... Hong Kong stocks end higher on Wall Street gains
04/09/2009
Hong Kong stocks rose 2.95 percent Thursday due to support from gains on Wall Street overnight and stronger regional equity markets. Blue-chip Hang Seng Index rose 426.55 points, or 2.95 percent, to 14,901.41 after trading between 14,656.16 and 14,987.41. Turnover fell to 52.66 billion HK dollars (about 6.8 billion U.S. dollars) from Wednesday's 60.8 billion HK dollars (about 7.85 billion US dollars). The index is up 2.4 percent this week and has gained 9.8 percent since ... (2 h ago)

• Beijing Sanyuan pays 49 mln yuan for ban... Beijing Sanyuan pays 49 mln yuan for bankrupt Sanlu milk producer
04/09/2009
Beijing-based Sanyuan Group successfully bid 49 million yuan (7.2 million U.S. dollars) on Thursday to buy a 95-percent stake in the Sanlu (Shandong) dairy company, previously owned by the Sanlu Group, the bankrupt dairy firm at the center of the melamine contamination scandal. The shares were put up for sale at an auction in the northern city of Shijiazhuang, capital of Hebei Province, according to sources with the Hebei Jiahai Auction Co. Ltd. Four companies participated in the ... (2 h ago)

• Chinese shares rise 1.38% Thursday Chinese shares rise 1.38% Thursday
04/09/2009
Chinese equities rose 1.38 percent Thursday after Premier Wen Jiabao called for stronger supervision of stock markets and a crackdown on crimes such as share price manipulation and insider trading. The benchmark Shanghai Composite Index rose 1.38 percent, or 32.49 points to close at 2379.88. The Shenzhen Component Index was up 1.5 percent, or 133.34 points to close at 9030.31. Gains outnumbered losses by 740 to 164 in Shanghai and 670 to 112 in Shenzhen. Combined turnove ... (2 h ago)

• Three large trading centers to be establ... Three large trading centers to be established in Zhongguancun
04/09/2009
Three large trading centers— the National Technology Trading Center, the China Technology Exchange and the China Copyright Exchange Center— will be established in the western area of Zhongguancun. On April 8, Beijing's Haidian District fully initiated construction in the core area of Haidian Park. In addition, a new and high technology enterprise service center will also be set up, providing a comprehensive, "one-stop" public service to enterprises. At the same time, commercial ba ... (4 h ago)

• Indonesia's polls outcome expected to he... Indonesia's polls outcome expected to help spur economic growth
04/09/2009
Indonesia's direct legislative and presidential polls are expected to pick up legislators and a president who strongly support economic growth amid the deepening fallout of the global recession. Indonesia holds legislative and presidential polls on April 9 and July 8, as the country is struggling from the deepening fallout of the global recession. The country's economic growth is predicted to be able to reach the lowest level of 3 percent this year, far from 6.1 percent growth in the previou ... (5 h ago)

• Bookings for world's cheapest car Nano b... Bookings for world's cheapest car Nano begin today
04/09/2009
The much-awaited bookings for the world's cheapest car Nano which worth 2,000 U.S. dollars starts Thursday across India for a limited period of 17 days, local media reported. Tata Motors states to accept application forms of 300 rupees (6 U.S. dollars) each for the 624-cc jelly-bean shaped Nano and a booking amount ranges between 2,850 rupees (57 U.S. dollars) and 4,110 rupees (82.2 U.S. dollars) among different banks. Online booking for the Nano, the first such option in India, are also ... (5 h ago)

• Sky TV wins Rugby World Cup broadcasting... Sky TV wins Rugby World Cup broadcasting rights
04/09/2009
Sky Television has won the host broadcasting rights for the Rugby World Cup in New Zealand in 2011,the Sky TV announced on Thursday. Under the deal, Sky will work with Rugby World Cup Ltd to produce comprehensive coverage of all 48 matches for distribution worldwide. Coverage will be provided in high definition format. The Rugby World Cup is the world's third largest sporting event and in 2007 was beamed to four billion people across 200 countries and regions. In addition to the deal ... (5 h ago)

• S Korea's producer price growth marks 16... S Korea's producer price growth marks 16-month low
04/09/2009
South Korea's producer price growth slowed down at a 16-month low rate in March due to a slight decrease in oil price growth and sluggish domestic demand, South Korea's central bank said Thursday. The producer price index, an indicator to help forecast future consumer inflation, logged an on-year growth of 3.5 percent in March, down from February's 4.4 percent on-year advance, according to the Bank of Korea (BOK). The rise in the index marks the slowest growth since November 2007 when th ... (5 h ago)

• Nikkei closes 3.74% higher Nikkei closes 3.74% higher
04/09/2009
Tokyo stocks closed sharply higher Thursday with the key Nikkei index jumping 3.74 percent to a three-month closing high. The benchmark Nikkei 225 Average gained 321.05 points to 8,916.06. The broader Topix index advanced 26.55 points, or 3.26 percent, to 841.81. Value and volume leader Mizuho Financial Group rose 20 yen, or more than 10 percent, to 219 yen. On the First Section, advancing issues outnumbered declining ones 1,403 to 244, with 56 others remaining unchanged. Tra ... (5 h ago)

• Mundell: China's economic growth expecte... Mundell: China's economic growth expected to reach between 7 and 8 percent
04/09/2009
Robert Mundell, Nobel Laureate in economics and the "Father of the Euro," said he still believes that despite the impact of the global economic slowdown, China's economic growth this year will reach somewhere between 7 and 8 percent. At the 2009 Nobel Laureates Forum held at Hong Kong Polytechnic University on April 7, Mundell noted that China's economic growth rate is expected to exceed 7 percent, and has more optimistic prospects than other countries. He explained that various measures ado ... (6 h ago)

• China and France hold economic seminar China and France hold economic seminar
04/09/2009
The 15th China-France Economic Seminar opened on April 8 in Beijing. Over 600 Chinese and French enterprisers and scholars are attending the seminar. Jean-Pierre Raffarin, former Prime Minister of France, said in his address that cooperation between China and France has broad prospects. While bilateral relations are gradually improving, the business circles of the two countries should seize the opportunity to further enhance investment cooperation, promote trade balance, and provide guarante ... (6 h ago)

• Civil aviation sector fully recovers in ... Civil aviation sector fully recovers in first quarter
04/09/2009
The number of domestic passengers in China's civil aviation sector increased by 17 percent year-on-year in the first quarter of this year, with airlines turning losses into gains, achieving a total profit of 800 million yuan by preliminary calculations. These results lead to the judgment that operations of China's civil aviation sector have fully recovered and larger breakthroughs are expected in the domestic market in April and May, noted Li Jiaxiang, Director General of the Civil Aviation Admi ... (6 h ago)

• CE: HK set for RMB trade settlements CE: HK set for RMB trade settlements
04/08/2009
Hong Kong Chief Executive Donald Tsang Thursday said Hong Kong is ready for RMB trade settlements which can help the city open up new business and enable greater security for enterprises. Speaking at a press briefing on Thursday, Tsang welcomed the State Council's decision on Wednesday about introducing a pilot program for using RMB for cross-border trade settlements. Five Mainland cities -- Shanghai, Guangzhou, Shenzhen, Dongguan and Zhuhai have been designated for the purpose. Tsang sa ... (7 h ago)

• Global recession hit Australian jobs Global recession hit Australian jobs
04/08/2009
Australian deputy Prime Minister Julia Gillard says on Thursday the global recession has hit the Australian jobs market. Ms. Gillard made the statement with the unemployment rate roared to 5.7 percent in March, recorded a highest level in over five years. "Australia is battling a global recession that is resulting in falling growth and rising unemployment right around the world," she said. "This global financial crisis and global recession has hit jobs around the world and of course ... (7 h ago)

• "Aviation City" in Xi'an attracts 7.1 bl... "Aviation City" in Xi'an attracts 7.1 bln yuan in investment
04/08/2009
Sixteen projects were designated as Xi'an's key investment projects, and a total of 7.13 billion yuan was attracted to build the "China Aviation City" at the 13th China East-West Cooperation and Investment Trade Fair recently held in Xi'an. This is the largest investment made in the past two years for key projects in Xi'an. More than 180 business representatives from Guangdong, Shenzhen, Jiangsu, Shandong and Henan provinces, as well as 42 foreign business representatives from countries i ... (8 h ago)

• Chinese shares open slightly lower Chinese shares open slightly lower
04/08/2009
Chinese shares opened slightly lower on Thursday morning, after losing 3.76 percent on previous trading day as the market talk of the runaway credit expansion in March refreshed investors concerns of bad loans. The benchmark Shanghai Composite Index went down 0.1 percent, or 2.38 points, to 2,345.01. The Shenzhen Component Index slipped 0.09 percent, or 7.91 points, to 8,889.07 at the opening. &$ &$Source: Xinhua&$ &$ ... (11 h ago)

• Australian jobless rate rises to 5.7% Australian jobless rate rises to 5.7%
04/08/2009
The jobless rate in Australia has reached 5.7 percent, rising at a faster pace than the government predicted just a few months ago, according to Australian Bureau of Statistics data released on Thursday. The seasonally adjusted rate for March is the highest level since December 2003. In February, the jobless rate was 5.2 percent. The Statistics date said the number of people employed dropped by a seasonally adjusted 34,700 in March. There was a 38,900 slump in full-time workers, while th ... (11 h ago)

• Japan's core machinery orders up 1.4% in... Japan's core machinery orders up 1.4% in February
04/08/2009
Japan's core private-sector machinery orders rose for the first time in five months in February, up by 1.4 percent month-on-month to 728.1 billion yen (7.29 billion U.S. dollars) on a seasonally adjusted basis, the cabinet office said Thursday. An improvement in some nonmanufacturing businesses was a key factor behind the unexpected rise in machinery orders, which exclude those for ships and from electric utilities, according to the government body. Calculated on a seasonally adjusted ba ... (11 h ago)

• FGV study: economic crisis mitigates soc... FGV study: economic crisis mitigates social inequality in Brazil
04/08/2009
The economic crisis has mitigated seven years of continued social inequality in Brazil, according to a study released on Wednesday by the Getulio Vargas Foundation (FGV). The rich and the middle classes are being more affected by the international financial crisis than the poor classes in Brazil, the study named "Chronicles of the Crisis" said. "This crisis is atypical and affects the richest, since it started in the stock exchanges and financial markets," said the study's coordinator Ma ... (11 h ago)

• Chile invests $21 bln in energy sector Chile invests $21 bln in energy sector
04/08/2009
Chile has invested 21 billion U.S. dollars in the energy sector, with some projects for more than 7 billion dollars currently under construction, Chilean Energy Minister Marcelo Tokman said Wednesday. In an interview with Xinhua, Tokman said these projects include thermal and hydroelectricity centrals, re-gasify plants, eolian plants, transmission lines, substations and port works. "The offer on electric generation in the country has been increased with new projects that have started to ... (11 h ago)

• TARGET PROXY BATTLE IGNITES TARGET PROXY BATTLE IGNITES
04/09/2009
Discount giant Target took a swat at shareholder gadfly Bill Ackman, charging that the hedge-fund tycoon has a "risky agenda" as he mounts a proxy battle against the retailer's board. Stepping up to what promises to be one of the noisiest battles... (6 h ago)

• CENTEX SNAPPED UP FOR $1.3B CENTEX SNAPPED UP FOR $1.3B
04/09/2009
Pulte Homes Inc. is buying Centex Corp. for $1.3 billion in stock in a deal that will create the nation's largest homebuilder and could spark further consolidation in an industry that is suffering the worst real-estate recession in a generation... (6 h ago)

• INSURING VIABILITY INSURING VIABILITY
04/09/2009
Even as Uncle Sam considers opening up the TARP coffers to life-insurance companies, the state officials responsible for policing these companies remain optimistic about the industry being able to ride out the storm. They may be the only ones... (6 h ago)

• SEC SEEKS COMMENT ON SHORT SALE CURBS SEC SEEKS COMMENT ON SHORT SALE CURBS
04/09/2009
US securities regulators will seek public comment on five proposals to curb short selling, blamed by some lawmakers and executives for deepening the financial crisis and driving down share prices. The five-member Securities and Exchange... (6 h ago)

• RALLY ENDS SLUMP ON WALL ST. RALLY ENDS SLUMP ON WALL ST.
04/09/2009
US stocks snapped a two-day slide on news the government is shoring up life insurers and optimism about consumer spending after Bed Bath & Beyond reported a better-than-expected profit. Life insurers, whose capital base has been eroded by falling... (6 h ago)

• GM MEETS WITH FEDS ON DEEPER COST CUTS GM MEETS WITH FEDS ON DEEPER COST CUTS
04/09/2009
* General Motors, facing a potential June 1 bankruptcy without new debt cuts, is meeting this week and next with a team from the US Treasury to craft a revised plan to save the company. GM and Chrysler yesterday also launched programs to... (6 h ago)

• BOVE SEES A MORGAN LOSS BOVE SEES A MORGAN LOSS
04/09/2009
Morgan Stanley, the fifth-biggest US bank by assets, had its earnings estimates lowered by Rochdale Securities analyst Richard Bove on concern commercial real-estate losses will hurt profitability. Bove cut his estimate for 2009 earnings per... (6 h ago)

• WHY US AUTO INDUSTRY IS A WRECK, NOT A C... WHY US AUTO INDUSTRY IS A WRECK, NOT A COUPE
04/09/2009
THERE'S no better way to put this -- the American auto industry needs an enema. Yesterday, I visited the nation's newest, taxpayer-funded museum. It's also known as the New York International Auto Show. On display were fossils of a formerly... (6 h ago)

• UBS CLIENT NAILED IN TAX PROBE UBS CLIENT NAILED IN TAX PROBE
04/09/2009
A Florida accountant arrested on a charge of failing to tell the Internal Revenue Service about assets in an offshore account set up by UBS AG had bail set at $12 million and must also surrender his passports and boat keys. Steven Michael... (6 h ago)

• FARGO-ING CHANGE FARGO-ING CHANGE
04/09/2009
Wells Fargo is likely to stick with Evergreen Investments, the money-management firm it inherited when it acquired Wachovia, but will likely keep a smaller version of Wachovia's investment bank on hand, sources tell The Post. Evergreen, which... (6 h ago)

• BUFFETT'S BERKSHIRE RATING CUT BUFFETT'S BERKSHIRE RATING CUT
04/09/2009
Billionaire Warren Buffett's Berkshire Hathaway Inc. had its top-level Aaa credit rating cut by Moody's Investors Service because of the falling value of stock markets and the impact of the recession on profit. The rating was cut two levels to... (6 h ago)

• INSIDE THE FED'S ROUNDTABLE: SPEND ON! INSIDE THE FED'S ROUNDTABLE: SPEND ON!
04/09/2009
To see just how ugly the economy really is, imagine a ringside seat at one of the Federal Reserve's brain-trust knockdowns. Judging from minutes released yesterday about the group's private session last month, it was a $2 trillion doozy... (6 h ago)

• BUSINESS BRIEFS BUSINESS BRIEFS
04/09/2009
BofA capital Bank of America needs to raise $36.6 billion in equity to bring capital ra tios in line with its peers, according to Oppen heimer. BofA is more likely to raise capital by converting preferred stock to common, or issu ing 5.2 billion... (6 h ago)

• 'CAST ASIDE PROFIT 'CAST ASIDE PROFIT
04/09/2009
Two of the entertainment industry's most powerful bosses are at odds about the model for offering free TV shows online in a debate that appears to center on the importance of owning broadcast networks. On one side is Disney CEO Bob Iger, who last... (6 h ago)

• Dream Homes: FAIRFIELD, CONN. Dream Homes: FAIRFIELD, CONN.
04/08/2009
With "rare artistry" and "recherché accoutrements" (yes, even we had to Google that one), this 1932 French Normandy manor has been "lavishly restored." The home's "warm and welcoming" nature is not surprising given its nine (!) fireplaces... (8 h ago)

• JUST SOLD! JUST SOLD!
04/08/2009
Manhattan CLINTON $1,905,000 310 W. 52nd St. Two-bedroom, 2½-bath condo, 1,331 square feet, with dining room, Bosch washer/dryer, Sub-Zero refrigerator and wine cooler, central AC and floor-to-ceiling windows; building features doorman... (8 h ago)

• Houses of the Week: FLATIRON Houses of the Week: FLATIRON
04/08/2009
Bedrooms: 1 Bathrooms: 2 Square feet: 1,300 Maintenance: $1,923 -- For less than $850 per square foot on East 22nd Street, you might not have lofty expectations, but this duplex offers loft-like ceilings (over 11 feet), an open floor plan and six... (8 h ago)

• Houses of the Week: GREENWICH VILLAGE Houses of the Week: GREENWICH VILLAGE
04/08/2009
Bedrooms: 1+ Bathrooms: 2 Square feet: 1,350 Maintenance: $2,241 -- How spacious is this one-bedroom duplex co-op? Well, it started life as a two-bedroom (and can "easily" be converted back). There's even more space to take advantage of on the... (8 h ago)

• Houses of the Week: CARROLL GARDENS, BRO... Houses of the Week: CARROLL GARDENS, BROOKLYN
04/08/2009
Bedrooms: 2 Bathrooms: 1 Square feet: 1,136 Common charges: $848 -- With "oversized" windows in every room of this Court Street condo, the apartment enjoys "exquisite sunshine" during the day and "open views" day and night. The 12-foot ceilings... (8 h ago)

• Houses of the Week: LOWER EAST SIDE Houses of the Week: LOWER EAST SIDE
04/08/2009
Bedrooms: 1 Bathrooms: 1 Square feet: 350 Maintenance: $445 -- If you're looking for a "really cute" junior one-bedroom and don't mind having your claw-foot tub with a "high-end" showerhead in the kitchen, this Eldridge Street co-op with new... (8 h ago)

• Advertising: Seder Fare for Pets That Ke... Advertising: Seder Fare for Pets That Keep Kosher
04/08/2009
To make sure everyone has a seat at the Passover Seder, Evanger’s Dog and Cat Food Company offers a line of kosher pet foods endorsed by the Chicago Rabbinical Council. (9 h ago)

• Boston Globe Surprised by Size of Demand... Boston Globe Surprised by Size of Demand for Cuts
04/08/2009
The Boston Globe’s guild said it is being asked to sacrifice too much to help The New York Times Company meet its savings goal. (9 h ago)

• Plan to Curb Internet Piracy Advances in... Plan to Curb Internet Piracy Advances in France
04/08/2009
Lawmakers are likely to approve a law that would create a surveillance system for Internet piracy. (9 h ago)

• Talk to the Newsroom: Global Edition Edi... Talk to the Newsroom: Global Edition Editor
04/08/2009
Martin Gottlieb is answering questions from readers this week. (12 h ago)

• Google Insists It’s a Friend to Newspape... Google Insists It’s a Friend to Newspapers
04/08/2009
At a convention of newspaper executives on Tuesday, news organizations, including Google, discussed ways to charge for content. (17 h ago)

• Newsprint Maker Receives Waiver From Som... Newsprint Maker Receives Waiver From Some Lenders
04/07/2009
AbitibiBowater, the largest newsprint maker in North America, received a waiver that would extend the its loan and increase the delinquency ratios permitted. (1 d ago)

• Fox’s Low-Key New Boss Is Looking Beyond... Fox’s Low-Key New Boss Is Looking Beyond ‘Idol’
04/07/2009
After movie success with Fox Searchlight Pictures, Peter Rice’s new job at Fox Broadcasting includes finding the TV network’s next big hit. (1 d ago)

• They Pay for Cable, Music and Extra Bags... They Pay for Cable, Music and Extra Bags. How About News?
04/07/2009
With the recession battering advertising online, in print and on television, media executives are contemplating a tougher trick: making the consumer pay. (1 d ago)

• Advertising: Magazines Blur Line Between... Advertising: Magazines Blur Line Between Ad and Article
04/07/2009
With magazines losing advertisers, some have gone as far as putting ads on the cover, or over the cover. (1 d ago)

• Pixar’s Art Leaves Profit Watchers Edgy... Pixar’s Art Leaves Profit Watchers Edgy
04/07/2009
“Up,” the latest film from Pixar Animation Studios, is expected to be a critical and commercial success, but Wall Street has its doubts. (1 d ago)

• A.P. Seeks to Rein in Sites Using Its Co... A.P. Seeks to Rein in Sites Using Its Content
04/07/2009
As advertising dollars shrink and newspapers close, the news media organization threatens legal action unless sites obtain permission to use articles and share revenue. (1 d ago)

• Digital Piracy Spreads, and Defies a Fix Digital Piracy Spreads, and Defies a Fix
04/07/2009
Lawmakers and entertainment executives say $20 billion is being lost to global digital piracy every year. (1 d ago)

• Advertising: Warm and Fuzzy Makes a Come... Advertising: Warm and Fuzzy Makes a Comeback
04/06/2009
As the recession continues taking its toll, marketers are using nostalgia to sell what few products shoppers are still buying. (2 d ago)

• Change of Guard at Variety Reflects Shif... Change of Guard at Variety Reflects Shifting Landscape
04/06/2009
The shifting of Peter Bart’s position from editor in chief to vice president and editorial director could be seen as an unofficial end of the Variety-reigns-supreme era. (2 d ago)

• Hardcover Business Best Sellers Hardcover Business Best Sellers
04/06/2009
Rankings are based on March figures. (2 d ago)

• Paperback Business Best Sellers Paperback Business Best Sellers
04/06/2009
Rankings are based on March figures. (2 d ago)

• The Media Equation: A Disaster Still Raw... The Media Equation: A Disaster Still Raw, Years Later
04/06/2009
“Treme,” an HBO series by David Simon, tells the story of New Orleans after Hurricane Katrina. The series is separated by just enough time to offer insight without being overly detached. (3 d ago)

• Germany moves to take over ailing bank H... Germany moves to take over ailing bank Hypo Real Estate
04/09/2009
Berlin rescue fund makes offer for German bank worst hit by financial crisis but can expropriate lender under new law The German government has moved to take control of the stricken lender Hypo Real Estate (HRE) with an offer worth some €290m (£260m), setting the stage for the first nationalisation of a German bank in the postwar era. Berlin's bank rescue fund offered to pay €1.39 a share. It already owns an 8.7% stake in the commercial property lender, which has emerged as the biggest German victim of the global financial crisis. The rescue fund warned: "If HRE were to become insolvent, this would have substantial, barely quantifiable consequences for the national and international financial markets." A new "expropriation" law signed this week by the German president, Horst Köhler, allows the government to forcibly take over institutions whose collapse threatens the financial system. It was rushed through after the government failed to agree a takeover price with the US private equity group JC Flowers, which owns nearly 25% of the shares. The government of the chancellor, Angela Merkel, said its offer "provides an opportunity for HRE shareholders to sell their investment at an attractive price" and noted it was some 10% above the statutory minimum of €1.26 a share. The New York-based Flowers said last week that it "remains open to constructive talks" with the bank rescue fund but added that it "reserves the right to pursue all other options, including legal recourse, to safeguard the interests of its investors." Flowers, which bought its stake last June for €22.50 a share, said today it would study the offer but indicated that it would prefer to remain a shareholder. "From an investor's point of view, it is not desirable that banks are nationalised," said Dieter Ewald, a fund manager at Frankfurt Trust. "But there have to be exceptions. Hypo Real Estate is one such example of a bank that had to be saved." The German government made clear its intention to take control of Hypo Real Estate, a key player in the Pfandbrief covered bond market, in January after the bank received €102bn in guarantees, mostly from the federal government, without showing any improvement in its financial position. Hypo Real Estate ran into trouble last September when its Dublin-based division, Depfa Bank, failed to secure short-term funding. It also took a €390m write-down on US securities in January. Berlin wants to avoid expropriation, which in the public mind is associated with the Nazis' seizures of property in the 1930s and similar moves by the communists in East Germany after the war. If the government cannot persuade Flowers to sell, it hopes to at least gain majority control of the bank, and would then try to secure a capital increase at a forthcoming shareholder meeting to reach the 90% threshold necessary to squeeze out other investors. If Flowers does not agree to the government's offer price, the US investor runs the risk of being squeezed out when it would only receive the legal minimum price of €1.26. Matthias Duerr, an analyst at DZ Bank, said the offer price far exceeded his "fair value" estimate of €0.10 a share. Peer Steinbrück, finance minister, has said he does not believe any other German banks need to be taken over by the state. The government bank rescue fund, worth up to €500bn, was set up last October. Hypo Real Estate shares leapt by 15% to €1.38 after the announcement. Banking Financial crisis Germany Credit crunch Global recession guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 h ago)

• Interest rates: Bank holds as quantitati... Interest rates: Bank holds as quantitative easing continues
04/09/2009
It was likely to take another two months to reach its £75bn target of so-called quantitative easing, the Bank said The Bank of England's monetary policy committee today left interest rates on hold for the first time since last September while continuing with its policy of kickstarting the economy with £75bn of new money. The monetary policy committee said after its latest monthly meeting today that Bank Rate would remain at a record low of 0.5% — the decision expected after governor Mervyn King said last month that it was "very unlikely" that interest rates would be cut again . With rates at an historic low, there was more good news for prospective homeowners as figures released by the Bank today showed that that the average two-year fixed rate was the lowest for six years at 4.01%. The Bank said it was likely to take another two months to reach its £75bn target of so-called quantitative easing as it has achieved £26bn of that total in its first month of buying government bonds, or gilts. Economists said the Bank was on the right track. "With the BoE roughly a third of the way through its planned £75bn of purchases, it is still early days for quantitative easing, and the MPC rightly opted to complete the programme of purchases before taking stock of what impact it is having on the economy," said Colin Ellis of Daiwa Securities. "That QE is needed is not in doubt - despite the glimmers of hope that have emerged in recent weeks, activity is still contracting, and the margin of spare capacity in the economy is widening every day, which will pull prices lower." John Cridland, CBI deputy director general, added: "In the coming months, the MPC will have to judge both the pace and amount of their asset purchases. It is too early to judge quite how quickly this will begin to affect the broader economy, but the first tentative signs of the impact on gilt yields, corporate spreads and commercial paper issue have been encouraging." Roger Bootle, economic adviser to Deloitte, said he thought the economy was still in such a deep hole that the BoE may have to do more than the £75bn of QE it has already announced. "I also think that markets are still far too premature in their belief that interest rates will start rising again before the end of the year. I see rates staying at their record low levels for the foreseeable future." Mortgage easing There were also indications that conditions in mortgage markets may be starting to ease today. Bank figures showed that the average two-year fixed rate at 75% loan-to-value last month was 4.01%, down sharply from February's 4.35% and the lowest since July 2003 when it was 3.87%. The figures also showed that the average standard variable mortgage rate fell to 4.03% in March, down from 4.38% in February and the lowest level since the central bank started compiling the data 14 years ago. Howard Archer, economist at IHS Global Insight said the reduction would probably help to help activity in the housing market to gradually recover. "But it is still likely to be a very gradual pick up. Housing market activity is likely to remain relatively weak for some time to come leading to further price falls." Interest rates Interest rates Quantitative easing Economics Economic policy Mortgages guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 h ago)

• Goldman say the worst could be over Goldman say the worst could be over
04/09/2009
After this week's assertation from Morgan Stanley's well regarded strategy team that the bear market is not over yet , comes a more positive stance from Goldman Sachs. Although the FTSE 100's four week rally looks like ending, not with a bang but a whimper, Goldman's Peter Oppenheimer said he did not believe the market would test February's lows. While not calling the start of the bull market, he reckons there could be early signs of recovery. He says in an 18 page note this morning: "Prior to last week, there was little evidence that the rally in markets which started in early March was very different from the previous several rallies that have occurred since the bear market began in the summer of 2007. True, there has been a move toward more aggressive and unconventional policy measures – the beginning of quantitative easing in the UK and the US, for example – as well as optimism surrounding the outcome of the G20 meeting, along with details of the PPIP [the US's public private investment plan]. "But, until recently, there had been little evidence that any rally could be sustained on the basis of fundamentals. Indeed, we have long argued that despite convincing evidence that equities offered compelling valuations, a sustained rally in the markets was unlikely before it was at least supported by an improvement in the second derivative of growth, in combination with some other pre- conditions relating to improvements in banks' balance sheets and more normalized corporate credit spreads. "In terms of magnitude, the bounce in equities has been similar to some of the other bear market rallies that we've seen over the last 18 months. However, this feels more substantive given some support from improving fundamentals and more aggressive policy. "Last week seemed to show the first sustainable signs of 'green shoots' of economic recovery, or at least evidence that conditions were stabilising somewhat. While there have been signs of some stability in US and UK housing and consumer demand for some time (and UK retail had performed strongly as a result), more evidence has emerged that this may be broadening out with an improvement in the ISM (and the sharp drop in the inventory component relative to new orders), the fourth consecutive rise in China's PMI, firmer factory orders and the first rise in our own March Final GLI since last July. "As a result, while recent confidence may fade, we think it unlikely that the market re-tests the February lows. That being said, we are unconvinced that this is the start of a sustainable bull market yet, and think the market has already priced in moderately lower deflationary risks and has paid in advance for some of the expected relative economic stabilization that is emerging. "We would be foolish not to acknowledge that there are still some risks to the downside, particularly surrounding the first quarter reporting season and the banks' stress-test results all expected over the next few weeks. "Furthermore, it is dangerous to view the current market cycle as 'normal' given the overlay of the ongoing credit crunch and balance sheet deleveraging which make credit transitions less effective and reliable and may distort many of the typical market relationships. Risks of deflation remain, and the corporate credit market remains more depressed than we would like to see. While an inventory-led recovery seems increasingly likely in the second quarter, which the markets are likely to reflect, our economists continue to point to the prospects of a slow economic recovery by historical standards. "Indeed, a series of strong mini-cycles could be much more likely from here than the start of the kind of prolonged straight line recoveries that we have seen from several historical bear-market lows." Market turmoil guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (4 h ago)

• Warren Buffett sees firm downgraded Warren Buffett sees firm downgraded
04/09/2009
Investor tells shareholders 2008 was the worst year he has seen in his 44 years leading the company US billionaire Warren Buffett's investment firm Berkshire Hathaway has been downgraded by Moody's, the ratings agency. Citing damage from tumbling shares in the insurance business, Moody's lowered its credit rating on Berkshire by two notches to Aa2, from AAA. Berkshire has already lost its top credit rating at rival agency Fitch , which pointed to its reliance on its 78-year-old founder, known as the Sage of Omaha. The legendary investor has had to tell shareholders in his company that 2008 had been the worst year since he took the helm 44 years ago . Investments in Wells Fargo bank and American Express are among those that have gone wrong. The third major credit-rating agency, Standard & Poor's, has kept the company's top rating but put it on "negative" watch for a possible downgrade. Bruce Ballentine, Moody's lead analyst covering Berkshire, said: "Today's rating actions reflect the impact on Berkshire's key businesses of the severe decline in equity markets over the past year, as well as the protracted economic recession." "These extraordinary market pressures have reduced the excess cushion available from National Indemnity and the other affected operations to support potential funding needs of the parent company." Moody's cut the rating on Berkshire's flagship insurance division National Indemnity Company to Aa1, from AAA, and took the same action with the company's other major insurance subsidiaries, including GEICO and General Re. Ballentine said falling stock prices had reduced the value of National Indemnity's investment portfolio and its capital cushion against insurance and investment exposures. National Indemnity's regulatory capital fell by 22% last year to $27.6bn (£18.81bn). Some of Berkshire's non-insurance businesses have not been spared in the US recession "which has caused a meaningful drop in earnings and cash flows, particularly for businesses tied to the US housing market, construction, retailing or consumer finance," Ballentine said. "The downgrade of the parent company rating to Aa2, from AAA, reflects the potential for further declines in the support available from these dual sources.". While Berkshire posted a net profit of $4.99bn for 2008, its assets have lost nearly a tenth of their value. Warren Buffett Investments Insurance Credit crunch guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (5 h ago)

• Japan spending boost lifts Asian markets Japan spending boost lifts Asian markets
04/09/2009
Increase in the Japan stimulus package from $100bn to $150bn is expected to be approved by the government by the end of the week Japan's plans to increase the size of its stimulus package to 15tn yen (£102bn), focusing on measures to boost the green economy, sent Asian stockmarkets higher this morning. The total is an increase from the £68bn package announced by the prime minister, Taro Aso, on Monday , and is likely to top ¥56tn, including measures such as tax cuts and credit guarantees. The government pledged more loans for hard-pressed small businesses and subsidies for solar panels and environmentally friendly cars. The news sparked a stockmarket rally and sent the benchmark Nikkei index in Tokyo soaring by 3.7% to 8916.06. Shares in Seoul and Taiwan jumped by more than 4%. Shares in Toyota, maker of the Prius hybrid, rose 4.3%, while those of Sharp, the world's second-largest maker of solar cells, surged 10.7%. The measures – equivalent to 3% of the country's GDP – were approved by the ruling Liberal Democratic party's executive council. The proposal is expected to get the green light from the government tomorrow. The prime minister wanted new government spending to exceed 2% of GDP because of "the extent of the fall in Japanese economic output recently, which is larger than other advanced economies, and also given the need for international co-operation to revive the world economy". Japan has slipped further into recession this year as global demand for its cars and electronics has plunged. The package is designed to help contract workers and small businesses with tax cuts and credit guarantees; boost regional economies; expand green technologies, and support elderly care. The government also said it would implement "bold" reforms and direct public and private-sector investment into three areas of focus: creating the world's leading low-carbon society; strengthening nursing and medical services, and boosting tourism and cultural activities, including the arts. It will also encourage the start of mass production of electric cars in three years and boost solar power generation to 20 times the current level of 1.42m kilowatts. The government also plans to subsidise salaries of workers at nursing homes, aiming to create 300,000 jobs in the next three years, to add to the current 1.3m. The stimulus package also includes a car scrappage scheme similar to the "cash for clunkers" programme being debated in the US Congress. Japan, home to several of the world's biggest carmakers, is considering giving ¥250,000 to consumers who trade in a car 13 years or older for a more fuel-efficient model. Such schemes already exist in a dozen European countries and have boosted car sales. Britain's ailing motor industry has called on the government to introduce a similar incentive in this month's budget. Last month, Japan's parliament passed a record ¥88.5tn budget for the new fiscal year, which started on 1 April, including parts of Aso's two previous stimulus packages. Officials have not said where they would find the extra money, though Aso recently said he would turn to issuing bonds if needed. Japan's public debt already stands at 170% of gross domestic product‚ the highest level among industrialised economies. Economics Japan Global recession Economic growth (GDP) Automotive industry Economic policy Toyota guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (6 h ago)

• Virgin refunds passengers 15% of £358m p... Virgin refunds passengers 15% of £358m payout
04/08/2009
Virgin Trains wins £358m in compensation for enduring a decade long disruption on the west coast main line Dan Milmo Virgin Trains received £358m in compensation for a decade of disruption on the west coast main line and no more than 15% of the total was passed on to passengers in refunds, it has emerged. The figures were revealed by Network Rail after it confirmed that it paid train operators £588m during a much-delayed upgrade of the London-to-Glasgow line. Virgin Trains, the west coast line's biggest customer, was awarded the most compensation and it is understood that up to £53m, or 15%, of the funds were paid out in passenger refunds. The operator, co-owned by Sir Richard Branson and the bus company Stagecoach, said most of the compensation payment covered loss of business and a range of extra costs including bus replacement services. "We don't get a single penny more than the costs that were incurred during the disruption," said a Virgin Trains spokesman. He added that the "ideal situation" would see Virgin Trains able to run a trouble-free service that would not require compensation for delays. However, that remains a distant prospect with more engineering work scheduled over Easter. Network Rail said the compensation payments, which are underwritten by the taxpayer, could have been avoided with a £100m investment in extra lines that could have bypassed work around vital junctions such as Rugby. The west coast line project was launched in 1998 by Railtrack, Network Rail's predecessor, and its cost soon spiralled out of control before being reined in by Network Rail from 2002 onwards. Nonetheless, the cost of the upgrade to tracks and signalling has risen from the original estimate of £2bn to nearly £10bn over the past decade and caused problems for millions of passengers who were forced on to buses or decided not to travel by train. The second largest compensation payout was £53m, given to Silverlink, the north London train operator that has been taken over by the London Overground service. Virgin Rail Stagecoach Consumer affairs guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (18 h ago)

• Dyas buyout leaves Change Capital with £... Dyas buyout leaves Change Capital with £30m loss
04/08/2009
Private equity group sells Robert Dyas stake to hardware chain's executives The private equity group Change Capital was nursing losses of almost £30m tonight after giving up its interest in the hardware chain Robert Dyas. A team of about five Robert Dyas executives stumped up funds thought to be worth up to £1m to buy the company from Change Capital, which is run by Luc Vandevelde and Roger Holmes, the former Marks & Spencer chairman and chief executive respectively. Change Capital has seen its £29m investment in the retailer almost wiped out as a result. It is thought to have put in £7m of equity and £22m of loans as part of its £61m deal to acquire Robert Dyas in 2004. The rest of the deal price was accounted for by around £30m in debt, held by the state-backed Lloyds Banking Group and Allied Irish Bank. The lenders have agreed to roll the debts over into the new company as part of the deal. They could yet swap their debt for equity, but that is not being contemplated at this stage. The buyout was led by chief executive Steven Round and the new non-executive chairman Ian Gray, a renowned company doctor who has previously revived businesses including Tottenham Hotspur FC and Golden Wonder, the crisp maker. The deal saves 1,250 jobs at 99 Robert Dyas stores across the south of England. Change Capital had been trying for seven months to secure a refinancing deal with the banks, and last week Holmes made a last-ditch appeal to Lloyds chief executive Eric Daniels. In a letter headed "urgent and unnecessary administration", he warned that the company would go into administration unless a refinancing could be agreed. It is believed that Change Capital offered to put more equity into the business. Despite its financing difficulties, Robert Dyas has remained profitable and increased like-for-like sales by 3% in the first quarter of the year. "We have an exceptional team in place and are well positioned to take advantage of opportunities that are emerging across the retail sector," Round said in a statement. "Our banks have been extremely supportive throughout this process, as have our suppliers, and the management team is excited about taking Robert Dyas forward in its next stage of development." Duncan Parkes, managing director of Lloyds Banking Group Business Support, said: "We look forward to maintaining our excellent relationship with the management team of Robert Dyas and, along with Allied Irish Bank, remain fully supportive of the company." Private equity Retail industry Job losses guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (18 h ago)

• Unions warn on pensions after Aon cuts Unions warn on pensions after Aon cuts
04/08/2009
• Insurer to reduce amount paid into staff pensions by up to half • Expert says move is likely to be replicated by other firms The insurance broker Aon today cut pension contributions to most of its 5,000 UK workforce in a move widely seen as heralding a clampdown by employers on workers' retirement schemes this year. The company said the cuts were necessary because it operated in highly competitive markets and needed to reduce costs to remain profitable. It said the move was preferable to cuts in salaries or working hours imposed by other employers. Unite, Britain's biggest union, called it a backdoor attack on pay and said it would not tolerate employers who attempted to use the downturn as an excuse to attack workers' pensions. Unite joint general secretary Derek Simpson said: "Aon's announcement has put us on standby and we will be keeping a careful eye on employers who may now try to use the credit crunch as a cover to permanently cut pension contributions. "We will not stand idly by and allow the herd instinct to take effect." Simpson said the union was prepared to work with employers who faced "genuine difficulties" by agreeing to temporary measures. But he added: "It is imperative that when the recession comes to an end workers' terms and conditions are not permanently eroded." Aon chief executive Peter Harmer said: "In order to protect our business in challenging conditions and to ensure we emerge from the recession strong and successful, no stone is being left unturned during 2009 to drive out further costs and to achieve greater efficiencies. The increasing cost of pension provision is one of those costs. "Many companies are looking at ways of reducing their fixed costs, examples being pay freezes, reduced hours, four-day weeks and enforced sabbaticals on greatly reduced levels of pay – all of them short term fixes. We recognise times are hard for employees, but we believe in taking a different, longer term view. The company, which closed its final salary scheme several years ago, wants to switch to a system that forces staff to increase their contributions before they benefit from top-up payments by the company. Several big employers, including BT and Marks & Spencer operate a system that ties more generous employer contributions to increases in staff pension payments. In the case of BT, most staff opted for the lowest contribution rates. In December, the company agreed with unions further cuts to guarantees in its final salary scheme in exchange for enhanced contributions to the newer arrangement. In the last 10 years most employers have shut their final salary schemes in favour of stockmarket-related plans. Figures from Aon's consulting arm last month showed the collapse in the stockmarket over the last year wiped out a large proportion of worker's pension savings. In February defined contribution pension assets lost 10% of their value. The Aon DC pension tracker, which measures the asset value of 3.7 million workers' pension accounts, revealed a fall from £410bn to £368bn over the month. Since the start of the credit crunch in September 2007, the value of defined contribution pension assets has declined 33% from £550bn. David Yeandle, pension expert at the Engineering Employers Federation, said: "We have seen employers closing their pension schemes since the mid-1990s and taking the opportunity to review costs when times are tough. There are periods when this process accelerates. I haven't heard of firms looking to cut costs in this way, but there is often a herd mentality when one or two employers do it, many others follow. "I suspect we will see more of this before the year is out." Insurance industry Recession Credit crunch Pensions Occupational pensions Trade unions Insurance Pay guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (18 h ago)

• HSBC in £1bn move to help first-time buy... HSBC in £1bn move to help first-time buyers
04/08/2009
Bank will offer new mortgage to homebuyers with 10% deposit Homebuyers with small amounts of money to put down on their new homes will find it easier to secure a mortgage from next week, following a £1bn loan promise by one of Britain's biggest lenders. From Tuesday HSBC is increasing the maximum amount it will lend as a proportion of the value of the property being mortgaged – the loan-to-value (LTV) ratio – to 90%. The bank is making £1bn available to homebuyers with deposits of just 10% at a two-year fixed rate of 4.99%. This is a marked improvement for first-time borrowers and other buyers with small deposits. At the beginning of 2008, borrowers could get mortgages worth more than the value of their properties. But by the end of last year, most lenders had reacted to falling house prices and a steep increase in borrowers defaulting on their repayments by reserving the best deals for people with 40% deposits. HSBC was among the lenders that required larger deposits, but it started relaxing its criteria last week, with the introduction of competitive tracker loans for borrowers with 15% deposits. The latest move also reflects HSBC's growing role in the mortgage business. It now has 10% of the market and has allocated £15bn for new mortgage lending this year. The bank lent half that amount in 2007 before the credit crisis devastated the banking sector and many of HSBC's rivals. Joe Garner, group general manager of HSBC's personal financial services division, said: "Although house prices have fallen, and continue to fall, they won't fall forever. These changes mean we can continue to give customers the best possible deal on their mortgage." But HSBC is still not interested in remortgage customers needing high LTV loans. The latest deals are available only to buyers – ones who can borrow up to three and a half times their salary, capped at £400,000. The relaxation in lending criteria for buyers has been welcomed by mortgage brokers and product comparison sites. Michelle Slade, spokeswoman for price comparison website Moneyfacts, said: "We are starting to see signs that mortgage lenders are more willing to lend and it appears we have finally turned a corner. It suggests that HSBC believes that house prices have started to get as low as they are going to go. They obviously now feel that they can offer such mortgages without the fear that the borrower will quickly fall into negative equity." "Hopefully other providers will follow HSBC's example and more providers will offer competitive deals for those with small deposits, which will help kick-start the mortgage market further," she said. Melanie Bien, director of mortgage broker Savills Private Finance, said: "There are 90% deals available elsewhere, but they're not as competitive as this. A 10% deposit is do-able for many first-time buyers, even if some still have to resort to the bank of mum and dad for a top-up." Mortgages First-time buyers Property Credit crunch guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (20 h ago)

• US finance pundit Jim Cramer a 'buffoon'... US finance pundit Jim Cramer a 'buffoon' says leading economist
04/08/2009
• Expert joins attack on TV guru savaged by Jon Stewart • Tipster has proclaimed the downturn is already 'over' Wall Street's favourite jester has fallen foul of the prophet of doom. A tense feud has broken out between the outspoken television stockpicker Jim Cramer and the notoriously gloomy economist Nouriel Roubini. Roubini, a New York University professor who famously forecast a dire world recession as far back as 2006, has taken exception to remarks on a blog by Cramer that he is "intoxicated" with his own "prescience and vision" and is refusing to see green shoots of recovery in the financial markets. "Cramer is a buffoon," said Roubini. "He was one of those who called six times in a row for this bear market rally to be a bull market rally and he got it wrong." The confrontation pits two of the financial world's biggest egos against each other. While Roubini has won plaudits for correctly predicting that the credit crunch would cause a domino effect around the world, Cramer has long been a cheerleader for mass participation in the stockmarket. Cramer's CNBC show, Mad Money, has come under repeated attack in recent months for its bullish enthusiasm in a highly volatile environment. The comedian Jon Stewart recently roasted Cramer and the broader financial media for missing warning signs of a "once in a lifetime financial tsunami". Roubini, who believes the situation is so gloomy that leading US banks may need to be nationalised, was dismissive of Cramer: "After all this mess and Jon Stewart, he should just shut up because he has no shame." Speaking to the Associated Press ahead of a speaking engagement in Toronto, the economist continued: "He's not a credible analyst. Every time it was a bear market rally he said it was the beginning of a bull, and he got it wrong." With his catchphrase "boo-ya" and a variety of colourful props, Cramer, 54, is a household name in the US. A former hedge fund manager, he casts himself as a self-made man who was once so impoverished that he had to sleep in his car. He took prolonged flak last year for telling viewers that Bear Stearns was "not in trouble" just a week before the 85-year-old investment bank collapsed – a remark which, he insists, was misinterpreted and taken out of context. But Cramer has continued to attack doom-mongers, recently referring to Roubini and the Nobel prize-winning economist Paul Krugman as part of a "nationalisation jihad" for their advocacy of public intervention in the financial sector. Last week, Cramer told his viewers that the recent 20% rally in Wall Street markets was sufficient to judge that the downturn was past its worst: "Right now, right here, on this show – I am announcing the depression [is] over!" US economy Jon Stewart Bear Stearns guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (22 h ago)

• French workers release 'bossnapped' Brit... French workers release 'bossnapped' British bosses
04/08/2009
Three English managers taken hostage and held overnight in protest against UK firm's plans to close French factory The first Britons to be caught up in the spate of "bossnappings" in France were today released by their staff after being held captive overnight. Three British managers, including one woman, and a French male colleague were detained at the factory in Bellegarde in the foothills of the French Alps when negotiations over terms of the plant's closure broke down yesterday. Workers blocked the entrance to the site, run by Scapa Group plc, with a truck, said the company's European finance director, Ian Bushell. He described the hostage taking as a "non-aggressive action", adding that the unions had brought the four managers dinner. Bushell said: "As of lunchtime today, the workers agreed to let them go to local government offices to have ongoing dialogue about the closure. Then they [the managers] will be able to drive away from the site." Those held were the human resources manager, the finance director and the European operations director, who are all British, and the French general manager, he said. The Scapa plant, which employs 68 people, makes adhesive tape for the auto industry. Plans to close the plant were drafted in response to a faltering car market, which is suffering its worst crisis in decades. Tuesday's negotiations centred on job transfers or redundancies that would accompany the closing. The incident is the latest in a spate of bossnappings across the country since the global economic downturn. Employees at French plants run by Sony, Caterpillar, 3M and German car parts maker Continental have held bosses hostage in recent weeks in protest against proposed job cuts and plant closures. They have let them go within a day or two, often after winning some concessions. The French president, Nicolas Sarkozy, denounced the tactic of holding managers. "What is this story about going and holding people hostage?" he asked. "We are in a state of laws, there is a law that applies, I will ensure it is respected." The tactic, which became popular during the tumultuous days of 1968, is an extreme yet common measure used sporadically by unhappy French workers. Reserved for when other more orthodox forms of protest are going nowhere, bossnapping is the final card played by a workforce at the end of its tether. Global recession France Protest guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (23 h ago)

• Daimler car workers stage pay protest Daimler car workers stage pay protest
04/08/2009
• Maker of classic Karmann Ghia files for bankruptcy protection • Mercedes-Benz maker's staff demonstrate against salary cuts The company behind the classic Karmann Ghia two-seater car and generations of convertibles has becomethe latest victim of the crisis in the global automotive industry. As the news broke today, Daimler workers were protesting in Berlin over short-time working and other cost-saving measures at the company. Osnabrück-based Wilhelm Karmann said it was filing for bankruptcy protection because it could not afford to pay for a huge redundancy programme. It blamed the sharp slowdown in the demand for cars. Karmann, an independent contract carmaker which built the Audi A4 cabriolet, is now working on a restructuring plan to save the jobs of its 7,000 workers worldwide. "The sheer unexpected drop in revenue led to the inability to finance the social plan that was agreed with labour representatives," said the company, which had revenue of €1.3bn (£1.2bn) last year. Karmann has been in business since 1901 and built the Volkswagen Beetle convertible, followed by the VW Karmann Ghia, a two-seat, low-slung convertible attached to the chassis of the all-purpose Beetle that was manufactured from 1951 to 1976. It later built versions of the Ford Escort and Renault's 19 convertible. It developed the retractable hardtop roof first introduced with the Mercedes-Benz SLK before the idea was copied by competitors. It presented a restructuring plan in September, but deteriorating finances made the firm unable to pay for a wave of 2,240 layoffs, half of its German workforce. A trend away from outsourcing production among large carmakers has cost Karmann dear. A spokesman explained that operations would continue just as before since the company had virtually no bank debt, rather Karmann was forced to file for insolvency under German law since it could not pay for the huge layoff plan. Employees of another crisis-hit carmaker, Daimler, took to the streets of Berlin today to protest about pay and short-time working as the company warned of more cost-cutting measures. Before Daimler's annual meeting in Berlin, workers wearing cardboard masks of chief executive Dieter Zetsche's face carried collection boxes as they protested against pay cuts of up to 14% for the company's 73,000 white-collar staff. They are also being asked to reduce their working week by up to five hours. The measures were outlined last week to save €2bn (£1.8bn) in personnel costs. Daimler has not announced any redundancies. The carmaker has also put 50,000 factory workers in automotive production on shorter working hours, and plans the same for another 18,000 commercial vehicle workers after Easter. At the meeting, Zetsche warned of more pain to come. He said Daimler was poised to take "all the required measures" after predicting a "significant" drop in revenues in all its automotive divisions this year. "In 2009, the global economy will shrink for the first time since world war two," he told some 7,000 shareholders. "The automotive industry didn't cause this crisis, but is feeling the full brunt of its impact and suppliers and dealers are suffering just as much as manufacturers. Ultimately, nobody will go unscathed." Daimler faces a "significant loss" for the first quarter, but expects a gradual improvement through the year. Demand for Mercedes-Benz cars, the two-seater Smart car and big trucks has been slipping. Daimler's global sales fell 23% in the first three months of the year. The group sold 244,800 cars, compared with 318,000 a year ago. Daimler said it would stick with rigid cost management and reduced labour costs. Executives have taken pay cuts of nearly 30%, and business travel and consultancy fees have also been reduced. "We intend to remain a strong company also in times of weak markets," Zetsche said. "Although the crisis is forcing us to cut costs wherever we can, we will not jeopardise our future by reducing essential investment." The company also plans to slash its dividend by 70% to €0.60 a share. The German government has just expanded its hugely popular car scrappage scheme to €5bn from €1.5bn. The new funding level will cover 2m cars, compared with 600,000 previously. The €2,500 bonus for people who trade in their old car for a new, greener model was introduced in late January to boost the car market. The number of applications for the scheme has already reached more than 1.2m. But Zetsche has warned of a slump in car sales once the scheme ends. Automotive industry Global recession Job losses Germany guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Campari buys Wild Turkey from Pernod Campari buys Wild Turkey from Pernod
04/08/2009
Campari is paying cash for the historic bourbon in a deal that includes all the Wild Turkey brands, American Honey liqueur and distillery facilities in Kentucky Italy's Campari has bought the Wild Turkey bourbon brand from the French drinks group Pernod Ricard in a $575m (£391m) deal – the biggest acquisition in Campari's history. Campari is paying cash for the business, which includes the Wild Turkey brands, American Honey liqueur and distillery facilities in Kentucky. Campari makes several whiskies but no bourbon. Wild Turkey is a Kentucky bourbon that dates back to 1855 and has been owned by Pernod – the world's second-largest spirits maker after Britain's Diageo – for nearly three decades. It has yet to capitalise on its long and colourful history – its share of the US spirits market is much lower than that of Jack Daniels, the Tennessee whiskey, and Jim Beam bourbon. The acquisition will strengthen Campari's position in the US and international spirits markets. Nearly two-thirds of its sales will come from outside Italy after the deal closes at the end of June. Campari's chief executive Bob Kunze-Concewitz said: "With Wild Turkey Campari adds a brand of strategic relevance to its portfolio and further enhances its premium offering. It is a unique opportunity to enter the attractive bourbon whiskey category and exploit its growth potential through a global and leading brand. The transaction demonstrates our commitment, in line with our strategy, of continuing growth in the profitable US spirits market." As well as selling Wild Turkey, Pernod Ricard said it planned to raise €1bn (£900m) through a rights issue, which will be used to pay down borrowings. Pernod has been offloading products that fall outside its 15 main brands in an effort to repay debt taken on last year to buy the Absolut vodka maker Vin & Sprit. Food & drink industry guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• RBS cuts 9,000 jobs - days after boss de... RBS cuts 9,000 jobs - days after boss denies staff are at risk
04/07/2009
• Sir Fred Goodwin-era veteran's assurance angers union • Gordon Brown says bank's plight shows need for reform Royal Bank of Scotland yesterday angered unions and politicians with plans to cut up to 4,500 staff in Britain as part of a worldwide reduction of 9,000 posts. The bank, which is 70% owned by the taxpayer, said the cuts were part of a policy to save about £2.5bn over the next three years. The Unite union said the cuts were a "devastating blow" for staff at the bank's Edinburgh headquarters where most of the UK job cuts are expected to fall. Many Scottish parliament members (MSPs) were resigned to the loss of large numbers of staff following the collapse of the bank last year and its £20bn bailout by the government. But there was anger last night among many politicians after it was pointed out that a bank boss had denied further job cuts at meeting two weeks ago. The bank's deputy chief executive, Gordon Pell, the only survivor from the regime of disgraced former boss Sir Fred Goodwin, told a committee of MSPs he was unaware of large scale job cuts in the pipeline. RBS sought to head off criticism of the cuts with a statement of its determination to minimise compulsory redundancies. It has begun consulting unions over the job cuts, which will affect up to 9,000 people in 50 countries over the next two years, in back-office operations ranging from IT services to property management. The bank said the actual number of jobs lost was expected to be "significantly lower" as it would try to redeploy people. RBS, which is believed to be preparing a further round of cuts later in the year, has already shed 2,700 jobs at its main centres in Edinburgh, London, Manchester and Bristol. Gordon Brown entered the debate over the future of the industry last night when he told Britain's leading banks that the plight of RBS showed the need for the reform of the financial sector. At a meeting of the Lending Panel, the body in which the government and the main banks review lending levels, the prime minister said the financial sector would only prosper if it was reformed. A Downing Street spokesman said: "We needed to continue to reform financial regulation in Britain. Britain was a world centre for financial services and, with the right reforms in place, could continue to be a leading centre in the future. "The financial sector would continue to be integral to Britain's future prosperity, but it must be reformed to reflect the changing global circumstances we face." Stephen Hester, RBS chief executive, echoed Brown's comments, saying the bank needed to withdraw from riskier areas. A cost cutting programme was also needed to bring it back into profit. "Unfortunately that means taking difficult decisions about jobs as well as taking many other cost reduction actions." RBS employs 170,000 people, 106,000 of whom are based in the UK. Its back-office operations employ 45,000 people worldwide, including 27,000 in Britain. Rob MacGregor, Unite's national officer, said the union was "appalled that thousands of people, who form the backbone of the RBS operations, are to be made redundant". He added: "These employees are totally blameless for the current position which RBS is in, yet they are paying for the mistakes at the top of the bank." Shirley-Anne Somerville, SNP MSP for Lothians, which includes the RBS headquarters on the outskirts of Edinburgh, said: "Today's announcement will be devastating for those working at RBS and will cause great concern across the city as we wait to find out where the job losses will take place. "After RBS initially said only 2,500 jobs would go, these figures are a dramatic increase. I have already contacted the Scottish government and I am confident SNP ministers will give every support they can to those who now face redundancy." Meanwhile, the corporate governance lobby group Pirc called on BP shareholders to oppose the reappointment of former RBS non-executive Sir Peter Sutherland as the oil group's chairman. It drew attention to Sutherland's role on RBS's remuneration committee, which approved Goodwin's £703,000-a-year pension. "His actions as a non-executive director of Royal Bank of Scotland and as a member of its remuneration committee bring into question his suitability as BP's chairman," Pirc said. A BP spokesman said Pirc's views were not shared by most BP shareholders. Royal Bank of Scotland Redundancy Trade unions Banking Stephen Hester Regulators Scottish politics guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Derivatives trading crackdown begins Derivatives trading crackdown begins
04/07/2009
Banks start talks on bringing order to chaotic derivatives market for credit default swaps An attempt to bring order to the chaotic, multibillion-pound world of credit derivatives began in London today with moves to standardise contracts in the market. Banks last year traded about $54tn of credit default swaps (CDSs), contracts that protect investors against the default of a bond or loan, but the global financial crisis triggered the collapse of the market, bringing down AIG, the world's biggest insurer. The G20 summit in London last week made it a priority to bring order to the market and today specialists from banks including UBS and Morgan Stanley agreed to trade standardised contracts, as well as organise committees that would oversee cases where there was a default. "The proposed changes provide a means to guarantee greater unanimity of results across positions, add more openness and transparency to the process, and give formal representation to members of the buy-side community," said Markit, a leading provider of data on CDSs. The London-based firm has also started to publish CDS pricing data on its website. Apart from CDSs on specific corporate loans or bonds, the public can also see the price investors pay to protect themselves against debt issued by sovereign countries such as Britain or the US. The riskier a country is perceived to be, the more expensive its insurance. "Regulators are very keen to see this being put into place," said David Austin, a director at Markit. As the unsupervised market grew after 2000, the number of CDSs issued rose well above the number of loans or bonds outstanding, as any bank could issue these insurance products and receive hefty fees for them. AIG issued large amounts of CDSs on products that contained sub-prime mortgages, and could not honour the payments when they defaulted. It was like selling insurance on a car to five people, even if only one owned the car. If the car crashed, five people claimed the insurance. AIG is now partially nationalised. With so many CDSs linked to a particular loan or bond, creditors queue to receive payments but some will not be paid because there are more contracts than real lenders. With corporate defaults expected to soar, a better way of dealing with payments after a default is needed. Standard contracts are seen as a first step towards a central clearing house – a place where all banks contribute collateral to be used as a lifeline in case a bank or institution collapses. At present, banks trade with each other, not through a central house. The G20 said last week it would push for the creation of centralised clearing houses as a way of improving market confidence. US and European governments are spending billions of pounds to insure the banks' worst assets, or to buy them from their books, in order to restore inter-bank lending and kick-start the economy. Financial crisis Credit crunch Banking G20 AIG Lehman Brothers guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Jaguar and Nissan scoop £720m funding Jaguar and Nissan scoop £720m funding
04/07/2009
Loans from European Investment Bank will be used to develop greener vehicles Carmakers Jaguar Land Rover and Nissan today received a £720m boost from the European Investment Bank (EIB), the EU's main source of long-term lending, which has given the go-ahead for loans that will allow the companies to invest in greener vehicles. Jaguar Land Rover has secured approval for a £340m loan for investment in research and development of more fuel-efficient cars at its Midlands and Merseyside factories. Nissan, meanwhile, has been offered £380m for a research and development project into cleaner cars, to be split between its plants in Sunderland in the north-east and Avila, Spain. The loans are part of the £2.3bn funding package with which Lord Mandelson, the business secretary, has pledged to help the hard-pressed industry. . Most of it is in the form of loan guarantees, but there is also some direct aid for carmakers. There has been criticism of about how companies can obtain finance under the scheme. The car industry has been hit hard by the global slowdown, and many manufacturers have shifted to part-time working and imposed pay cuts on their workers. Jaguar Land Rover has frozen pay and put its staff on a four-day week to avoid job losses; Nissan has cut 1,200 jobs at its Sunderland plant; Toyota has reduced pay by 10% and Honda has halted production at Swindon for four months. UK new car sales dropped 30.5% last month from a year ago, the latest figures from the Society of Motor Manufacturers and Traders showed yesterday. The industry body is calling for a car scrappage scheme similar to those adopted in other European countries to reignite the car market. Welcoming the EIB decision, the Conservative West Midlands MEP Malcolm Harbour said JLR was a crucial employer in the region. The local economy would be "devastated" if it was allowed to fall behind its European competitors. He added: "This is not a hand-out. It is an investment that will secure jobs and build cleaner cars for the future. It will also give a much-needed boost to suppliers, especially in the West Midlands." Automotive industry Nissan Jaguar Land Rover Peter Mandelson guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Smoothie operators Innocent tread famili... Smoothie operators Innocent tread familiar path to lucrative deal
04/06/2009
Like other niche brands, Innocent must convince customers it hasn't sold out For a company that strives "to do business in a more enlightened way" - and even has a halo in its logo - to go into business with one of the world's corporate behemoths presents a real danger that such a deal could look like a Faustian pact. The founders of Innocent, the ethically aware smoothie business that yesterday sold a stake of between 10% and 20% to the US drinks group Coca-Cola for £30m, are adamant that their ideals and eco-friendly sentiments will not be crushed as a result of striking a deal with a company best known for its less than healthy fizzy drinks. "Every promise that Innocent has made, about making only natural healthy products, pioneering the use of better, socially and environmentally aware ingredients, packaging and production techniques, donating money to charity and having a point of view on the world will remain," co-founder Richard Reed yesterday. "We'll just get to do them even more. The founders will continue to lead and run the company, we will be the same people in the same offices making the same products in the same way." Innocent joins a long line of companies that have started small and built a loyal following on the back of a values-led approach, only to sell up to the kind of businesses against which they might once have defined themselves. Sell-outs Ice-cream maker Ben & Jerry's, once known for its counter-cultural roots, was one of the first to sell up to a corporation, when it was bought for £175m by the consumer goods group Unilever in 2000. Four years later it admitted in its social audit: "We are beginning to look like the rest of corporate America." British sandwich chain Pret a Manger offloaded a minority stake to the fast food group McDonald's in 2001 and last year sold the whole business to private equity group Bridgepoint. The Body Shop - whose late founder, Dame Anita Roddick, had often railed against the big corporations running the beauty business - sold to the French cosmetics group L'Oréal in 2006. The reason that these niche operators choose to sell up, apart from making millions from businesses they have created from scratch, is that they need the muscle of the big boys if they want to grow further. Innocent is using Coca-Cola's investment to grow its presence in Europe. As long as the business can convince customers that growing in size and befriending the big beasts is not tantamount to selling out, it can thrive. Sweet returns Craig Sams, the founder of the organic chocolate company Green & Black's, said his company had prospered since it sold up to Cadbury in 2005. "Overall it's worked fantastically well," said Sams, who remains in place as president and continues to offer advice to Green & Blacks' owners. "They have had the resources to really support the brand and take it to places. It's all very well to say if we spent half a million pounds on marketing we could increase sales by £2m - first you have to have the half a million pounds. "A company with those kind of resources... if they see spending money will pay back, they don't have to go to a bank, they just do it. Even though the process of a big company is prolonged and agonising in the detail and boxes that have to be ticked, once a decision gets made it gets implemented... It's exciting - you see things happening. When you are struggling for cash, you see opportunities slipping away." Brand identity Sams advised Coca-Cola not to stamp its name over the Innocent product range or to combine its acquisition with its US smoothie brand, Odwalla. The US group will also look to learn from the experience of its rival Pepsico, which bought out the PJ Smoothie brand for £20m in 2005 only to retire it last year in the face of intense competition and rising raw material costs. Reed said there was little danger of Coca-Cola meddling with the Innocent brand. "They absolutely buy into the brand, the people, the system, it's a minority investment in Innocent, which is staying as a standalone company." Innocent had a difficult birth 10 years ago. The three founders - Reed and his Cambridge friends Adam Balon and Jon Wright - had come up with the idea on a snowboarding holiday in February 1998 and tried out their smoothies at a music festival laster that year, using £500 of fruit. They put up a large sign asking if they should give up their jobs to make smoothies and got a vote of confidence from the punters that summer's day. But the company only got going thanks to £250,000 start-up capital from US business veteran Maurice Pinto, who came on board after the desperate founders sent an email to all their friends asking, "Does anyone know anyone rich?" Fortunately, one of their friends had done work experience with Pinto. The company now sells two million smoothies a week and has a turnover predicted to be £105m to £110m this year. Despite Innocent's remarkable rise over the past 10 years, not everything has been plain sailing. Last year it had to fight off competition from two rival products, Pepsico's Tropicana and Nestlé's Boost, which caused annual sales to fall for the first time. Although its share of the UK smoothie market fell as low as 50%, it has recovered strongly to reach 83%, Reed said. We just love the look of your ethics ... Green & Black's - Cadbury Schweppes Set up in 1991 by Craig Sams and his wife Josephine Fairley, the company produced organic and, in some cases, Fairtrade chocolate. In 2005 it was bought out by Cadbury Schweppes. Sams defended Cadbury's commitment to the brand's values saying: "Cadbury got its people to read the Fairtrade and organic regulations." Ben and Jerry's - Unilever All-natural ice cream company founded in 1978 by Jerry Greenfield and Ben Cohen. Bought by Unilever in 2000. The co-founders said: "We hope that, as part of Unilever, Ben & Jerry's will continue to expand its role in society." The Body Shop - L'Oréal Founded on an ethical basis by Anita Roddick, the company was sold to L'Oréal in 2006. Roddick said at the time: "Having L'Oréal come in and say 'we like you, we like your ethics, we want to be part of you, we want you to teach us things' - it's a gift." Pret A Manger - McDonald's Pret was founded in 1986. It claims to avoid additives, uses recycled packaging and tries to buy organic. A third of the company was sold to McDonald's in 2001. In defence of the sale, Pret's commercial director, Simon Hargraves, said: "McDonald's has never had any day-to-day role in Pret, nor has it had any say over what we do, or how we do it." Seeds of Change - Mars Howard Shapiro set up a small seed company in 1989, later expanding to sell organic foods. In 1997 it was bought by Mars. Shapiro defended the sale, saying: "Mars is interested in providing what consumers want. If that's organic food, then Mars wants to be able to satisfy that demand." Ethical business Food & drink Coca-Cola Marketing & PR Food & drink industry Ethical living guardian.co.uk © Guardian News & Media Limited 2009 | Use of this content is subject to our Terms & Conditions | More Feeds (2 d ago)

• SEC Spends Millions To Reorganize Desks SEC Spends Millions To Reorganize Desks
04/08/2009
CBS News investigative producer Laura Strickler and Sarah Fitzpatrick reported this story for CBSNews.com (18 h ago)

• Feds Weigh Options To Limit Short-Sellin... Feds Weigh Options To Limit Short-Selling
04/08/2009
Federal regulators are proposing several options for reining in the short-selling of stocks as investors and lawmakers clamor for brakes on moves they say worsened the market's downturn. (19 h ago)

• Shopping Right Could Save You Bundle Shopping Right Could Save You Bundle
04/08/2009
An expert proved that not all methods are created equal, then offered money-saving pointers, on The Early Show. (20 h ago)

• Wall Street Losses Bleed Into 2nd Day Wall Street Losses Bleed Into 2nd Day
04/07/2009
Wall Street extended its losses into a second day Tuesday as worries about banks' balance sheets and poor first-quarter earnings reports intensified. (1 d ago)

• Casino Workers Advised: Don't Talk Econo... Casino Workers Advised: Don't Talk Economy
04/07/2009
Don't discuss the economy with customers: That's the recommendation from the head of Atlantic City's casino association, who warns that talking with gamblers about how bad the economy is can be a losing proposition. (1 d ago)

• New Citi Chair: Bankers Aren't "Villains... New Citi Chair: Bankers Aren't "Villains"
04/07/2009
Citigroup Inc.'s new board chairman, Richard Parsons, said financial institutions are being targeted for creating the nation's financial crisis, but they aren't the only ones responsible. (1 d ago)

• Goldman Sachs CEO Wants Reform Of Exec P... Goldman Sachs CEO Wants Reform Of Exec Pay
04/07/2009
The chief executive of Goldman Sachs is calling for new standards on how Wall Street executives are compensated and new regulation of large hedge funds and private equity funds. (1 d ago)

• Avoiding Scams Disguised As Mortgage Hel... Avoiding Scams Disguised As Mortgage Help
04/07/2009
Vega Gibbons offered details on the red flags that could tip you off to major types of fraud, on The Early Show. (1 d ago)

• GM, Segway Team Up To Build Urban Vehicl... GM, Segway Team Up To Build Urban Vehicle
04/07/2009
A solution to the world's urban transportation problems could lie in two wheels not four, according to executives for General Motors Corp. and Segway Inc. (2 d ago)

• Ford Trucks To Offer In-Dash Web Browsin... Ford Trucks To Offer In-Dash Web Browsing
04/07/2009
Ford Motor and Opera Software have announced a collaboration to add Web browsing to the Internet-enabled in-dash computers that Ford is installing in some of its trucks and vans. (2 d ago)

• Dow Drops Back Below 8,000 Dow Drops Back Below 8,000
04/06/2009
Wall Street retreated after a four-week rally as investors fear trouble from looming first-quarter earnings reports and more woes for banks. (2 d ago)

• U.S. Cracking Down On Mortgage Scammers U.S. Cracking Down On Mortgage Scammers
04/06/2009
Federal and state officials say they are cracking down on mortgage modification scams that target the Obama administration's efforts to make home loans more affordable to millions of Americans. (2 d ago)

• IBM Pulls Offer To Buy Sun Microsystems IBM Pulls Offer To Buy Sun Microsystems
04/06/2009
IBM Corp. withdrew its offer to buy Sun Microsystems Inc. for about $7 billion this weekend, clouding the prospects for a deal that would shake up the computing industry, The Associated Press has learned. (3 d ago)

• Airline Performance Rating At 4-Year Hig... Airline Performance Rating At 4-Year High
04/06/2009
U.S. airlines carried fewer people last year, but did a better job for those who did fly. (3 d ago)

• Wal-Mart’s March sales up on bargain hun... Wal-Mart’s March sales up on bargain hunting
04/09/2009
Wal-Mart Stores said Thursday its U.S. same-store sales rose 1.4 percent in March as consumers continued to hunt for bargains and bought necessities, such as groceries. (1 h ago)

• Wall Street poised to open higher Wall Street poised to open higher
04/09/2009
Wall Street is poised for a moderately higher opening ahead of major retailers announcing March sales and a weekly unemployment report. (1 h ago)

• Tax checklist: Deadline is a week away Tax checklist: Deadline is a week away
04/09/2009
Procrastinators, start your engines. Or at least, fire up your laptops. There's just a week to go before you must file your 2008 tax return. (2 h ago)

• Japan’s leader unveils ambitious growth ... Japan’s leader unveils ambitious growth plan
04/09/2009
Japanese Prime Minister Taro Aso unveiled a long-term growth strategy Thursday, vowing to refashion the world’s second-largest economy and create millions of jobs. (2 h ago)

• New models, old questions at NYC auto sh... New models, old questions at NYC auto show
04/08/2009
Battered automakers are unveiling greener, hipper cars at the New York International Auto Show that they hope will satisfy scared buyers. (13 h ago)

• Pulte to buy Centex in $1.3 billion deal Pulte to buy Centex in $1.3 billion deal
04/08/2009
Pulte Homes Inc. agreed to acquire Centex Corp. Wednesday in a stock-for-stock deal valued at $1.3 billion that will create the nation’s largest homebuilding company. (14 h ago)

• What the Fed said — and meant — in notes... What the Fed said — and meant — in notes
04/08/2009
The minutes from the Federal Reserve's closed-door meetings can offer important clues about where the economy stands — and what the Fed might want to do to make it better. (15 h ago)

• Oil lower, weighed down by stock markets Oil lower, weighed down by stock markets
04/08/2009
Oil prices took off Wednesday after new government data showed bulging crude inventories grew less than expected, but settled only slightly above where they started the session. (17 h ago)

• Ad industry panel tells Wrigley to chang... Ad industry panel tells Wrigley to change claims
04/08/2009
The advertising industry's self-regulatory body wants Wrigley to change its packaging and advertising for Eclipse gum . (18 h ago)

• Will the real Chrysler please stand up? Will the real Chrysler please stand up?
04/08/2009
Chrysler unveiled a new SUV at the New York International Auto Show, but a smaller vehicle grabbed a lot of attention: the Fiat 500 that brought Chrysler President Jim Press to the stage. (18 h ago)

• ConsumerMan: A Chase bait and switch? ConsumerMan: A Chase bait and switch?
04/08/2009
About 400,000 Chase customers have learned that their monthly payments would more than double and a $10 monthly service fee would be added. A class-action lawsuit has been filed. (19 h ago)

• Demand for home purchase loans jumps Demand for home purchase loans jumps
04/08/2009
U.S. mortgage applications rose last week, as demand for home purchase loans jumped even as interest rates edged up from recent record lows. (21 h ago)

• Toyota banks on tiny, green but pricier ... Toyota banks on tiny, green but pricier ‘iQ’
04/08/2009
Toyota’s tiny iQ, shown at the New York International Auto Show this week, is being considered for the U.S. market. (22 h ago)

• Newsweek: How GM crushed Saturn Newsweek: How GM crushed Saturn
04/07/2009
Saturn was supposed to save GM. Instead, it's being treated as a toxic asset to be sold off like so much subprime mortgage debt. Saturn's fall to earth, more than $5 billion in GM money later, is about far more than the flameout of one brand. (1 d ago)

• Recovered Madoff money will go to invest... Recovered Madoff money will go to investors
04/08/2009
Any money recovered from the sale of Bernard Madoff's assets will go to his investors rather than to the U.S. Treasury, the Securities and Exchange Commission said Wednesday. (15 h ago)

• Cable companies to match viewers with ad... Cable companies to match viewers with ads
04/07/2009
This is the future of cable TV advertising: personal and targeted. (1 d ago)

• Madoff trading division close to being s... Madoff trading division close to being sold
04/07/2009
A Manhattan bankruptcy judge approved a plan Monday that would allow a Boston firm to take over a securities trading operation owned by disgraced financier Bernard Madoff. (1 d ago)

• Blockbuster says it may not be able to c... Blockbuster says it may not be able to continue
04/06/2009
Movie rental company Blockbuster says the risk it may not complete financing deals raises "substantial doubt" about its ability to continue as a going concern. (2 d ago)

• Big Madoff investor charged with civil f... Big Madoff investor charged with civil fraud
04/06/2009
New York's attorney general has filed civil fraud charges against a hedge fund manager who funneled billions of dollars in client money to Wall Street swindler Bernard Madoff. (2 d ago)

• Some businesses see layoffs as too expen... Some businesses see layoffs as too expensive
04/06/2009
Even as the recession cuts deeply into their revenue, some companies are opting to do the unconventional: They're keeping all their employees and finding other ways to trim costs. (2 d ago)

• IBM deal falling apart embarrassment for... IBM deal falling apart embarrassment for Sun
04/06/2009
Without IBM Corp.'s $7 billion takeover offer, Sun Microsystems Inc., a Silicon Valley rebel known for independence, is possibly alone again. Presented By: Inside Guantanamo: Sunday at 9P e/p Guantanamo Bay is one of the world's controversial prisons. This may be its final chapter. With unprecedented access, National Geographic has the story you haven't heard. Both sides, told from the inside, before its doors close forever. Click to learn more and go Inside Guantanamo >> natgeotv.com/guantanamo Ads by Pheedo (2 d ago)

• Basics: How to Cut the Beastly Cost of D... Basics: How to Cut the Beastly Cost of Digital Services
04/08/2009
If there was ever a time not to procrastinate, that time is now. (9 h ago)

• The Sudden Charm of Public School The Sudden Charm of Public School
04/07/2009
Claudia Knafo and her husband, Alexander Yagupsky, hope to send Joshua, 4, to public school, a change in plans dictated by the economy. To get Joshua into the right school, they may move.Brearley? Dalton? Not anymore. In these financially fragile times, the new bragging rights begin with a P.S. The rush is on to live near the best. (1 d ago)

• Outlook on Economy Is Brightening, Poll ... Outlook on Economy Is Brightening, Poll Finds
04/07/2009
President Obama is enjoying some success in rebuilding confidence, according to a New York Times/CBS News poll. (1 d ago)

• Mortgage Fraud Fought Mortgage Fraud Fought
04/06/2009
Government officials are accusing some companies of preying on desperate borrowers caught up in the nation’s housing crisis. (2 d ago)

• Madoff Scandal Casts Light on Investment... Madoff Scandal Casts Light on Investment Advisers
04/06/2009
Investment advisers stand between trillions of dollars of pension money and the investment professionals who want a piece of it. (2 d ago)

• Patient Money: Getting a Health Policy W... Patient Money: Getting a Health Policy When You’re Already Sick
04/06/2009
Reform is promised, but for now consumers with pre-existing conditions must still struggle for coverage. (2 d ago)

• Muted Signs of Life in the Credit Market... Muted Signs of Life in the Credit Markets
04/06/2009
Investors are starting to get some nerve back, analysts say, mainly because of federal efforts to get credit flowing. (2 d ago)

• Mortgages: College Tuition Not on the Ho... Mortgages: College Tuition Not on the House
04/06/2009
Educational institutions that once considered a house as a college fund of sorts are taking a more realistic look at home equity’s role in the financial aid equation. (2 d ago)

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• Iraqi expats join the Swedish labor pool Iraqi expats join the Swedish labor pool
04/08/2009
One Swedish city used to brag that it took in more Iraqi refugees than the entire U.S., until it ran out of jobs for the new expats. Now other towns in Sweden are trying to lure refugees with career opportunities. Alisa Roth reports. (20 h ago)

• Decoder: Meet Ginnie Mae Decoder: Meet Ginnie Mae
04/08/2009
Most people know about Fannie Mae and Freddie Mac, but what about Ginnie Mae? As Nancy Marshall Genzer reports, she may be a possible model for her siblings Fannie and Freddie. (20 h ago)

• Why we spend so much on pets Why we spend so much on pets
04/08/2009
How much have you spent on your pet? Kai Ryssdal speaks with Michael Schaffer, author of "One Nation Under Dog," about why Americans spend so much on their pets. (20 h ago)

• Hold CEOs of big banks accountable Hold CEOs of big banks accountable
04/08/2009
The congressional panel in charge of overseeing TARP says it has achieved mixed results at best. Commentator Robert Reich says it's time the CEOs of the big banks that received trillions in bailout funds be held accountable. (20 h ago)

• Will life insurance firms fit under TARP... Will life insurance firms fit under TARP?
04/08/2009
Life insurance companies will soon be eligible for bailout money. But will life insurance firms fit under the expanding federal TARP? John Dimsdale reports. (20 h ago)

• Economy slows green investment Economy slows green investment
04/08/2009
The recession has slowed investment into alternative energy research. But some investors still see a bright future for clean tech. Caitlan Carroll reports. (20 h ago)

• Moody's outlook puts cities in bad mood Moody's outlook puts cities in bad mood
04/08/2009
Bond ratings agency Moody's Investors Service has some bad news for local governments looking to fill budget gaps. Amy Scott explains. (20 h ago)

• Will merger of homebuilders help? Will merger of homebuilders help?
04/08/2009
Housing company stocks soared after two home building giants announced a merger. But the housing market is still struggling in the short run. So is the money being spent worth it? Mitchell Hartman reports. (20 h ago)

• Presented By: Presented By:
04/07/2009
(1 d ago)

• KFC sues supplier over combustible packa... KFC sues supplier over combustible packaging
04/07/2009
KFC says its popcorn chicken had a bit more heat than intended. (1 d ago)

• Auctioning of storage units’ contents on... Auctioning of storage units’ contents on the rise
04/07/2009
The auctioneer slides the steel door up, and a small crowd at the storage facility steps forward for a peek. (1 d ago)

• Guinness to offer new stout for limited ... Guinness to offer new stout for limited time
04/07/2009
The makers of Guinness are touting a new stout beer in the U.S., a maltier, fizzier version of its older, creamier sibling, the world's best-selling stout. (1 d ago)

• Newsweek: Librarians as career counselor... Newsweek: Librarians as career counselors?
04/07/2009
(1 d ago)

• Your Career: Cooking up a new career Your Career: Cooking up a new career
04/06/2009
More and more laid-off workers, those switching careers and young people just starting out are contemplating jobs in the food industry. (2 d ago)

• Pay hikes will be stingy in 2009, survey... Pay hikes will be stingy in 2009, survey says
04/07/2009
A quarter of the world's companies, and 40 percent in the United States, plan to freeze salaries this year, a global survey shows on Tuesday. (2 d ago)

• Here’s how you can rock on Twitter Here’s how you can rock on Twitter
04/08/2009
Your Biz blog: Here’s how you can get on the social networking site and start promoting your business. (20 h ago)

• Video: Small Biz Secrets: An opportunity... Video: Small Biz Secrets: An opportunity for entrepreneurs
04/08/2009
John Chait, Partner of Dace Ventures, and Darren Hardy, Publisher of Success Magazine, provide their secrets to entrepreneurial success. (MSNBC) (21 h ago)

• In the Hunt: Tapping Business Skills Tha... In the Hunt: Tapping Business Skills That Already Exist
04/08/2009
Culture shock in New England activated Donna Young’s latent entrepreneurial skills, and now she runs a business taking upscale women’s clothes to sell in her native Bahamas. (9 h ago)

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