Aiming for Youth Appeal, Coca-Cola Ditches 'Classic'

The world’s leading soda company, Coca-Cola Co. (KO), will drop the word “Classic” from its top-selling cola after nearly two decades in an attempt to refresh the brand’s image and attract a younger customer base, an industry report said Friday.

The soft-drink maker hopes that the removal will appeal to younger consumers who may be turned off by the word “Classic.”

“Some people interpreted it like a vintage car,” Hendrik Steckhan, president of Coke North America’s carbonated business told the publication.

The company has been reducing the size of the word in recent years, and it will completely disappear from the label by the middle of this year, although it will still appear in small print on the back of the product in the phrase, “Coke Classic Original Formula,” Beverage Digest reported.

The word was added to its flagship product in 1985 in an attempt to distinguish the original formula from the unpopular New Coke formula. The New Coke formula, which was a slight modification of the secret original formula introduced in 1886, caused a backlash among consumers and production was eventually halted.

The removal of “Classic” will better align the products in the U.S. with products sold abroad, as the word only appears on cans and bottles sold in the U.S.

Coca-Cola shares ended down nearly 2%. The shares have dropped 26% in the past 12 months.


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Al Lewis: Thain’s $35,000 Commode That Doesn’t Flush
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Al Lewis: Thain's $35,000 Commode That Doesn't Flush

There's something about the image of John Thain sitting on a $35,000 toilet that won't go away.

It began with a report by CNBC that the former Merrill Lynch (BAC) boss, facing the demise of his firm, blew $1.22 million redecorating his office.

Contributing to this obscene tab was "something called a "commode on legs,'" CNBC reported, based on the details it had at the time.

As other media outlets began to swirl about the story, this minor detail was shortened to "$35,000 for a commode" in a list of outrages that included $1,400 for a trash can, $68,000 for a credenza, $87,000 for a rug and $800,000 for a celebrity designer.

After that, many reporters and bloggers mistakenly took out their plungers.

"During his $1.22 million office renovation, ex-Merrill Lynch boss John Thain reportedly bought a portable toilet at a cost of $35,000," the Chicago Tribune quipped in a Jan. 23 column about popular Internet searches of the week. "No doubt a metaphor for where such purchases have taken our economy."

"Not only did John Thain flush Merrill Lynch shareholders down the drain, and not only did he oversee $100 billion of losses, we now find out that the most overpaid and over-compensated CEO in America now spent $35,000 on a toilet," read blog Wall Street Manna, in a Jan. 22 post.

"Let's face it, a (bleep-bleep) that big needs a $35,000 toilet," read another piece at www.alternet.org, called "John Thain: Corporate Jerk of the Moment."

Subsequent media reports concluded that there is more than one definition for "commode," including, "a low cabinet or chest of drawers .. usually standing on legs or short feet," according to thefreedictionary.com.

But in every carnival of greed we love to see sideshows.

Like the anonymous trust-fund kids who took credit for toilet-papering alleged Ponzi-schemer Bernie Madoff's $9 million Palm Beach home last weekend.

Like Dick Fuld, former boss of bankrupt Lehman Brothers, who recently sold his $14 million seaside mansion in Florida to his wife for $100.

Like Citigroup (C)planning to buy a $50 million corporate jet, even as it bagged billions in government bailouts.

Like insurance giant AIG(AIG) getting bailout money, but still paying for pricey hunting trips and sending independent insurance agents to a posh resort.

Pundits often use these examples to allege that there is a disconnect between the super rich and the rest of us. But greed is just a part of the human condition. And anyone climbing the socio-economic ladder is looking up, rarely noticing the rungs below.

This is why middle-class folks can still buy shirts for $18 and never even know about the young laborers who sewed them together for just enough pennies to buy rice.

And it's also how Wall Street executives can insulate themselves from the middle-class lugs whose retirement funds they've been pinching to keep their jets in the air.

Sometimes, when such oversights are called to their attention by raging mobs, they repent.

Citigroup is backing out of its jet deal after a little chiding from President Obama. AIG has long apologized and promised to be more conscious of the fact that it's funded by taxpayers.

But Fuld hasn't explained his fire-sale. And Thain's apology -- though it came with a pledge to personally reimburse his lavish office expenses -- was pretty much a "Sorry, but ..."

"It is clear to me in today's world that it was a mistake," he said in a CNBC interview. But then he proceeded to blame the decorating choices of his predecessor, the overpaid and then ousted Stan O'Neal.

"It really would have been very difficult for me to use it in the form that it was in," Thain said. "It needed to be renovated no matter what."

And there was no $35,000 toilet.

Nevertheless, Thain risks installation in the same filthy bathroom where we've collectively hung the $6,000 shower curtain of former Tyco International CEO Dennis Koslowski.

Because it's a lot easier to imagine Thain on a throne than to fathom the fortunes he made turning a 94-year-old powerhouse into something resembling an outhouse.

Or that in his firm's final days, he rushed $4 billion in bonuses to Merrill's merry managers for their parts in this feat.

Or that the global economy is collapsing because the paper that Wall Street firms sold us may soon be worth less than a jumbo pack of Charmin.

(Al's Emporium, written by Dow Jones Newswires columnist Al Lewis, offers commentary and analysis on a wide range of business subjects through an unconventional perspective. The column is published each Tuesday and Thursday at 9 a.m. ET. He can be reached at 201-938-5266 or by email at al.lewis@dowjones.com.)


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Markets Saying Much More Than Washington
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Glass-Steagall Could Get Second Chance

Consol Net Jumps on Coal Prices; Dominion Results Mixed

Thursday proved to be a mixed day of earnings results for companies in the energy sector.

Consol Energy (CNX)

A surge in coal prices helped Consol Energy’s net to surge in the fourth quarter.

The Canonsburg, Pa.-based coal producer reported a profit of $176.3 million, or 97 cents a share, compared with $1.2 billion, or 4 cents a share, in the same period a year ago.

Revenue came in at $1.2 billion for the quarter -- up 30% from $918.6 million a year earlier.

Analysts surveyed by Thomson Reuters expected a profit of 63 cents a share on $1.2 billion in revenue.

"This was a very strong quarter for us financially and operationally," said J. Brett Harvey, Consol’s president and CEO, in a release. For the full year ended Dec. 31, the company achieved its highest-ever amount of sales revenue and cash from operations, Harvey said.

“Both our coal and gas segments reported improved pricing and production, and they did an excellent job managing costs,” he added. The company managed to increase operating and financial margins in its coal unit during the quarter as a result of higher realized prices per ton. For 2009, the company has more than 95% of its planned coal production priced at an average realized price of $61.56 per ton -- a 26% increase from 2008 realized pricing.

Consol’s full-year earnings came in at $442.5 million, or $2.40 a share, compared with $267.8 million, or $1.45 a share, in 2007. Analysts polled by Thomson Reuters were expecting earnings of $2.11 for the year.

Consol's CNX Gas subsidiary earned $57.5 million, or 38 cents per share, compared with $29.9 million, or 20 cents per share, in 2007. For the full year, CNX Gas earned $239.1 million, or $1.58 per share, compared with $135.7 million, or 90 cents per share in 2007.

Dominion Resources (D)

Richmond, Va.-based Dominion Resources posted a 16% jump in profit in the fourth quarter, but its profit fell more than 30% for the full year.

The company reported a quarterly net income of $348 million, or 60 cents a share, from $299 million, or 52 cents a share, from the same period a year ago.
Revenue for the period jumped to $4.17 billion, a 14% increase from $3.65 billion a year ago. Analysts surveyed by Thomson Reuters were expecting results of 68 cents per share on revenue of $3.51 billion.

The company attributed its quarterly gains to reduced outage costs at its generating units, a lower tax rate, reduced maintenance expenses and higher contributions from its merchant generation business.

Dominion’s full-year net income fell to $1.83 billion, or $3.16 per share, from$2.54 billion, or $3.88 a share, in 2007 on shaky market and weather conditions.

“2008’s operating results reflect the strength of the business model we implemented in 2007 as well as the diligent efforts of our business units to operate efficiently in challenging markets and milder-than-normal electric utility weather,” said Thomas F. Farrell II, the company’s chairman, president and CEO.

The company expects its 2009 operating earnings to fall between $3.20 and $3.30 a share, and 2010 operating earnings to fall between $3.33 and $3.50 a share.

“Assuming a return to normal economic conditions, we expect to again grow operating earnings per share 6% or more annually beginning in 2011,” Farrell said.


Market Winners & Losers: Symantec, Textron
48 Home Depot stores will close; Nashville loses 1
Market Winners & Losers: Lennar, AFLAC

Market Winners & Losers: Symantec, Textron

The rally is over. The markets took a fairly large dive with massive selloffs sending the major indices to close down around 3% on average. Not even news of last night's stimulus pass in the House could keep the financials afloat Thursday. The sector was down more than 5% on the day.

Here are Thursday’s winners and losers:

Winners

Symantec Corp. (SYMC)

Despite a more than $6 billion quarterly loss and continuing lack in demand for software, shares were up more than 5.5% on Thursday. The stock closed at $15.46, a gain of 83 cents.

AutoNation Inc. (AN)

After reporting better than expected earnings in the fourth quarter, the stock gained 4.7%. It closed the session at $9.67, up 43 cents.

SLM Corp. (SLM)

Sallie Mae announces a preferred dividend of 87 cents per share, helping the stock finish up 48 cents, or 4.5%. It last traded at $11.21.

Boston Scientific Corp. (BSX)

News that the company may beat Wall Street’s 2009 expectations helped the stock end the session up 3%. It ended trading at $8.76 a gain of 26 cents.

American Electric Power Co. Inc. (AEP)

The cold winter has to be helping AEP out -- after reporting a loss in the fourth quarter, the stock still traded up 94 cents, or 3%, on the day to close at $32.70.

Losers

Textron Inc. (TXT)

The aerospace company tumbled after it reported a loss for the fourth quarter and gave a weak 2009 outlook. Shares fell $4.21, or 32%, to close at $9.09.

Eastman Kodak Co. (EK)

The photography giant was feeling the pain as shares dropped $2.08, or 30%, to finish the trading session at $4.99.

American Capital Ltd. (ACAS)

Following sector and market trends, shares fell nearly 24% on the day. It last traded at $3.14, down 98 cents.

The Black & Decker Corporation (BDK)

Shares of BDK were more like Black & Bluer -- after reporting earning that were less than enjoyable, shares plummeted nearly 21%. It finished at $30.65, down $8.09.

Allstate Corp. (ALL)

The insurer decline a day after reporting fourth-quarter earnings. Shares fell $23.50, or 21%, Thursday to close at $6.14.

48 Home Depot stores will close; Nashville loses 1
Consol Net Jumps on Coal Prices; Dominion Results Mixed
Market Winners & Losers: Lennar, AFLAC

Investment Advisor in Hot Water Over Alleged TARP Fraud

The Securities and Exchange Commission on Wednesday charged a Tennessee-based investment advisor with securities fraud related to the Troubled Asset Relief Program.

The SEC alleged that Gordon B. Grigg and his firm ProTrust Management, based in Nashville, Tenn., defrauded clients “out of at least $6.5 million” and “misrepresented that their money was invested in the federal government’s Troubled Asset Relief Program [TARP] and other securities that, in reality, do not exist.”

The SEC also alleged that Grigg had funds from at least 27 clients obtained since 2007, and that he claimed to be a financial planner and investment advisor, but that neither he nor his firm were registered with the SEC or a state regulator.

For the latest TARP news, check out FOXBusiness.com’s Where’s My Money blog.

Grigg, according to the SEC, created fraudulent account statements reflecting his clients’ ownership of “private placements” that didn’t actually exist; then, that he in December began to claim that his firm “had the ability to invest client funds in government-guaranteed commercial paper and bank debt as part of the TARP program.”

“There is in fact no program in which investors can buy debt guaranteed by the TARP program,” Katherine Addleman of the SEC’s Atlanta regional office said in the press release.

Judge William J. Haynes Jr., a U.S. District Judge for the Middle District of Tennessee, Nashville Division, ordered that the defendants’ assets be frozen and enjoined them from further violations.


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Obama Pushes Stimulus as TARP Worries Loom
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Cavuto: Our Bucks Are Slipping Away

Missed tonight's Cavuto ? Catch "The Deal" right here on FOXBusiness.com

What the buck?

What happened to all these bucks?

Our bucks.

On the floor of the House, you are about to see them wandering away.

Maybe a trillion of 'em.

Maybe more.

A stimulus package so big that it doubles the inflation-adjusted New Deal spending of FDR more than 70 years ago.

But that was to address a Depression then...

Growing debate as to whether we're in anything close now...

Especially on a day the Federal Reserve makes note of how some things seem to be improving now.

No matter. We're spending this now.

And likely a lot more than this not too long from now.

For bridges that need painting.

Roads that need paving.

Clinics that need building.

And interest groups that need coddling.

I don't know if this will stimulate us.


Markets Saying Much More Than Washington
As economy falls, more people put money away in savings

Market Winners & Losers: Lennar, AFLAC

Monday proved to be yet another wild day for the markets. News of major M&A within the pharmaceutical sector helped counteract the slew of layoff announcements that could have driven the stocks to end in the red. The major indices finished the day up 0.62% on average.

Here are some of today’s winners and losers:

Winners

Lennar Corp. (LEN)
A Citi upgrade helped bump the stock more than 14% on Monday. Shares finished the trading day at $7.82, a gain of 98 cents.

AutoNation Inc. (AN)
While the major auto makers continue to flounder, one of the nation’s largest parts supplier saw gains of 10.2% on Monday. The stock finished the session at $8.97 a gain of 83 cents.

Quest Diagnostics Inc. (DGX)
A positive outlook for 2009 drove Quest’s gains on Monday. An analyst projected the diagnostic-testing provider to have an increase of 3% in the coming year. Shares finished the day up 9.85%, gaining $4.59 to close at $51.17.

Freeport-McMoRan Copper & Gold Inc. (FCX)
The company’s dismal fourth-quarter earnings report was enough to send shares lower early in the day, but the stock managed to rebound later as investors put faith in the company’s cost-balancing measures. Shares last traded at $24.94, a gain of $2.13, or 9%.

Danahar Corp. (DHR)
While shares of DHR were still down in the fourth quarter, the stock didn’t do as bad as the Street had expected. Shares got the boost they needed to finish the day up 9.3%, ending the day at $56.12 – a gain of $4.77.

Losers:

AFLAC Inc. (AFL)
AFL setting new 52-week lows on yet another rating cut. Shares last traded at $19.62, down nearly 20% on the day, a loss of $4.87.

Rohm & Haas (ROH)
News that the deal with Dow Chemical Co. will not be complete by the end of January sent shares plummeting 13.25%. The stock closed the session at $57.10, down $8.72.

Regions Financial Corp. (RF)
With the regional bank looking to cut its dividend by 90%, the stock found no reason to climb. Shares fell 12% to end the day at $4.10, a loss of 56 cents.

U.S. Bancorp (USB)
After last week’s earnings release showed the company earned its lowest profit since 2001, shares declined another 11% on Monday. The stock last traded at $13.01, a loss of $1.63.

Pfizer Inc. (PFE)
Despite news of a $68 billion deal with Wyeth, shares of Pfizer fell more than 10.3% as the company’s year-to-year profit could be down as much as 90%. The stock closed at $15.65, a loss of $1.80.


As economy falls, more people put money away in savings
FOXBusiness.com’s Week in Review: Jan. 19-23, 2009

Senate Confirms Geithner as Treasury Secretary

WASHINGTON--The Senate has confirmed New York Fed chief Timothy Geithner to be President Barack Obama's secretary of the treasury.

The 60-34 vote puts Geithner at the helm of Obama's plan to rescue the economy from the worst financial crisis in three generations. It also dislodges one of Obama's most troubled nominations.

Some senators were concerned that Geithner, who would oversee the Internal Revenue Service, did not pay all of taxes until he had been tapped to the president's Cabinet. Geithner called it an unintentional oversight and settled his $42,702 overdue tax bill.

Obama and others supporting Geithner's nomination said the nation couldn't afford to wait for Obama to search for another nominee to run the Treasury Department.


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Geithner’s Finances Take Backseat to Nation’s Finances

Geithner's Finances Take Backseat to Nation's Finances

Missed tonight's Cavuto ? Catch "The Deal" right here on FOXBusiness.com

Here's the deal:

Tim Geithner now within minutes of closing the deal.

Becoming the next Treasury Secretary of the United States.

And in the end, he might have had problems paying his taxes...But Senators apparently much more concerned about his unique skills spending ours.

Not that his financial rescues have sometimes needed rescuing...

But apparently everyone seems to think he's the only one who can do the rescuing.

You see, Tim Geithner knows where all the financial bodies are buried.

So they bury their concerns about his own finances, and start focusing on the nation's.

He's the guy.

The only real debate right now is exactly how many Senators agree he's the guy.

Let's just say it's going to be a lot more than 50.

Expect a rapid swearing-in afterwards.

As he readies more financial relief, on top of a stimulus plan that's supposed to provide "everyone" relief.

So getting him past this vote will be a big relief to markets that clearly love the guy...And even concerned Republicans, the majority of whom can't think of appointing anyone else to the job "but" this guy.


Glass-Steagall Could Get Second Chance
As economy falls, more people put money away in savings
As Tennessee job losses soar, Bridgestone plans cuts

Glass-Steagall Could Get Second Chance

Back in the 1987, outgoing Federal Reserve Chairman Paul Volcker argued against getting rid of the barrier that separated solid commercial banks from Wall Street firms. He argued that savings deposits and sound mortgages, upon which commercial banks were based, should not become collateral for the risky financial instruments of Wall Street.

Volcker lost his argument to incoming Federal Reserve Chairman Alan Greenspan and financial wizards like Robert Rubin. They loved the guy for killing inflation, but they thought he was an old codger. They wanted to make U.S. banks more competitive by ending Glass-Steagall, the Depression era rule that separated commercial banks from financial institutions.

And they got their wish. Robert Rubin helped kill Glass-Steagall when he was Treasury secretary in 1999, though Mr. Greenspan effectively neutralized the law years before by allowing Citi (C) to become a megabank.

Today, in light of what’s happened, Paul Volcker’s early warnings sound prophetic. One has to bet that Mr. Volcker feels somewhat vindicated by his sage advice. And one could also bet that President Obama is listening to Mr. Volcker, particularly since the ex-Fed chief now has an office in the White House.

Could that mean a return to Glass-Steagall? I’d say the odds are better than 50/50.


Geithner’s Finances Take Backseat to Nation’s Finances
Good product at right price is no longer enough

FOXBusiness.com's Week in Review: Jan. 19-23, 2009

Monday, Jan. 19, 2009

Billionaire investor and CEO of Berkshire Hathaway (BRK.A) Warren Buffett started the week out with a bit of a chill in the air, saying the U.S. is engaged in an “economic Pearl Harbor.”

He said fear among Americans is causing a cycle that makes people not want to spend and make investments, which, obviously, only makes things worse. However, he expressed confidence that we would break out of it.

In the U.K.’s latest efforts to restore its financial system, Prime Minister Gordon Brown expanded its bailout plan. A series of measures were introduced to neutralize the toxic debt on the bank’s books and get them lending again.

And in other Anglo-news, the Bank of Scotland posted the largest loss in British corporate history, reporting a $41 billion loss in 2008.

School Allegedly Lost $6M to Madoff


Markets Saying Much More Than Washington
Good product at right price is no longer enough
As Tennessee job losses soar, Bridgestone plans cuts

Obama Pushes Stimulus as TARP Worries Loom

President Barack Obama urged congressional leaders to move swiftly on his $825 billion stimulus package while concerns about the government’s Troubled Asset Relief Program, or TARP, continue to emerge.

In a meeting with lawmakers on Friday, Obama acknowledged the reservations about his plan, encouraged members to look at the bigger picture.

"I recognize that there are still some differences around the table and between the administration and members of Congress about particular details on the plan," he said. "But I think what unifies this group is a recognition that we are experiencing an unprecedented, perhaps, economic crisis that has to be dealt with, and dealt with rapidly."

Obama said he hopes to see passage of the plan by President’s Day weekend.

The package, which aims to create or save between three and four million new jobs, faces particular criticism from Republican leaders, who fear the package is too expensive and won’t result in any short-term aid for the economy.

House Republicans on Friday told the president that the proposed $825 billion stimulus plan puts too little emphasis on tax cuts -- and offered a plan of their own. In their version of the stimulus bill, the two lowest-income tax brackets would see a reduction, so that the 15% rate would be lowered to 10% and the current 10% rate would be cut to 5%. The plan also includes a proposal to offer small businesses a tax deduction equal to 20% of their income.

The Republicans were unable to give a cost estimate for their plan, but said it would result in an average savings of $1,700 per family. Obama is scheduled to meet with House Republicans next week, though at that point, the House bill could already be awaiting a vote.

Also on Friday, Senate Finance Committee Chairman Max Baucus (D-Mont.) rolled out a $275 billion tax cut plan to be considered by the Senate on Jan. 27. The plan, which overlapped significantly with the House version, would allocate $30 billion to tax incentives for the energy sector. The plan would also increase the federal government’s borrowing authority to $12.14 trillion from $11.315 trillion in anticipation of the trillion-dollar deficits expected over the next few years, according to a release by Baucus’ office.

On Thursday, the House of Representatives voted against the release of the remaining $350 billion in TARP money. The vote however, was purely symbolic -- the Senate already approved its release, making a vote in the House unnecessary. Still, the House’s vote was a testament to criticism of the controversial program, which many say has failed to adequately jolt the credit markets and aid distressed homeowners.

Hoping to plug one of TARP’s holes-- its alleged lack of transparency -- the program’s special inspector general sent a letter to Rep. Spencer Bachus (R-Ala.) outlining a series of new measures on Thursday.

The letter, crafted by Neil Barofsky and obtained by FOX Business, informs Bachus of a “significant oversight initiative” that will be launched to lift the veil on how firms that received TARP funding have spent their money.

“The current lack of transparency directly implicates SIGTARP’s oversight mission because it has the potential to erode the trust of the public in the effectiveness and integrity of TARP, potentially putting at risk the legitimacy of the entire program,” Barofsky wrote.

Barofsky plans to ask each TARP-funded firm to provide an outline of how they expect to use their funds, supporting documentation, a description of their plans for complying with executive compensation restrictions and certification by an authorized senior executive to ensure all material is accurate.


Markets Saying Much More Than Washington
Good product at right price is no longer enough

Markets Saying Much More Than Washington

Missed tonight's Cavuto ? Catch "The Deal" right here on FOXBusiness.com

Forget those dueling press conferences, it's the markets, stupid.

Welcome, everybody, I'm Neil Cavuto, and here's the deal:

Dispense with all this fixation on pow-wows at the White House.

What President Obama said.

What Nancy Pelosi said.

What Jim Boehner said.

What anyone in Washington said.

Focus instead on what the markets are saying.

And lately, two words:

Not much.

Because as the Dow falls, the price tag for stimulus goes up.

And the more the Dow falls, the more that price tag goes up.

And right now, it's going up a lot.

Because the market's been falling a lot.

Already down more than 7% this year.

And that's after falling 35% last year.

And that worries folks a lot.

Folks, who see their fortunes slipping away, and politicians who see their polls numbers slipping away too if they don't do something big.

Which means 825 billion is a minimum for this thing.

Because there's no telling this market tumult thing.

Now, rational people could step back and rightly remind you that tumble came "despite" trillions in government rescues and bailouts.

Maybe because of 'em.

Washington's never been known to be rational.

And come to think of it, neither has Wall Street.


Obama Pushes Stimulus as TARP Worries Loom
Good product at right price is no longer enough
As economy falls, more people put money away in savings

Drilling Down on Inspiration

I recently had an "a-ha" moment from, of all things, reading a Nancy Drew book.

Sometimes I think it’s interesting to go back to something that you treasured as a child and see how it resonates now. So I read about Nancy embarking on a new mystery with her attorney father. The way Carson Drew -- widowed when Nancy was very young -- interacted with his 18-year-old daughter showed immense respect for her smarts and independence.

No wonder my mother couldn’t pry me out of a lawn chair when I was reading one of those books. In the Italian-American world I grew up in, the last thing parents encouraged or valued in their children, especially their daughters, was independence. For my 10-year-old self, it must have been like a trip to Fantasy Island as the stylish sleuth who shared my name went on one adventure after another.

Pure inspiration.

In my last Game Plan column, I ventured some reasoned guesses about why so many people seem to be inspired by President Barack Obama. The idea of what inspires us seemed to touch a chord with readers, and I decided to give it another look, only without restricting it to Obama.

In the childhood observation I shared above, for example, it’s easy to see that a key ingredient in determining what inspires us is our familial background. One person’s Superman is another person’s astronaut is another person’s girl detective.

On the recent Golden Globe Awards, Steven Spielberg began his acceptance speech for the Cecil B. Demille Lifetime Achievement Award by explaining that seeing the Demille film Greatest Show when he was six years old inspired his career. He tried to re-create the train wreck from the film with his model trains, only to use 8mm film to preserve the image because his parents warned him against crashing his trains again. He found the film version surprisingly satisfying, and a brilliant director was born.

How many people sat through the same movie and were not moved to go home and recreate any part of it? This means that much of inspiration is inexplicable, doesn’t it?

Last week we were transfixed by the news that a US Air jet had made an emergency landing in the Hudson River. Everyone with a pulse was inspired by that, it seemed. However, different parts of that story particularly touched different people -- the pilot’s finesse, the ferry boats that converged on the scene and became a makeshift rescue operation, the passengers who got back on a plane the same night.

I was so inspired by pilot Chesley B. Sullenberger’s mastery of his gifts that the very next day I took the two-block walk to the Hudson River waterfront just to stare at the place where it all occurred. I have a bit of an affinity for the river and I do a lot of reflective journaling and drink a lot of coffee down there when the weather is milder. “Sully” has added an inspirational dimension to that experience just by harnessing his gifts in a moment that saved 155 lives.

The heroism component made the plane crash a universally inspiring story and the way it buoyed us for days was remarkable. When it comes to explaining why the word “inspiring” is used over and over again to describe Obama, it gets trickier, especially if you want to go beyond the usual race or partisan reasons (no matter how true or legitimate they are).

When I suggested in the previous column that “artist brain” as opposed to “logic brain” might be at work, an alert reader pointed out that logically most of those “artist brain” supporters were Democrats. True. But I was trying to go a level deeper. For example, Demi Moore said it was the first time she publicly endorsed a candidate. Why not just go into the booth and cast her vote? Why was she so inspired to take the extra step and risk alienating some of her fan base?

Now multiply her by the thousands. Now ask all of them why they find Obama inspiring. Some thoughts mentioned above would likely emerge -- i.e., background, heroism.

Where do you fit into all this? If Nancy Drew and Obama don’t do it for you, who does and why? Think about it.

Inspiration can be a powerful impetus for change. By all means, invite it in.

Nancy Colasurdo is a practicing life coach and freelance writer. Her Web site is www.nancola.com. Please direct all questions/comments to FOXGamePlan@gmail.com.


Markets Saying Much More Than Washington
Obama Pushes Stimulus as TARP Worries Loom
As economy falls, more people put money away in savings

FOXBusiness.com's Week in Review: Jan. 12-16, 2009

Monday, Jan. 12, 2009

President Bush had said he would not ask Congress to release the second half of the $700 billion in TARP funds unless President-elect Obama asked him to do so. Well, Obama finally did request this of Bush, and he obliged. But to avoid a second round of intense TARP battles, Obama’s economic team and Democratic leaders in Congress worked together ahead of time.

Meanwhile, the incoming President was also busy pushing his economic stimulus plan, bumping up the number of jobs it could save or create from three million to four million.

FOX Business began reporting Friday that Citigroup (C) is in pretty bad shape and the picture became grimmer and grimmer Monday. Insiders were saying Citi may be posting the worst quarter in its history, with a loss of over $10 billion. There was also talk that the company could be broken up. And this was all in addition to news that Citi could be selling Smith Barney to Morgan Stanley(MS).

Prosecutors had argued that Bernie Madoff, under house arrest for running an alleged Ponzi scheme that has devastated many people, violated his bail terms when he mailed $1 million in jewelry and other items to his family and friends. Well, a federal judge decided that he didn't, after delaying the decision from last Friday. However, more restrictions were placed on him and his wife to make sure this didn’t happen again.

Think we’ve seen enough layoffs already? Turns out we’ve still got another 2 million to go this year, according to a Conference Board report. We’ve already lost 2.6 million in 2008.

Even with all the negative economic news and the auto bailout, Detroit is still pushing out new automobiles and finally had a chance to show off some of these new models at the Detroit Auto Show. Among the American brands, the Ford (F) F-150 was named the North American Truck of the Year. This model, which was significantly updated in 2009, has been the best-selling truck in the country for 32 years. It also won Truck of the Year last year.

But while the auto show might have been a bit of happy news, Wall Street was still slammed by earnings scares and Citigroup worries. The index fell 125 points, closing at 8474 when just the week before it was close to the 9000 mark again.

Citi's Pandit Under Pressure


FOXBusiness.com’s Year in Review 2008
Nashville is spared Office Depot closings
Automakers will take new bailout tack

Inauguration Festivities Sweep Washington

A flurry of activity swept the nation’s capital over the weekend and through Monday in anticipation of Tuesday’s historic inauguration of soon-to-be Commander in Chief Barack Obama.

On Saturday, the incoming president took a 137-mile train ride from Philadelphia to Washington as thousands of supporters braved the cold to greet him on his journey. The inaugural events continued on Sunday, featuring a tribute on the steps of the Lincoln Memorial that included performances by Bruce Springsteen, Bon Jovi and Mary J. Blige.

On Monday, the President-elect honored the memory of Dr. Martin Luther King, Jr. by visiting troops at a military hospital and helping to paint a wall at a shelter for homeless teens. Future First Lady Michelle Obama will host a children's concert Monday evening at the Verizon Center in tribute to military families.

Millions of people flooded Washington, D.C. in what is shaping up to be one of the most closely-watched inaugural events in history. A reported 250,000 tickets to the ceremony have been printed so far, some of which are being sold online for thousands of dollars.

President-elect Obama will be sworn in on the West Front of the U.S. Capitol at noon on Tuesday.

Photos courtesy FOXBusiness Washingtoncorrespondent Rich Edson.


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Technology Should Enhance, Not Consume, Your Life

At the same time we as life coaches are helping people to figure out how to simplify their lives, one of the hot stories in the news this week is about a 13-year-old girl who sent over 14,000 text messages in a month, including texting her best friend who was sitting right next to her at her own karaoke party.

I admit I am a dinosaur when it comes to technology. I know texting is "the thing." I’m not that out of touch, despite resisting it thus far. But this story, which originated in an article written by the girl’s father in the Orange Country Register, gave me a clearer picture of the heightened challenges we now have in trying to simplify our lives in these rocky economic times.

It’s one thing for a 40-something adult to consciously decide to scale back, but asking an insecure adolescent (redundant?) to not hang on every word her BFF says at the very minute it reaches her phone must be an excruciating undertaking. This is what they know and what they do to stay connected.

But since they’re not the ones I’m coaching or the ones reading this column, let’s take it back to a saner, more adult place. Is technology consuming you, or are you using it to streamline your life?

I am in that 40-something generation that seems pretty divided on the technology issue. For example, as an urban dweller and journalist, I am much more married to email than most of my suburban mother friends who are my age. Yet they are usually more adept at texting because they learned it to keep in touch with their children.

I have also found the adults in my acquaintance divided on social networking Web sites. A year ago, when anyone suggested I get on Facebook, my standard reply was, “I like you, but I really don’t care what movie you saw last night.” Well, in a year I’ve become a complete convert. I am not inclined to join groups on there or send people funky cocktails, but what I have realized since caving in to join it in the spring is that it is a marvelous way to keep in touch with very little effort.

I recently had a conversation with someone on the subway about the common belief that social media hinders or reduces real face-to-face socializing. While there is a potential for that, I find that five minutes a day is the perfect amount of time to update my “status” -- a fun form of expression -- and glance at what my “friends” are doing and that serves to enhance subsequent face-to-face time.

For instance, I recently ran into a friend I hadn’t seen in about a year. The first thing I did was remark on how cute her kids are. She looked at me quizzically, but then I said, “Facebook.” Two weeks later, I bumped into another friend I hadn’t seen since she moved away. I told her it seemed like she was really enjoying life out of the city, apple picking and such. Again, pure Facebook.

Even better, a few weeks ago one of my friends posted in her status that she was freezing because there was no heat in her apartment. It just so happens she and her husband live two doors from me. I called and offered them my portable heater, which they were thrilled to get. In her next status post, she wrote that it was 15 degrees warmer thanks to the heater and Facebook.

My point here? This is from five minutes a day on a social media site. I would never be able to keep up with lots of terrific people if I had to find time to talk to each one individually on a regular basis. This works for me.

In her latest book, Secrets of Simplicity, author Mary Carlomagno offers some things to keep in mind as you assess this area of your life:

Any technology you choose should save you time, not take more of your time.Set boundaries for cell phone and BlackBerry use by scheduling blocks of time during which you turn off these devicesEveryone’s work flow and life priorities are different, so choose technology that will best help achieve your unique goals.

I have an entrepreneur friend who feels liberated by her BlackBerry because it allows her freedom of movement. But I also have a client who refuses to own one because she fears work would start to feel like an albatross around her neck if she could be “tracked down.” Neither is right or wrong; it’s about what feels right for the individual.

As for the aforementioned thousands of text messages and the challenge that presents to parents, best of luck there. I just found out we live in a time where, seriously, you can buy a toy version of a security checkpoint like the ones at the airport (Playmobil, recommended for children ages 4-7, on Amazon.com for $55).

Yikes. With terrorism and technology on our plates, trust me -- simplifying can feel like a much-needed deep breath.

Nancy Colasurdo is a practicing life coach and freelance writer. Her Web site is www.nancola.com. Please direct all questions/comments to FOXGamePlan@gmail.com.


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Marketing soothsayer takes uncertainty out of 2009

Week Ahead: Inauguration, Earnings

The historic inauguration of Barack Obama as the 44th President of the United States will dominate news coverage next week, but investors will be focusing a wary eye on earnings reports.

Stock markets are closed on Monday for the celebration of Martin Luther King Jr.’s birthday, and most of America will be watching Obama’s swearing-in on Tuesday.

Then the earnings reports start.

Fully 25% of the companies that comprise the Dow Jones Industrial Average and 10% of those in the Standard & Poor’s 500 Index will announce their quarterly results next week.

Technology will be a dominant theme, with some of the biggest names in the sector reporting.

Apple (AAPL) reports on Wednesday and the health of founder and Chief Executive Officer Steve Jobs will probably garner more attention than profits. Analysts are predicting a slightly higher revenues, but lower earnings.

Other tech giants reporting are IBM (IBM) on Tuesday, and Microsoft (MSFT) and Google (GOOG) on Thursday.

Economic bellwether General Electric (GE) reports on Friday and analysts are predicting bad news. A Barclays analyst has speculated that GE may report earnings at the low end of already low projections.

In the health care sector, Johnson & Johnson (JNJ), which reports Tuesday, is expected to post higher earnings despite delays on drug approvals last quarter and growing generic competition to one of its blockbuster medications.

Abbott Laboratories (ABT), in the news this week for its acquisition of Advanced Medical Optics (EYE) for $1.36 billion, reports on Wednesday. Higher profits are expected.

Several railroad companies, also seen as economic bellwethers, will report next week, as well. CSX Corp. (CSX) reports Tuesday, Burlington Northern Santa Fe (BNI) on Wednesday, and Union Pacific (UNP) on Thursday.

Airlines reporting are AMR Corp. (AMR), parent of American Airlines, and UAL Corp. (UAUA), parent of United, both on Wednesday, and Southwest Airlines (LUV) on Thursday.

Economic reports are slim, but housing will take center stage as the National Association of Home Builders releases its January builder sentiment index on Wednesday, and the government reports on December housing starts on Thursday.

The data are expected to be ugly.


Jobless claims make surprise jump
Consumers, Retailers to take Spotlight in Week Ahead

Cavuto: U.S. Jumping Through Hoops for Banks; Not for Us

Missed tonight's Cavuto? Catch "The Deal" right here on FOXBusiness.com

45 billion dollars.

Each.

Citigroup (C).

Bank of America (BAC).

Both hurting.

Both cutting.

Both on the dime.

Our dime.

90 billion bucks' worth of our dimes, to be exact.

We're their largest shareholders.

And about now, they're only reliable ones.

"We" have no choice.

The government stands behind 'em.

Which means "we" stand behind 'em.

Whatever Bank of America needs to close a deal with Merrill.

Whatever Citigroup needs to not close, period.

Period.

Now you'd think with our good deed, maybe we'd get a good deal.

Maybe they'd lend more.

Hate to disappoint you, but they're not.

Because tucked deep in this bailout story you're not hearing, some stunning lending figures you might find surprising.

In the middle of this huge refinancing wave, a lot of applicants, not a lot of "approved" applicants.

Get this.

70% of folks who want to refinance cannot.

Either their homes have declined too much in value to redo their loans, or banks just won't give 'em the loans.

So let me see if I get this straight.

Banks refuse to go through hoops for us.

We're on the dime for them.

Who knew a bailout of our money also would prove a bailout of something else...

Our senses.


Despite slowdown, banks are still lending
This Won’t Be the Last Loan

Deflation Concerns Marinate in Light Data Week

The upcoming week will be dominated not by statistics, but by rhetoric -- and the dominant theme will still be the economy.

Not that the economy was out of view in the week just ended, with a new round of reports reminding us of just how bad the economy is and how interrelated it is.

Friday’s report on consumer prices hinted at good news showing a sharp reduction in the consumer price index and the lowest inflation rate (the year-year change in the consumer price index) since 1955.

You could almost though draw a straight line from the CPI report for December back to the report Wednesday on retail sales for the same month which showed retail sales fell 2.7% from November to December, the sixth consecutive monthly decline. The connection? Well Wednesday’s report was based on actual dollars spent and reflected serious price discounts allowed by retailers to entice shoppers into stores. So, the “good news” of slower inflation indeed was another sign of the economic slump.

And, in fact, the slower inflation is approaching deflation which is a much more difficult problem to address than its mirror-image, inflation. To address inflation, the Federal Reserve can tighten the money supply through its main tool of setting the target Fed Funds rate -- the rate banks use to lend money to each other. As that rate increases, less money is in circulation and with fewer dollars chasing goods, prices come down. Increasing the money supply -- as the Federal Open Market Committee has done -- generally means more dollars chasing goods increasing prices. That’s the way it’s supposed to work.

In the current environment, even as the FOMC cut interest rates, prices are falling because even with the lower cost of credit, consumers have cut back spending because of concerns about jobs and income. These concerns ripple through the rest of the economy: as consumers buy less, stores have no need to restock shelves, thus no need to order new merchandise, idling manufacturing plants.

The report in the last week on business inventories affirmed that relationship. The inventory-sales ratio for all businesses rose to 1.41 -- its highest level since the 2001 recession -- and the retail inventory-sales ratio rose to 1.58, its highest level since August 2004. The ratio is an arithmetic representation of how quickly a business will have to replenish stock; the higher the number, the longer between orders placed by businesses or retailers, adding to the slump.

It was, therefore, no surprise the Federal Reserve reported Friday a continued decline in both industrial production and capacity utilization in December. These data were consistent with other economic indicators all stemming from a slowdown in consumer spending which reduces demand and in turn reduces production.

Both production and capacity utilization continued to decline even after the end of the 2001 recession and the official “trough” of the 1990-91 slump. That would corroborate suggestions of continued strains for the overall economy. The “good news” from the data though is that unused capacity -- marked by a declining capacity utilization rate -- also eases inflation concerns.

It was therefore no surprise also that Friday the Economic Advisory Committee of the American Bankers Association said significant efforts would be required by Washington policymakers to ensure recovery takes hold later this year. Bank of America CEO Ken Lewis, in discussing his company’s earnings report, offered the economy would likely not recover until the end of the year at the earliest.

The consensus of the ABA economists though was the economy fell at the sharpest rate in nearly three decades in the fourth quarter of last year, and that the downturn will continue through the first half of 2009. The committee suggested the unemployment rate would increase to 8.5% (from the current 7.2%) later this year, its highest level since 1983.

The ABA economists were optimistic “a substantial stimulus package combined with continued monetary ease by the Federal Reserve should bring the economy out of recession before the end of the year.”

The committee tempered its optimistic with “downside risks” noting consumers may continue to retrench, saving more and spending less, further weakening demand for goods and services.

With that we could see some surprising upbeat numbers in the limited data to be reported in the upcoming week. The upswing in mortgage demand – although most of it has been for refinance applications -- could lead to some optimism among home-builders who report their monthly Housing Market Index Wednesday. The index consists of three measures including buyer traffic which could see a boost from falling mortgage rates.

In the through-the-looking-glass world of economic data, weaker numbers Thursday when the Commerce Department reports housing permits and starts could be good news, hinting the inventory of unsold new homes could continue to fall. That said, data in the last few months show builders have completed almost twice as many homes as they’ve sold for the past three months.

MONDAY1/19NO DATA RELEASES – MARTIN LUTHER KING JR DAY


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Ugly Day in Labor: Thousands of Job Cuts Reported

Friday proved to be an awful day on the jobs front -- and that's an understatement.

Several news reports and company announcements came out Friday that detailed the latest in thousands of job cuts at several Fortune 500 companies in the coming weeks, as all sectors and industries continue to face tough business conditions and a struggling worldwide economy.

The names mentioned ranged from struggling chip maker Advanced Micro Devices (AMD) to corporate conglomerate General Electric (GE). There was also Circuit City’s announcement that it would close up shop and go into liquidation -- a move that will leave some 30,000 sales associates and corporate staff without jobs.

Here's a look at the companies that made headlines:

Pfizer Cuts Sales Staff

Dow member Pfizer (PFE) is expected to lay off as much as 2,400, or approximately one-third, of its sales staff this quarter, The Wall Street Journal reported citing anonymous sources.

This comes after Pfizer recently announced it would lay off 800 highly-paid scientists and researchers, bringing the cuts at the drug company to 3,200 people in this .

According to sources telling the Journal, the cuts would primarily comes from sales representatives and middle management.

GE Chops Staff at GE Capital

General Electric (GE) made some “internal announcements” this week regarding its staff at GE Capital, a company spokesman said – referring to reports that GE cut its staff at the company’s giant finance arm.

Bloomberg News and other media reported that GE slashed at least 7,000 jobs at GE Capital this week, with a maximum cut of 11,000. A GE spokesman would confirm that the company did announce internal layoffs this week, but declined to give specific figures.

GE announced last November that it would restructure GE Capital after the credit markets froze up late last year. The company said it expects to take $2 billion in cuts at the division, with a good portion of those being directed at personnel.

While GE makes everything from nuclear reactors to television programming, it made a large portion of its profits from GE Capital for several years. The somewhat-opaque finance arm provides loans for large infrastructure purchases to consumer credit cards.

WellPoint Cuts 1,500 Positions

Health insurance company WellPoint (WLP) said it would cut 1,500 jobs, or about 3.5% of its work force.

The cuts would come from all points of the company, WellPoint said, primarily from eliminating 900 open positions. The company would also eliminate 600 current employees, providing them severance pay.

WellPoint, which is the largest administrator of Blue Cross Blue Shield healthcare plans, has seen a drastic slowdown in business as companies cut jobs, meaning there’s less employees to administer health plans to.

Circuit City Liquidates

The now-bankrupt electronics retailer Circuit City (CCTYQ), formerly stock ticker CC, said it could not find a buyer for its operations and would now go out of business.

All 30,000 employees at Circuit City will now be out of work, the company said.

Circuit City, which operated 567 stores across the nation, was unable to compete on the electronics front against Best Buy (BBY) and Wal-Mart (WMT).

The liquidation sales will begin this weekend, the company said, and the employees at the retailer will be laid off as soon as the company’s inventory is sold.

Advanced Micro Devices Cuts 1,100 Jobs

Advanced Micro Devices (AMD), the second-largest chip maker after Intel (INTC), said it would cut 1,100 positions and would impose temporary pay cuts on its remaining staff.

The cuts equate to approximately 9% of its staff, the company said.

This is the third round of major layoffs for the struggling AMD, who has lost considerable market share against its rival Intel. AMD cut 600 workers just last month, and earlier in 2008 jettisoned 1,600.

No Rentals at Hertz

Hertz (HTZ), the rental car company, said it will eliminate approximately 4,000 jobs both here in the U.S. and internationally. The cuts would come both at its rental car operations and corporate support positions.

The cuts are expected to take place in the next two quarters, the company said.

Clear Channel Not So Clear When it Comes to Layoffs

Clear Channel Communications (CCO), the media company, is looking to eliminate $400 million in costs, according to the New York Post. Layoffs tied to the massive cost-cutting plan could begin as early as Jan. 20, according to the paper, and will involve employees in the company's radio, outdoor advertising and international division.

The company did not comment on the report.

Oil Giant Spilling 4% of Work Force

Houston-based oil company ConocoPhillips (COP)said it will eliminate 4% of its work force and cut capital spending by more than 12%. The company, which has nearly 34,000 employees across the globe, made no definitive announcement on which divisions would see the cuts, but did say it would cut back on contractors.

Unisys to Cut 1,300 Jobs, Consolidate Plants
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Money Manager Art Nadel Goes Missing

Police have launched an investigation into the disappearance of Art Nadel, a money manager whose Sarasota, Fl.-based Valhalla Management is under investigation for investment and asset theft.

Nadel’s wife reported him missing in the afternoon on Wednesday, according to Lieutenant Chuck Lesaltado of the Sarasota County Sherriff’s office. Two days later Sarasota police launched an investigation into Nadel’s investment firm for investment and asset theft.

Nadel reportedly left a note that was recovered after his disappearance. Sarasota authorities would not confirm what was written in the note, but would say that Nadel’s car, a green Subaru, is also missing.

Sarasota Police Captain Bill Spitler said that detectives began investigating the firm Friday.

“We’re dealing with a substantial amount of money that has reportedly been taken from many investors,” Spitler said.

Spitler confirmed that some of the victims are “very high-profile people in the Sarasota community and throughout the state; they had invested money and at this point they have been told the money is gone.”

As of now there is no indication of this firm’s investments having any ties to Bernard Madoff’s who is suspected of defrauding investors for as much as $50 billion.

“We’re not using the word Ponzi scheme,” Spitler said.

Sitler went on to tell FOXBusiness.com that he has gotten calls from victims across the United States who say they called Valhalla to check on the safety of their investments after news of the Madoff investigation broke.

“They were told that their money was safe and now they’re finding out that it may not be,” Spitler said.

Investors associated with Valhalla Management should contact the Sarasota Police Department.


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GM Slashes 2009 U.S. Sales Forecast

NEW YORK--General Motors Corp. (GM) is cutting its 2009 industrywide U.S. sales forecast to 10.5 million vehicles.

The Detroit automaker previously said it expected industrywide sales of about 12 million for the year, with 10.5 million seen as a worst-case scenario for the industry. It revised its prediction in an analyst conference Thursday where Chief Executive Rick Wagoner is speaking.

U.S sales fell to 13.2 million in 2008, down 18% from 16.1 million in 2007.

Many analysts have been predicting sales of 10.5 million to 11.5 million in 2009.

General Motors is also projecting 2009 global sales of 57.5 million units.

GM says the lower sales outlook will force it to make hard decisions that will result in a stronger viability plan and better position the company for long-term growth.


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US Airways Plane Crashes in Hudson River

NEW YORK--A US Airways plane crashed into the Hudson River on Thursday afternoon after striking a bird that disabled two engines, sending passengers fleeing for safety in the frigid waters, a government official says.

Federal Aviation Administration spokeswoman Laura Brown says the US Airways Flight 1549 had just taken off from LaGuardia Airport enroute to Charlotte, N.C., when the crash occurred in the river near 48th Street in midtown Manhattan.
Brown says the plane, an Airbus 320, appears to have hit one or more birds.

The plane was submerged in the icy waters up to the windows. Rescue crews had opened the door and were pulling passengers in yellow life vests from the plane. Several boats surrounded the plane, which appeared to be slowly sinking.
Government officials do not believe the crash is related to terrorism.

"There is no information at this time to indicate that this is a security-related incident," Homeland Security spokeswoman Laura Keehner said. "We continue to closely monitor the situation which at present is focused on search and rescue."
New York City firefighters and the U.S. Coast Guard are responding to the crash. It was not immediately clear if there were injuries.

"I saw what appeared to be a tail fin of a plane sticking out of the water," said Erica Schietinger, whose office windows at Chelsea Piers look out over the Hudson. "All the boats have sort of circled the area. ... I can't tell what's what at this point."


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Apple CEO Takes Medical Leave

SEATTLE--Apple Inc. (AAPL)co-founder and Chief Executive Steve Jobs said Wednesday he is taking a medical leave until June, even though just a week ago the cancer survivor tried to assure investors and employees his recent weight loss was caused by an easily treatable hormone deficiency.

Apple's stock dropped 6 percent.

Jobs, 53, said in a letter last week that he would remain at Apple's helm despite the hormone problem, and that he had already begun a "relatively simple and straightforward" treatment. But in an e-mail to employees Wednesday, Jobs backtracked.

"During the past week I have learned that my health-related issues are more complex than I originally thought," he wrote.

Apple's shares have surged and crashed over the last year in step with rumors or news about the CEO's health and his gaunt appearance. While the top executive's health is an issue for investors in any company, at Apple the level of concern reaches fever pitch because Jobs has a hand in everything from ideas for new products to the way they're marketed.

Jobs co-founded Apple with Steve Wozniak in 1976 at the dawn of the personal computer revolution. He was forced from the company in 1985 but returned as CEO in 1997, slashing unprofitable product lines and helping rescue the company from financial ruin.

Since then, under Jobs' demanding leadership, Apple has churned out a string of sleek gadgets, from the iMac and the iPod to a new line of aluminum-covered Macbooks and the coveted iPhone. Many investors fear that without Jobs, Apple would not be able to sustain its growth or its high-end minimalist style.

Last week, Jobs said his disclosure of his hormone problem was "more than I wanted to say, and all that I am going to say" about his health. It came on the eve of Macworld, the biggest Apple trade show of the year, and Jobs said he wanted everyone to relax and enjoy the event.

Even so, the limited amount of information in that announcement did little to soothe Wall Street's nerves. Medical experts not involved in Jobs' treatment said it was unclear what was behind his weight loss, but some specialists said Jobs' past pancreatic cancer could be the problem, since the organ makes digestive enzymes that are key for nutrition.

Apple's history of keeping information about Jobs' health under wraps is only fueling the speculation. The company waited until after Jobs underwent surgery in 2004 to treat a very rare form of pancreatic cancer -- an islet cell neuroendocrine tumor -- before alerting investors. That type of cancer is easily cured if diagnosed early, unlike the deadlier and more common adenocarcinoma.

And last summer, Cupertino, Calif.-based Apple insisted Jobs' weight loss was due to a common bug, even as The New York Times cited anonymous sources who said Jobs had undergone "a surgical procedure" to address the problem.

Apple spokesman Steve Dowling would not elaborate on Jobs' condition or what he discovered in the past week.

"They'll tell you the least they can tell you," longtime industry analyst Roger Kay of Endpoint Technology Associates said after Jobs' disclosure Wednesday. "They're trying to have it both ways, to protect their guy's privacy and feelings and at the same time somehow signal the market."

Apple's chief operating officer, Tim Cook, will take over Jobs' responsibilities while he is on leave, though Jobs said he plans to remain involved in major strategic decisions.

Cook is seen as one of Jobs' most likely successors, along with Apple's top marketing executive, Philip Schiller. American Technology Research analyst Brian Marshall -- who last week predicted Jobs would step down this year -- said Wednesday's announcement tips the bets in Cook's favor.

"The company has been soft-signaling to the Street for a while now that Steve Jobs is not going to be CEO forever," he said. "This will be sort of a trial period for Cook to be chief executive."

Cook, 48, lacks Jobs' charisma and showmanship, but is seen as a solid pick otherwise.

"Tim Cook is a very experienced and highly regarded chief operating officer," said Calyon Securities analyst Shebly Seyrafi. "He's qualified."

Apple's shares slid $5.45, or 6.4 percent, to $79.88 in extended trading after Jobs announced his leave.


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Cavuto: Apple in a Tough Spot

Cavuto: Apple in a Tough Spot

Missed tonight's Cavuto? Catch "The Deal" right here on FOXBusiness.com

All we know is... He is sick.

Maybe very sick.

Maybe a lot more sick than a mere hormone imbalance would suggest.

It's hard to know.

Because we don't know.

And because even with his unusually candid letter to Apple (AAPL) employees today taking himself out of day-to-day operations today, Steve Jobs made darn sure we wouldn't know.

Or intrude.

Maybe if he were any average Steve, we wouldn't.

But this isn't any average Steve.

This is Steve Jobs...Apple founder and rescuer.

Visionary -- and for many, icon.

The man whose name is synonymous with the company's products that have now become ubiquitous.

The iPhone, the iPod, the iMac...Jobs, the "I" in all of that.

So when he tells Apple employees, "I" will no longer be running things for a while here...

Lots of worries there. Lots of worries everywhere.

The stock down. Everyone wondering what's up.

Just how sick is he?

And will he be healthy enough to return to the company at the end of June like he says he will be?

So many "heated" questions, ironically, for a man so universally equated with "cool."


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Recall of Infant Garments Expanded by Rashti & Rashti

Baby products manufacturer Rashti & Rashti is recalling about 16,000 units of its Taggies Sleep’n Play infant garments.

The recall, issued in conjunction with the U.S. Consumer Product Safety Commission, is based on a potential choking hazard involving the garments’ snaps, which can come loose. The announcement marks an expansion of the company’s original recall, which was issued on July 1, 2008 and involved only 6,200 units at the time.

The affected garments, which were sold from January 2007 through November 2008, are one-piece footed coveralls with snaps down the front and were offered in sizes 0-3 months, 3-6 months and 6-9 months. The units retailed for about $20 a piece and were sold at Babies R Us, Buy Buy Baby, Dillards, Nordstrom (JWN), and other specialty stores nationwide and Internet retailers, according to the release.

Rashti & Rashti’s July recall involved the Butterfly Applique and Fun Dog-print styles of Taggies Sleep ‘n Play infant garments. The company’s expanded recall now includes the Dinosaur Applique and the Pink Toss-print styles. All of the garments were manufactured in China and have the number “27829” printed on the care label sewn into the garment.

The garments can also be identified by a style number, printed on the handtag. The list of style numbers, UPCs, colors and descriptions for the affected garments is as follows:

T20615H: 0-22253-20615-2, Teal, Dinosaur Applique Sleep'n Play (0-3M)
T20616H: 0-22253-20616-9, Teal, Dinosaur Applique Sleep'n Play (0-6M)
T20617H: 0-22253-20617-6, Teal, Dinosaur Applique Sleep'n Play (6-9M)
T21317H: 0-22253-21317-4, Pink and White, Pink Toss Print Sleep'n Play (0-3M)
T21318H: 0-22253-21318-1, Pink and White, Pink Toss Print Sleep'n Play (3-6M)
T21319H: 0-22253-21319-8, Pink and White, Pink Toss Print Sleep'n Play (6-9M)

The CPSC advises customers to contact Rashti & Rashti for a refund. The company can be reached at (888) 594-3730 between 8:30 a.m. and 9:30 p.m. ET Monday through Friday. Customers can also visit the firm's Web site at www.rashtiandrashti.com.

Pictures of the recalled products and more detailed information on the recall can be found on the CPSC’s Web site at http://www.cpsc.gov/cpscpub/prerel/prhtml09/09087.html.


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Is Geithner Now Doomed to Fail?

Missed tonight's Cavuto? Catch "The Deal" right here on FOXBusiness.com

It did in Kimba Wood.

And Zoe Baird.

And Linda Chavez.

Tonight, the question all of Washington is asking...

Could it do in Timothy Geithner?

Max Baucus, the chairman of the Senate Finance Committee that will decide his fate, says it's serious...But not nomination-busting serious.

Charges that Barack Obama's pick to be the next Treasury Secretary of the United States...employed an illegal immigrant, and perhaps more significantly, skipped paying "his own" Social Security and Medicare taxes for years.

It's doomed other Cabinet picks in other administrations.

But the Obama folks making clear this is a different case, a different time, and a very different crisis.

New Hampshire Republican senator Judd Gregg telling me just moments ago on FOX News Channel that he agrees....and that this issue is much ado about nothing much.

Senate Democratic boss Harry Reid agreeing...saying Geithner will be one of the finest secretaries of Treasury this country has ever had.

...most, for now, expressing complete support for a nominee The Wall Street Journal reports might have played fast and loose with immigration tax laws not only in the case of this housekeeper, but potentially, on other matters as well.


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Senate Democrats to Swear In Roland Burris

WASHINGTON--Eager to put the scandal-tainted standoff behind them, Senate Democrats accepted Roland Burris as President-elect Barack Obama's Senate successor on Monday and said they expect to swear in the new Illinois senator this week.

"He is now the senator-designate from Illinois and, as such, will be accorded all the rights and privileges of a senator-elect," Senate Majority Leader Harry Reid and Sen. Dick Durbin of Illinois said in a joint statement after Senate lawyers determined that Burris' paperwork met Senate requirements to be seated.

The two senators said they expect Burris, a former Illinois attorney general, to be sworn in and seated this week, barring objections from Republicans.

The announcement is a major reversal for Senate Democrats. They initially balked at the surprise appointment by embattled Gov. Rod Blagojevich, who is accused by federal investigators of seeking to trade the Senate seat for personal favors, amid fears that any appointee would be tainted.


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FDIC Asks Banks to Monitor Bailout Money

WASHINGTON--Federal regulators are asking financial institutions to monitor their use of government money received under the $700 billion rescue plan and other support.

Banks and other financial institutions should track how the federal money or guarantees they received helped them boost "prudent lending" and efforts to help at-risk borrowers avoid foreclosures, the Federal Deposit Insurance Corp. said Monday in a directive issued to the roughly 5,100 state-chartered banks and savings and loans for which it is the primary regulator.

"Banks are expected to document how they are continuing to meet the credit needs of creditworthy borrowers," the directive says. "The FDIC expects that ... (institutions) will deploy funding received from these federal programs to prudently support credit needs in their market and strengthen bank capital."

The agency called on banks to include a summary of that information in their periodic reports and financial statements.

The FDIC directive applies to: the Treasury Department program in which the government is injecting $250 billion in banks and other financial companies by buying shares in them, several Federal Reserve initiatives to provide temporary loans that have totaled around $2.25 trillion, and the FDIC's program of three-year guarantees for as much as $1.4 trillion in new loans between banks.

The FDIC action comes amid bipartisan criticism that the Bush administration's handling of the first $350 billion of the financial rescue program has been unfocused, confusing and inconsistent. Critics have complained that the taxpayer money has had few strings attached and hasn't been used effectively to address the nation's housing crisis.

President-elect Barack Obama's economic team is developing a "comprehensive set of investment principles" that would put restrictions on how the second $350 billion is spent, limits on executive compensation for banks and other companies receiving funds, and a plan to address rising foreclosures.

The explanations the FDIC is asking financial institutions to provide will allow banks "to tell their stories," said Wayne Abernathy, an executive vice president of the American Bankers Association. "I think bankers will respond to that favorably because I think we've got a good story to tell," he said.

The story could include examples of positive changes in communities brought about through lending by local banks, said Abernathy.

Among the banks that have received the most funds from the various federal programs are Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. Scores of smaller banks also have been recipients, including Zions Bancorp, Regions Financial Corp. and Western Alliance Bancorp.

A congressional panel overseeing the Treasury program said in a report last week that the department failed to answer several of its questions concerning how the banks are spending the taxpayer money and the government's overall strategy for the rescue.

"For Treasury to advance funds to these institutions without requiring more transparency further erodes the very confidence Treasury seeks to restore," the report said.

The House could act this week on a bill by Rep. Barney Frank, D-Mass., who heads the House Financial Services Committee, that would set tougher conditions on recipients of the second $350 billion, including limits on executive pay, and require the government to use at least $40 billion to modify mortgages of struggling borrowers to avert foreclosures.

"I hope the House will pass a bill this week that sets forth the conditions we believe are necessary to assure that the public gets the full benefit of these funds," Frank said in a statement Monday. "It seems clear the Obama administration agrees with what we are setting forward, and I believe this creates a framework so that the release of these funds can go forward."


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Bottom Line: Madoff's a Bad Seed

Last night, in the middle of a segment on the psychology of Bernie Madoff that wasn’t going well, I thought to myself, we don’t need this. It’s simple; Bernie Madoff is a dirtbag. What more do you need to know about his psychology than that?

No law has been or ever will be written that can outlaw crooks. You can analyze these crooks to death, even write books about them, and still end up getting ripped off by one of them, as happened to one of the Madoff victims we featured on Scoreboard the other night. We don’t need psychologists or politicians pontificating on what motivated Bernie Madoff. He’s a bad seed. And with bad seeds like Madoff, bad stuff will always happen, no matter what we try to do to prevent it.

What we can -- and must -- do is crack down on the crooks as hard as possible, to make other bad seeds think twice before ripping someone else off. But as for trying to get into the head of a bad seed like Madoff, I’d rather spend my time figuring out how to make an honest buck.


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Dow Sinks 143 on Job Fears

Amid a flurry of late-dayheadlines surrounding the future Citigroup, Wall Street ended the week with triple-digit declines as the markets were spooked by news that the U.S. unemployment rate soared to the highest level in 16 years last month as the economy deteriorated further.

Today's Market

The Dow Jones Industrial Average lost 143.28 points, or 1.64%, to 8599.18, the S&P 500 fell 19.38 points, or 2.13%, to 890.35 and the Nasdaq Composite dropped 45.42 points, or 2.81%, to 1571.59. The consumer-friendly FOX 50 sank 12.62 points, or 1.84%, to 675.02.

Friday's losses send the Dow to a three-day losing streak that has erased more than 400 points from the benchmark index as Wall Street has been struggled to ignore the latest dire economic reports.

All told, the Dow tumbled 435 points, or 4.82%, this week, its steepest weekly decline since late November. Even with those losses, the index is still up 13.86% since hitting 5 1/2 year lows on November 20.

"The market was a little overbought. We needed to give some back. I guess it’s not the end of the world," NSYEtrader Ted Weisberg of Seaport Securities told FOXBusiness.

Aside from the job-loss figures, the markets were also reacting to news of a possible breakup at Citigroup (C), a potential successor to Yahoo!(YHOO) CEOJerryYang and new earnings guidance from big-name companies like Chevron (CVX), Merck (MRK) and Best Buy (BBY).

Nearly all 30 components of the Dow closed in the red, led by Citi and Alcoa (AA). Financial giants JPMorganChase (JPM) and Bank of America (BAC) also ended sharply lower. On the upside, defensive names like Wal-Mart (WMT) and Johnson & Johnson (JNJ) saw minor gains.

The Nasdaq Composite suffered much steeper losses than the broader market as the tech sector lost 2% of its value. Tech stocks like eBay (EBAY) and Logitech (LOGI) declined even further, offsetting gains from the Apollo Group (APOL) and BlackBerry maker Research in Motion (RIMM).

Meanwhile, late Friday Citigroup announced the departure of Rubin, the former Treasury secretary that joined the bank in 1999. Also, The WallStreet Journal reported Citi is in talks to sell its prized Smith Barney brokerage and asset-management unit, possibly as a joint venture withMorgan Stanley (MS). Citi may also look to unload its Mexican retail-banking business, Grupo Financiero Banamex, which could interest JPMorganChase(JPM), the Journal reported.

All eyes Friday were on the Labor Department's monthly employment report, which revealed that employers slashed 524,000 jobs last month, bringing the unemployment rate from 6.7% to 7.2% -- the highest level since former President Bill Clinton took office in January 1993. The report marks the 12th consecutive month of job declines, corresponding with when the current recession began in December 2007.

While it would be hard to argue that the latest labor figures are anything but dismal, the markets had been bracing for the worst and economists had predicted the results. At the same time, consensus forecasts called for a more modest rise to the unemployment rate to a level of 7%.

The government also said the U.S. lost 2.6 million jobs last year, including 2 million in the final four months alone, marking the worst labor year since 1945. November's labor figures were even worse than first estimated as the government said employers slashed 584,000 jobs, the most since 1974.

All signs point to the unemployment rate continuing to rise as scores of companies such as aluminum giant Alcoa (AA), oil-services firm Schlumberger (SLB) and Walgreen (WAG) have all unveiled mass layoffs since 2009 began.

On the energy front, crude oil futures remained under pressure, nearly sinking below the $40 per barrel. The price of crude ended down 87 cents, or 2.09%, to $40.83 per barrel, a fresh 2009 low. It was an ugly week for crude as the commodity lost 11.89% of its value, its third declining week of the past four.

Corporate Movers

GMAC LLC, the financial arm of General Motors (GM), announced the departure of Chairman Ezra Merkin, whose hedge fund lost billions of dollars on investments withBernard Madoff, the alleged Ponzi scheme mastermind.Merkin's resignation is effective Friday and his seat will be filled on an interim basis by Jeffrey Lomasky, chief financial officer of GMAC majority owner Cerberus Capital Management.

Yahoo! (YHOO) is close to naming a new chief executive and former Autodesk (ADSK) CEO Carol Bartz is in the running, the Journal reported. An announcement could come as early as next week, the newspaper reported.

Boeing (BA) announced plans to slash 4,500 jobs, or 7% of its plane unit employees. The layoffs are expected to focus on Boeing's Seattle-area plants and take place between April and June.

Lehman Brothers, which became the largest company to file for bankruptcy ever last September, has reached a deal to allow its buyout arm to spin out into an independent arm to be called Lehman Brothers Merchant Banking, the Journal reported.

Chevron (CVX) warned its fourth-quarter earnings will likely be significantly worse than the prior quarter due to the collapse in oil prices. The second-largest U.S. oil and gas company didn’t give any further guidance.

Schlumberger (SLB), the world’s largest oilfield services provider, released plans to slash 1,000 jobs, or 5% of its workforce.

Best Buy (BBY) narrowed its full-year earnings guidance and said its December same-store sales slid 6.5%. The electronics retailer sees earnings in the range of $2.50 to $2.70 per share, compared to analyst estimates for $2.59 a share.

Merck (MRK) backed its 2009 sales and earnings guidance despite the ongoing recession. The pharmaceutical giant also said the FDA issued a second complete response letter concerning its Gardasil drug, which it will respond to in the fourth quarter of 2009.

KB Home (KBH) lost $307.3 million, or $3.96 per share, in the fourth quarter as its revenue plummeted 56% to $919 million.

Advanced Micro Devices (AMD), unveiled plans to build the world’s fastest graphics supercomputer using a process called “cloud” computing.

Global Markets

European markets ended solidly lower as the Dow Jones Euro Stoxx 50 slid 1.19% to 2486.59 and Germany's DAX lost 1.97% to 4783.89.

In Asia, Japan's Nikkei 225 declined 0.45% to 8836.80 and Hong Kong's Hang Seng fell 0.27% to 14377.44.


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