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Business News
for 01/24/2010

(last updated 7:30am EST 01/24/2010)

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• Bernanke’s Bid for a Second Term at the ... Bernanke’s Bid for a Second Term at the Fed Hits Resistance
01/23/2010
Even if Ben S. Bernanke’s nomination is approved, the anxiety surrounding it shows how both parties are trying to understand anger toward the government and Wall Street. (1 d ago)

• Stocks and Bonds: 3-Day Slide Sends Mark... Stocks and Bonds: 3-Day Slide Sends Markets Down About 5 Percent
01/22/2010
The main focus remained President Obama’s plan for tighter restrictions on the banks, but worries about Bernanke’s confirmation also played a role. (1 d ago)

• China Rebuffs Clinton on Internet Warnin... China Rebuffs Clinton on Internet Warning
01/22/2010
Denouncing a speech against Internet censorship by Secretary of State Hillary Rodham Clinton, China showed it was ready to fight back on the issue. (1 d ago)

• Defending Their Dealerships Defending Their Dealerships
01/22/2010
Hundreds of General Motors and Chrysler dealers are fighting to get back their businesses through an arbitration process that will begin next week. (1 d ago)

• Korea Air Returns to Profit as Travel Pi... Korea Air Returns to Profit as Travel Picks Up in Asia
01/22/2010
Passenger and air freight numbers rallied in the Asia-Pacific region in December, and Korean Air returned to profit during the last quarter of 2009. (1 d ago)

• No Progress in Talks for Financing of Eu... No Progress in Talks for Financing of European Military Plane
01/22/2010
The seven countries who ordered the Airbus A400M transport plane failed again to agree on how to pay for cost overruns. (1 d ago)

• Google’s Sales Rose 17% in the Quarter, ... Google’s Sales Rose 17% in the Quarter, Fastest Pace in a Year
01/22/2010
The results topped Wall Street’s expectations. Revenue for the quarter was $6.67 billion, up from $5.7 billion a year earlier. (1 d ago)

• China First Heavy Announces Shanghai I.P... China First Heavy Announces Shanghai I.P.O.
01/22/2010
China First Heavy Industries, a maker of heavy machinery, said Friday it would start an initial public offer in Shanghai next week to raise at least 8.4 billion renminbi, or $1.23 billion. (1 d ago)

• Off the Charts: Debt Burden Now Rests Mo... Off the Charts: Debt Burden Now Rests More on U.S. Shoulders
01/22/2010
China lent an estimated 4.6 percent of the money the United States borrowed in 2009, down from 20.2 percent in 2008. (1 d ago)

• Asian Hotel Brands Make the Journey to E... Asian Hotel Brands Make the Journey to Europe
01/22/2010
With more Asian tourists traveling to Europe, Asian brands, which have a solid reputation in their own backyard, are hoping to capitalize on their name recognition. (1 d ago)

• Swiss Ruling Jeopardizes Deal for UBS Cl... Swiss Ruling Jeopardizes Deal for UBS Clients’ Names
01/22/2010
A Swiss court ruled that account details of a wealthy American may not be disclosed, despite an agreement between U.S. prosecutors and UBS. (1 d ago)

• Russian Oligarch’s Long Road to a Hong K... Russian Oligarch’s Long Road to a Hong Kong I.P.O.
01/22/2010
Oleg V. Deripaska pursued unusual sources of finance for his giant aluminum company, Rusal, which has nearly $15 billion in debt. (1 d ago)

• Supplier Accused of Bribes for U.N. Cont... Supplier Accused of Bribes for U.N. Contracts
01/22/2010
Federal prosecutors have accused Richard T. Bistrong of paying business bribes to get contracts to supply protective gear to United Nations peacekeeping forces. (1 d ago)

• Oracle’s Acquisition of Sun Wins Approva... Oracle’s Acquisition of Sun Wins Approval of Europeans
01/22/2010
The approval of China and Russia is still needed for Oracle to complete its takeover of Sun Microsystems. (1 d ago)

• Treasury Weighs Fixes to Foreclosures Pr... Treasury Weighs Fixes to Foreclosures Program
01/22/2010
The effort to revamp the Making Home Affordable program comes amid growing pressure to do less for banks and more for households. (2 d ago)

• G.M. Starts Revamp in Europe by Closing ... G.M. Starts Revamp in Europe by Closing an Opel Plant
01/21/2010
The Antwerp factory employs about 2,600 workers and produced nearly 89,000 Astra compact cars in 2009. (2 d ago)

• Out of Bankruptcy, Genetics Company Drop... Out of Bankruptcy, Genetics Company Drops Drug Efforts
01/21/2010
The Icelandic gene-hunting company said it would continue its research and its gene-based diagnostics as a private company and would abandon efforts to develop drugs. (2 d ago)

• Strong Year for Goldman, as It Trims Bon... Strong Year for Goldman, as It Trims Bonus Pool
01/21/2010
Goldman Sachs reported strong earnings on Thursday, but the bank reduced the share of revenue going to bonuses. (2 d ago)

• Music Industry Counts the Cost of Piracy Music Industry Counts the Cost of Piracy
01/21/2010
Sales of digital music rose 12 percent worldwide last year, but that growth was insufficient to compensate for plunging revenue from compact discs. (2 d ago)

• Swedish Bank Fee Sets Example for Americ... Swedish Bank Fee Sets Example for America
01/21/2010
Sweden has enacted a direct tax on banks to pay for their own bailouts, similar to President Obama’s proposal aimed at recovering bailout money. (2 d ago)

• Indian corporate honchos take to recessi... Indian corporate honchos take to recession yoga to beat blues
01/24/2010
More and more corporate honchos in India are taking to "recession yoga" to beat the blues creeping at work front, with pink slips and salary cuts becoming very common, due to the global economic downturn. Recession yoga, as they claim, is now said to be the latest craze in India as a number of corporate executives, regardless of age, are enrolled in training and practice sessions, particularly in the national capital and financial metropolis Mumbai. "Stress is running like fire through the ... (1 h ago)

• Ugandan President meets Tullow CEO over ... Ugandan President meets Tullow CEO over oil deal
01/24/2010
Ugandan President Yoweri Museveni has met and held discussions over oil deal with Aiden Heavey, the chief executive officer (CEO) of Tullow Oil, the Irish company currently exploring oil in western Uganda. According to a State House news release received on Saturday, Museveni said the government officials are due to meet to discuss the matter, and added that they would be choosing only capable and competent companies to participate in the oil and gas sector. The Friday meeting at State Ho ... (1 h ago)

• Bank of China to sell 40 billion yuan of... Bank of China to sell 40 billion yuan of convertible bonds
01/24/2010
The Bank of China (BOC) board has agreed to sell up to 40 billion yuan (5.86 billion U.S. dollars) of bonds convertible to A shares to improve capital adequacy. The proposal will be turned into the first temporary shareholders' meeting in 2010, which will be held on March 19, for approval. Excluding issuance costs, the proceeds from the issuance of the six-year convertible bonds will be used to replenish the bank's capital base and working capital and to lift its capital adequacy ratio, a ... (1 h ago)

• World's top auto market keeps expanding World's top auto market keeps expanding
01/23/2010
Shen Lu just bought herself a red Mazda 3 as a new year present. "It looks beautiful and has large space. I bought it to replace my old car, a small Chery QQ," said the 27-year-old IT practitioner. "Cars with displacement of 1.6 liters, like the Mazda 3, are cheaper with reduced purchase tax," she added. Shen's Mazda is one part of the mushrooming auto fleet that expands by 1,500 new vehicles every day in Beijing, a city that already has 5.7 million drivers and over four million automob ... (14 h ago)

• Brazil's oil giant Petrobras approves pu... Brazil's oil giant Petrobras approves purchase of Quattor
01/23/2010
Brazil's state-owned oil and gas giant Petrobras announced its approval of the purchase of petrochemical company Quattor on Friday. Braskem, controlled by Petrobras and construction giant Odebrecht,actually purchased Quattor for 870 million reais (478 million U.S. dollars). After the merger, Braskem will maintain its name, and will become the largest petrochemical company on the American continent, and the 11th largest in the world. According to an agreement between Petrobras and Odebre ... (19 h ago)

• Peugeot Citroen recalls 263 cars in Chin... Peugeot Citroen recalls 263 cars in China mainland on faulty radio
01/23/2010
French auto maker PSA Peugeot Citroen would recall combined 263 autos of three models sold to the Chinese mainland due to defective radio, China's product quality watchdog has announced. The 263 autos included two of 307 CC produced between July 21 of 2006 to March 19 of 2007, 215 of C4 coupe manufactured between July 29 of 2006 to March 19 of 2007, and 46 of C5 made between July 17 of 2006 to March 20 of 2007, the General Administration of Quality Supervision, Inspection and Quarantine said ... (19 h ago)

• Wall Street posts biggest 3-day drop sin... Wall Street posts biggest 3-day drop since March
01/23/2010
&$ &$Traders work in the New York Stock Exchange, U.S., Jan. 22, 2010. Wall Street tumbled for the third straight session on Friday, with major averages ending down more than 2 percent, as investors were worried that President Obama's proposals of putting new restrictions on big banks could hurt economic recovery. (Xinhua Photo)&$ &$ Wall Street tumbled for the third straight session on Friday, with major average ... (19 h ago)

• Oil tumbles below 75 dollars on equity l... Oil tumbles below 75 dollars on equity losses
01/23/2010
Oil prices tumbled to one-month low below 75 U.S. dollars on Friday as the energy market shared a sluggish sentiment with stocks which plunged for a third day. U.S. stocks suffered their worst one-day decline in nearly three months as bank shares tumbled after President Obama proposed to impose new limits on the size of the nation's biggest banks as well as restrict their risk-taking abilities. There was little upbeat news from the fundamentals. A government report on Thursday showed that ... (19 h ago)

• Brazil's Vale to sell subsidiary's alumi... Brazil's Vale to sell subsidiary's aluminum assets
01/23/2010
Brazil's mining giant Vale, the largest iron ore producer in the world, Friday announced plans to sell the aluminum assets of one of its subsidiaries to a French company. Its subsidiary Valesul Aluminio S.A. (Valesul) in Rio de Janeiro state has reached an agreement with Aluminio Nordeste S.A., a company of the French Metalis group, on the transaction, it said. The assets included in the agreement are Valesul's anode plant, reduction plant, smelter, industrial services and administrative f ... (19 h ago)

• American Airlines laying off 175 pilots American Airlines laying off 175 pilots
01/23/2010
American Airlines, the world's second-biggest carrier, said Friday it will lay off 175 pilots in the first half of this year due to capacity cuts and fewer retirements. Eighty pilots will lose their jobs at the end of February and a second round of layoffs could be in the spring, American spokeswoman Missy Latham said in a statement. "This was a painful but necessary decision, " said Latham, who said the move will "better align the size of our pilot organization with the size of our curren ... (19 h ago)

• Russian finance minister urges budget au... Russian finance minister urges budget austerity
01/23/2010
One of the priority tasks facing the Russian government in the coming years is to guarantee the budget deficit not to exceed one percent of gross domestic product (GDP), said Russian Finance Minister Alexei Kudrin here Friday. "We do not have the scope to increase spending," said Kudrin at the international conference "Russia and Global World: New Decade Challenges." Future federal budget should also be set down with the oil price no higher than 60 U.S. dollars per barrel, in order to avoi ... (19 h ago)

• Fitch Ratings upgrades outlook for Russi... Fitch Ratings upgrades outlook for Russian economy
01/23/2010
International rating agency Fitch Ratings upgraded its assessment of Russia's economic outlook from "negative" to "stable" on Friday. "The revision of Russia's outlook to stable reflects our greater confidence in economic and financial stability in Russia," said Edward Parker, Fitch's head of Emerging Europe. The assessment was based on the rebound in oil prices, recovery in net private sector capital inflows and economic activity, falling inflation, downside risks reduction in the banking ... (19 h ago)

• Hong Kong attracts record 265 firms to i... Hong Kong attracts record 265 firms to invest in 2009
01/22/2010
The Department of Invest Hong Kong said Friday it helped 265 firms establish or expand their business presence in Hong Kong last year, which is its record in attracting foreign direct investment to the city. Director-General of Investment Promotion Simon Galpin said the figure showed investors' confidence in the city despite the challenging global economic environment. "Hong Kong's strategic location and international exposure make it an ideal two-way service platform for Chinese mainland ... (1 d ago)

• HK firms forecast better Q1 prospects HK firms forecast better Q1 prospects
01/22/2010
Many sectors expect a favorable business outlook for the first quarter of the year, particularly the financing and insurance field, followed by the retail and the real estate industries, according to a survey released by Hong Kong Special Administrative Region government on Friday. Up to 29 percent of respondents forecast their business situation to improve while only 10 percent expected it to worsen, compared with 17 percent in the fourth quarter last year, according to the Census and Stati ... (1 d ago)

• Unasked questions about the Press Compla... Unasked questions about the Press Complaints Commission
01/23/2010
There may be concern about press regulation – but has the Media Standards Trust got to the nub of it? Consider one question. "Where there are signs of public concern, would you expect an independent press self-regulatory body to carry out an investigation into an article infringing the prime minister's privacy by recording a personal telephone call between the prime minister and a third party?" 73% say yes (definitely or probably) to Ipsos-Mori on that. Or consider a slightly amended question: "When Jacqui Janes, the grieving mother of soldier killed in Afghanistan, talks on the phone to Gordon Brown, is she entitled to record that conversation, complain because he can't spell her name correctly, and pass the tape to a newspaper"? I don't know the answer to that, because the pollsters (on contract to the reform-minded Media Standards Trust) didn't ask it. Nor did they exactly round out similar queries about an article "alleging that there are unexplained circumstances over the death of a pop star" or "accusations by a British newspaper that parents of a child were involved in the disappearance of their child". Should the McCanns have gone to the Press Complaints Commission instead of winning £550,000 from the Express group in libel damages? Are the circumstances of Stephen Gately's death wholly encapsulated in that elliptical summary? What are "signs of public concern"? What, indeed, is an "independent press self-regulatory body"? Is such slightly mystic opinion polling germane in campaigns to harass or replace the PCC? Discuss. Preferably after the commission's own governance review is published, so we can see what we're talking about. Press Complaints Commission Newspapers & magazines Daily Express Daily Mail Stephen Gately Madeleine McCann Peter Preston guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Obama has shown the way on bank control ... Obama has shown the way on bank control | Editorial
01/23/2010
One of the least plausible objections that bankers raise against new regulations on their activity is that they would be too complicated. The world of global finance was not so afraid of complexity when inventing assets made of mortgage debts repackaged so many times even the banks didn't know what they were buying. Compared to the toxic derivatives that fuelled the financial crisis, new regulations proposed by President Barack Obama are delightfully simple. The basic principle is that banks would no longer be able to blur the distinction between their classic retail functions and their capital market speculations. This is often described as the division between "utility" and "casino" banking. The separation was enforced in the US after the 1933 Glass-Steagall act, but gradually abandoned in the 1990s. Now, in essence, Mr Obama wants it back. The reason is plain. The credit crunch originated on the "casino" side; that is where all the debts were run up, the risks taken, the bonuses paid. But banks got away with it for two reasons. First, they were perceived as reputable institutions fulfilling a social function. That is because of their "utility" operations: holding deposits, making domestic home loans. Second, the banks' utility functions were so important to individuals and businesses, they were too big to fail. So when the casino part of the bank went bust, its vast web of debt dragged in otherwise healthy parts of the economy. The whole system nearly imploded and the taxpayer had to step in. That must never be allowed to happen again. In Britain, meanwhile, the government seems torn, keen to satisfy public anger over banker excess but nervous also of attacking the City, alarming investors and spooking markets just when recovery is taking shape. The Conservatives, who don't yet have to face that dilemma, see that Mr Obama's move is good politics and back it. That should be Labour's instinct too. As global consensus builds around the need for tighter regulation, the City's expectation of special treatment looks ever more deluded. The banks like to claim that their uniquely big contribution to the economy should be a source of pride. But the opposite is true. Britain's inflated financial services sector is not a national champion, it is a liability. The banks are wrong if they think their size should protect them. Thinking they were too big to fail was what got us in this mess in the first place. If they are still so big, all the more reason to cut them down to size. Banking Obama administration guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• More spending and less tax works – and n... More spending and less tax works – and now you can bet on it
01/23/2010
There is actually a racehorse called Quantitativeasing – presumably running in Keynesian colours I have always loved the sport of kings (and sheikhs) but never, for reasons I don't need to go into, owned a racehorse –though I was once part of a syndicate which owned a greyhound. Anyway, my knowledge of horseracing used to be rather more up-to-date, as the following tale illustrates. I have often been asked what I thought of the Bank of England's policy of "quantitative easing". Now, I regard it as a strange term for that part of the Bank's open market operations which involves relaxing monetary policy by buying government stock and thereby boosting the stock of money in circulation. My cheap riposte has been on the lines of "I think it stands a good chance in the 3.30". So imagine my surprise on discovering, when reading the text of Mervyn King's speech at the University of Exeter last week, that there is indeed a horse in training called Quantitativeasing. I quote the governor: "The headline in the Racing Post of 29 December said it all: 'Quantitativeasing maintains perfect record'. Its Newbury correspondent reported that 'Quantitativeasing started as a red-hot favourite and had little trouble maintaining his unbeaten record … his task was made easier when Tail of the Bank came to grief at the second last'." Well, I hope the rest of the Bank does not come to grief. It has had its problems: both its brief from New Labour and its interpretation of that brief – roughly speaking: inflation targeting is all that matters in monetary policy – mean that it paid insufficient attention to the warning signs of a financial crisis which did not come out of a clear blue sky. In this it was not alone among central banks. But in its recent response to the crisis, the Bank has done its best, although some of the reporting in what Private Eye calls the "Street of Shame" has been imaginative, to say the least. Thus the governor was not trying to say we were on the verge of a renewed burst of inflation. On the contrary. The message was that consumer price statistics, which compare the position now with the position a year ago, exaggerate the underlying trend because they are being compared with months when prices fell sharply. There is no danger whatever in this country of the kind of wage inflation which caused such trouble in previous decades. On the contrary, as the downward pressure on wages continues, and unemployment (notwithstanding a superficial improvement in the latest monthly figures) continues to be a major problem, deflation remains the more obvious concern. The governor knows this. Reports that he was attacking the chancellor over the fiscal deficit were mischievous. Indeed, King bent over backwards to be diplomatic. He cited approvingly US Federal Reserve chairman Ben Bernanke's recent statement that "unless we demonstrate a strong commitment to fiscal sustainability in the longer term, we will have neither financial stability nor healthy economic growth". But he also said: "Of course, there is a perfectly sensible debate about the appropriate timing of the withdrawal of the temporary fiscal stimulus as the economy recovers." This, as the governor is aware, raises two questions: when can we be sure the economy is recovering – and can we be sure it is a recovery if the stimulus is withdrawn? With interest rates so low, and quantitative easing doing as much as any monetary animal can, the future of the economy, and even the chances of maintaining social stability, depend on the proper handling of fiscal policy – ie, of the approach to the infamous deficit. Which brings me to the vital importance of macroeconomic policy. I fear there is a gulf between those who grasp the importance of macroeconomics and those who don't. Economists are easy targets these days, partly because they have allowed themselves to be judged too much by their forecasting abilities (which leave a lot to be desired) and partly because a particular branch of the profession took a wrong turning and contributed, with certain ill-founded theories, to the financial crisis. But give me economists every time to the kind of banker or businessman who, because he is successful in his chosen area, chooses to lecture us on the economy at large. Last week we had a classic example. In the Times there was a banner headline proclaiming "Labour is wrong on tax, bonuses and how to get out of a recession, says top banker". Mike Geoghegan, chief executive of HSBC, may be great at his job, but in saying "the government can't spend more than it actually collects in taxes. People can't live without savings ..." he was giving us a first-class demonstration of the widespread ignorance of the central insight of macroeconomics – that the government has to step in when the private sector withdraws if recession is not to become serious depression. The point is that at times like this the government can and should spend more than it "actually collects in taxes". Otherwise we should be back to the 1930s in no time. What actually happened was that many people did live for a time without savings, and now citizens and businesses are reducing their debts and saving quite a lot. At a time of recession, extra government spending can boost incomes, employment and earnings, thereby producing gains which mean savings can rise. But extra savings without offsetting boosts to spending can be disastrous. In his presidential address to the Royal Economic Society in 1974, the late Sir Donald MacDougall pointed out that "The Keynesian solution to unemployment … involved changes in attitudes, but mainly the attitude of an elite to propositions that were not unattractive and, in retrospect (but only in retrospect), blindingly obvious, such as that when there is heavy unemployment it is right for the government to spend more and tax less rather than the other way around." I commend Keynesian macroeconomics to Geoghegan, George Osborne and a cast of millions. Mervyn King Quantitative easing Bank of England Economics William Keegan guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Comment isn't always free Comment isn't always free
01/23/2010
Here's a new notion to cherish from the Southeast Missourian : "Every election cycle results in the submission of letters about local, state and federal candidates. Because of the tone of too many of these letters, the [paper] has adhered to its policy of not publishing any such letters rather than picking or choosing some. But now our [new, $25 a time] Paid Election Letter option gives those who want to express their opinion an outlet. By attaching a fee to these letters, it is hoped writers will use their 150 words well to express their views." Who needs pay walls when the Royal Mail and Central Office can build them for free? Media business Newspapers Media downturn US press and publishing Peter Preston guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Iceland's children paying for slump Iceland's children paying for slump
01/23/2010
Public health experts have noticed signs of family breakdown in the wake of the 2008 financial meltdown that left most adults in serious debt Dr Geir Gunnlaugsson, Iceland's director of public health, has no doubt who was worst affected by the economic crisis that gripped the country 15 months ago – children. There has been a surge in reports to child protection agencies tasked with monitoring everything from maltreatment to mental health and who have been on the alert for problems in the wake of the 2008 financial crisis. "We believe that there have been increasing strains in intra-familial relations – conflicts among parents for example, but also pressures on family budgets – and that this in turn impacts on the children," said Gunnlaugsson. His worries are echoed by others. "It's mostly about their psychological welfare. The children have also asking: What is going on? What do we mean by the 'crisis'? What is going to happen?" said Professor Halldor Guðmundsson from the University of Iceland. The greatest concern of both experts is the impact that long-term joblessness will have on a younger generation that has never known anything other than near-zero unemployment. "Some groups have now experienced one whole year of unemployment and it's a totally new experience for Icelandic society, so we will probably suffer the impact of that on the welfare and mental health of the population," said Gunnlaugsson. Against the backdrop of 8% unemployment and rising, fears are growing of mass emigration by the young, particularly to Scandanavia. Herdís Ólöf Kjartansdóttir, aged 23, a business studies degree student at the University of Iceland, said: "I think it's very hard to be graduating right now, so there is the possibility of major migration. A cousin of mine has already moved to Norway with her whole family – her parents, her two siblings, her boyfriend and her son. They have all got jobs there." But Guðmundsson said there were some positive signs. "Children are spending more time with their parents. There is less overtime, people are at home more because things have slowed down or because they are out of work." This situation is likely to worsen. A government scheme to prevent repossession of homes is due to end soon, threatening to cause widespread misery in a society saddled with huge levels of household debt. Already charities providing free food are busier, receiving a record number of requests for special assistance at Christmas. Aid from three of the biggest charities reached 10,000 people. The impact of the debt burden faced by the government threatens to erode Iceland's much envied Nordic-style welfare system. Between 15% and 20% of households are believed to be in serious debt trouble, to the extent that they will need government assistance. Even so, the financial crisis has benefited some. Reykjavik has seen a rise in the number of tourists from Britain as well as continental Europe taking advantage of the favourable exchange rate. Fashionable clothes stores in the city centre have begun stocking more home-produced products as imports become expensive. But amid the lunchtime throng of tourists and locals at Café Paris, a bar in Reykjavik's old town opposite the square where thousands of demonstrators gathered night after night for a week last year, a note of warning is sounded. "If no one goes to jail for what happened in this country then you will see it going up in flames," said its manager, Arnor Bohic. A failure to have a reckoning for those largely blamed for bringing Iceland to its knees is one of the possible sparks some say could reignite a city at peace 12 months on from the Saucepan Revolution – so called because of the noise-inducing kitchenware brought along by protestors. For now, hopes are high that there will at least be a reckoning for Iceland's economic woes, if not from a "truth commission" due to report within weeks, then from a criminal investigation into the activities of the discredited financial oligarchs. "Given the enormity of this situation and what happened and what is already visible about the behaviour of some, one would guess that is a very likely outcome that some people will be severely penalised or put to prison," predicted Iceland's finance minister Steingrimur Sigfusson. Inside his office, he sighed about the uncertainty the country now faces in the run-up to the referendum on 3 March triggered by President Ólafur Grimsson's rejection of a bill to pave the way for repaying £3.4bn owed to the British and Dutch governments following the collapse of the Icesave online bank. "We succeeded in a lot of ways in 2009, and the outlook for 2010 was even better than we had expected, but the president's decision has put a question mark over what will happen next ," he said. Iceland Global recession Ben Quinn guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Irene Rosenfeld She certainly takes the ... Irene Rosenfeld She certainly takes the biscuit | Paul Harris
01/23/2010
The head of Kraft, one of the world's most powerful women, was never going to back down in her takeover of Cadbury, despite upsetting investor Warren Buffett and incurring the wrath of British workers and politicians Irene Rosenfeld works in an industry that provides a rich seam of puns for headline writers and scribes alike. The Kraft Foods chief executive is the Big Cheese, the Cookie Queen, the cat who got the (Cadbury's) Creme Egg. Not surprisingly, she is often referred to as having drunk the Kool-Aid (yet another Kraft brand) of her mega-corporation. It is all good, clean fun that has brightened the accounts of Kraft's successful attempt to take over beloved British chocolate-maker Cadbury. It was a classic business battle that unusually made the jump from the business pages to the front pages. It pitted the sprawling American conglomerate against the plucky British independent. It involved some of the most famous brands in British consumer life. It saw hostile bids, public spats, shareholder revolts and a campaign to keep the firm resolutely British. If it had been a Hollywood movie conforming to type, Cadbury would have emerged unscathed. Rosenfeld and Kraft would have slunk back to Chicago with their tails between their legs. British chocolate-making would have continued – Willy Wonka-like – to exist at the centre of cultural life for the sweet-toothed and free from the malign influence of foreign industrialists. But this is real life. Rosenfeld won her battle and the Cadbury board in the end happily surrendered to a higher Kraft bid and recommended the deal to its shareholders. Such are the imperatives of modern capitalism and, in truth, few realistic observers ever saw any other likely outcome. But there is no doubt that it was a remarkable coup for Rosenfeld. Not only did she lead one of America's biggest companies into one of the biggest deals of its history, she did it by riding roughshod over the objections of its most high-profile investor, Warren Buffett . The "Sage of Omaha" had come out publicly against the deal, something that would strike terror into the hearts of almost any chief executive. But Rosenfeld did not shirk. Politely, but firmly, and never with a trace of doubt, she just ploughed on. Rosenfeld wanted a deal. And a deal she got. No one should have been surprised. Though her public profile is deeply private and unfailingly polite, Rosenfeld is not someone to be pushed around. Buffet might have his mass following, but Rosenfeld is no pushover. She has flourished as a woman in a man's world. She is one of just 12 women running a top US corporation. Among the 30 US firms in the Dow Jones Industrial Average, she is one of just two. Forbes magazine recently ranked her sixth on its list of the 100 most powerful women in the world. She was just five places behind German chancellor Angela Merkel. That is pretty rarefied company. As results in the epic Kraft vs Cadbury battle showed, the surprise was not that Rosenfeld won. It was that anyone really doubted her. Rosenfeld, however, does not fit the media archetype of the ball-busting American businesswoman. There are no dramatic power suits, no huge shoulder pads, expensive hairstyles or a personality so large and aggressive that it overcomes the testosterone levels of the male executives. Instead, Rosenfeld is the classic example of still waters running deep. Throughout the battle over Cadbury, Rosenfeld did just enough media work to ensure that she was present but never enough to mean she became the story. She was never off-message, charming the press, but never letting them leave with a real story of the kind that journalists' love and chief executives hate. She was all about the deal, all the time, a true competitor in the sense that it was the end result that mattered, not achieving it in dramatic style. That sense of competitiveness came early to Rosenfeld, but it did not spring from obviously fertile ground. She is a child of the American suburbs of the 1950s, an era much frowned upon since the cultural revolution of the 1960s, but one that Rosenfeld's quiet, understated but muscular approach to business seems to typify. Rosenfeld was born on 3 May 1953, to a young Jewish couple, Seymour and Joan Blecker, who had settled in Westbury, about 30 miles from New York. It was a story-book suburban upbringing. Her father served in the army during the Second World War and then became an accountant. Her mother was a stay-at-home mom dedicated to raising her two daughters. Rosenfeld excelled at pretty much everything at school. She was a keen sportswoman, something that she continues to be with her well-known passion for roller-blading. She played on school sports teams and even now she still cites her high school sports teacher as a major influence. It is no coincidence that that teacher, Joan Case, went on to become one of the first female administrators in New York state's once male-dominated teaching system. Another oft-cited influence is Martina Navratilova whose forceful playing style, without being showy, matches Rosenfeld's ideas about business. Rosenfeld's drive was obvious. She often jokes about how seriously she took her role as treasurer in her local Brownie group, but the truth behind the gag is obvious. She was a keen student, acted, sang in a choir and worked on the student newspaper. On Kraft's website, Rosenfeld describes her childhood ambition thus: "President of the United States… really!" But despite such lofty ambitions Rosenfeld almost opted for a life in academia. Attracted at first by its top-notch athletics reputation, Rosenfeld went to study at the Ivy League Cornell University in 1971. Though injury cut short her sporting activities, she excelled academically. She gained a degree in psychology (something that many of her admirers see as very significant) and then a masters in business administration and a doctorate in marketing and statistics. She also met her husband, Phillip Rosenfeld, who was a fellow student. They had two daughters and Rosenfeld finished her doctorate (to acclaim) while heavily pregnant. Tragically, Phillip died in 1995. Rosenfeld kept his surname, using her maiden name as a middle name, even after marrying her second husband, Richard Illgen, an investment banker. After her doctorate, Rosenfeld faced a choice: academia or business. She chose the latter, using her marketing skills and natural feel for consumers' wants at a New York advertising agency. After two years, she switched sides and went directly into her former clients' businesses, joining General Foods in 1981. That began her long career in the world of mass-produced food. As General Foods grew and was eventually swallowed by Kraft, so Rosenfeld's career flourished. Kool-Aid was her first brand, which she successfully started pitching to youngsters rather than their parents. Successes with other household brands of the American kitchen followed – such as tinkering with how Oreos could be sold in China – and she rose up the ranks. She was, as one might expect, a highly competitive workaholic, but one who was known for seeking out and embracing new ideas. In a world where brand names are household staples, there is a natural conservatism. But Rosenfeld defied that and with great success. After three years at rival Frito-Lay, she was asked back to Kraft as chief executive in 2006. At that time, the firm was in trouble, focused on lay-offs and cost-cutting. Rosenfeld rapidly replaced layers of management and turned the company around. She then controversially sold off its frozen pizza business and launched the Cadbury deal. It was all risky stuff but carried out with her usual understated certitude. She and her husband live in an exclusive Chicago suburb. But the two-storey, £2.4m property is hardly a mega-mansion. They are a private couple, active in the local synagogue and occasionally attending the opera. They give generously to charity, but not in a way designed to be noticed. In effect, it is the life that Rosenfeld grew up with in the 1950s and 1960s, just updated to a much wealthier suburb. Indeed, it is impossible to find anyone willing to fault Rosenfeld's decency. Even Buffett, as he waged his campaign against the Cadbury deal, admitted as such. "I think's she's a decent person. She could be a trustee under my will. I just don't want her making this particular deal," he said. When even your foes can't find a bad word to say about you, you must be getting something right. But that is not to underplay her resolve or willingness to take risks. Beneath the still surface lie doubts but also an even stronger will to overcome them. A rare insight was provided into Rosenfeld's mind in 2007, in a speech at her alma mater, Cornell. She discussed the philosophy behind her radical rejig of Kraft management. "Sometimes I lie awake thinking, 'Should we?' And then I think, 'How can we not?'" she said. It is hard not to see such an attitude in her bold triumph of bringing the Cadbury deal home. Cadbury Kraft Warren Buffett Paul Harris guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Wall Street's $26m lobbyists gear up to ... Wall Street's $26m lobbyists gear up to fight Obama banks reform
01/23/2010
Well-funded and influential lobby operation will argue that better regulation will be enough to solve problems Banks are mobilising a smooth-running lobbying machine in Washington to battle Barack Obama's plans to limit the size and scope of Wall Street institutions, as financial services firms gear up to stop a shake-up that could slice away large chunks of their operations. Their influence on Capitol Hill is broad – the top eight US banks spent $26m (£16m) on lobbying efforts last year, an increase of 6% on 2008 despite their financial woes, according to Congressional records. And in the first 10 months of 2009, the financial industry donated $78.2m to federal candidates and party committees – more than any other business sector – according to political research institute the Centre for Responsive Politics. "The power of the financial services sector in this city has not dissipated at all … they've just done things in a quieter way," said Ethan Siegel, an analyst at financial consultancy The Washington Exchange, who monitors Congress for big investors. "They haven't pulled back on their lobbying just because they've become piñata [punchbags] in the press." Wall Street lobbyists argue that scaling back the size of banks misdiagnoses the cause of the financial crisis, jeopardises jobs, damages America's competitiveness and could inhibit growth. The Financial Services Forum, which represents 18 top banks including Goldman Sachs, JP Morgan and Citigroup, says the problem of institutions becoming "too big to fail" ought to be tackled through more effective supervision, and by creating an authority able to wind down failing firms, rather than by forcing them to shrink. Spokeswoman Erica Hurtt said: "This was not a trading crisis and these proposals miss the mark. They won't get to the causes of the crisis." Banks' persuasiveness has already had significant impact on the Obama administration. Plans for the creation of a consumer financial protection agency are meeting staunch Senate opposition and may be watered down to get the 60-40 support needed to override objections. One widely used strategy by the financial industry has been to deploy representatives of smaller high-street banks to make the case to lawmakers. Organisations such as the Independent Community Bankers of America tend to get a sympathetic hearing because they can point to members in towns and cities in almost every Congressional district, rather than purely in lower Manhattan. Douglas Elliott, a non-partisan expert in financial services at the Brookings Institution, said JP Morgan and a few other firms were likely to be particularly alarmed at the prospect of a tightening of the existing cap preventing a bank from holding more than 10% of America's insured deposits: "They may already be over any limit under consideration. If they are, they'll probably be allowed to stay unchanged but it will mean they have to eschew acquisitions." He added that banks will not succeed in defeating restrictions entirely: "Everybody hates banks now and my intuition is that bank lobbyists overplayed their hand last year. It would have been better for them to work out some compromises rather than trying to destroy reform bills entirely." Banking Obama administration Barack Obama US politics Financial crisis US economic growth and recession United States Andrew Clark guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Sheffield Forgemasters moves closer to r... Sheffield Forgemasters moves closer to reactor deal
01/23/2010
Last £20m needed for purchase of new press that would enable UK to supply forgings for use in Britain and overseas Sheffield Forgemasters is closing in on a £170m financing package which will enable British manufacturers to supply new nuclear reactors built in the UK and overseas. The government, European Investment Bank and nuclear group Westinghouse have offered about £150m of the sum required to build a new 15,000-tonne press to make large forgings used in new reactors. The company, whose origins go back to the 1750s, is trying to raise the remaining £20m from other companies involved in the nuclear industry. About £65m in cheap loans has been offered by the government, whose efforts have been led by business secretary Lord Mandelson, but it is pressing for the remaining funds to be secured soon, otherwise it will find another use for the cash. Industry sources said that the financing could be completed within days but negotiations have been going on for months and they stressed this weekend that there was still some uncertainty over the outcome. Concerns that government support could fall foul of European state aid rules have also complicated efforts. Westinghouse has offered to pay £50m upfront for its order of reactor forgings. The European Investment Bank will provide about £35m in loans, which the government has agreed to underwrite. It would also create 150 jobs. If the fundraising efforts come off, it would mark a much-needed boost for the government's policy of "industrial activism". This took a blow last week when US foods giant Kraft increased its bid for Cadbury, threatening the future of some of Cadbury's 5,000 workforce in the Midlands. The Sheffield firm is one of only a handful around the world that can make the special forgings, which would otherwise have to be imported for up to 10 reactors being built in the UK. There is increasing political pressure on nuclear companies in Britain to source as many components as possible from the UK. Dougie Rooney, national officer for the union Unite, said: "The government is putting its money where its mouth is. This would be a clear signal from government they will support British engineering and manufacturing industry." The French firm Areva, which wants to build dozens of reactors in the UK in coming decades, has admitted that only half the components from the first couple of reactors could be sourced from the UK. It has set a target to award 70% of the contracts to UK firms. Jean-Jacques Gautrot, head of Areva's UK division, told the Observer : "What we mean when we say we'd have up to 70% of the work available to British suppliers is saying we are willing to go as far as possible from the beginning. It could be 50, 60 or 70% for the first two reactors. But in 10 years, we could source 80% or close to 100% from British companies." Manufacturing sector Nuclear power Tim Webb guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• UK firms face takeover onslaught as buye... UK firms face takeover onslaught as buyers take advantage of weak sterling
01/23/2010
More major British names could follow Cadbury into overseas ownership as Britain's open markets and softening pound entice bidders A raft of large UK companies could follow Cadbury onto the takeover block as overseas predators cash in on the weakness of the pound and the UK's liberal markets, analysts warn. While Barack Obama said last week that he was clamping down on the speculative activities of Wall Street banks, hedge funds face no such restrictions, and many are investing in potential UK takeover targets in the hope of making a killing. According to research group Data Explorers, hedge funds have been rushing to cover their short positions at companies as diverse as Legal & General, J Sainsbury, PartyGaming (which said it had received a number of approaches), retailer DSG and oil exploration group Wellstream. Pension funds and insurers have raised their holdings in the same companies. A prime driver of corporate action will be foreign groups eager to exploit the weakness of sterling to buy British competitors, illustrated by the planned takeover of Cadbury by Kraft Foods. Graham Secker, head of UK equities at Morgan Stanley, says it is "entirely conceivable" that several major British companies could find themselves facing the prospect of a foreign takeover bid: "The UK is always open to business thanks to its liberal markets. And as banks become more willing to lend, foreign groups are bound to take advantage of sterling's weakness. In the last three years, the euro has appreciated in value against the British currency by 30%, and the dollar by 20%." According to Secker, foreign-based multinationals will target UK firms that have strong positions overseas as mergers and acquisitions (M&A) continue to be driven by globalisation. Investment bankers say that UK companies under the spotlight include BG Group (energy), AstraZeneca (drugs), Compass (contract catering), Hammerson (property), Severn Trent (water) and Rexam (packaging). Simon Perry, senior M&A partner at Ernst & Young, said: "Big companies can borrow money from banks for deals that make sound commercial and financial sense. Up until the third quarter of last year, that wouldn't have been possible. "For now, the global economic situation has stabilised, so large corporations with strong balance sheets can think strategically. Buyers can be more certain about the stability of revenue streams they are about to acquire, while sellers know they can get a reasonable price." David Lis, head of UK equities at Aviva Investors, says that while sterling's weakness will help to drive M&A, so too will subdued economic growth, which makes it difficult for companies to increase profits: "One solution is to acquire one of your rivals, so that instead of growing at 1% or 2% a year, you are able to move ahead by 8% or even 10%." Richard Hunter at broker Hargreaves Lansdown says UK companies are cheaper than a year ago because of the continuing decline in the value of sterling on foreign exchange markets: "There are a lot of multinationals out there looking at British companies in sectors as diverse as mining, pharmaceuticals and energy. They have rarely looked cheaper. "And don't forget the sovereign wealth funds from the Far and Middle East. They are awash with cash and could take strategic stakes in a number of industries in Britain, and elsewhere." Analysts say the housebuilding sector is ripe for consolidation, with Bovis, Redrow and Bellway cited as possible targets. Building products company Sheffield Installation Group and builders' merchant Travis Perkins are both vulnerable, with French multinationals Lafarge and Saint-Gobain said to be monitoring developments. Elsewhere, GDF Suez of France and International Power have abandoned talks over a partnership that would have created a world-leading electricity group after weeks of rumours fuelled a sharp rise in the British company's shares. Observers are convinced talks could resume, but that any deal might come at a higher price. The companies had been in talks for several months about injecting GDF Suez's electricity production assets outside Europe into International Power. Analysts, who had hoped for a full takeover offer for International Power, said there was a great deal of industrial logic to putting the companies' assets together, with little international overlap. Another bid candidate is J Sainsbury, whose shares surged in October amid speculation that Qatar could bid again for the supermarket chain after it raised £600m by selling shares in Barclays. The Qataris, who have refused to comment on their interest in J Sainsbury, run by Justin King, tore up a proposed 600p-a-share £10.2bn bid in November 2007 as a result of the financial crisis. But rumours suggest they may be prepared to come back with an offer of about 420p a share. The Qatar Investment Authority currently owns 26% of the grocer. Takeovers offer quick profits as the acquiring company can cut costs and boost revenue in the short term, but there is evidence that many deals are not in the long-term interest of shareholders. A study by consultants McKinsey of 100 mergers in Britain and the US in the 1990s found that only a quarter recovered the cost of the deal or achieved efficiencies promised by management. "Scale brings its own challenges," says one management consultant. "Mergers are risky propositions and buyers must tread carefully if they are to avoid alienating the workforce and losing top talent." Mergers and acquisitions J Sainsbury Legal and General PartyGaming AstraZeneca Compass Hammerson Severn Trent Rexam Construction industry International Power Richard Wachman guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Jon Snow: the ageless professional in Ha... Jon Snow: the ageless professional in Haiti
01/23/2010
Cool and authoritative, the Channel 4 News anchor stood out among some brilliant reporting There's been so much brilliant on-the-spot reporting, in print and on TV, from Haiti, that it seems almost a unfair to single out particular achievement. Even so, raise a hand to salute Jon Snow from Channel 4 News : cool, authoritative anchoring combined with a zest to explore desolate, desperate places far off aid's beaten track. And one slightly lateral thought occurs. Snow will be 63 next birthday; he shows no sign at all of slowing down. But what of the politicians he spends so much time interviewing? Only two members of Gordon Brown's cabinet (Jack Straw by 13 months and Tessa Jowell by 11 days) are older than Snow, and he's comfortably senior to any of David Cameron's shadows. Time to take off your safari jacket and retire then, Jon? Not for a second – as Port-au-Prince has shown night after night. Jon Snow Haiti Channel 4 Newspapers & magazines Peter Preston guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Banks are vital to London, says Boris Jo... Banks are vital to London, says Boris Johnson
01/23/2010
The mayor of London issues a fierce defence of financial services Boris Johnson, the mayor of London, has issued a fierce defence of financial services in today's Observer, insisting that the capital "needs a banking sector that is big, dynamic and willing to experiment with new products". In a debate with Observer columnist Will Hutton, he said banks would provide investment for crucial projects such as the lagging and insulation of homes to reduce carbon emissions. "These bankers didn't just invest in catastrophic sub-prime mortgages," Johnson writes. "By lending money at risk, they made possible every betterment of the human race from the iPod to new treatments for Alzheimer's. Those weren't pseudo-breakthroughs. And the staggering sums they pay in taxes – that isn't pseudo-money. Those weren't pseudo-jobs they generated in everything from building to IT to piano lessons. "London's financial services industry is big because London has a large share of one of the most complex, fast-growing and intellectually challenging industries in the world. That is a tribute to the inventiveness of Londoners and the attractions of the city, and I am proud to defend it." Johnson was responding to Hutton's call for more regulations in financial services to limit the speed at which the banking sector can grow over the next decade in order to prevent another financial crisis. Boris Johnson Banking Economics Will Hutton Anushka Asthana guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Doctors attack NHS ban on £3m robot canc... Doctors attack NHS ban on £3m robot cancer surgeon
01/23/2010
Health bosses say radiation machines are too pricey and their effectiveness not proven Leading doctors accuse the NHS of letting down cancer patients by refusing them access to a £3m robot surgeon which treats tumours in a non-invasive way. Most patients who ask to undergo radiosurgery treatment by Cyberknife are being turned down by health bosses, who claim the technology has not been proved to work and is too expensive – a course of three sessions at a private clinic costs £22,000. For some patients, the machine offers their only chance of surviving the disease because their tumours are otherwise inoperable. Cancer specialists and a growing number of MPs are protesting against the rejection of most requests. They point to the fact that there are 180 of the machines in use globally. Philip Powell, a urologist who is also head of cancer at the Newcastle upon Tyne Hospitals NHS Foundation Trust, said it was "unacceptable" that some patients had had to go abroad for Cyberknife treatment – including a few paid for by the NHS – when they should be able to access it here through the health service. "The fact that people are travelling to America and Turkey to have treatment is unacceptable, and there needs to be provision made for a Cyberknife service in this country," said Powell. Around 100 patients a year in the North East alone would benefit if the NHS embraced Cyberknife, he estimated. Cyberknife is a non-surgical alternative way of attacking tumours in those with a wide range of cancers. The robot moves around the patient delivering concentrated beams of radiation with what Dr Andrew Gaya, one of only six doctors in the UK trained to use Cyberknife, calls unprecedented precision. Oncologists say it is far better than conventional radiotherapy because its accuracy means it does not damage normal tissue surrounding the tumours. West Kent primary care trust (PCT) has had four requests to fund Cyberknife treatment. It has refused two, including Brendan Moriarty, an ex-policeman who lives in Gravesend. "We all die, that's a fact of life, but it would be nice if I could have a bit longer to see my grandchildren grow up," said Moriarty, 67, who has bowel cancer. The PCT has asked another NHS body to advise them about another two requests, but says it is not sure that Cyberknife is safe and effective. MPs of all parties, including ex-Labour cabinet ministers Ruth Kelly and Paul Murphy, want the NHS to rethink its ban. An early day motion in the House of Commons claims that "the continued unavailability of Cyberknife within the NHS makes little economic sense" because treatment within the health service would cost around £10,000 per session. The NHS is also refusing to spend any of its funding on Cyberknife machines, which cost around £3m each. Neither Professor Mike Richards, the government's cancer director, nor Sir Liam Donaldson, the chief medical officer, believe there is enough evidence for their use. The Mount Vernon cancer hospital in north London will soon announce that it will be the first NHS hospital to install a Cyberknife. But oncologists point out that the money to buy it is coming from a bequest, and not from public funding. It is likely to be inundated with requests for treatment from patients across England. The Department of Health said: "We are committed to providing world-class radiotherapy services and to the consideration of other technological advances, such as stereotactic radiosurgery, which Cyberknife delivers." Health NHS Healthcare industry Health policy Denis Campbell guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Exports 'dropped by more during recessio... Exports 'dropped by more during recession than in any other slump'
01/23/2010
Exports fell more during the recession than in any other downturn despite the weakened currency, it has emerged. Analysis by the Conservative party found that even manufacturing exports fell – despite the fact they have risen in previous recessions. Ken Clarke, the shadow secretary for business, accused the government of "neglecting" Britain's manufacturing industry and allowing it to fall into a downward spiral. "For 12 years Labour has completely neglected manufacturing and has been indifferent to its decline. We keep discovering the cost to the British economy of this neglect," he said. "We cannot have a healthy balanced economy unless we make good modern products." Figures show that between the second quarter of 2008 and third quarter of 2009 manufacturing exports dropped by 10%. In the early 1990s recession they increased by 6%. Clarke said the Conservative party had asked inventor James Dyson to look at how to boost hi-tech exports. The government says that its actions have helped pull Britain out of recession. Last week figures showed that unemployment fell for the first time in nearly two years while in the 1980s recession it kept rising for five years. Recession Economics Conservatives Manufacturing data Manufacturing sector Financial crisis Anushka Asthana guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Dark side of Dubai targeted by internati... Dark side of Dubai targeted by international financial task force
01/23/2010
Fears are intensifying that the emirate has become a global centre for terror funding, money-laundering, drug money and mafia cash Naresh Kumar Jain, an Indian multimillionaire suspected of being one of the world's biggest money launderers, ran from the law, but last month it became obvious that he couldn't hide. Having skipped bail in Dubai – where much of his vast empire was based – 18 months ago, Jain was finally arrested in Delhi by India's Narcotic Controls Board for allegedly moving hundreds of millions of dollars for drug dealers. It had taken an international manhunt involving law enforcement agencies spanning three continents to catch him. The 50-year-old is suspected by the UK's Serious Organised Crime Agency of being at the heart of a drug money-laundering network shifting up to £1.35bn a year across jurisdictions. Jain has reportedly admitted to Indian police that he has laundered cash, but denies being involved in the drugs trade. However, investigators believe that his businesses are based on huge sums of cash originating in Africa and passed on to him by diamond smugglers and drug dealers – and that most of that illicit cash flows into Dubai. But the allegations against him do not make him unique in the emirate. "[Jain's arrest] was an important incident, but many wanted men reside in Dubai," says Dr Christopher Davidson, an expert on Gulf economics at the University of Durham. To many, Jain is the latest, perhaps the biggest, example that proves the United Arab Emirates is not so much awash with vast oil wealth but built on a toxic tide of illicit cash: a place where Russian mafia and drug cartels clean their dirty cash and al‑Qaida finances terror atrocities. And at its heart is Dubai, a world financial centre that in the past 15 years has grown exponentially. As Dubai's ruling elite pick through the wreckage of its bombed-out economy, which exploded under the weight of $60bn of debt last year, an equally pressing issue threatens to undermine not just Dubai but the UAE as a whole. Next month, a meeting of the Financial Action Task Force (FATF), the powerful intergovernmental body responsible for combating money laundering and the financing of terrorist networks, will meet in Abu Dhabi. The meeting is expected to establish which countries to put on a high-risk jurisdiction list following a request by G20 finance ministers last year. It is thought likely that the UAE will feature on the list. Such a development would be a serious blow to the money men of Dubai, but would confirm many people's fears that it remains a port of choice for dirty cash. The notion is causing renewed concerns among senior US officials. Last month an American ambassador to Afghanistan, E Anthony Wayne, said that every day $10m in cash was being smuggled from Kabul to Dubai in briefcases, much of it from the Afghan heroin trade, which has boomed since the US invasion. Wayne said a US investigation found that $190m in cash was smuggled in just 18 sample days. Insiders say that obtaining a UAE passport, which allows the bearer to open a bank account, is still relatively easy. Experts suggest that airport customs in some of the UAE states provide easy routes to move goods and cash around. In addition, Dubai real estate has a notorious reputation as a front for laundering, where apartments are bought up by unknown entities who never live there. "After 9/11, there was a crackdown on corruption, but they're careful not to talk about money-laundering because it is part of the lifeblood," says Davidson at the University of Durham. "The place is built on it," insists one seasoned Dubai businessman. "It's a commercial port. There's a free trade zone. That's what made its livelihood." Expatriate UK financiers say that new rules have not had any appreciable effect: "Russians are still coming with suitcases of cash to buy flats which they never live in," says one. "It's easy to get resident permits. These sort of stories are rife. Russia is the biggest source. A lot of it is mafia." "There are weak links in every country," says Bryan Stirewalt, director of supervision at the Dubai Financial Services Authority. "There are weak links in the US, but they are different types. Money launderers choose the US because of [its] size… they don't stick out. There's an inherent conflict between the ease of doing business and the potential for money laundering. Unfortunately, they work contrary to each other. The easier it is to open a business, the easier it is for money launderers." So easy, in fact, that the latest FATF evaluation of the UAE's efforts to combat financial crime is a devastating critique of its laws and agencies. The report, published in November 2008, points to the low number of suspicious transaction reports (STRs) submitted in a region where so much wealth is banked. The FATF also criticises the low number of staff in the UAE central bank's anti-money laundering unit, as well as an inadequate legal framework that places few obligations on the region's authorities to ensure customer due diligence checks are made and monitored. The task force also points out that standards vary on the identification of the true owners and beneficiaries of companies in the UAE, and expresses concern about the region's securities and insurance sectors, which adopt less onerous regulations than even its banking sector. Alarmingly, regulations on wire transfers still "fall well short" of FATF requirements, the report says – an observation that will shock many, since six-figure sums were wired from Dubai to bank accounts in America to finance the 9/11 suicide bombers. The FATF also states that lawyers and accountants face no specific due diligence requirements under UAE money-laundering law. To be fair, the FATF spares the Dubai International Finance Centre – the 110- acre Middle East and North Africa capital markets hub – from some of its fire. In fact, the Dubai Financial Services Authority, which regulates the centre, says that last year it posted a 20% rise in STRs, though it admits the overall number recorded was still not as high as might be expected. Much of the increase, it says, came in the wake of the Lehman Brothers bank collapse, when huge amounts of money came looking for new safe havens. Stirewalt, who has been in charge of fighting money laundering and terrorism finance in the Dubai International Finance Centre for more than a year, has set up systems that are going a long way to identify illicit flows. As well as turning up a "significant" increase in STRs, he is focusing on accountants and lawyers, and has stepped up inspections of banks as well as improving links with the UAE Central Bank, which has overall control of money laundering issues. Stirewalt points out that Dubai, which is close to a number of conflict zones, is vulnerable to criminal penetration, made easier because of its role as a port. He has still not completely come to terms with the region's long-established informal money-transfer network known as hawala , suggesting that reform in this area still has "further to go". When it comes to claims that Dubai is a destination of Afghan heroin cash, Stirewalt is candid: "I don't disagree with it. I can't say it's not true." He is keen to stress that Dubai is just one place through which dirty cash flows. When the emirate was cited as being part of an international £60bn carousel fraud five years ago, it was among a host of other countries including Switzerland and the UK. "We have to think about the whole globe," he says. "No one is perfect; no one is bulletproof. The UAE is taking the issue seriously post-9/11 to strengthen the system." But it is not just Dubai's reputation that is at stake if the authorities fail: the apprehension of international crime and terror gangs depends on its ability to stem the tide of illicit cash washing through the emirates. Dubai Mafia Drugs trade Nick Mathiason guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• One takeover, two cities, two very diffe... One takeover, two cities, two very different futures
01/23/2010
In Bournville the chocolate maker's staff are facing an uncertain future; in the City, boom time is back already Cadbury's capitulation to American multinational Kraft last week underlined the stark differences between the chocolate-maker's traditional home of Bournville, in Birmingham, where industrial decline has left a long shadow, and the City, where the dealmakers are back in force as though the Great Crash had never happened. With recession drawing to a close, if Britain is to succeed in the long-hoped-for "rebalancing" between over-mighty finance and clapped-out manufacturing, then Birmingham, once the crucible of the industrial revolution, ought to be feeling the first signs of a new, more prosperous era. Yet after last week's news, which follows the demise of Rover's Longbridge plant in the region, many locals feel yet more jobs may now drain away. Even during the boom years, the private-sector workforce in Birmingham was shrinking. Hundreds of miles away in Canary Wharf, where tearful scenes of Lehman Brothers bankers clutching cardboard boxes of belongings became one of the most powerful images of the credit crunch, much of the swagger that was knocked out of the banking sector by the sub-prime crisis appears to be returning, with bonus payouts for many back to pre-crunch heights. Here two Observer writers draw the contrasts between the glittering glass towers of the Wharf and the genteel West Midlands suburb that has been Cadbury's home since the 19th century. A new government seeking to rebuild a shattered economy will need answers for both. Bournville Paul Clarke holds out his wrist to reveal a venerable gold Rolex. "That's heritage on a wrist," he says. The watch was presented to his father for 40 years' service at Cadbury, from 1919 to 1959. Four generations of Clarke's family worked at the chocolate-maker, and between them, they boasted 160 years of continuous service. From Clarke's cosy office, which also boasts the battered leather armchair that belonged to his father-in-law, Derek Williams, who was managing director of Coca-Cola Schweppes, once part of Cadbury, the campaign to save the chocolate-maker from the clutches of the American multinational Kraft is in full swing. Clarke himself left the firm left several years ago to retrain as a minister, and now runs a community church based in Rowheath Pavilion, originally built as a retreat where Cadbury workers could relax, at the heart of Bournville, the affluent suburb created by the company's Quaker founder George Cadbury. Today, the firm that bears his name still employs about 5,000 people – though employees say there were nearly twice that number as recently as the late 1970s. Occupying a huge site between a twee village green to the north and playing fields complete with cricket square and pavilion to the south, the pavilion in which Clarke now sits was opened in 1924. It was used for balls and dinners, and the grounds included a lido and a natural spring forming an outdoor swimming pool, as well as the fishing lake that still forms the centrepiece of the site. The battle to keep Cadbury British is reminiscent of the fight to save MG Rover, which finally expired in 2005 with the loss of 5,000 jobs (it once employed 20,000) after the Phoenix Four failed to breathe new life into the car manufacturer. Rover's demise dealt a heavy blow to Labour's reputation in Birmingham for protecting British industry and jobs; and now, on the eve of a general election, another cherished local firm has fallen victim to a foreign predator. The Longbridge closure hit the neighbouring parliamentary constituency of Northfield hard. "The knock-on effect was devastating," according to Clarke. Many factories that supplied it closed long before the end came. The consortium of former Rover executives who bought the carmaker were guilty of terrible mismanagement, but even in the worst times there was something heroic about the determination of the workers to keep the plant going, and pride in the skills that existed in the Birmingham area. It may not take the same level of knowledge or training to make Flakes or Wispa bars, but in some ways the fact that Cadbury makes chocolate is incidental. Nationally, and even globally, the affection for the company's products stems in part from the fact that they are closely associated with childhood memories. Locally, it is the legacy that George Cadbury created that makes the residents of Bournville feel as though the company belongs to them, despite the fact that senior management decamped to the south-east long ago. Most of the houses and green spaces created for the Victorian workers by the Quaker family – who were appalled by working conditions at their old factory in central Birmingham – are now owned by the Bournville Village Trust, set up by Cadbury to own and manage those assets. Members of the family still sit on the trust, long after the last of them resigned from the board of the plc. If it does buy the business, Kraft will have no claim on the trust's assets, which help to give Bournville its unique appeal. Residents will still be able to move in to cheap rented accommodation in the relatively affluent area, although there are long waiting lists. Other events and facilities, including the cricket pavilion and the annual Maypole festival, do benefit from some company cash, however, although they receive far less than they once did. George Cadbury's old-fashioned paternalism finds a modern-day echo in Cadbury's commitment to fair trade products, including cocoa. It is also regarded as a good corporate parent for the ethical chocolate business Green & Blacks. Critics of the deal point out that Kraft does not meet many of those standards. That is unlikely to affect the company in the long-term, however, according to brand experts. "Older UK consumers remember the heritage of Cadbury, but younger consumers, especially, relate to the company through its advertising," says Rita Clifton, chairman of Interbrand London. "In overseas markets, particularly in developing countries, history and heritage were less important. People are buying the product because it looks good and tastes good." Kraft will want to nurture Cadbury's valuable portfolio of brands, but with the takeover funded using £7bn of debt, it will inevitably be seeking huge cost-cutting measures. Kraft has promised to develop manufacturing in Bournville, and also to safeguard the future of another plant, near Bristol, which Cadbury was threatening to close. But the local people are sceptical about Kraft's undertakings, and councillors had been drumming up support for a campaign designed to put pressure on the board to reject Kraft's advances. Many privately concede it is probably too late, now that an enhanced bid has been recommended to shareholders, but local Conservative councillor Nigel Dawkins, who is also the party's prospective parliamentary candidate for the Birmingham Selly Oak seat, where Cadbury is based, says local opposition remains strong. He says he has sent letters to 9,000 households saying that Cadbury must remain British and asking residents to sign and return the letter. "We are getting 100 a day," he says. Many respondents append detailed comments about how and why the company should remain independent. Dawkins will deliver a petition to Downing Street this week, and a public meeting is being planned in Bournville for Tuesday. Dawkins says he expects a big turnout. On the same day, Birmingham's Labour MPs will hold an adjournment debate in parliament on the future of Cadbury, calling for the government to intervene. The fact that the company is being sold is deeply symbolic for a city that, like Manchester, was built on the back of the industrial revolution, giving it the nicknames "workshop of the world" and "city of a thousand trades". Dozens of well-known manufacturers, including Rover, HP Sauce and Dunlop, have closed or pulled out over the last generation, but the Cadbury name has a special resonance, and its treasured status has grown as other economic pillars toppled. "If we had 10 Cadburys it wouldn't matter," Dawkins says. "Sell one to the Yanks and one to the Chinese. But we've only got one. It was the last man standing and now it's gone." The Tory councillor has a good chance of overturning a Labour majority of about 10,000 in the election, but the special status that industry is afforded in the key election battlegrounds of Birmingham and the West Midlands means he has to tread a difficult ideological line. He and his Conservative colleagues recently put down a motion in the council chamber decrying the Labour government for failing to recognise the strategic importance of industry, which will play well in his constituency. "Labour have run an 'everything for sale' policy", he says. The Thatcherite privatisations of the 1980s were motivated by a need to eradicate inefficiencies, Dawkins adds. The council is adept at retraining those who are made redundant, he concedes – it has had plenty of practice – but they rarely find work in the private sector that pays anything like as well as skilled jobs. "The average wage drops," he says. He adds that there are swathes of the Cadbury site that already lie empty.Cadbury employs 45,000 people worldwide, and it is usually cheaper to build overseas. The assumption is that eventually, the Bournville plant is likely to disappear. If the Bournville site disappears it would be a huge blow to the local economy, and it would mark the end of an era for a city that had recovered some of its civic pride before the latest recession hit. Some of those who lost their jobs when Longbridge closed found new positions at Cadbury, Clarke points out. If Kraft decided to move production abroad – which the company insists it won't – they could find themselves out of work all over again. Canary Wharf One of the abiding images of the financial meltdown of 2008 will be that of the banker carrying a cardboard box full of his belongings out of the offices of US investment bank Lehman Brothers in Canary Wharf in London's East End. That was on 16 September 2008 and, as the world's banking system stared into the abyss, the future for the big office block, shop and restaurant complexes towering over the Thames looked bleak indeed. At the time, there were fears it would soon resemble Longbridge in Birmingham after MG Rover closed, or numerous other desolate former industrial sites across the Midlands and the north. And many felt that Canary Wharf, which had become the gleaming symbol of the country's booming financial services sector throughout the noughties, deserved to gather dust and crumble. But fears of a repeat of previous recessions – during one of which construction of those glass towers ground to a halt and their original developer, Olympia & York, collapsed – have proved wide of the mark. If anything, Canary Wharf is booming again. Hamish McDougall, spokesman for the site's current owners, Canary Wharf Group, says that Lehman Brothers's 5,000 staff accounted for less than 5% of the total of 90,000 who work in the area. The Lehman tower is now part occupied by liquidators and lawyers winding the bank down – but also by staff from Japanese bank Nomura, which took on Lehman's European businesses. "It is not just financial services down here. We have media groups, KPMG and ratings agencies," he says. "Five new restaurants, including a Jamie Oliver one, have opened here in the last six months and four new office buildings have opened." The new offices have added around 7,000 jobs to the district, replacing those shed by some of the banks. Retail and office space owned by Canary Wharf Group is pretty much full. "Canary Wharf has been relatively insulated from the crisis because of its diverse client base," McDougall says. "And our shopping malls are doing well because they have about 90,000 people coming through them every day." Work has also started on the Crossrail station that will link Canary Wharf to central London and Heathrow, as well as Essex, from 2017. At Evans Cycles in the middle of the Canary Wharf development, business is brisk. "We are doing a roaring trade. Business took a hit for a couple of weeks, especially for top-end sales, when the Lehman's thing happened, but since then things have picked up," says Craig Outhwaite, the store's manager. "Sales were up 30% last year compared to 2008, partly due to some shrewd marketing but also helped by the government tax break for buying bicycles." There's a similar story at local estate agency Morgan Randall, which specialises in rentals. "Things were tough early last year when a lot of landlords either mothballed an apartment or tenants got really cheeky deals. I remember some flats that had let for £700 a week were suddenly going for £500 a week," says lettings valuer Paul Read. "But now landlords are getting higher rents than before and flats are not hanging around on our books – they are letting immediately. Some landlords are even kicking tenants out and putting the flat on the market at a much higher rent." The rentals side has benefited, he says, from the fact that fewer workers in Canary Wharf are prepared to buy an apartment because mortgage lenders are demanding much bigger deposits. This is not an area of cheap bedsits, though: a typical two-bedroom flat close to the Wharf will let for £450-600 per week. And Read says he has a two-bed penthouse on the market for £1,600 a week and a four-bedder for £3,000 a week, or more than £150,000 a year. "It was those sorts of properties we might have had big voids on last year, but now they are letting again. The more modest flats never suffered from voids particularly," says Read. Within the banks themselves, things are also getting back to normal. "This time last year things were terrible. The mood everywhere was awful and a lot of people lost their jobs," says an analyst at a major investment bank in Canary Wharf, who declined to be identified. "After Lehman's collapsed you could suddenly get a place on Jubilee line trains and the restaurants and bars were much quieter for a while." Since last March, when the stock market troughed and began a steady recovery, things have improved, banks are hiring again and bonuses are back – big time. "It is pretty much back to where it was in 2007. The market's had a bit of V-shaped recovery and so has this area," says the analyst. So far, at least, the government's bonus tax, and dark threats from some parts of the City that they will relocate their offices abroad, have had little impact on the Wharf, where 98% of all office space is let – although rents, like everywhere else, are down sharply. Barclays Capital, the investment banking arm of Barclays, this month extended the amount of floor space it is renting and extended its lease by 12 years to 2032, although the bank insisted that this gave no indication about its future plans for occupancy. The analyst says he is not unduly worried that the plans announced by President Obama this week to clamp down on investment banking activity in the United States would be copied in Europe: "We have little history of splitting up banks here like they used to in the US, and so it may turn out that more business comes to Europe if the US does go ahead." Many observers also think that the talk of the City decamping to Switzerland is just that – talk. A cluster of banks, accountants, ratings agencies and law firms in Canary Wharf is going to struggle to move en masse to somewhere that will give them the proximity and convenience that London offers – something that will further improve when Crossrail opens, they say. And while the Conservatives were last week promising they would emulate the Obama plans if they win this year's general election, there remains a great deal of scepticism that they would actually go through with it. On the one hand, politicians want to prevent similar crises happening in the future, which will require tighter regulation. On the other, they know that the City is a huge source of tax revenue – something they will be reluctant to stamp on too harshly, given the appalling state of the public finances. Cadbury Kraft Mergers and acquisitions Heather Stewart Ashley Seager James Robinson guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Mitchells & Butlers' offices swept for b... Mitchells & Butlers' offices swept for bugs as boardroom battle hots up
01/23/2010
Security move shows breakdown of trust between board and biggest shareholders in run-up to annual shareholders' meeting The boardroom war at pubs group Mitchells & Butlers between chairman Simon Laffin and rebel shareholders led by billionaire Joe Lewis has escalated to such an extent that the pub group's chairman has had his home and office swept for bugs. Security specialists called in to check for listening devices drew a blank at Laffin's Surrey home and at M&B's offices in London and Birmingham, but the decision to order an electronic sweep of the premises illustrates the complete breakdown of trust between the M&B board and its biggest shareholders. Laffin, who has chaired M&B for just 53 days, is expected to be ousted at M&B's annual shareholders' meeting at Birmingham's International Convention Centre on Thursday. A representative of Lewis, who is based in the Caribbean, is expected to turn up at the meeting to vote the billionaire's shares. Lewis's investment vehicle, Piedmont, owns 23% of M&B and his associates, including Irish horseracing tycoons JP McManus, John Magnier, Derrick Smith and Michael Tabor, speak for another 22%. Piedmont intends to remove Laffin and has put forward four new boardroom candidates, including former Debenhams boss John Lovering, whom Lewis hopes to install in place of Laffin as chairman. Laffin insists the non-executives should represent not a small band of shareholders but all the group's 60,000 shareholders. In an interview with the Observer , Laffin said: "It is a clash of two cultures. Lewis is thousands of miles away in the sun and he thinks he owns this business with his mates, while we are sitting here with lawyers and accountants and have to obey the rules." The former Safeway finance director dismissed a series of issues raised by Piedmont about the management of the pub chain as "complete lies" and "crap". The boardroom battle started three months ago, when M&B called in the Takeover Panel to investigate whether Lewis and his associates were acting in concert to seize control of the company. A Piedmont spokesman said it did not want control of M&B and remained "open to discussion with the appropriate individual on the board". Mitchells & Butlers Julia Finch guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (15 h ago)

• Childrenswear chain Adams back in admini... Childrenswear chain Adams back in administration
01/22/2010
Buyer being sought for clothing company to keep it running as a going concern Troubled childrenswear chain Adams has fallen into administration for the third time in as many years, putting more than 2,000 jobs at risk. Staff were told today that restructuring firms MCR and Gerald Edelman had been appointed as joint administrators to parent company JS Childrenswear and that a buyer was being sought for the company. "The company is trading as normal at present while all options are considered," said MCR partner Paul Clark, who added that suppliers had been going unpaid for some time. "We are now looking at the viability of the business with a view to securing a going-concern sale." The troubled retailer, which also supplies the Mini Mode range to Boots, has already been through several restructurings that have seen its store estate more than halve in size to 125 shops. Adams, which was founded in Birmingham in 1933 by Amy Adams, was once one of the UK's largest children's clothing chains and at its height had 271 stores and concessions trading under the Adams Kids name. However its recent history has been chequered. It was bought out of administration by Northern Ireland businessman John Shannon for the first time in February 2007 and he stepped in again when it hit trouble the following year. He sold it to Pakistani firm Habib Alvi Investments in September of last year and it has since been dogged by rumours of poor trading and late payments. "Like many retailers, Adams has experienced a difficult trading environment during the past 12 months which has been exacerbated by a further downturn and general tightening of the credit market," said Clark. Earlier today head office staff and area managers were being briefed as administrators sought their continued support, said Clark, who added: "We fully appreciate the difficult position in which the staff find themselves so soon after Christmas." The recession had picked off the weakest players in each retail subsector with independent chains like Adams struggling to compete with the might of Asda, Tesco and Primark who dominate the childrenswear market. Adams sells babywear, school uniforms and clothes for children aged between two and 10 years but increasingly parents are buying clothes online, while schoolwear has become a price battleground for the supermarkets. It tried to reposition itself with new-look stores and ranges but ultimately has struggled to compete with the might of its rivals. The collapse of Adams follows that of book store Borders, which went under last November taking 1,150 jobs with it, and First Quench group, operator of off-licence chains Threshers and Wine Rack, which employed nearly 6,300 people at the time of its October failure. Adams Retail industry Recession Zoe Wood guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Striking BA cabin crew will lose perks Striking BA cabin crew will lose perks
01/22/2010
• BA says failed Christmas strike cost airline 'millions of pounds' • Poll of cabin crew shows strong support for industrial action British Airways has warned cabin crew that they will be stripped of travel benefits if they take part in a strike over staffing cuts. BA said that any employee who joined the walkout would no longer receive discounted or free fares. Many French and Spanish cabin crew rely on the BA travel scheme to commute to the airline's Gatwick and Heathrow bases and would be left out of pocket by the move, according to trade union sources. The Unite trade union, which is locked in an increasingly bitter dispute with BA, described the move as "shocking" and "another act of provocation". A BA spokeswoman confirmed that the airline has written to its 13,400 cabin crew ahead of a strike ballot that opens on Monday to warn that taking industrial action would see participating staff lose travel and pay benefits. The airline added that Unite appeared set on a lengthy strike despite having a 12-day Christmas walkout ruled unlawful by the high court last month. "As a responsible employer and in view of Unite's apparent wish for a lengthy strike, we have written to crew individually today to set out the consequences of different ballot outcomes," she said. Increasing the pressure on employees, the BA executive in charge of cabin crew, Bill Francis, has admitted in a letter to cabin crew that the failed Christmas walkout has cost the airline "millions of pounds" in lost revenue as passengers booked elsewhere. "We cannot go on like this. In December we saw what our customers and the wider public thought about a strike. Their patience is running out. It is time to be absolutely clear about what will happen if a strike takes place." Francis added that the standard of hotel that staff use when abroad would be reviewed and warned that anyone who called in sick during the strike would be assumed to have joined the industrial action. "History tells us that absence rises significantly during industrial action." Len McCluskey, assistant general secretary of Unite, said the warning on staff travel perks was an act of "pettiness". He added: "Whoever dreamt up this scheme is presumably trying to inflame the situation. Managers who are macho generally aren't macho. More talking and less posturing will resolve this dispute." The ballot of Unite's cabin crew branch, BASSA, will close on 22 February and the earliest possible date for strike action will be 1 March. However, Unite said this week that it will not strike during Easter after the high court ruling referred to the timing and duration of the planned Christmas walkout. However, an ongoing poll of BASSA members indicates strong support for a strike lasting longer than 10 days if, as expected, the 12,000 cabin crew affiliated to the union vote for a walkout. British Airways Travel & leisure Trade unions Employee benefits Dan Milmo guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Nearly half of young black people out of... Nearly half of young black people out of work
01/22/2010
Rate compares with fifth of white young without job but it is society's unfairness, not racial bias, which is being blamed The recession has left almost one in two young black people without a job, appearing to contradict claims by the government that it would shield the most vulnerable from the effects of the downturn. The left-leaning Institute for Public Policy Research said 48% of black people aged 16 to 24 reported that they were out of work, compared with 20% of white people of the same age. Not only had the absolute level of unemployment risen for young black people, but as a group they suffered the sharpest leap in joblessness: black unemployment has jumped 13% since March 2008, compared with 8% among white people and 6% among Asians. The thinktank looked at data from the Labour Force Survey, a quarterly sample of about 60,000 households. Within that, the institute said it looked at the responses of 16- to 24-year-olds, a total of 7,200 people, in November 2009. The figures appear to fly in the face of assurances by ministers that class rather than race is a greater factor in holding people back and come at a time when there are concerns about rising poverty levels in a time of penury. However in an number of interviews with young black unemployed people many refused to accept that race discrimination was solely behind the joblessness – saying instead simply that "society was unfair". Godfrey Kingsley, a 17-year-old who has been unemployed since September, and is now on a programme run by Tomorrow's People, a charity helping the unemployed back into work, said: "I am not saying there is no racism but you cannot hold a grudge against the system. How many black people are selling cars in Jaguar showrooms or clothes in D&G? Not that many. "But the point is that you need to be the best and that means not accepting that mindset of 'it's because I am black'. My problem was that my college was closed down by Ofsted and the teachers were sacked. That left a hole in my cv. No fault of my own." The government defended measures it had taken to protect the most vulnerable of the population during the recession. Jim Knight, the employment minister, said the problem was partly that there were more young people in the ethnic minority population and the recession had "hit young people harder than most". Academics said the reasons for the rise in youth unemployment among black youths were manifold: underachievement in the classroom, a disadvantage when it came to friends and family connections helping them find jobs, and the disappearance of the traditional blue-collar jobs. "One in two young black people being unemployed is quite a shocking figure," said Steve Strand, associate professor at Warwick University's institute of education. "If you think that education is a gatekeeper to a future there are gaps between black and white performance. But that is not big enough to account for the differences in employment." Others point out that even in good times a third of young black people are out of a job, a "scarring effect" that meant there was a persistent loss of skills, and a longer and harder road back into the workforce. "What's of concern is that you have especially young Afro Caribbean people who are out of work for long periods of time," said Prof Richard Berthoud, of Essex University. "That means you have a group who are not so embedded in the workforce. So when the economy recovers and they try and find a job they continually have to answer employers who say 'what's wrong with you?'" The possibility that the recession could permanently damage prospects for young black people echoes the experience of African-Americans in the US, who have fared much worse than those in the white population during the recession. Data last month showed that among young black American men without a high-school diploma, nearly half did not have a job. Feature films such as Precious, which is released later this month in Britain and explores the grim but ultimately triumphant life in inner city New York of a young Afro American woman, have been criticised by some for sending out a negative message. However, Femi Oyeniran, the 23-year-old actor who made his name in the 2006 film Kidulthood and in its 2008 sequel, Adulthood, said that his movies had been criticised at the time for "casting black people in a negative light". He said: "But it was fiction not reality. The recession means that we have to look at a lot of factors and some of them are down to black people themselves." Race issues Recession Job hunting Randeep Ramesh guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• PartyGaming talks up Bwin merger odds PartyGaming talks up Bwin merger odds
01/22/2010
• Online poker group in discussion with sports betting rival Bwin • PartyGaming merger would deliver commanding position The online poker group PartyGaming is understood to be in talks with its Austrian sports betting rival Bwin about a merger that could be worth more than £2bn and give it some much-needed clout in internet sports betting. The two companies are believed to have been in discussions since last summer and there was intense speculation about a deal before Christmas . But after a press report on Bwin's interest, PartyGaming was forced to admit to negotiations. The company also said it was talking to other potential partners, pushing its shares up more than 6% to 285.5p on hopes of a bid battle. "The board of PartyGaming confirms that it is continuing to hold discussions with a number of companies in the gaming sector regarding potential consolidation opportunities," the firm said in a statement to the London Stock Exchange. "As all such discussions remain at a preliminary stage, there can be no certainty as to whether or not such discussions will result in any form of transaction." The Austrian financial magazine Format quoted Hannes Androsch, Bwin's chairman and largest shareholder, as saying: "Talks are going on but we don't know yet whether they will succeed." PartyGaming, owner of the PartyPoker website, is keen to be involved in the consolidation of online gambling. Last July the company, which gets almost 80 million players a day, announced the takeover of Cashcade, owner of Foxy Bingo, for just under £100m. In November it snapped up the assets of WPT Enterprises, organiser of the World Poker Tour. Merging with Bwin would give PartyGaming a commanding position in sports betting. The Austrian company is not the only potential partner with which it is talking, although PartyGaming refused to name other potential partners. London-listed 888 Holdings and Sportingbet, and Sweden's Unibet, are all understood to be looking at consolidation opportunities. The acquisition of WPT, meanwhile, signalled PartyGaming's desire to return to the US, a market that has caused some real headaches for the firm in the past. Having shot into the FTSE 100 when it floated in 2005 at a value of £5bn, which netted its four founders almost £1bn, the company became embroiled in a fierce fight with the US authorities when they cracked down on online gambling. PartyGaming had to close its US operation and then last April it agreed a $105m (£71.3m) settlement with prosecutors there to reflect the proceeds of the internet gambling services it provided from 1997 to 2006, when PartyGaming offered internet gaming to US players, including real-money poker and casino gaming. The company admitted that even before the 2006 crackdown – which forced it to abandon the US market – some of its third-party activities had broken US law. Analysts noted a number of strategic and cost-saving benefits from a merger with another company. Numis Securities' analyst Wyn Ellis said consolidation was seen as largely inevitable in the young online gaming industry and there were savings to be had from combining technology and other operations. "Everybody has been talking to everybody," he said. He noted that a combination of PartyGaming and Bwin would give them the top slots in online casinos and bingo, the best sporting bets book and enhanced liquidity in poker. "The strategic logic is very strong … It fits together neatly," he added. Ellis said merger talk also reflected gaming companies' move into business-to-business projects where they provide products and services to third parties such as media companies wanting to launch gaming offshoots. That focus would only increase as more countries start to regulate and issue licences, which are likely to go to the big incumbents in those markets. Established firms can then use that position to raise business from newcomers. Talk of a Bwin tie-up for PartyGaming follows Thursday's announcement of a deal between Aim-listed gaming software firm Playtech and the Nasdaq-listed lottery operator Scientific Games in the US. PartyGaming Gambling Mergers and acquisitions US economy Richard Wray guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds (1 d ago)

• Video: U.S. Economic Jitters Video: U.S. Economic Jitters
01/23/2010
While U.S. stock markets nosedive over economic and political uncertainty, President Obama has pledged to impose new banking regulations. Kimberly Dozier has more on these economic jitters. (16 h ago)

• FDIC Shuts 5 Banks in 5 States FDIC Shuts 5 Banks in 5 States
01/23/2010
Regulators Close Banks in Fla., Mo., N.M., Ore., Wash. (18 h ago)

• U.K. Bank to Defer Bonuses up to 100% U.K. Bank to Defer Bonuses up to 100%
01/23/2010
Barclays, Which Received No Taxpayer Funds From British Gov't, Will Honor Agreement to Defer Payouts to Execs, Staff (21 h ago)

• Video: Obama: I Will Not Stop Fighting Video: Obama: I Will Not Stop Fighting
01/22/2010
Facing mounting opposition, President Obama has emerged with a bolder and more defiant tone while addressing the issue of high unemployment during a trip to Ohio. Chip Reid reports. (1 d ago)

• Newspaper Group Files for Bankruptcy Newspaper Group Files for Bankruptcy
01/22/2010
Affiliated Media, Owner of Denver Post, San Jose Mercury News and 52 Other Newspapers, Files for Chapter 11 (1 d ago)

• Wall St. Ends Bad Week With Steeper Slid... Wall St. Ends Bad Week With Steeper Slide
01/22/2010
Dow Loses 217 Points Friday, 430 Points for Week; Obama's Proposed Financial Regulations Still Spook Market (1 d ago)

• Bernanke Faces More Senate Opposition Bernanke Faces More Senate Opposition
01/22/2010
White House Expects Federal Reserve Chairman to Get Enough Support for Second Term, In Spite of Growing Opposition (1 d ago)

• GE Sees Hope in 2010 Despite 4Q Losses GE Sees Hope in 2010 Despite 4Q Losses
01/22/2010
Net Income Fell 19 Percent to Close 2009, but Drop Was Smaller Than Previous Quarters (1 d ago)

• McDonald's Sales Rise in Economic Downtu... McDonald's Sales Rise in Economic Downturn
01/22/2010
Fast Food Giant Earns $1.22 Billion in Last Quarter of 2009 (1 d ago)

• Video: Corporate Campaign Ads Video: Corporate Campaign Ads
01/21/2010
A divided Supreme Court ruled the ban on corporate spending for campaign ads violated the right to free speech. The ruling demolished the foundation of campaign finance laws. Jan Crawford reports. (2 d ago)

• Video: Big New Laws For Big Banks Video: Big New Laws For Big Banks
01/21/2010
Vowing that the American people will never be "held hostage" by a bank too big to fail, President Obama announced sweeping new regulations for Wall Street. Anthony Mason reports. (2 d ago)

• Video: Is Salt Deadly? Video: Is Salt Deadly?
01/21/2010
A new study says that there would be 92,000 fewer deaths a year if American cut out just three grams of salt each day. Dr. Jon LaPook explains why. (2 d ago)

• Obama Calls for Tougher Bank Regulation Obama Calls for Tougher Bank Regulation
01/21/2010
President Wants to "Rein in Excess and Abuse" and Limit Big Banks' Ability to Engage in High-risk Trades; Stocks Plummet (2 d ago)

• Gas Pedal Glitch Prompts Toyota Recall Gas Pedal Glitch Prompts Toyota Recall
01/21/2010
Toyota Recalls 2.3 Million U.S. Vehicles to Fix Sticking Accelerator Pedals (2 d ago)

• Wall Street Slides on Obama Banks Plan Wall Street Slides on Obama Banks Plan
01/21/2010
Dow Jones Plummets 213 Points as President Pushes for Tighter Banking Rules (2 d ago)

• Video: Obama "Ready To Fight" Banks Video: Obama "Ready To Fight" Banks
01/21/2010
President Obama took a bold stand against financial institutions by announcing new measures to curb their risky activities. (2 d ago)

• Indicators Suggest Spring Economic Growt... Indicators Suggest Spring Economic Growth
01/21/2010
Research Group Reports Forecast of Future Economic Activity Jumped 1.1 Percent in December (2 d ago)

• Goldman Sachs Earns $4.79B in 4th Quarte... Goldman Sachs Earns $4.79B in 4th Quarter
01/21/2010
Aggressive Trading, Reduction in Employee Compensation Fuels Nation's Most Stable Bank (2 d ago)

• New Jobless Claims Up Unexpectedly to 48... New Jobless Claims Up Unexpectedly to 482K
01/21/2010
Job Market Recovery Slow, Uneven; Total Unemployment Rolls also Increase Sharply (3 d ago)

• Scene Stealer: In Search of Fatter Walle... Scene Stealer: In Search of Fatter Wallets at Sundance
01/24/2010
After a market collapse in 2009, can entries in the Sundance Film Festival still turn art into cash? (7 h ago)

• For Richer or for ... Not Quite as Rich For Richer or for ... Not Quite as Rich
01/23/2010
Every era needs an emblematic tycoon, and for the age of the Great Recession, you couldn’t do better than Peter M. Brant, a media billionaire facing a very public divorce. (8 h ago)

• Slap Shot: Remembering Two Storytellers ... Slap Shot: Remembering Two Storytellers From the N.H.L.
01/23/2010
The hockey world lost two of its most respected communicators last week: John Halligan, a hockey historian, and Paul Quarrington, an award-winning Canadian novelist. (10 h ago)

• In 1975, 2 Women Crossed a Barrier In 1975, 2 Women Crossed a Barrier
01/23/2010
Thirty-five years ago, Robin Herman of The New York Times became the first female reporter to gain access to a team locker room after a game. (17 h ago)

• With Kindle, the Best Sellers Don’t Need... With Kindle, the Best Sellers Don’t Need to Sell
01/23/2010
Here’s a riddle: How do you make your book a best seller on the Kindle? Answer: Give copies away. (22 h ago)

• Leno to Speak at the White House Corresp... Leno to Speak at the White House Correspondents’ Dinner
01/22/2010
Jay Leno was announced Friday as the choice to be the keynote speaker for the White House Correspondents’ dinner in May. (1 d ago)

• Chief of Hollywood Trade Group to Step D... Chief of Hollywood Trade Group to Step Down
01/22/2010
Dan Glickman is to become president of the relief organization, Refugees International. (1 d ago)

• The TV Watch: Where’s Johnny? Good Manne... The TV Watch: Where’s Johnny? Good Manners Take Hiatus
01/22/2010
Viewers of the Leno-O’Brien fracas witnessed an explosion of incivility burning through the late-night bonhomie. (1 d ago)

• Fingers Still Pointing, NBC and O’Brien ... Fingers Still Pointing, NBC and O’Brien Reach a Deal
01/22/2010
Conan O’Brien is expected to receive about $32 million and be able to return to television by September, though NBC is claiming to own some of the show’s comedy bits. (1 d ago)

• Advertising: Campaigns Walk the Invisibl... Advertising: Campaigns Walk the Invisible Tightrope
01/22/2010
Some marketers are being upbeat and sometimes combative, while tempering optimism by staying away from Pollyannaish claims. (1 d ago)

• Food Network and HGTV Back Aboard Cablev... Food Network and HGTV Back Aboard Cablevision
01/22/2010
Cablevision and Scripps Networks settle a long-running dispute over fees, returning two popular channels to three million subscribers. (1 d ago)

• Naming Leaders, a Nonprofit News Outlet ... Naming Leaders, a Nonprofit News Outlet Takes Shape in San Francisco
01/22/2010
The Bay Area News Project named Jonathan Weber, a co-founder of The Industry Standard, as its editor in chief, and Lisa Frazier, from McKinsey, as its chief executive. (2 d ago)

• Air America, the Talk Radio Network, Wil... Air America, the Talk Radio Network, Will Go Off the Air
01/22/2010
With too few advertisers, the progressive network plans to seek bankruptcy protection after years of financial struggles. (2 d ago)

• Steven Lovelady, Editor With a Deft Touc... Steven Lovelady, Editor With a Deft Touch, Dies at 66
01/21/2010
Mr. Lovelady was a respected editor with a deft touch who played a significant role in award-winning journalism at The Philadelphia Inquirer and magazines owned by Time Inc. (2 d ago)

• The Times to Charge for Frequent Access ... The Times to Charge for Frequent Access to Its Web Site
01/21/2010
Starting in early 2011, nonsubscribers who visit NYTimes.com will get a certain number of articles free every month before being asked to pay a flat fee for access. (2 d ago)

• CNBC: Bernanke has votes for confirmatio... CNBC: Bernanke has votes for confirmation
01/23/2010
Fed Chairman Ben Bernanke likely has enough votes to overcome a filibuster and gain approval for a second term, according to several leading senators and an analysis by CNBC. (13 h ago)

• Combative Obama pushes job creation bill Combative Obama pushes job creation bill
01/22/2010
A combative President Obama exhorted Congress Friday to pass a new job-creation bill with tax breaks for small business hiring and people making their homes more energy efficient. (1 d ago)

• Obama's bank pushback sends stocks lower Obama's bank pushback sends stocks lower
01/22/2010
The stock market suffered its worst setback in more than 10 months as investors rejected President Obama's plans to restrict big banks and earnings reports that just weren't good enough. (1 d ago)

• Ford, rivals betting small is beautiful Ford, rivals betting small is beautiful
01/22/2010
Higher fuel prices and the drive to save on production costs have automakers lining up a slew of compact models. But are Americans interested in small cars or do they just want more fuel-efficient SUVs. (1 d ago)

• NBC faces long road back after O'Brien d... NBC faces long road back after O'Brien drama
01/22/2010
NBC may have put a public relations nightmare behind it with the departure of "Tonight Show" host Conan O'Brien, but the network faces a costly road to revive its sagging fortunes. (1 d ago)

• Hershey: No plan now for Cadbury bid Hershey: No plan now for Cadbury bid
01/22/2010
The Hershey Co. on Friday conceded the race to acquire British candy maker Cadbury, opting for a slower road to international expansion but also possibly a tougher battle for shelf space. (1 d ago)

• Banks banking on online financial tools Banks banking on online financial tools
01/22/2010
Banks are scrambling to beef up their Web sites by adding pie charts, budget calculators and other gizmos designed to help people manage their money. (1 d ago)

• Unemployment rises in 43 states in Decem... Unemployment rises in 43 states in December
01/22/2010
Unemployment rates rose in 43 states last month, the government said Friday, painting a bleak picture of the job market and illustrating nationwide data released two weeks ago. (1 d ago)

• Burger King: Want a beer with those frie... Burger King: Want a beer with those fries?
01/22/2010
Burger King is opening a restaurant in Miami Beach that will serve beer along with burgers and fries, the chain's first U.S. location with alcohol. (1 d ago)

• Exec admits affair with billboard woman Exec admits affair with billboard woman
01/22/2010
A co-president of software maker Oracle acknowledges he had an affair with a woman he was shown snuggling with on billboards in New York, Atlanta and San Francisco. (1 d ago)

• 12 tips for business success 12 tips for business success
01/22/2010
These 12 attributes put you in the right mindset and give you an edge over the competition. (1 d ago)

• Ruling could give companies even more cl... Ruling could give companies even more clout
01/22/2010
The Supreme Court's decision to remove campaign finance restrictions on corporations means a tsunami of company cash is likely to flood through the political system. (1 d ago)

• New technology makes business cards pass... New technology makes business cards passé
01/22/2010
Paper business cards are becoming passe as new digital networking tools emerge. (1 d ago)

• Investor optimism at highest in two year... Investor optimism at highest in two years
01/22/2010
More U.S. investors believe the stock market is poised to rise in the year ahead than any time in the past two years, a survey showed on Friday. (2 d ago)

• Senate OKs tax break for Haiti gifts Senate OKs tax break for Haiti gifts
01/21/2010
Taxpayers will be able to write off charitable donations to Haiti quake relief efforts when they file their 2009 taxes, under a bill that received final congressional approval. (2 d ago)

• Economic View: Underwater, but Will They... Economic View: Underwater, but Will They Leave the Pool?
01/24/2010
Even if they owe more on their mortgages than their homes are worth, many people feel obligated to repay their loans. But what if those borrowers walked away? (7 h ago)

• The Haggler: Watch Where You Click (and ... The Haggler: Watch Where You Click (and Have a Great Day)
01/23/2010
Before buying anything online, the Haggler says, search for possible complaints about the seller. (11 h ago)

• Fundamentally: Three Faces of Market Dan... Fundamentally: Three Faces of Market Danger
01/23/2010
No one knows how treacherous the markets will be in 2010, but earnings, valuation and policy are expected to be the three top risk categories. (11 h ago)

• Wealth Matters: At Bonus Time, Less Appe... Wealth Matters: At Bonus Time, Less Appetite for Toys
01/22/2010
Recipients of bonuses, whether in cash or stock, are focused on their current needs, safe investments and managing for uncertainty. (1 d ago)

• Patient Money: Dealing With the Financia... Patient Money: Dealing With the Financial Burden of Autism
01/22/2010
Medical costs for an autistic child can run as much as $72,000 a year and insurance does not cover many treatments. (1 d ago)

• Your Money: Free Checking Could Go the W... Your Money: Free Checking Could Go the Way of Free Toasters
01/22/2010
Overdraft fees had helped to subsidize free checking, but as those fees begin to fall, free checking may disappear. (1 d ago)

• Mortgages: A New Take on Refinancing Mortgages: A New Take on Refinancing
01/22/2010
A Web site, which made its debut this month, aims to simplify the process for those looking to refinance their mortgages, by connecting a borrower with just one lender. (1 d ago)

• Would You Pay for a Checking Account? Would You Pay for a Checking Account?
01/22/2010
Comments on this week's Your Money column, about whether banks will start charging for checking accounts and whether we should all be paying. (1 d ago)

• A Guide to the New Good Faith Estimate A Guide to the New Good Faith Estimate
01/22/2010
Shopping for a mortgage is less confusing, thanks to a newly designed Good Faith Estimate. (1 d ago)

• Friday Reading Friday Reading
01/22/2010
The planned revamp of the Making Home Affordable program, free GPS navigation software for your smartphone and other consumer-focused items from Friday's Times. (1 d ago)

• Donations to Haiti May Be Deductible on ... Donations to Haiti May Be Deductible on 2009 Returns
01/22/2010
If you've made a charitable contribution to help Haiti, you may be able to claim a deduction on your 2009 tax return. (1 d ago)

• Annual Poll of Freshmen Shows Effect of ... Annual Poll of Freshmen Shows Effect of Recession
01/22/2010
The recession hit this year’s college freshmen hard, affecting how they chose a school as well as their ability to pay for it, according to an annual nationwide survey. (1 d ago)

• Age quake and the new normal Age quake and the new normal
01/23/2010
Let's just stop thinking for a moment about recession, job losses and government deficits created by trillion dollar rescue packages.Instead, we are looking at a future of low productivity, rising public spending, more big government and skills shortages.These are the problems of an ageing population captured in this United Nations report, World Population Ageing. "The impact of the financial crisis pales compared to demographic problems," the World Bank's Robert Holzmann has told the European Commission.According to the UN report, the proportion of older people ... (12 h ago)

• Seven time bombs for the economy Seven time bombs for the economy
01/23/2010
A World Bank report says the global economy is recovering. Trouble is it won't feel like a recovery.According to the report, global GDP, which fell by 2.2% in 2009, is expected to grow 2.7% this year and 3.3% in 2011. Growth will be more spectacular in developing countries. But the report warns it could take years before countries recoup the losses incurred in the worse financial meltdown since the Great Depression. We could be looking at 10 years of sub-optimal growth with more government ... (13 h ago)

• Goldman Sachs calls in the sniffer dogs Goldman Sachs calls in the sniffer dogs
01/22/2010
Relations between the banks, the US Government and the public are now in new and dangerous territory with the New York Post reporting that Goldman Sachs used police barricades and called in bomb-sniffing dogs when it announced its record $4.95 billion earnings result. So while the rest of America is struggling, Goldman Sachs continues to rake it in. And in a nice bit of public relations manipulation, Goldman Sachs departed from the industry's practice of ear-marking half its revenues for compensation and actually subtracted ... (1 d ago)

• Pressure on the Washington-Beijing axis Pressure on the Washington-Beijing axis
01/22/2010
Are we looking at the emergence of a trade war between the US and China? One that will tip the world into a double dip recession?Links between the United States and China are now coming under more pressure with Secretary of State Hillary Clinton lambasting China lambasting China over Internet censorship following Google's clash with China."The internet has already been a source of tremendous progress in China, and it is fabulous. There are so many people in China now online. But countries that restrict ... (1 d ago)

• The Supremes suck up to big business The Supremes suck up to big business
01/21/2010
Just when the Democrats thought it couldn't get any worse. The spirit of George W lives on!! Soon US taxpayers will hear more from big banks and pharmaceutical companies about their preferred candidates for office with the extraordinary decision of the US Supreme Court allowing corporations and unions to run commercials for and against candidates. The ruling will have an impact on the 2010 elections.Until this week, corporations and unions were prohibited from getting directly involved in elections. The question is whether we're going ... (2 d ago)

• God in their sights God in their sights
01/21/2010
Does Afghanistan amount to a US crusade or holy war? That would be the implication behind the involvement of US defence contractor Trijicon in that part of the world.We have already had reports that the Michigan company had inscribed references to New Testament Bible passages about Jesus Christ on high powered rifle sights. References include citations from the books of Revelation, Matthew and John dealing with Jesus as "the light of the world."The company has claimed it is not breaking the law, despite US ... (2 d ago)

• Warning signs from China Warning signs from China
01/21/2010
Another set of red flags from China, warning signs that the Chinese economy is overheating with it returning to double digit growth in the fourth quarter, with a jump of 10.7% year-on-year. The big worry is that a lot of this includes speculation in the stock market and property. The best solution to stimulate consumer spending. Now, while the consumer spending stats in China are up, a lot of that includes government consumption. We just don't know how much consumer demand there is out ... (3 d ago)

• "Risky rich" debt crisis "Risky rich" debt crisis
01/21/2010
We have seen the fallout from the debt crisis in Dubai and Greece. But are these events a harbinger of what could happen in the United States and Japan?Dr Doom, economist Nouriel Roubini warns there is a big risk that this will happen, particularly if the Democrats lose in the mid-term elections this November and after Massachusetts, that's looking likely. If that happens, there will be no tax rises and spending cuts will be put on hold. The only other solution is the last ... (3 d ago)

• A push to clarify ink cartridge labels A push to clarify ink cartridge labels
01/22/2010
The National Conference for Weights and Measures will soon kick off, and attendees will consider how to make the cost of ink more transparent to consumers. Ashley Milne-Tyte reports. (1 d ago)

• What prices really mean What prices really mean
01/22/2010
Pricing mechanisms for virtually everything in our economy are tilted in favor of sellers. William Poundstone, author of "Priceless," talks with Kai Ryssdal about why we pay what we pay for items. (1 d ago)

• Taco Bell: A gateway to acceptance Taco Bell: A gateway to acceptance
01/22/2010
Many foodies may not think too highly of Taco Bell. But commentator Gustavo Arellano says with the recent death of the fast-food chain's creator, it's time to praise the fruits of his creation. (1 d ago)

• Weekly Wrap: Obama's bank plans Weekly Wrap: Obama's bank plans
01/22/2010
Clusterstock's John Carney and Reuters blogger Felix Salmon talk with Kai Ryssdal about whether President Obama's plans to limit the size and risks of Wall Street banks will work. (1 d ago)

• GSK to fund film on emotional eating GSK to fund film on emotional eating
01/22/2010
Pharmaceutical company GlaxoSmithKline plans to fund a documentary about the hazards of mindless eating. Gregory Warner reports. (1 d ago)

• Ruling opens up political ad frontier Ruling opens up political ad frontier
01/22/2010
In the wake of the Supreme Court's decision on campaign financing, the companies who will turn corporate and union money into political ads look to win big. Mitchell Hartman reports. (1 d ago)

• What another recall means for Toyota What another recall means for Toyota
01/22/2010
Toyota has issued another recall to fix faulty accelerator pedals. What are Toyota drivers supposed to do? Alisa Roth reports. (1 d ago)

• Insurers look to find new markets Insurers look to find new markets
01/22/2010
With the health care overhaul bill stuck in Congress, insurance companies are grappling with nearly 30 million potential new customers disappearing. Now it's back to square one in a tough econmy. Nancy Marshall Genzer reports. (1 d ago)

• Be patient with investments Be patient with investments
01/24/2010
Dear John: I am 63 and have a one-year certificate of deposit maturing this month. The best rate I can get is 2 percent for a one year and 2.25 percent for 18 months. I plan on retiring when I'm 66. I have an IRA with Fidelity Investments... (3 h ago)

• Bam's history lesson Bam's history lesson
01/24/2010
In the wake of the Democrats bruising de feat in Massachusetts last week, many pundits have encouraged President Obama to take a lesson from Bill Clinton's mid-term election meltdown in 1994. It's a good comparison, to be sure, but 44 only has to look back to 43 for... (3 h ago)

• Not the issue, O Not the issue, O
01/24/2010
This one is going to leave a mark -- a giant void, in fact, that used to be filled with profits that drove New York City's economy and helped fuel the last bull market that created millions of jobs. President Obama's latest attack on Wall Street -- his... (6 h ago)

• Fashion mags post March win Fashion mags post March win
01/24/2010
The recovery is underway for the nation's fashion magazines, which many consider a bellwether for the rest of the consumer magazine industry. "The spring preview issues for March are not as big as the September fall fashion issues, but symbolically it is a very important signal on how the... (6 h ago)

• Cabdrivers' 'gold' medallions Cabdrivers' 'gold' medallions
01/24/2010
One of the city's best investments is right under New Yorkers' noses. Actually, it's on the hood of their taxis. Yellow-cab medallions -- those small, plastic emblems attached to the hood of every taxi, allowing the cabs to pick up passengers on the streets -- have risen in... (6 h ago)

• Condo backers are seeing stars Condo backers are seeing stars
01/24/2010
A glamorous Madison Avenue condo tower that generated buzz from early buyers like Susan Sarandon, Naomi Watts and Liev Schrieber, is now under legal fire from both buyers and creditors. The legal and financing firestorm is a cautionary tale for real estate pros as it marked the first Manhattan effort... (6 h ago)

• King of the road King of the road
01/24/2010
Gene Friedman, one of the city's most powerful and wealthy executives, is hardly a household name. But the 39-year-old chief executive of Taxi Club Management owns one of the largest collections of city taxi medallions, industry sources say, with roughly 700 to his name. And with the price of... (6 h ago)

• GE profit falls; CEO strikes optimistic ... GE profit falls; CEO strikes optimistic tone
01/22/2010
General Electric Co.'s fourth-quarter net income fell 19 percent, hurt by lower profits on products like jet engines and continuing troubles in commercial real estate lending. (2 d ago)

• Supreme Court rolls back campaign cash l... Supreme Court rolls back campaign cash limits
01/21/2010
The Supreme Court ruled Thursday that corporations may spend as freely as they like to support or oppose candidates for president and Congress, easing decades-old limits on business efforts to influence federal campaigns. (2 d ago)

• Goldman Sachs 2009 pay up, profit soars Goldman Sachs 2009 pay up, profit soars
01/21/2010
Goldman Sachs Group Inc. dished out 47 percent more in pay and bonuses to its employees in 2009 versus the previous year. (2 d ago)

• Asian markets fall after Obama bank plan Asian markets fall after Obama bank plan
01/22/2010
Asian stock markets tumbled Friday after President Barack Obama proposed a sweeping overhaul of Wall Street banks to avert future financial crises. Barack Obama - Wall Street - Stock market - United States - Business (2 d ago)

• Sponsored By: Sponsored By:
01/21/2010
(2 d ago)

• China declares crisis past, inflation a ... China declares crisis past, inflation a concern
01/21/2010
China declared it is over the global crisis and signaled a shift in focus to controlling inflation, sparking concern it could hamper growth and the country's contribution to a worldwide rebound. China - Inflation - Asia - Economic - Business and Economy (2 d ago)

• In world of wine, accidents can be good In world of wine, accidents can be good
01/22/2010
Accidents happen, the people at the Accidental Wine Company like to say. Good thing for them that they do, too, or the Accidental Wine Company would be out of business. Wine - Shopping - Food - Recreation - Drink (1 d ago)

• ConsumerMan: Just leave me alone! ConsumerMan: Just leave me alone!
01/21/2010
Your personal information is now just another commodity, like corn or wheat, that’s collected and sold. In the world of marketing, knowledge is power. Wheat - Agriculture - Commodity - Cereal - Field Crops (2 d ago)

• Macy’s to open first Bloomingdale’s outl... Macy’s to open first Bloomingdale’s outlets
01/21/2010
Macy's Inc. said Thursday it will open its first Bloomingdale's bargain-priced outlet stores this summer and fall in a bid to attract value-conscious shoppers. Bloomingdale - Macy - Outlet store - Business - Department store (2 d ago)

Business

Technology

Sports

Entertainment

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

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

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

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

out of control
staystrong :: 02/23/2009

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

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

• In world of wine, accidents can be good In world of wine, accidents can be good
01/22/2010
Accidents happen, the people at the Accidental Wine Company like to say. Good thing for them that they do, too, or the Accidental Wine Company would be out of business. Shopping - Wine - Food - Recreation - Accidental Wine Company (1 d ago)

• Obama cracking down on contractor tax ch... Obama cracking down on contractor tax cheats
01/22/2010
President Barack Obama on Wednesday ordered a new crackdown on federal contractors who don't pay their taxes. Barack Obama - President of the United States - United States - Politics - Candidates and Campaigns (1 d ago)

• PetSmart fires man who brought dog to wo... PetSmart fires man who brought dog to work
01/22/2010
PetSmart fired employee Eric Favetta for "theft of services" after he parked Gizmo, his 3-year-old Belgian Malinois, in the store's doggie daycare facility during an overnight shift. Dog - PetSmart - Belgian Shepherd Dog - Belgian Malinois - Pets (1 d ago)

• New technology makes business cards pass... New technology makes business cards passé
01/22/2010
Paper business cards are becoming passe as new digital networking tools emerge. Business card - Business - Shopping - print - Supplies (1 d ago)

• Finding the Money to Get Started Finding the Money to Get Started
01/21/2010
© Jon_Marshall If you want water from the well, you have to prime the pump. It's the same with money. But often the question becomes: Where do you get that first little bit? Inc.com had a piece recently on raising startup capital. It's a tedious and demanding task - but an essentail one if you want to start out with the resources you need.Gone are the days of pitching investors with hot new technology ideas. Today, entrepreneurs are much more likely to dive into ... (2 d ago)

• Seen that? - funding for WAN optimizer Seen that? - funding for WAN optimizer
01/21/2010
funding for WAN optimizer TJ's Weblog Often new companies bring solutions for problems which yet have to be found. Riverbed -- a company that develops software that improves the performance of distributed systems is very much different. Riverbed just received $10 ... (2 d ago)

• Venture Capital Was Tight for Tech Start... Venture Capital Was Tight for Tech Start-Ups in ’09
01/21/2010
Venture capitalists invested 37 percent less money and made 30 percent fewer deals last year than in 2008. (2 d ago)

• Seen that? - Looking for Products to Sel... Seen that? - Looking for Products to Sell Online?
01/22/2010
Looking for Products to Sell Online? Home Based Business One of the easiest home based businesses to venture into is buying and selling products online, but what products should you buy and sell? This is a crucial question you have to ... (1 d ago)

• When your calendar is a moral document: ... When your calendar is a moral document: Video interview with Rev. Jim Wallis
01/22/2010
The CEO of the social-justice organization Sojourners discusses rethinking values in the wake of the crisis. Read more on the McKinsey Quarterly > Topics: Governance Interviews Nonprofit Audio Video (1 d ago)

• Self-Employed? Tax Time Is Coming Self-Employed? Tax Time Is Coming
01/21/2010
© alancleaver_2000 It's almost that time of year. I never was a Beatles fan, but you've probably heard the lyrics...Let me tell you how it will be; There's one for you, nineteen for me. Should five per cent appear too small, Be thankful I don't take it all.I have it by Stevie Ray Vaughn. And he makes it sound even more cynical and depressing. Taxes don't have to be that bad. But if you've moved recently from a staff position to being self-employed, you need to change ... (2 d ago)

• Look Over Your Family Budget and Fine-tu... Look Over Your Family Budget and Fine-tune It
01/22/2010
© KrissZPhotography The purpose of setting up a family budget is to be able to control where the money goes. This works two ways: to stop the money loss, and to put the money where you want it. While some people are successful at limiting uncontrolled money loss, it still may not end up where it ought to go - into saving money. This means that saving money needs to be considered a priority in the family budget - not as an unnecessary or ... (1 d ago)

• Obama bank plan, China's moves to cool e... Obama bank plan, China's moves to cool economy boost fear factor on Wall Street
01/23/2010
U.S. stocks fell for a second straight week, sending the market to its biggest drop since October, as banks plunged on a White House proposal to limit financial risk-taking and China moved to cool economic growth. (11 h ago)

• China's Economy is Heating Back Up China's Economy is Heating Back Up
01/23/2010
© Emile Bremmer Chna made economic news this past week by announcing that its gross domestic product grew 10.7% in the fourth quarter of 2009, and that as far as China was concerned the recession was now over. The Chinese are more worried about inflation than recession and they plan to take steps to bring their growth under control. Growth had been projected at around 9% for the quarter. So the growth rate of almost 11% was a bit of a surprise. Many analysis ... (19 h ago)

• Tips for Making the Sale Tips for Making the Sale
01/21/2010
© timparkinson Matt Bell pointed out recently that startup companies today talk and blog about lots of nice stuff - like company culture, raising investment capital, and finding a good business location. But they don't talk much about the heart of any new business - which is, well, sales.A company with strong sales can build a great culture, hire anyone and take the time to figure out its strategy. Without sales, nothing else matters.And he's right, of course. Plenty of business starve to death despite ... (2 d ago)

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