Sonntag, 28. Februar 2010

Cavuto: Get Ready for the Snow Job

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

After the snow...

Get ready for the snow job.

Here's the deal.

Folks in the Northeast digging out of another blizzard...Their third in as many weeks.

But in case you folks in less or "no" snowy areas dodged the bullet, think again.

You might have missed the snow flakes, but you haven't escaped the Washington flakes.

Because I am predicting right here, right now...That the storms pelting much of the country now are gonna cost the whole country soon.

Let me explain.

We already know that every time we get a storm, we get an economic hit as well.

People can't shop, so retail sales go down.

People can't look for homes, so home sales go down.

And a lot of folks can't get to work, so productivity goes down.

Add it all up, and a lot of economic numbers go down.

So in the next month or so...A whole slew of 'em come out and look lousy.

Now we all know the weather would have played a huge factor in those lousy numbers.

And Washington knows the weather would have played a huge factor in those lousy numbers.

Here's the difference.

We can shrug and move on.

Washington can't. And won't.

It will seize on those lousy numbers and say we need a lot more spending.

So here's my prediction.

The snow we're having now is going to trigger an avalanche of calls for more spending soon.

I predict tens of billions of bucks in more spending...At the very least.

They'll say because the economy clearly needs the boost.

We'll know it's all because of the snow.

I just worry about so many others who'll have no idea they're just getting snow'ed.

Year-end economic spurt shows signs of sputteringShaky Data Fail to Deter Bulls

Al Lewis: Tales From The Toyota Hearings

One of the strangest things about some Toyota (TM) crash victims is how they find time for phone calls.

"I thought it was my time to die, and I called my husband," Rhonda Smith of Sevierville, Tenn., told Congress on Tuesday.

She was barreling down the highway at up to 100 miles per hour with a stuck gas pedal in her 2007 Lexus 350. She said the brakes wouldn't work. Nor would throwing the transmission into neutral. So she made the call.

"I knew he couldn't help me in this particular situation, but I just needed to hear his voice," she said.

Fortunately, God stopped her car after six miles of terror, she testified.

The Sayler family from the San Diego-area received no such divine intervention. You can find their horrific 911 call on YouTube. As they raced in a Lexus toward the rim of a canyon, the Saylers called to say the gas pedal was stuck and the brakes weren't working. The call lasted 54 seconds.

"You don't have the ability to turn the vehicle off?" the 911 operator finally asked.

But it was too late.

Since these are the tales that prompted congressional hearings on Toyota, I found it odd the way U.S. Transportation Secretary Ray LaHood prefaced his testimony on Wednesday.

"One of the hallmarks of my time as Transportation Secretary has been our work on distracted driving," he said. "For all of you with cellphones and Blackberrys and other electronic devices, I want you to know that I'm on a rampage about people talking and texting while driving. .. It's a menace to society."

Unless, of course, your car has suddenly taken on a mind of its own.

"I listened to the 911 tape of the Sayler family's harrowing last moments," LaHood continued. "Mark Sayler, a California highway patrolman, died last year along with his wife and daughter and his brother-in-law when the Lexus they were driving crashed at more than 120 mph."

LaHood did not suggest that the Saylers should have been trying something else besides talking on the phone. I don't mean to suggest it, either. But people making phone calls as they are about to crash seem worthy of further examination.

Can the gas pedal, the brake, the gear shift and the ignition switch really fail all at once? And if that's the case, what's to keep a Toyota from starting itself and driving around on its own like Herbie The Love Bug?

To date, 39 deaths have been linked to sudden, unintended acceleration in Toyotas, said Edolphus Towns, chairman of the House Oversight and Government Reform Committee.

"To give that horrifying number some perspective, there were 27 deaths attributed to the famous Pinto exploding gas tank of the 1970s," he said.

Towns didn't mention that 1.5 million Pintos were recalled vs. more than 8.5 million Toyotas. But you get the idea: A Toyota is a Pinto. Or maybe a DC-10.

"If the Camry and Prius were airplanes they would be grounded," Towns said.

Into this cauldron of hyperbole and emotional accounts walked the media-shy Toyota President Akio Toyoda.

Toyoda has long been known as "prince," being the grandson of the automaker's founder. But after his royal grilling on Wednesday, he should consider changing his name to the auto executive formerly known as prince.

His emotionless, technocratic responses hinted that he will likely not be the one to restore the automaker's ravaged reputation.

Toyoda required a translator to get through the hearing, even though he received his MBA from Babson College in Massachusetts in 1982.

He also worked as a banker and consultant in both New York and London. And he served as vice president of a joint venture between Toyota and General Motors Corp. where he reportedly wanted to study the American mind.

If he didn't learn English in any of these environments, it's likely because he always had people to do things for him.

The official line has always been that Toyoda was never handed anything and worked his way to the top. I always find it amazing, when out of thousands of people battling their way through the ranks, it's somehow the grandson, who beats everyone out in the end. The one who doesn't speak English.

This clearly cost Toyoda in an arena filled with heated American-style rhetoric on Wednesday.

"Sudden acceleration?" cried Rep. Marcy Kaptur, D-Ohio. "I call it sudden-death acceleration. .. Where is the remorse?"

Maybe it got lost in the translation? It is impossible to say things like, "I feel deeply sorry for those people who lost their lives" when you talk like a boring executive reading off a boring cue card to begin with, and then you have to rely upon an even more boring translator.

Toyoda, and his English-speaking sidekick Yoshimi Inaba, who is head of Toyota's North American operations, stayed on point, expressed sorrow, apologized, promised to study and fix the problems. But they were simply unable to explain the unexplainable.

They faced off with a Congress that has accomplished nothing amid unresolved wars, a burgeoning national debt, and one of the biggest economic crises of our lives. A Congress with stakes in GM, Chrysler, and to some extent Ford Motor Co. (F).

Maybe our congressional leaders should have just asked nicely: "We bought your cars during Japan's lost decade. Will you buy our cars during ours?"

Toyota's problems are a developing story with lots of technical, financial and legal considerations. It's costing Toyota billions. So what else can anyone expect from Toyoda at this point? Hari-kiri?

Rep. Eleanor Holmes Norton, D-District of Columbia, was hoping he could at least tell her what was up with her own car.

"I drive a Camry Hybrid," she said. "So I ask you, Mr. Toyoda, is there any chance that the Camry Hybrid will be recalled?"

"As customers continue to use those vehicles, they may come up with a new finding, but ... it's 100% safe, at the moment."

(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. Contact Al at al.lewis@dowjones.com or tellittoal.com)

Two Chinese Schools Suspected in Google AttacksFormer exec Press praises Toyoda’s ‘customer-first’ focus

Samstag, 27. Februar 2010

Report: Pfizer Under Investigation for Promotion of Rapamune

Drug maker Pfizer Inc. (PFE) is reportedly being investigated by federal prosecutors in the western district of Oklahoma, according to reports.

The criminal investigation is reportedly related to the pharmaceutical behemoth’s Wyeth unit, and its promotional tactics for the drug Rapamune, according to the Wall Street Journal, which cited a regulatory filing.

Rapamune is used as an immunosuppressant agent after organ transplants in order to prevent the patient’s body from rejecting the transplanted organ.

Shares of Pfizer fell 14 cents or 0.79% in Friday’s session, closing at $17.55 a share. The stock was up 6 cents in after-hours trading.

FDA Approves Pfizer’s Improved Prevnar VaccineLifePoint beats Q4 estimates, forecast higher 2010 earnings

Report: JetBlue Halts Flights For Hour

JetBlue Airways Corp. (JBLU) said Friday that it had to halt its flights for an hour after 2:30 ET after a technological problem interrupted its schedule, according to reports.

The airline has fixed the problem with flights resuming by 3:45 ET; no flights were canceled and the company said its flight schedule was already lighter than usual as a result of the snowstorm affecting the Northeast, Reuters reported.

Shares of JetBlue rose 7 cents or 1.34% in Friday’s session to close at $5.28 a share. The stock was flat in after-hours trading.

Fluor Shares Down on Earnings Miss, Lowered ViewLifePoint beats Q4 estimates, forecast higher 2010 earnings

Freitag, 26. Februar 2010

Fluor Shares Down on Earnings Miss, Lowered View

Fluor Corp. (FLR) saw its shares slide more than 6% in trading after hours as the company lowered its full-year earnings target and reported earnings per share that missed expectations.

The engineering and construction management company cut its 2010 earnings forecast to range between $2.80 and $3.20 a share, down from earlier projections for a range of $3.20 to $3.60 per share.

For the fiscal fourth quarter, the company weighed in with earnings of $148.7 million, or 82 cents a share, compared to year-ago profit of $189.5 million, or $1.03 a share.

Revenue fell 10% to $5.48 billion, compared to sales of $6.10 billion in the fourth quarter of last year.

The results missed estimates, as the Street had expected earnings of 88 cents on $5.48 billion in revenue, according to analysts polled by Thomson Reuters.

Shares of Fluor fell 23 cents or 0.51% in the regular session on Thursday to close at $45.05 a share. The stock fell another $2.77 or 6.15% after releasing results when the market closed.

LifePoint beats Q4 estimates, forecast higher 2010 earningsForest Oil 4Q Swings to a Miss

Shaky Data Fail to Deter Bulls

There's No Business Like FOX Business

Capping off the S&P 500's best February since 1998, Wall Street squeaked out a mini rally on Friday as the bulls continue to wave off mixed signals on the tepid economic recovery, this time in the form of a surprise decline in existing home sales and a drop-off in consumer sentiment.

Today's Markets

The Dow Jones Industrial Average rose 4.23 points, or 0.04%, to 10325.26, the Standard & Poor's 500 gained 1.55 points, or 0.14%, to 1104.49 and the Nasdaq Composite picked up 4.04 points, or 0.18%, to 2238.26. The FOX 50 added 0.82 points, or 0.10%, to 798.23.

Despite the slight gains on Friday, Wall Street still ended the week in the red, breaking its two-week losing streak. But the losses -- 77 points on the Dow -- were minimal, especially considering the week's ominous economic headlines: weak consumer confidence, a record low in new home sales and a three-month high in jobless claims.

The economic picture was more mixed on Friday as an industry group said existing home sales in January unexpectedly fell and a survey showed consumer sentiment fell slightly in February but the government said the economy grew in the fourth quarter at its fastest pace in six years.

However, it's hard to put too much stock into Friday's action as trading volume on the New York Stock Exchange was extremely light, mostly due to the snow storm slamming the Northeast.

“Today is a snow day. But every time the market does better the volume tends to dry up. That really sends a pretty negative signal,” NYSE trader Ted Weisberg of Seaport Securities told FOX Business. “I think the underlying trend though remains positive.”

Half of the Dow's 30 components headed higher, led by JPMorgan Chase (JPM) and General Electric (GE). On the other hand, Kraft (KFT) and McDonald's (MCD) posted modest losses.

February proved to be a very bullish month on Wall Street as the S&P 500 soared 2.85% -- its strongest month since November and best February since 1998 -- despite renewed concerns about the sustainability of the economic recovery and worries about Greece's debt crisis infecting the global economy.

Stocks hit session lows on Friday after the National Association of Realtors said existing home sales fell 7.2% last month, halving December's 16.2% plunge but also widely missing estimates for a 1% rise. The industry group said supplies fell 0.5% and the median price was unchanged from a year ago at $164,700. However, shares of home builders such as Lennar (LEN) and KB Home (KBH) avoided a selloff and the broader markets climbed out of the red.

The ugly housing figures nearly overshadowed an upbeat, albeit backwards-looking, report on fourth-quarter gross domestic product. The Commerce Department upped its fourth-quarter GDP estimate to 5.9%, surprising analysts who had expected the government to keep its estimate at 5.7%.However, the government cut its consumer spending estimate to reflect a 1.7% rise, a concerning data point for an economy that relies on consumer spending to drive 70% of GDP.

Also on the consumer front, the Reuters/University of Michigan consumer sentiment index rose to a 73.6 reading in February, falling shy of estimates for a 74 reading and below January's 74.4 reading. However, the data did not show the same level of deterioration that this week's Conference Board consumer confidence index revealed. The current conditions index of the sentiment data jumped to the highest level since March 2008.

Manufacturing stocks performed well as the Chicago Purchasing Management Index rose in February to a better-than-expected 62.6 reading, up from 61.5 in January.

Meanwhile, commodities headed north as the U.S. dollar fell solidly against the euro. Capping off its best month since May 2009, crude oil rose $1.49 a barrel, or 1.91%, to $79.66. Gold, which slid 3.3% in February, gained $10.50 a troy ounce, or 0.95%, to $1118.30.

Corporate Movers

American International Group (AIG) posted a massive fourth-quarter loss of $9.8 billion loss, or $90.48 a share, amid heavy loan payback charges. The giant insurer that has been a headache for regulators also warned it may need more U.S. government aid.

Citigroup's (C) board of directors is slated to shrink from 17 to 15 but could see a high-profile new addition: former Mexican President Ernesto Zedillo. Citi said Zedillo will stand for election in April, when directors Michael Armstrong, Ann Mulcahy and John Deutch are set to step down.

CKE Restaurants (CKR) reached a $928 million buyout agreement with Thomas H. Lee Partners that places a 24% premium on its stock but the parent of Hardee’s and Carl’s Jr. said it will solicit higher bids for the next 40 days. Under the deal, which includes the assumption of about $309 million of CKE debt, shareholders of the restaurant operator will receive $11.05 a share in cash for each share of common CKE stock they own.

Crocs (CROX) tumbled 10% as the footwear company’s better-than-expected fourth-quarter results were overshadowed by the departure of CEO John Duerde. COO John McCarvel is set to assume the top job on March 1. Crocs beat the Street in the fourth quarter on bottom and top lines and also issued a bullish first-quarter outlook.

Global Markets

U.K.'s FTSE 100 gained 1.45% to 5354.52, France's CAC 40 rose 0.82% to 3708.80 and Germany's DAX rallied 1.20% to 5598.46.

In Asia, Japan's Nikkei 225 advanced 0.24% to 10126.03 and Hong Kong's Hang Seng jumped 1.03% to 20608.70 but China's Shanghai Composite fell 0.28% to 3051.94.

Jobless claims reflect weak recoveryNew Home Sales Drop 11.2% in January, Record Low

New Home Sales Drop 11.2% in January, Record Low

WASHINGTON--Sales of newly built single-family homes unexpectedly fell to a record low in January, according to government data on Wednesday that hinted at potential trouble for the fragile housing market recovery.

The Commerce Department said sales dropped 11.2 percent to a 309,000 unit annual rate, the lowest level since records started in January 1963, from an upwardly revised 348,000 in December.

It was the third straight month that new home sales fell and the percentage decline in January was the largest in a year. Analysts polled by Reuters had expected new home sales to increase to a 360,000 unit annual pace from December's previously reported 342,000 units.

Compared to January last year, sales fell 6.1 percent.

"It's awful. This is with the home buyer tax credit. I don't understand people who say the housing market is turning," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

U.S. stocks trimmed gains after the data, while Treasury debt prices erased gains. The dollar pared losses against the euro, but fell to session lows versus the yen.

The drop in sales last month came despite the extension of a popular tax credit for first-time buyers, which was also expanded for repeat buyers.

The $8,000 tax credit and purchases of mortgage-related securities by the Federal Reserve have underpinned the housing market recovery from a three-year slump, which dragged the U.S. economy into its worst downturn since the 1930s.

INCENTIVES END SOON

The Fed's program ends next month, while the tax incentive runs out in June, leaving a potential void in the market.

Speaking before Congress, Fed Chairman Ben Bernanke reiterated a pledge to keep interest rates at very low levels for a long time, citing a weak labor market and tame inflation.

Separate data from the Mortgage Bankers Association showed mortgage applications fell last week for a third straight week as demand home loans sank to the lowest level in 13 years.

The association blamed bad weather for the slump in home loan demand.

The Mortgage Bankers Association's index of mortgage applications, which includes both purchase and refinance loans, fell 8.5 percent in the week ended February 19.

However, the four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was up 1.6 percent. The purchase index fell 7.3 percent, the lowest level since May 1997.

In a sign of possible renewed weakness in the housing market, Commerce Department report showed the median sale price for a new home fell 5.6 percent last month from December to $203,500, the lowest since December 2003. That monthly decline reversed December's gain.

Compared to January 2009, the median sale price fell 2.4 percent. The number of new homes on the market in January rose 0.4 percent to 234,000 units last month. January's poor sales pace left the supply of homes available for sale at 9.1 months' worth from 8.0 months in December.



Jobless claims reflect weak recoveryWhite House Considering New Steps to Delay Home Foreclosures: Sources

FDA Approves Pfizer's Improved Prevnar Vaccine

Shares of Pfizer (PFE) rose Wednesday after the Food and Drug Administration approved a new version of a vaccine called Prevnar 13, which could lead to billions in additional sales for Pfizer once the vaccine heads to market.

Prevnar is given to infants and young children to protect from seven strains of bacteria. The new version will cover an additional six strains of bacteria, hence the name Prevnar 13. The new version of Prevnar covers a more virulent strain of bacteria known as 19A as one of the six additional strains the new version of Prevnar vaccinates against.

“The approval of Prevnar 13 means that infants and young children in the United States will have access to a pneumococcal conjugate vaccine that provides coverage against 13 serotypes that could potentially result in life-threatening illnesses,” says Emilio Emini, chief scientific officer of vaccine research at Pfizer. “Together, these 13 serotypes are responsible for the majority of invasive pneumococcal disease in the United States.”

Prevnar is a key new product for Pfizer, which is facing the patent expiration of its blockbuster drug Lipitor in 2011. The new Prevnar vaccine was under development by Wyeth when Pfizer decided to purchase the company for $68 billion.

According to Dow Jones, the current version of Prevnar had $2.7 billion in sales in 2008 and has been successful in reducing the number of cases of pneumococcal diseases in the U.S. since its release in 2000. It is expected that Pfizer will charge a premium for Prevnar 13 and keep Prevnar 7 on the market.

Prevnar 13 is recommended to be administered as a four-dose series to children at 2, 4, 6, and 12 to 15 months of age, Pfizer said.

Shares of Pfizer were up 1.6% to $17.95 a share on Wednesday.

Consumers cut back, but are marketers mindful?DTE Energy Reports Lower 4Q Profit, Sales

Mittwoch, 24. Februar 2010

Office Depot 4Q Loss Narrows, Shares Rise

Office-supplies retailer Office Depot (ODP) narrowed its loss in the fourth quarter as the company's sales during the holiday season were better than expected.

Office Depot said it lost $61.5 million, or 28 cents a share, compared with a loss $1.54 billion, or $5.64 a share, from a year ago. Excluding restructuring charges, the company said it lost 6 cents compared with a loss of 73 cents a year ago, as revenue fell to $3.07 billion.

The results were considerably better than the 22-cent loss on $2.97 billion in revenue that analysts had expected, according to Thomson Reuters.

Office Depot said its North America division had a modest operating profit of $2 million while the international division surged to a profit of $64 million. Same-store sales in North American markets dropped by 4%. The company cited consumers reluctance to purchase higher-margin items like furniture.

“We remain pleased with the execution of our strategic initiatives across the entire enterprise," said Mike Newman, Office Depot's CFO said in a statement.

The company said it closed eight stores in North America, opened two and relocated one during the quarter.

Shares of Office Depot advanced 3.2% to $6.86 on Tuesday.

LifePoint beats Q4 estimates, forecast higher 2010 earningsForest Oil 4Q Swings to a Miss

Report: Citi in Advanced Talks to Sell Hedge Business

NEW YORK--New York-based SkyBridge Capital is in advanced talks to purchase Citigroup Inc's (C) $4 billion hedge fund business, according to the Wall Street Journal.

Citi said last year it planned to offload billions worth of non-core assets amidst the global financial crisis and the U.S. government taking an ownership stake in the bank.

Citi is now in the process of selling about $1 billion of hedge fund investments, $2.5 billion in hedge fund assets that it advises directly, and $500 million worth of investments in small hedge funds, according to the Journal, which cited people familiar with the talks.

The Journal said that nothing had been signed and did not report a sale price.

Citi's core fund-of-fund investments were up about 21% in 2009, slightly better than average returns of hedge funds worldwide, according to the report.

The Citi team managing the $4 billion in assets is expected to keep their jobs. SkyBridge has historically taken a share of the fees the managers earn, the Journal said.

Bank failures accelerateTARP Watchdog Probes Fund Trades, Battles With US Treasury

Dienstag, 23. Februar 2010

RadioShack 4Q Earnings Narrowly Beat the Street

RadioShack Corp. (RSH) reported fourth-quarter earnings per share that narrowly beat expectations and weighed in with revenue in-line with the Street’s view.

The company said fourth-quarter profit rose to $75.7 million or 60 cents a share, up from year-ago earnings of $60.1 million or 48 cents a share. Revenue rose 4.7% to $1.32 billion, up from revenue of $1.26 billion in the fourth quarter of 2008.

The results narrowly beat expectations; analysts polled by Thomson Reuters had forecast earnings of 59 cents per share on revenue of $1.32 billion.

Same-store sales improved 6.1% at company-owned stores, while gross margin improved to 43.9%, up from 41.8% in the year-ago quarter.

The electronics retailer, which recently repositioned its branding, was pleased with the results.

"In 2009, we leveraged our financial and operational strength to relaunch our brand, focusing more clearly on our leadership in the areas of mobility and innovative technology, supported by our skilled and helpful associates and our network of convenient locations,” said RadioShack Chairman and Chief Executive Officer Julian C. Day in a statement. “These brand-building efforts resonated with consumers and our vendor partners."

Shares of RadioShack rose 27 cents or 1.33% ahead of the bell on Monday, closing at $20.63 a share. The stock was down 71 cents or 3.44% in trading after hours.

Anadarko Petroleum Beats Estimates, but Profit SlipsLifePoint beats Q4 estimates, forecast higher 2010 earnings

Forest Oil 4Q Swings to a Miss

Forest Oil Corp. (FST) reported fourth-quarter results that missed the Street’s view, sending shares lower after the market closed, Monday.

The energy company saw fourth-quarter profit of $45.2 million or 40 cents per share, up from a loss of $1.38 billion or $14.50 a share in the year-ago period.

Adjusted earnings improved to 56 cents a share, up from 32 cents a share in the fourth quarter of last year. Revenue fell to $214.4 million, compared to revenue of $282.0 million, a year ago.

Analysts polled by Thomson Reuters had forecast earnings of 60 cents per share on revenue of $257 million.

"Looking forward to 2010, we expect to grow our production organically from our more focused asset base at an expected rate of 10--12%, while maintaining one of the lowest cost structures in the industry," said H. Craig Clark, President and CEO, in a statement.

Shares of Forest Oil fell 87 cents or 3.22% during the regular session on Monday, closing at $26.14 a share. The stock was down another 5 cents in after-hours trading.

Dell sees signs of optimismAnadarko Petroleum Beats Estimates, but Profit Slips

Montag, 22. Februar 2010

DTE Energy Reports Lower 4Q Profit, Sales

DTE Energy Co. (DTE) reported sales that missed expectations, while earnings per share were in-line with the Street’s view.

The Michigan-based energy company said it expects 2010 operating earnings in the range of $3.35 to $3.75 a share, in-line with analyst expectations for $3.41 a share, according to a poll by Thomson Reuters.

For the fourth quarter, the company reported earnings fell to $120 million or 72 cents a share, compared to profit of $129 million or 79 cents a share one year ago.

Revenue fell to $2.12 billion, compared to year-ago sales of $2.17 billion. Analysts had projected earnings of 72 cents a share on revenue of $2.54 billion.

"During 2010 our focus on continuous improvement will allow us to efficiently invest capital to meet renewable and environmental regulations,” said Anthony F. Earley Jr., DTE Energy chairman and CEO, in a statement. These investments will be a catalyst for bringing new jobs to Michigan while ensuring clean, reliable and affordable energy for our customers."

Shares of DTE rose 2 cents or 0.04% to close Monday’s session at $44.62 a share; the stock was up another 38 cents in after-hours trading.

LifePoint beats Q4 estimates, forecast higher 2010 earningsAnadarko Petroleum Beats Estimates, but Profit Slips

Continental Airlines Cutting 600 Jobs - Report

Continental Airlines (CAL) will reportedly cut 600 jobs from its reservations centers, the Houston Chronicle reported Monday, with more than half of those cuts happening in the Houston area.

The newspaper reported that Continental would cut the 600 jobs as phone reservations continue to decline in popularity as passengers turn more toward Internet bookings. Continental is also not renewing a reservation contract with Walt Disney Co. (DIS) regarding its resorts, which the newspaper estimates makes up approximately 100 of the jobs being cut.

The other positions Continental intends to cut will happen in the Salt Lake City metropolitan region, the Chronicle reported.

Continental plans to offer early-retirement packages to employees who worked 10 years or more with the airline and severance packages or others losing their jobs. The cuts are expected to take place in early April, the newspaper reported.

Shares of Continental were up 1.3% in Monday trading to $20.15.

Nashville’s general aviation firms see end to downturnChile President-Elect Pinera Taps Felipe Larrain For Fin Min -Report

Sonntag, 21. Februar 2010

As Tiger Speaks, Wall Street Listens

Even Wall Street couldn’t turn away from the surreal Tiger Woods press conference on Friday, with traders on the New York Stock Exchange focusing on the televised apology as trading volume slowed.

Woods, who told the world he will return to golf but isn’t sure when, also appeared to impact individual stocks. Nike (NKE), the sponsor most closely tied to the sports legend, saw its stock pare its losses after the statement. Shares of Nike, which said in a statement it “fully supports” Tiger, were recently flat at $64.40, off its low of $64.01.

Video game publisher Electronic Arts (ERTS) saw a more pronounced bump, with its stock jumping from near-session lows of $16.50 before the 11:00 a.m. EST press conference to session highs of $16.87 in afternoon trading. EA Sports, which makes “Tiger Woods PGA Tour,” released a statement from its president, Peter Moore, saying: “"Our strong relationship with Tiger, for more than a decade, remains unchanged.”

The Tiger saga took away from the day’s “real” market news: the Federal Reserve’s decision to boost the discount rate, its first step in removing the easy-money punchbowl flooding the financial system.

“I suspect that Tiger’s news conference today will get more attention than the Fed move on rates last night,” Peter Kenny, managing director at Knight Capital Group, wrote in a note ahead of the press conference. “Not just because the Fed move was inevitable but because the futures have already priced in yesterday’s rate hike -- it’s yesterday’s news already. Tiger is so today.”

Nick Kalivas, vice president of financial research at MF Global, echoed that Tiger sentiment, saying of the press conference, “I think everyone was watching it. I know we all were."



Waste Management Posts 44% Increase in 4Q ProfitNew farmers grow knowledge at Chattanooga conference

White House Considering New Steps to Delay Home Foreclosures: Sources

The Obama Administration is considering new steps to delay and prevent foreclosures as it seeks to qualify more struggling homeowners for its major mortgage modification program, financial industry sources said.

The possible next moves would create numerous new policies and procedures for banks, investors and mortgage servicing companies that participate in the Administration’s $75 billion Home Affordable ModificationProgram [HAMP], which provides financial incentives to them – and homeowners -- to modify loans.

Among other things, some of the changes could for the first time mandate foreclosure moratoriums for periods of several months, one source briefed on them said.

Currently, companies will often voluntarily suspend foreclosure proceedings against a delinquent borrower while they are evaluating the homeowner’s HAMP application or it they have approved the homeowner for a 90-day trail mortgage modification in HAMP. But they are under no legal requirement to suspend proceedings.

If approved, the changes could provide new relief to some homeowners seeking help under HAMP. But mortgage holders and investors – including banks, pension funds and investment funds --are concerned the changes could delay legitimate foreclosures, the source said.

“It’s all draft, but it’s pretty far along,” the source said.

Herbert Allison, the assistant Treasury Secretary who oversees HAMP, declined to comment on any possible revisions to the program. But he said, “We are continually assessing HAMP and looking at ways of improving it. As we refine those, we make announcements from time to time. I’m not making any announcements today, but I can assure you we are actively looking at all aspects of our program continuously.”

The Administration proposals would also:

--impose new definitions of “reasonable solicitation efforts” by servicers, including forcing them to make at least four phone calls to a delinquent homeowner over at least 31 days about HAMP and to also mail them two written notices about the program, with at least one notice sent by certified mail with a return receipt.

--create a new 30-day “borrower response period” for many homeowners who are turned down for HAMP during which a servicing company could not complete a sale of a foreclosed property.

--require servicers to certify in writing that a borrower is not eligible for HAMP before a foreclosed property can be sold.

When the Administration announced HAMP in February, it said it would help three million to four million struggling homeowners. But through January, banks and servicers have granted 90-day “trial” modifications to about a million homeowners -- but granted “permanent” modifications for up to five years to just 116,000 applicants. So far, most modifications – temporary or permanent – involve a reduction of the interest rate on a loan to as low as 2%.

Meantime, a record 2.8 million properties entered the foreclosure process in 2009, up 21% from 2008 and more than double the number in 2007, according to RealtyTrac. Analysts and consumer advocates predict millions more homes will go into foreclosure this year because of continued high unemployment. Consumer and housing advocacy groups have urged the Administration and Congress to take more aggressive action.

HAMP is one of several Administration housing efforts. Treasury has continuously refined it; last month, the department announced new steps to assure applicants provide servicers with all necessary paperwork. The Administration says HAMP is on track to meet its objectives by 2012.

Mortgage aid goes to 12 percent of those who seek itFSA Bans Mortgage Broker For Incompetence, Mortgage Fraud

Samstag, 20. Februar 2010

Honeywell Backs 2010 Outlook

Honeywell (HON) reaffirmed its 2010 financial guidance, projecting sales of $31.3 billion to $32.2 billion and earnings per share of $2.20 to $2.40.

The company also backed first-quarter sales guidance of $7.2 billion to $7.6 billion. Honeywell updated its first quarter EPS guidance to 40 cents to 45 cents, which had previously included a negative impact from proposed healthcare legislation.

"The outlook for Honeywell is bright," said Honeywell chairman and chief executive Dave Cote. Cote also said that the company has been investing in new products and technologies, maintained research and development investment, expanded its region presence, and made further advancement in its key process initiatives.

“This focus allows us to build on our technology differentiation and expand our global footprint,” said Cote. “Today, we are building off a much stronger base that will enable us to drive significant growth over the next five years."

Honeywell will hold its annual investor conference on Monday. Strategies for its businesses and major markets, as well as its long-term growth outlook, will be discussed.

Honeywell, based in Morris Township, N.J., provides customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials.

Early-Market Movers: China Agritech, Novavax IncDell sees signs of optimism

Two Chinese Schools Suspected in Google Attacks

The New York Times is reporting that the recent online attacks on Google (GOOG) and on other American corporations have been traced to two computers at schools in China.

The two schools in question are Shanghai Jiaotong University and the Lanxiang Vocational School, according to anonymous sources of the newspaper.

Jiaotong touts one of China’s top computer science programs. Lanxiang is a vocational school that was founded by the military and trains computer scientists for the military.

Google first announced on Jan. 12 that it and other companies were the targets of computer hijacking which were believed to be from China. The attacks, which were intended to steal trade secrets and computer codes and also the e-mail of Chinese human rights activists, may have begun in April --- months earlier than originally thought.

Only until recently, the investigation had led the National Security Agency to Taiwan.

Spokesmen for the Chinese schools said that they were unaware that American officials traced the hacking to the schools.

According to an interview with a professor of Jiaotong’s School of Information Security Engineering in the Times article, it is common for students to hack into foreign Web sites.

“I believe there’s two kinds of situations,” the professor said in the article. “One is it’s a completely individual act of wrongdoing, done by one or two geek students in the school who are just keen on experimenting with their hacking skills learned from the school, since the sources in the school and network are so limited. Or it could be that one of the university’s I.P. addresses was hijacked by others, which frequently happens.”

Soon after Google announced its claim, Secretary of State Hillary Rodham Clinton confronted China with a speech on Internet censors, specifically on its control of open access.

An unknown flaw in Microsoft’s (MSFT) Internet Explorer allowed hackers access to Google’s servers. A technique called man-in-the-mailbox was utilized in the takeover of the company’s servers. After taking over a computer, the attackers insert a digital attachment into an e-mail message in which the recipient is likely to open, thus allowing the attackers access to the desired computer.

Search narrows for land for new Franklin schoolEarly-Market Movers: China Agritech, Novavax Inc

Freitag, 19. Februar 2010

Al Lewis: Spreading Germs And Disease At The Toy Fair

Mattel Inc. (MAT) CEO Robert Eckert and I have a slight difference of opinion when it comes to toys.

His pick at the 107th Annual Toy Fair in New York City this week was the Fisher-Price iXL.

"This is a fabulous device," he bellowed. "It's an e-book, it's a photo album, it's a game player, it does music, it's a notepad, it's an art studio."

He was so excited because some media pundits had already begun calling it "an iPad for 3-to-6 year olds."

Now ask yourself this: Why does a 3-year-old need an iPad? Isn't this a bit like giving your kid an early case of attention deficit disorder?

I would rather give my kid swine flu, or salmonella, or E. coli, or mad cow disease or some flesh-eating virus.

And thanks to a toy maker called Giantmicrobes Inc., Stamford, Conn., I can do just that. The company makes stuffed animals resembling just about every kind of microscopic bug you can name. It even offers a full line of STDs, including gonorrhea, herpes and chlamydia.

The photo on the Giantmicrobes box claims the toys inside are one million times actual size--but I know how misleading these claims can be. "It's creative license," acknowledged David Callahan, the company's director of sales. "Some of them are 32 million times actual size."

The plush germs, viruses and bacteria launched by former Harvard Lampoon editor Drew Oliver in 2002 are a big hit with medical students. But kids love them, too.

"It's not a toddler item," Callahan conceded. "The lowest threshold age, I think, is 6, and that's for a really smart kid. Eight is a little more of our sweet spot, and by 10 they're hooked."

Jeepers. Creepers. I am old enough to remember when kids this age got hooked on more wholesome things like Donny Osmond.

The former teen-idol, in case you didn't know, is now the reigning champion on ABC's "Dancing with the Stars."

His pick for best toy at the fair was a plush, robotic thing called "Dance Star Mickey," by Mattel's Fisher-Price and the Walt Disney Co. (DIS). He actually challenged the real Mickey to a dance contest at the Toy Fair to help launch the product.

"What I just did, every kid on the planet would love to do," Osmond boasted after the showdown. "And that is dance with Mickey Mouse. Obviously, every kid on the planet cannot do what I just did. So if you can't have the real thing, Fisher-Price has come up with the next best thing."

Personally, I prefer typhoid, malaria and even Ebola by Giantmicrobes. And if you really want to watch someone dance, why not just mail them a cute, little, fluffy white anthrax spore?

I shook the hands of both Osmond and Eckert to sort-of congratulate them on their toy picks, even though they were both horribly conflicted by obvious profit motives. And I'm not sure which of these celebrity encounters was a bigger thrill.

"Do you know what?" Eckert said when I told him Osmond might have been more enthralling. "He's younger than I am."

Osmond is 52 and looks 15. Eckert is 54 and looks 54. But that's pretty good for a guy who used to be CEO of Kraft Foods Inc. (KFT) and president of its Oscar Mayer division, and remains a director at McDonald's Corp. (MCD), and probably ate enough of this highly processed corporate cooking to give him a Giantmicrobe or two.

I thought about sending Eckert down to see a toy company called Bluw, where I had tried out a blow-up walker and an oxygen tank, designed to lampoon all those old people who are now threatening to bankrupt our country with all their costly Social Security and Medicare entitlements.

Toys that make fun of geriatrics are big sellers, said the company's founder, Charlie Rudge, a London-based novelty product designer.

"We sold over a million units of these," he said, showing me a "Racing Grannie," a windup toy resembling an old lady pushing a walker.

This is the kind of idea that would never occur to a giant company like Mattel or Disney, even though Mickey Mouse is an octogenarian. Nor would they ever think of dangling their characters from the blades of a ceiling fan.

Pittsburg mom-trepreneur Anne Zacharias came to the Toy Fair to launch her new product called, Fandangling. It's a bunch of plush toys you hang from ceiling fans and let your babies watch them spin. Wee! (See it at www.fandangling.com).

"It's kind of like a big mobile without having to have to wind it," Zacharias said.

But don't try hanging just any plush toy from your ceiling fan. Each had to be carefully balanced so as not to throw the fans off kilter, which can overheat their motors and burn them out.

Another product I liked at the Toy Fair was called "Shield It All" by Brooklyn entrepreneur Terry McTigue.

McTigue told me his computer cleaning products company took a nose-dive because, apparently, in a recession, companies don't clean their computers so much. They just let the germs from their remaining employee's filthy hands build and build on the keyboards, spreading even more misery and despair.

The toy industry, however, continues to do well. So McTigue came up with a product to clean and protect toys from microbial deposits. It's a hydrogen-peroxide and polymer-based solution that seals up all the tiny pores on a toy surface where mold, mildew and bacteria might collect.

"It's especially good for nurseries," McTigue said, "or the pediatrician's office where one kid is sicker than the other and they are playing with all those toys...It cleans down to the molecular level and there's nothing left behind."

So I told McTigue about my favorite toy of the show: The anthropomorphized bugs made by Giantmicrobes.

"Little stuff animals?" McTigue said, furrowing his brow. "Unbelievable."

Yeah, I agreed, they are unbelievable, and if you were to spray them with this stuff, they'd be ruined.

Hungary’s Small Firms To Recover On Foreign Demand - MinisterBusiness briefs: Chrysler won’t fight arbitration

Financial Reform Bill Seen Next Week in Senate

WASHINGTON/PANAMA CITY--Efforts to tighten U.S. financial regulation advanced on Thursday, with a new bipartisan bill expected next week from two key senators who were working on it while traveling together in Panama.

Senate Banking Committee Chairman Christopher Dodd, a Democrat, and Republican Senator Bob Corker, a first-term member of Dodd's panel, told reporters they were discussing legislation while touring several Central American nations.

Both are members of the Foreign Relations Committee, as well, and the tour is unrelated to financial reform, but they said they were using the time to keep talking about the issue, one of the highest priorities of the Obama administration.

"We're both optimistic that we can work something out that would be a major reform of our financial services sector," Dodd said at a news conference at the U.S. Embassy in Panama. "We're not there yet, but we're working at it."

The Dodd-Corker talks are giving new momentum to an initiative that faltered last month when talks broke down, after months of frustrating back and forth, between Dodd and Senator Richard Shelby, the committee's top Republican.

Corker defied Senate seniority tradition last week by stepping into the breach left by the impasse with Shelby. Since then, Dodd and Corker have been making progress toward a bipartisan agreement, said Dodd spokeswoman Kirstin Brost.

"We're working with Corker and hope to have a revised bill to present next week," she said, adding that the banking committee was targeting a working session on the legislation, which could bring it to a vote, for the first week of March.

Corker said in Panama that talks with Dodd were advancing. "We haven't had quite as much time to talk about it as everybody might think," he said. "But I know our staffs are talking ... We're going to get to where we need to be."

At the same time, amid doubts that Corker will be able to win wide support from party colleagues for whatever he and Dodd produce, other Republicans on the panel were developing substitute legislation of their own, Senate aides said.

CONSUMER WATCHDOG AT ISSUE

While details were still being discussed, Republicans remain deeply opposed to a Democratic proposal to create an independent financial consumer watchdog agency. Proposals and counter-proposals on the matter have resulted in a deadlock.

Other disputed topics include how much power to give a new systemic risk regulator, and whether to give shareholders more say on executive pay and electing corporate directors.

Separately, top White House economic adviser Lawrence Summers said in a CNBC television interview that it was crucial for Congress to move quickly on regulatory reform.

The U.S. House of Representatives in December approved the biggest crackdown in bank and capital market oversight since the 1930s. "We're certainly pushing the Senate to act as rapidly as it can," Summers said. "Unfortunately, the hundreds of lobbyists -- three for every Congressman -- that many in the financial industry have hired ... slowed down this process."

Policy analysts have been expecting a regulatory reform bill to emerge from the banking committee and move to the Senate floor this spring, possibly in late March or April.

If the Senate approves a bill, final House-Senate compromise legislation could be on President Barack Obama's desk by mid-year, said analysts and lobbyists.

MORE THAN A YEAR AFTER CRISIS

Regulatory reform has been working its way slowly through Congress for more than a year, with the aim of preventing another crisis like the one that saw the collapse in 2008 of Lehman Brothers, government-led mergers of Bear Stearns and Merrill Lynch, and bailouts of many financial firms.

A draft reform bill unveiled by Dodd in November was immediately rejected by Republicans, and he and Shelby eventually came to an impasse over Obama's proposal to create a new agency to regulate consumer financial products.

Corker, like Shelby, has ruled out a stand-alone agency, but will consider new consumer protection powers within a larger regulator, a compromise that Democrats have discussed. Differences remain on how extensive those powers should be.

Obama complicated negotiations last month by calling for limits on banks' proprietary trading, barring them from the hedge fund business, and curbing their growth -- dubbed the 'Volcker rule' after White House economic adviser Paul Volcker.

Banking committee members are considering adding to their legislation a watered-down version of 'Volcker rule' that might only require stronger supervision of banks involved in such activities, said sources close to the panel.

Volcker said on Thursday he hopes financial reform will overcome partisan bickering, but that it is not a "sure shot."

Bernanke slammed, but wins 2nd termFed’s Bullard: Central Bank Needs More Regulatory Power

Donnerstag, 18. Februar 2010

AIG to Keep Up to 25% of Derivatives Portfolio

American International Group (AIG) intends to keep up to a quarter of a derivatives portfolio from its Financial Products unit, which was behind the insurer's near collapse, a spokesman said on Wednesday.

AIG will keep derivatives with $300 billion to $500 billion in notional value as it unwinds positions at AIG Financial Products. AIG Financial Products will cease to exist, and either AIG or an external party may manage the positions that remain.

AIG wants to keep those positions because they have been de-risked and promise an upside as the markets improve, the spokesman said.

AIG Financial Products has cut outstanding trades to a notional value of $940 billion from about $1.9 trillion in September 2008 and contracts to 16,100 from 44,000.

In a February 2009 interview, Gerry Pasciucco, the unit's chief operating officer, said it was possible some assets better suited to a "run-off scenario" may linger on the firm's books beyond 2009, but were expected to be few in number.

AIG will keep derivatives with $300 billion to $500 billion in notional value as it unwinds positions at AIG Financial Products. AIG Financial Products will cease to exist, and either AIG or an external party may manage the positions that remain.

AIG wants to keep those positions because they have been de-risked and promise an upside as the markets improve, the spokesman said.

AIG Financial Products has cut outstanding trades to a notional value of $940 billion from about $1.9 trillion in September 2008 and contracts to 16,100 from 44,000.

In a February 2009 interview, Gerry Pasciucco, the unit's chief operating officer, said it was possible some assets better suited to a "run-off scenario" may linger on the firm's books beyond 2009, but were expected to be few in number.

Report: Metlife, AIG Deal May be Paused by Tax DisputeBanks ramp up lobbying in second half of 2009

January Producer Prices Rise More Than Expected

WASHINGTON--U.S. producer prices rose faster than expected in January as higher gasoline prices and unusually cold temperatures helped boost energy costs, a government report showed on Thursday.

The Labor Department said the seasonally adjusted index for prices paid at the farm and factory gate rose 1.4 percent, following a 0.4% rise in December.

Analysts polled by Reuters had expected producer prices to increase 0.8% last month. Compared to January last year, producer prices increased 4.6%, the largest advance since October 2008. Markets had expected producer prices to increase 4.4% versus a year ago. It was the third consecutive 12-month increase.

The Labor Department said about three-fourths of the increase in PPI last month was due to a 5.1% jump in prices for energy goods. Energy costs were pushed up by a spike in prices for gasoline, liquefied petroleum and home heating oil.

Strong energy prices overshadowed a slowdown in the food prices, which rose 0.4% after increasing 1.3% in December.

Stripping out the volatile food and energy costs, core producer prices rose a faster than expected 0.3% last month after being flat in December. The core index had been forecast to rise 0.1% in January.

Investors are keeping a wary eye on inflation following massive efforts by the Federal Reserve to pull the economy out of its worst slump since the Great Depression of the 1930s. Low capacity utilization and a weak labor market are, however, keeping inflation pressures in check.

Core prices last month were lifted by a 1.9% surge in the index for light motor trucks.

The core producer price index rose 1% measured on a year-on-year basis, versus a forecast for a 0.8% gain

Condos propel increase in Nashville-area home salesChicago Fed: Midwest Factory Output Edged Lower In December

Mittwoch, 17. Februar 2010

Report: Metlife, AIG Deal May be Paused by Tax Dispute

The pending $15 billion sale of a unit of American International Group ( AIG) to MetLife (MET) may be pushed back by a tax dispute that may require a ruling from the Internal Revenue Service, the Wall Street Journal reported.

The paper, quoting people familiar with the matter, said the problem was a dispute about whether AIG's unit American Life Insurance Co (Alico) will remain exempt from a 2004 IRS ruling.

The ruling requires insurers to withhold U.S. taxes on income distributed to foreign clients who own their annuities and life-insurance products, the paper said.

Alico, which sells life insurance and retirement products to 19 million customers in 54 countries, has considered itself exempt from the IRS ruling since it earns more than 80% of its income overseas, the paper said.

The government-controlled insurer has asked the IRS for a "private letter ruling" to confirm its interpretation that Alico is exempt from the U.S. tax-withholding requirement, the Wall Street Journal cited sources as saying.

It said the tax issue could put the Department of the Treasury, as overseer of the Internal Revenue Service, in an awkward situation.

Treasury officials have told AIG that the company won't get any special treatment from the IRS, the paper said.

However, AIG officials do not believe a sale would stick MetLife, the largest publicly traded U.S. life insurer, with a big tax liability, the paper said.

AIG, Metlife and IRS could not be reached for comment.

Early-Market Movers: SkillSoft, Buffalo Wild WingsLong-term care insurance bill’s prospects diminish

Pacer Swings to 4Q Profit

After three consecutive quarters of losses, Pacer International (PACR) posted a fourth-quarter profit before Wednesday's opening bell.

The freight transportation provider weighed in with net income of $10 million, or 29 cents a share, for the quarter, compared with a loss of $64 million, or $1.83 a share, a year ago.

The company cited lower costs for the profit increase.

Revenue dropped nearly 18% to $420.2 million for the quarter from $510.3 million.

"Though the economic environment in the fourth quarter continued to suppress demand and pressure margins, we took additional substantial steps toward sustained profitability while reducing debt by $31.5 million during the fourth quarter," CEO Brian Kane said in a statement.

"We returned to positive operating income and cash flow in the second half of the year and we have significant availability under our amended credit agreement."

The company entered into new multi-year agreements with Union Pacific (UNP) in the quarter to transport domestic big box shipments secured by Pacer for transportation by Union Pacific. The deal brought in a cash payment of $30 million and a gain of $17.5 million in other income was also recorded from the deal.

Shares of the company were trading up nearly 11% in early trading Wednesday, at around $3.35 per share.

Anadarko Petroleum Beats Estimates, but Profit SlipsRegions loses $606 million, says loan problems are easing

Dienstag, 16. Februar 2010

Euro Zone Gives Greece 30 Days to Show Good on Deficit

Euro zone states urged Greece on Monday to announce more deficit-control steps by mid-March if needed, but said nothing new of last week's pledge to defend the country if debt market pressures spin out of control.

At talks among finance ministers, Greece asked the euro zone to bear with its fiscal plans as announced, and warned that last week's offer of support by EU leaders may not be enough to stem a debt market squeeze on governments in the region.

Greece is the first country in 11 years of European monetary union to require such a pledge after fears over its bloated debt sparked a market attack that drove bond yields up and the euro down, fuelling government fears of a broader market shutout.

"Financial markets are completely wrong if they think they can destroy Greece," Jean-Claude Juncker, Luxembourg's prime minister and chairman of the finance ministers' meeting in Brussels, told a news conference.

He and others went to lengths to say Greece had 30 days to prove its plans were off to a convincing start and he said that Athens could count on unspecified support if that was not the case and markets refused to give it breathing space.
Greece's Socialist government is fighting an uphill struggle to get its finances in order, restore credibility in other capitals and financial markets alike, and prove that the data it publishes on its economy is no longer what Swedish finance minister Anders Borg described as "basically fraudulent".

"What happened today is a clear reaffirmation of the ambitious, audacious and extremely new Greek plan to address and tackle the issue of excessive deficit," French finance minister Christine Lagarde told reporters.

Greece would have to prove on a day-to-day basis between now and March 16 that it was on track and, if short of the mark, come up with proposals for further measures to meet its target of a four-percentage-point cut in the deficit this year.

"If risks to Greece's deficit targets materialize, then Greece will announce additional steps by mid-March," said European Monetary Affairs Commissioner Olli Rehn.

Greek Finance Minister George Papaconstantinou defended his government's plans to slash the public deficit from 12.7% of gross domestic product to less than three percent by 2012, starting with the four-point cut in 2010 that has sparked strikes over civil service pay cuts and planned pension curbs.



Health provider database lacks disciplinary recordsECOFIN:Germany’s Schaeuble To Skip ECOFIN Meeting Tuesday

Waste Management Posts 44% Increase in 4Q Profit

Waste Management (WM) reported a 44% increase in profit in the fourth quarter, topping Wall Street's expectations,thanks to higher recycling prices.

The biggest U.S. trash hauler reported its fourth-quarter net income rose to $315 million, or 64 cents per share, compared with $218 million, or 44 cents per share, in the same period a year ago.

The company's board also approved an 8.6% increase to the annual dividend, to $1.26 per share.

Revenue declined 3.3% in the quarter to $3.01 billion, compared with $3.11 billion a year ago. Analysts were expecting revenue to come in at around $2.95 billion.

“We saw encouraging signs of improvement in the fourth quarter," said CEO David Steiner in a statement. "Average recycling commodity prices continued to increase each month in the fourth quarter, and have almost doubled from the lows reached in January 2009."

Average recycling commodity prices jumped nearly 20% in the quarter.

The company forecasted its full-year 2010 earnings will increase to a range of $2.09 to $2.13 per diluted share.

"As we look to 2010, we expect the rate of decline in volumes to continue to show improvement during the first half of the year, and we expect volumes for the second half of the year to be flat to slightly positive," Steiner said.

Shares of the Houston-based company were trading 2.6% higher in early trading, at around $32.68.

Regions loses $606 million, says loan problems are easingAnadarko Petroleum Beats Estimates, but Profit Slips

Montag, 15. Februar 2010

ECOFIN:Germany's Schaeuble To Skip ECOFIN Meeting Tuesday

BRUSSELS -(Dow Jones)- German Finance Minister Wolfgang Schaeuble will miss the monthly meeting of EU Finance Ministers Tuesday, a government spokesman told Dow Jones Newswires.

The spokesman said Schaeuble would return to Germany late Monday evening for personal reasons, after a meeting of the 16 ministers whose countries use the euro. He didn't elaborate. State Secretary Joerg Asmussen will take Schaeuble's place at the meeting Tuesday.

Schaeuble arrived earlier in Brussels to discuss, among other things, whether the 'euro group' would require Greece to make additional budget savings beyond those outlined in a recent report to the EU Commission.

Arriving for the talks, Schaeuble said the ministers would also discuss how the European Central Bank and International Monetary Fund could play a role in helping Greece, together with the EU's executive commission.

Greece's debt problems have shaken international financial markets' confidence in the euro in recent weeks, driving it down over 10% from the high it posted in November 2009. The same concerns have also led to worrying increases in the bond yields of other members of the euro zone, such as Portugal and Spain.

As reported, Greece's deficit hit an estimated 12.7% of gross domestic product last year, over four times the limit allowed by the EU's Stability and Growth Pact. However, it is not only the size of the deficit, but also revelations of habitual deceptions and data falsifications by the Greek authorities over the last decade, that have forced its EU partners to act.

Copyright 2009 Dow Jones Newswires

Nashville Business CalendarGerman Finance Minister: No Self-Supporting Economic Upswing Yet

FSA Bans Mortgage Broker For Incompetence, Mortgage Fraud

LONDON -(Dow Jones)- The Financial Services Authority, or FSA, said Monday it has banned Walthamstow mortgage broker Kevin Byrne for lacking the integrity and competence to prevent his business being targeted by mortgage fraudsters.

MAIN FACTS:

-FSA revealed Byrne accepted mortgage referrals from an introducer but failed to undertake due diligence or any basic checks on client information supplied by the introducer.

-Byrne submitted seven mortgage applications containing false and misleading information; in fact at least one of the customers did not exist.

-Byrne was also found to have certified a number of supporting documents, despite never having seen the originals.

-Byrne was the only adviser at Forest Financial, which was authorized by the FSA to arrange mortgage contracts on behalf of consumers.

Copyright 2009 Dow Jones Newswires

UPDATE:FTC’s Leibowitz Seeks More Powers To Protect ConsumersSwaths of Middle TN feel mortgage stress

Sonntag, 14. Februar 2010

U.K. PM Brown: Redoubling Efforts On Global Bank Levy

LONDON -(Dow Jones)- With British banks expected to pay out large bonuses in coming weeks, Prime Minister Gordon Brown said Saturday he was redoubling his efforts to win backing for a global levy on banks.

With his Labour Party facing a tough re-election battle in coming months, Brown said in his weekly podcast broadcast Saturday evening, "I'm sure you also share my anger with some of the banks.

"I can tell you also that I am working very hard with international colleagues--including talks this week at the European Council--to find agreement on a global bank levy to make sure that in the future the contribution banks make is properly captured," he said.

Brown said it was crucial that any bank tax was global. He said he wants to see an end to "tax avoidance by financial institutions that happens when they play off one country against another."

Last November, Brown swung behind the idea of some kind of global tax on banks and has pushed the issue hard since then. U.K. officials recently organized a seminar in London on the issue, and Brown said earlier this week he believes a global bank tax could be agreed upon soon.

The opposition conservatives have also said they would back a global levy on banks to ensure banks pay their share of any future crisis. They have also backed a crackdown on bankers' bonuses.

In the podcast, Brown recounted the measures already taken against excessive bonuses in the U.K., saying his government already had the "toughest rules" on bank pay in the world. And he reiterated that higher-than-expected revenue from Britain's one-off tax on bankers' bonuses would be used to cut the budget deficit and fund youth unemployment programs.

Brown also struck an optimistic note on the U.K. economy which emerged from a deep and protracted recession in the final months of 2009. With a general election due by June 3, he said that "after the challenges we have faced together in the last 18 months, I believe we can now feel optimistic and enthusiastic about what lies ahead."

A ComRes poll for the Independent on Sunday, however, showed that despite making up some ground in recent months, Brown's Labour Party still faced any uphill struggle to secure its fourth straight election win. The poll showed the Conservatives' lead back up to 11 points from seven points in the last ComRes poll for the Independent on Feb 2.

The telephone poll of 1,009 voters showed that if an election were held immediately, the Conservatives would get 40% of the vote, Labour 29% and the Liberal Democrats 21%.

The poll also showed significant voter alienation from politics following the parliamentary expenses scandal and the recession. The poll showed that only 44% said they were "absolutely certain" to vote compared with 56% at this stage before the 2005 election, which itself saw a relatively low turnout.

Copyright 2009 Dow Jones Newswires

New UK Poll Shows Conservatives With 9-Point LeadBank failures accelerate

Japan, Australia To Sign Military Logistics Pact-Nikkei

TOKYO (Nikkei)--Japan and Australia have informally agreed to adopt a framework that would enable Japan's Self-Defense Forces and Australian military forces to provide food, fuel and other logistical support to each other during peacekeeping operations, disaster-relief missions and other activities, the Nikkei reports in its Sunday edition.

It would be Japan's second Acquisition and Cross-Servicing Agreement, after the one signed with the U.S. in 1996. In 2004, the scope of that pact was expanded to include ammunition supply.

The talks will enter the final stage when Foreign Minister Katsuya Okada visits Australia on Feb. 20-21.

Copyright 2009 Dow Jones Newswires

Obama Urges More Action, Less Politics, To Reduce DeficitMiddle TN business bankruptcies

Samstag, 13. Februar 2010

Calendar of Junk Debt: Bombardier Inc $1 Billion Senior 2-Part Notes

==========High-Grade Debt Week Of February 15================

Fannie Mae: Three- and six-month benchmark bills are auctioned on a weekly basis. One-year bills are auctioned once a month. Every Monday, an announcement is made and on Wednesday the auctions are held. Settlement usually scheduled for Wednesday or Thursday.

Freddie Mac: Three- and six-month benchmark bills are auctioned on a weekly basis. One-year bills are auctioned once a month. Every Friday, an announcement is made and on Monday the auctions are held.

=========Investment-Grade Debt On The Horizon============

There are no issues firmly scheduled.

============== Pending High-Yield Issues ================

Bombardier Inc. - $1 billion in of senior notes in 2 parts, incluing 8- and 10-year maturities, both noncallable for life, via joint lead managers JP Morgan, Deutsche Bank and UBS. Pricing expected: N/A.

Chaparral Energy - $400 mln in 5-year notes in two parts. Via UBS. Pricing expected: N/A.

Community Education - $210 million in senior secured 6-year notes. Via Jefferies. Pricing expected: N/A.

=============High-Yield Debt On The Horizon=============

Bioscrip - $225 million in senior notes. Via Jefferies. Pricing expected: N/A.

Hudson Products - $250 million in senior secured second-priority notes due 2016. Via UBS. Pricing expected: N/A.

Copyright 2009 Dow Jones Newswires

BOND REPORT: Treasurys Dip, On Stock Gain, Gilt DropLong-term care insurance bill’s prospects diminish

Obama Urges More Action, Less Politics, To Reduce Deficit

WASHINGTON -(Dow Jones)- President Barack Obama praised lawmakers for restoring a measure that aims to bing federal spending under control in his weekly radio address Saturday, but expressed concern that politics may still get in the way of reducing the massive deficit.

Obama also vowed in his weekly speech to press ahead with an executive order to create a new bipartisan fiscal commission charged with recommending ways to reduce the deficit--a measure that has faced opposition from some Republicans.

"After a decade of profligacy, the American people are tired of politicians who talk the talk but don't walk the walk when it comes to fiscal responsibility," Obama said.

"It's easy to get up in front of the cameras and rant against exploding deficits. What's hard is actually getting deficits under control. But that's what we must do."

Obama made his remarks the day after he signed new legislation which will restore a rule requiring any new mandatory spending to be offset by spending cuts or new revenue elsewhere in the budget.

The rule, known as "pay-as-you-go" or "Paygo," was in place during the 1990s, the last time there was a federal budget surplus.

Obama said the abandonment of that "common sense" rule during the Bush administration helped fuel the record deficit the U.S. government is facing today.

"It was this rule that helped lead to balanced budgets in the 1990s, by making clear that we could not increase entitlement spending or cut taxes simply by borrowing more money," Obama said. "And it was the abandonment of this rule that allowed the previous administration and previous congresses to pass massive tax cuts for the wealthy and create an expensive new drug program without paying for any of it."

The rule's restoration comes at a time when the U.S. is facing a record deficit that is on course to keep growing. The administration said earlier this month it expects the deficit to climb to $1.6 trillion in the current fiscal year.

Obama has proposed budget cuts and a three-year spending freeze on some government programs, but he has also strongly pushed for a new fiscal commission as well. He expressed disappointment Saturday that the measure faces some opposition.

"Unfortunately this proposal--which received the support of a bipartisan majority in the Senate--was recently blocked," Obama said. "So, I will be creating this commission by executive order."

Meanwhile Saturday, U.S. Sen. Lindsey Graham (R, S.C.) in the GOP's weekly address on criticized the Obama administration's push to prosecute the accused mastermind of the Sept. 11 terrorist attacks Khalid Sheikh Mohammed and other co-defendants in a Manhattan civilian court.

Graham made his comments just one day after Attorney General Eric Holder told the Washington Post in an interview he may abandon his hopes for a civilian trial amid a political backlash to the plan from both federal lawmakers and local officials in New York, including Mayor Michael Bloomberg.

The Washington Post said in the article that Obama may now get involved in trying to find a new spot for a civilian trial, but if political resistance continues, the administration may be forced to switch to a military tribunal.

Graham, who earlier this month introduced a bill to cut off funding for civilian trials in federal courts for the alleged Sept. 11 conspirators , said Saturday that trying terrorists in civilian courts would be affording them too many rights and could actually compromise investigations by U.S. intelligence officials.

"These Al-Qaeda terrorists are not common criminals," Graham said. "Never before have we allowed noncitizen, enemy combatants captured on the battlefield access to our civilian courts providing them with the same constitutional rights as American citizens. Al-Qaeda terrorists should not receive more rights than a Nazi war criminal."

He said that military laws allow the U.S. to collect "valuable intelligence without reading Miranda Rights to enemy combatants" and urged the administration to reinstate the charges against Mohammed and his alleged co-conspirators before military commissions.

Copyright 2009 Dow Jones Newswires

Social Security races to ‘negative’ during recessionUS Treasury Asks For Primary Dealer Input On Fed Purchases

Freitag, 12. Februar 2010

Early-Market Movers: SkillSoft, Buffalo Wild Wings

Stock futures were indicating a lower opening after China raised its deposit-reserve ratio, elevating global economic growth concerns.

Here are some of the early market movers for Friday.

SkillSoft PLC (SKIL)

The e-learning software company agreed to be acquired by a group of private-equity firms for $1.1 billion. Shares gained 12.9% in pre-market trading.

Curis Inc (CRIS)

Shares were up 10% in pre-market trading after the drug company gave an update on its collaboration with Debiopharm saying it will receive an $8 million milestone payment after getting approval from France for a clinical trial of Hsp90.

Labopharm Inc. (DDSS)

Shares of the Canadian pharmaceutical company slumped 15.9% in pre-market trading after announcing an offering of $20 million public offering of common units.

Blue Nile Inc (NILE)

The online jewelry retailer posted fourth-quarter results late Thursday below expectations reporting earnings of 35 cents per share on revenue of $102.9 million. Analysts had estimated earnings of 38 cents per share and revenue of $106.23 million. Shares fell 13.8% in pre-market trading Friday.

eHealth Inc (EHTH)

The online insurance services company posted mixed fourth-quarter results late Thursday reporting non-GAAP earnings of 21 cents per share on revenue of $34.4 million. Analysts had estimated earnings of 16 cents per share and revenue of $35.6 million. The company lowered fiscal 2010 guidance below current expectations and the stock lost 13.3% in pre-market trading Friday.

Buffalo Wild Wings Inc (BWLD)

Shares were down 13% in pre-market trading Friday after announcing fourth-quarter results after the bell Thursday. The company reported earnings of 46 cents per share on revenue of $145 million. Analysts had estimated earnings of 51 cents per share and revenue of $148.84 million.

First Horizon closes down equity researchEarly-Market Movers: China Agritech, Novavax Inc

Another Horror Story About Driving A Toyota

The first car Cathy Donohue hit went BANG!

Her vehicle then spun into the oncoming lane and hit another car, BANG!

Then it bounced onto the sidewalk and hit a light pole, BANG!

Then it crashed into a landmark Denver, Colo., watering hole called the City Grille, BANG!

"I don't know what happened," she is quoted in an accident report. "I just heard a BANG."

Donohue was driving a 2008 Toyota Rav4 down Colfax, a heavily trafficked, downtown thoroughfare. The gas pedal, she says, inexplicably slammed down on its own, wreaking all this havoc in just seconds.

Donohue wrote me a bit miffed after I suggested that Toyota owners with this nagging little gas pedal problem should just hit the brakes, throw the car in neutral and turn off the engine, as the embattled car manufacturer suggests.
In her case, she says, there was simply no time. All of this wreckage occurred in a flash. Fortunately, no one was seriously injured.

"The biggest sensation I had was complete loss of control," Donohue said. "And nobody likes to lose control...Even now, when I close my eyes, I can still see that airbag coming at me."

This is the stuff of Stephen King. Remember the novel, "Christine," about a haunted 1958 Plymouth Fury? Or "From a Buick 8" about a car that serves as a conduit to another reality? Only for Toyota Motor (TM), this story is real and it is still being written.

Donohue was 69 years old on the day of the accident, Nov. 24, 2008. In the past, she had been on pain medication for arthritis and a spinal surgery that took inches off her height. She has ongoing heart problems. And her 2008 Rav4, at least so far, hasn't been included in Toyota's ever-expanding recalls.

She knows what some people might think.

"I would challenge any automobile engineer to tell me how a 69-year-old woman with a perfect driving record manages to keep her foot on the accelerator after hitting the first car, then a second car, then a...[light pole], and then crashing into a building.," she said. "Even (the late stunt driver) Joie Chitwood would not do that."

Donohue isn't some spooky character from a horror novel. She once served as president of Denver's city council and was a member of former Mayor Wellington Webb's administration. A long-trusted source told me Donohue was solid:Never known for coming up with crazy explanations or having a lead foot.

Donohue told me she had never before been in an accident after decades of driving. And her medical conditions, she said, have never resulted in dizzy spells or lapses in judgment between what is the gas pedal and what is the brake.

There are missing pieces to her story, though, that I wish I could gather. I'd like to find the woman who pulled Donohue from the wreckage. Donohue recalls telling her to turn off the engine because the engine was still cranking thanks to the stuck gas pedal. She has been seeking this woman as a possible witness ever since. (If you are her, call me.)

Donohue was hauled away in an ambulance with only minor injuries. She believes she would likely be dead were it not for Toyota's outstanding crash ratings. "That's one of the reasons why I bought it," she said. "And it worked!"

Too bad about that pesky gas pedal, though. Donohue said she told police about it, but this isn't reflected in the accident report.

The police, instead, wrote her an eight-point ticket for "careless driving." Toyota's problems were not screaming headlines back then. But after hearing Donohue's story, a judge allowed her to plead to a lesser charge with only three points. And she only had to pay $111 in court costs.

Her insurance company considered her car totaled and sent it to be parted out. So at present, there is no way to examine the car.

Donohue never complained to the dealership where she purchased the car, fearing she didn't have enough evidence to make much of an argument.

But she felt she needed to say something, so on Jan. 26, 2009, she wrote to the National Highway Traffic Safety Administration. The administration wrote back on March 31, 2009, essentially saying they would keep her correspondence on file, but that they hadn't identified a defect in her particular model "with regard to sudden, unwanted acceleration."

Donohue then put all of this in a file, stuffed it in a drawer, and moved on with her life in a new Subaru. But now similar stories are cropping up every day.

Toyota may still be probing the depths of its problems as it recalls millions of vehicles and fights the PR battle of its life.
Toyota spokesman Brian Lyons told me it's difficult to respond to Donohue's story. She never reported it to Toyota.

The whereabouts of her vehicle are unknown. And the model she was driving hasn't been included in any of its recalls. These are all valid points and underscore the difficulties Toyota now faces in managing this crisis.

Donohue says she has spoken with attorneys and may be included in a class-action lawsuit, but she doesn't expect to recover much, if any, money.

She just wants her story told. She has no doubt her gas pedal slammed down by itself that day. She believes Toyota, whose CEO may soon be dragged before Congress to answer for slow responses to similar complaints, is still holding back information.

"Toyota better start telling the truth, the whole truth and nothing but the truth," she said. "Because there are people out there, just like me, driving their cars."

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. He can be reached at 212-416-2617 or by email at al.lewis@dowjones.com, or on his blog at tellittoal.com

US Deploys More Missile Defense Units To Persian Gulf - ReportToyota scurries to find a fix as recall expands

Donnerstag, 11. Februar 2010

Panama's 2009 Budget Deficit At 1% Of GDP From Surplus In 2008

DOW JONES NEWSWIRES

The Panamanian government's budget ended last year with a deficit equivalent to 1% of the country's gross domestic product, or $250 million, the Panamanian government said late Wednesday.

The government had posted a surplus equivalent to 0.4% of GDP in 2008.

Panama's Finance Minister Alberto Vallarino said the budget deficit is positive given the difficult situation in the year.

The Panamanian economy slowed down in 2009 after growing 10.7% in 2008. In the third quarter of last year, the last data available, the country's GDP only expanded 1.1%.

Copyright 2009 Dow Jones Newswires

Social Security races to ‘negative’ during recessionUK’s Mandelson Hints At Size Of Future Government Spending Cuts

UK's Mandelson Hints At Size Of Future Government Spending Cuts

LONDON -(Dow Jones)- U.K. Business Secretary Peter Mandelson indicated Thursday the range of future spending cuts the government may consider when the country recovers from recession.

In a speech on higher education at Nottingham University, Mandelson defended his recent announcement that he planned to cut some GBP916 million from the higher education, research and science budget over the next three years--representing some 5% of expenditure.

"Much of the rest of the public sector will receive similar constraints in the course of this year or soon after," he said, according to a text of his remarks. "I have always said that higher education would have to bear its share of public spending cuts, but not more."

The higher education spending cuts will start in the 2010 financial year, which begins in April.

That represents an exception for the Labour government of Prime Minister Gordon Brown which has said spending cuts should not take place this year because they could undermine a fragile recovery.

The opposition Conservatives have said they would start their deficit reduction efforts this year and promised their debt cutting efforts would go further than those of the government.

Copyright 2009 Dow Jones Newswires

Credit card users let upBOND REPORT: Treasurys Dip, On Stock Gain, Gilt Drop

Mittwoch, 10. Februar 2010

German Finance Minister: No Self-Supporting Economic Upswing Yet

BERLIN -(Dow Jones)- The economic recovery is still fragile and it is too early to fully withdraw fiscal stimulus, German Finance Minister Wolfgang Schaeuble said Wednesday.

"We haven't quite yet overcome the crisis," Schaeuble said at a conference on financial market and tax policy. "To a large extent, this isn't yet a self-supporting upswing."

As a result, the withdrawal of stimulus measures must be carefully orchestrated, Schaeuble said.

Copyright 2009 Dow Jones Newswires

Nashville Business PeopleCanada’s Flaherty: G7 To Explore How To Help Haiti

IFC Takes Stake In Mexican Information Technology Firm Nasoft

MEXICO CITY -(Dow Jones)- The International Finance Corporation will invest $8 million in Mexico's North American Software, or Nasoft, to fuel the company's expansion into new and existing Latin American markets, executives from both organizations said Wednesday.

The IFC, a member of the World Bank Group, will receive an 18% stake in the privately held information technology firm in exchange for its investment, Nasoft financial director Fernando Gudino said at a news conference.

Nasoft is putting up another $4 million for its expansion, for a total investment of $12 million.

Copyright 2009 Dow Jones Newswires

Hungary’s Small Firms To Recover On Foreign Demand - MinisterFirst Horizon closes down equity research

Dienstag, 9. Februar 2010

Fed's Bullard: Central Bank Needs More Regulatory Power

A Federal Reserve bank president is calling on Congress to beef up regulatory powers of the central bank – rather than strip it of oversight responsibilities – to help prevent a future financial crisis.

James Bullard, who heads the Federal Reserve Bank of St. Louis, said more authority would give the Fed more windows into the financial system, among other things.

“You want to force your central bank to know more and understand better what the interactions are and how this financial sector’s working, and it is big and always evolving,” Bullard told Fox Business on Monday. “You want those guys to be well-informed about everything that’s going on in financial markets so that they maybe can head off a crisis, or if they don’t head off a crisis, they will be able to react to the crisis in the best way possible.”

The Fed has been under attack in Congress by critics who say it contributed to the financial crisis through lax bank oversight and by keeping interest rates too low for too long after the 2001 recession and the attacks of 9/11.

One reform proposal, from the chairman of the Senate Banking Committee, Sen. Christopher Dodd (D-CT), would give the Fed’s bank supervision powers to a new super-bank regulatory agency. The Obama administration’s reform plan would strip it and other bank regulators of their consumer protection authority and give it to new Consumer Financial Protection Agency.

Bullard argued against such steps, saying the Fed needs more oversight responsibility, especially over non-bank firms like Lehman Brothers, Bear Stearns and AIG (AIG). Their failures rocked the U.S. and international financial systems, nearly triggering a global financial collapse.

“In the ‘shadow’ banking system, the Fed did not have any regulatory authority,” he said.

Bullard asserted the Fed needs such expanded powers – which it would get under legislation proposed by the administration and passed by the House in December – also because “in the future crisis, here’s what will happen: everyone will come to the central bank because the central bank is the lender of last resort.”

Bullard offered tentative support for two new administration proposals from former Fed chairman Paul Volcker, who is advising President Obama. One would limit riskier, more speculative business activities at financial firms and the other would cap their size.

“When Paul Volcker talks, we should all listen. And I listen,” Bullard said. “And he's got exactly the right instincts. If you're taking deposits you should not be allowed to go to Las Vegas and make your bets. So, those instincts are exactly right. I think, to the extent you can make any criticism of that, it has to do with details about how would that actually work and would you actually be able to enforce this. But you should always listen when Paul Volcker talks.”

Bullard also said he worries the Fed could lose its independence and become more vulnerable to political pressure under some legislative proposals, such as on the passed the House that would increase audits of the central bank’s activities, including setting monetary policy.

“To go in that direction is going to induce a lot of volatility in the U.S. economy,” he said. “The economy is going to bounce around like crazy because every time there is political trouble, (politicians) are going to want to do something” about it through the Fed, he said.

He described the current position of the Fed as “arms-length from the political process” rather than fully independent, as Fed leaders are political appointees nominated by the President and approved by the Senate.

“It is politically accountable,” he said of the Fed.

UPDATE:FTC’s Leibowitz Seeks More Powers To Protect ConsumersHarry Reid helps to build up support for Bernanke