News money 2008-05-02 Andanh.com

U.S. automakers' sales plummeted in April Fri, 02 May 2008 00:04:00 EST
Ford Motor Co. sales sank 12 percent last month, weighed down by a steep drop in demand for Explorers and pickup trucks.

No deal on Derby Day online bets Fri, 02 May 2008 00:04:00 EST
Negotiations between Churchill Downs Inc. and Kentucky horsemen are stalled, and people who want to bet the bulk of the Kentucky Oaks and Derby day racing cards on TwinSpires.com likely will have to find other means.

Profits at Exxon Mobil top $10 billion Fri, 02 May 2008 01:51:00 EST
Don't expect motorists to sympathize, but Exxon Mobil says gasoline prices didn't do it any favors in the first quarter.

Dow climbs back past 13,000 Fri, 02 May 2008 00:06:00 EST
Stocks shot higher yesterday as investors, while anticipating another dismal jobs report today, viewed the rising dollar and falling oil prices as promising signs for the economy. The Dow Jones industrial average rose nearly 190 points to close above 13,000 for the first time since Jan. 3.

Home Depot closing stores Fri, 02 May 2008 00:07:00 EST
It's been 4½ years since former Home Depot Chief Executive Bob Nardelli's bold prediction that the home-improvement retailer could sustain "unlimited growth" without significantly affecting sales at established stores.

Q: I owe federal taxes for 2006, but I paid this off as of today. Will I still get a rebate check? Fri, 02 May 2008 00:07:00 EST
A: Rebate checks will be diverted toward any past-due federal or state taxes or nontax federal debt such as student loans and child support.

Schnatter will be openingCalistoga cafe in Lexington Fri, 02 May 2008 00:08:00 EST
John Schnatter, founder of Papa John's International, will bring his latest restaurant concept to Kentucky on Monday when a Calistoga Bakery Cafe opens in Lexington.

Business People Thu, 01 May 2008 01:12:00 EST
Financial services, real estate and award announcements are in today's Business People. Submit new items at courier-journal.com/businesspeople Sign up for the daily Business People newsletter at courier-journal.com/newsletters.

Home Depot cutting back Fri, 02 May 2008 07:14 EDT
Home Depot is closing 15 stores, including the company's only store in Frankfort.

The Atlanta company, which claims to be the world's largest home-improvement retailer, said Thursday that the 15 stores were not meeting sales goals.

The closings will affect 1,300 employees nationwide, including 88 in Frankfort, a Home Depot spokesman said. The total includes the store manager and two assistant managers.

"Store managers and assistant store managers at these locations will be offered other store management positions within the organization," Home Depot said. "The company will work to place the rest of the associates in other comparable store positions where available."

As a result of the closings, Home Depot will record a charge of $186 million, including inventory markdowns of $11 million and severance expenses of $8 million.

Jobs bright spot: Coal is hiring Fri, 02 May 2008 02:06 EDT
Even as a wave of job cuts afflicts workers nationwide, mine operators in coal country are offering free health insurance, gas money, stock and bonuses to lure enough miners as coal fetches record prices.

Alpha Natural Resources announced Thursday that it would dole out 25 shares of stock to each of its 3,600 employees in hopes that they'll stay put. It will pay bonuses of up to $9,000 to miners who stay three years, and will pay even more to members of highly trained rescue squads.

Massey Energy Co., the nation's No. 4 coal producer, recently offered guaranteed three-year contracts to individual miners.

Those companies, both based in Virginia, are trying to fend off the employee poaching that rippled through the industry during a price spike in 2005 and 2006.

Driven by the weak dollar, high ocean freight rates and shipping bottlenecks, prices for higher-energy coal from Eastern states have jumped even higher this year. They've more than doubled to about $95 a ton for utility-grade coal, and $200 or more a ton for coking coal used by steel manufacturers.

Gas prices cited as sale of small cars surges Fri, 02 May 2008 02:06 EDT
Small cars were the big winners in April, as high gas prices accelerated U.S. consumers' rush away from trucks and sport utility vehicles, and as makers of fuel-efficient models scored gains despite the weak economy.

General Motors, Ford and Chrysler all saw double-digit U.S. sales declines compared with last April. But Nissan's sales were up 7 percent on the strength of its car sales, while Toyota's sales edged up 3 percent. Honda's sales figures were delayed because of a technical problem, but the automaker said April sales were likely to be up at least 6 percent.

Pickup sales have been falling for months because of the slowdown in housing construction, and the trend away from SUVs began several years ago as Baby Boomers aged and roomy but more fuel-efficient crossover vehicles gave consumers more choice. But automakers and industry watchers said gas prices are speeding the trend.

"At $3 a gallon, there's a lot of discussion about the price of gasoline but not much change in behavior," said Mike Jackson, chief executive of AutoNation Inc., the country's largest auto retailer. "But in the mid-$3.50 range, with $4 on the horizon, there's a lot of change in behavior."

George Pipas, Ford's top sales analyst, said retail, or non-fleet, sales of passenger cars exceeded trucks and sport utility vehicles combined for the first time in at least 20 years. Pipas said a full-size truck is on the list of the top 10 vehicles being traded in for every small car in the industry.

Employers cut fewer jobs in April, jobless rate falls Fri, 02 May 2008 10:16 EDT
Employers cut far fewer jobs in April than in recent months and the unemployment rate dropped to 5 percent, a better-than-expected showing that nonetheless reveals strains in the nation's labor market.

For the fourth month in a row, the economy lost jobs, the Labor Department reported Friday. But in April the losses totaled 20,000, an improvement from the 81,000 reductions in payrolls logged in March. Job losses for both February and March turned out to be a bit deeper than previously reported.

The latest snapshot of the nationwide employment conditions - while clearly still weak - was better than many economists were anticipating. They were bracing for job cuts of 75,000 and for the unemployment rate to climb to 5.2 percent.

The unemployment rate, derived from a different statistical survey than the payroll figures, fell to 5 percent from 5.1 percent in March. That survey showed more people finding employment than those who didn't.

Businesses are handing out pink slips as they cope with an economy that is teetering on the edge of a recession, or possibly in one already. A severe housing slump, harder-to-get credit and financial turmoil have forced people and businesses to be more cautious in their spending. And that has hurt the economy.

Planning staff opposes Nicholasville Road rezoning Thu, 01 May 2008 17:56 EDT
Lexington's city planning staff on Thursday recommended disapproval of a request to allow two pieces of property on Nicholasville Road to be re-zoned from residential to professional office use.

Attorney Julie A. Butcher seeks to have a house she owns at the corner of Edgemoor Drive and Nicholasville Road and an adjoining vacant lot rezoned to allow a professional law office with off-street parking.

Butcher also proposes conditional-zone restrictions on the property to limit its use to offices only, to require the existing house to remain and to direct outdoor lighting away from adjacent residences.

The request came before the zoning committee on Thursday. Committee members voted to forward the staff's report to the full Planning Commission for a hearing at its May 22 meeting.

Even though the zoning committee is not the usual place to hear protests, two members of the Southern Heights Neighborhood Association were in the audience to register opposition.

Free directory assistance available on your cell phone Thu, 01 May 2008 07:20 EDT
Cell phones have become an essential part of most people's lives, but can be a drain on the pocketbook.

Do you make a lot of directory-assistance calls from your cell phone? Typically, cell providers charge a fee every time you call 411. Instead, you can call 1-800-GOOG-411 (1-800-466-4411) to get the listing you want for free. Another free service, 1-800-FREE-411 requires you to listen to a short ad before you get your number.

Also, drop your long-distance carrier if you make infrequent long-distance calls. Instead, use a prepaid phone card, a dial-around service or your cell phone if you have enough minutes.

FREE DIRECTORY ASSISTANCE AVAILABLE ON YOUR CELL PHONE

Jobless claims surge Thu, 01 May 2008 08:46 EDT
The number of newly laid off workers filing claims for unemployment benefits soared last week.

The Labor Department reported Thursday that claims for unemployment benefits rose by 35,000 to 380,000. Private economists had expected claims would rise by a smaller 18,000.

The report on jobless claims came a day ahead of a report on unemployment for April. Economists expect that report will show that the unemployment rate edged up to 5.2 percent in April, from 5.1 percent in March. The economy is expected to lose 70,000 jobs, the fourth straight month of job losses.

Manufacturing report shows continuing contraction in April Thu, 01 May 2008 11:50 EDT
U.S. manufacturing activity contracted in April at the same pace as in the previous month, stalled near its lowest level in five years, a private trade group said Thursday.

The Institute for Supply Management, a trade group of purchasing executives, said it manufacturing gauge was steady at 48.6 last month, unchanged from March.

But it beat economists' expectations for a reading of 48, according to the consensus estimate of Wall Street economists surveyed by Thomson Financial/IFR.

A reading above 50 shows the economy is growing, while a reading below 50 signals contraction.

"The economy seems to be muddling through," said David Resler, chief economist for Nomura Securities. The narrow range the manufacturing index has stayed in over the past five months is a good sign, he said.

U.S. economic growth slips in at .6% in first quarter Thu, 01 May 2008 02:04 EDT
The U.S. economy grew at a sluggish rate of six-tenths of a percent over the first three months of 2008, the Commerce Department reported Wednesday. That suggests that there was just enough economic activity to avoid recession.

The 0.6 percent growth rate for the first quarter of 2008 is identical to that of fourth quarter of 2007, meaning the U.S. economy has been in a virtual stall for half a year. The question now is whether an economic stimulus plan passed by Congress in February and the more than 3 percentage points of interest rate cuts by the Federal Reserve will soon revive the economy.

In a news conference Tuesday, President Bush repeated that he's confident that tax rebates being sent to Americans as part of the stimulus package will help restore consumer confidence and boost economic activity. The first of the checks began going out on Monday and will keep arriving until July.

Many U.S. economists think that the nation is in recession, commonly defined as two consecutive quarters of negative growth. Wednesday's numbers suggest that if the U.S. is in a recession, it began over the last month or so. There have been three consecutive months of employment losses, but those losses were lower than is usually associated with recession.

Exports have helped keep the U.S. economy just above negative growth, helping offset the sharp loss in business activity associated with the slumping housing and automotive sectors.

GM cuts sales forecast after huge 1st-quarter loss Thu, 01 May 2008 02:04 EDT
Bowing to grim reality, General Motors Corp. followed Ford's lead and cut its U.S. sales forecast Wednesday after a tough first quarter that saw a $3.3 billion loss.

But unlike Ford, GM faces more unknowns that could complicate its North American turnaround and drag down strong results overseas, including a strike at supplier American Axle, the protracted bankruptcy case of its former parts division, Delphi Corp., and unresolved labor talks in Canada.

GM's loss for the January-March period amounted to $5.74 per share, reflecting $2.9 billion in one-time charges. That compares with a profit of $62 million, or 11 cents per share, in the first quarter of 2007.

Without the one-time charges, GM lost $350 million, or 62 cents per share, handily beating Wall Street's expectations. On that news, investors sent GM's shares up 9.4 percent, or $2, to close at $23.20. Analysts surveyed by Thomson Financial had expected a loss of $1.60 per share.

Ray Young, GM's chief financial officer, said analysts might be underestimating the company's overseas growth. GM said revenues rose 20 percent outside North America, thanks to strong expansion in China, Russia, Brazil and India. A record 64 percent of sales came from outside the United States in the quarter.

Business notes Fri, 02 May 2008 07:09 EDT
NATIONAL

PROMISING SIGNS BOOST DOW

Wall Street shot higher Thursday as investors, while anticipating another dismal jobs report Friday, viewed the rising dollar and falling oil prices as promising signs for the economy. The Dow Jones industrial average rose nearly 190 points to finish above 13,000 for the first time since Jan. 3. Banks, home builders, chip makers and retailers surged, after getting battered earlier this year because of worries about the mortgage crisis and its effect on the global economy. Stock market participants seem to have already accounted for the current economic weakness. With the government sending stimulus checks to taxpayers and Fed rate cuts still working their way through the financial system, many investors are confident the economy will rebound in the second half of the year.

EXXON MOBIL POSTS 2ND-BIGGEST PROFIT EVER

Don't expect motorists to sympathize, but Exxon Mobil Corp. says gasoline prices didn't do it any favors in the first quarter. Still, the world's largest publicly traded oil company said Thursday it earned $10.9 billion to start 2008, the second-biggest U.S. quarterly profit ever. The smaller Marathon Oil Corp. said its profit rose 2 percent to $731 million, well ahead of Wall Street forecasts.

Fed joins with European banks to battle credit crisis Fri, 02 May 2008 09:26 EDT
The Federal Reserve announced Friday that it will expand a series of efforts to deal with the global credit crisis, in coordination with European central banks.

The Fed said it was boosting the amount of emergency reserves it supplies to U.S. banks to $150 billion in May, from the $100 billion it supplied in April. The Fed took this action and several other moves to boost credit in coordination with the European Central Bank and the Swiss National Bank.

The latest moves are part of a series of actions the Fed has made since the credit crisis struck in August.

The efforts are designed to increase reserves so that banks don't become hesitant about lending to consumers and businesses, which would make the current economic slowdown even more severe.

The Fed's decision to boost the amount of loans it makes to banks every two weeks, in a process known as a Term Auction Facility, was aimed at sending a strong signal that the central bank is prepared to supply as much in reserves as U.S. banks need. The latest move was made in coordination with the European central banks' efforts to bolster their financial systems as well.

Ore. court rejects medical costs claim on tobacco industry Fri, 02 May 2008 01:31 EDT
The same Oregon court that slapped Big Tobacco with a huge punitive damages award has handed the industry a victory by rejecting a class-action lawsuit for medical monitoring costs in a case where harm had yet to occur.

Oregon's high court ruled unanimously Thursday that smokers must show actual harm to make a negligence claim against cigarette manufacturers - not just the possibility they will be harmed.

The lawsuit, brought by Patricia Lowe on behalf of about 400,000 Oregonians, argued the tobacco companies were negligent because they "knew or should have known that their cigarettes contained toxic and hazardous substances likely to cause lung cancer."

Lowe argued the industry should pay for tests to detect lung tumors at their earliest and most treatable stage.

The court ruled instead that Oregon law has long recognized that "a threat of future physical harm is not sufficient" grounds for a legal claim.

Stock poised to rally after payroll report, Fed action Fri, 02 May 2008 09:16 EDT
Wall Street was poised for a sharply higher open Friday after the government reported that the nation's payrolls shrank less than expected and the Federal Reserve injected more liquidity into the financial system.

The Labor Department said employers cut 20,000 jobs in April, while the unemployment rate dipped to 5 percent. This marked the fourth straight month of job losses, but the data signaled that perhaps the economy might be resisting falling into recession.

Meanwhile, the Fed said it will work with European central banks to expand a series of efforts to deal with the global credit crisis. The central bank will boost the amount of emergency reserves it supplies to U.S. banks to $150 billion in May, up from the $100 billion it supplied in April.

Investors are expected to rush back into the market amid speculation that the government has a better handle on the economy and the global credit crisis that has pummeled markets. It also increased speculation that the Fed, which cut interest rates by a quarter point on Wednesday, would indeed pause in its interest rate cutting campaign.

Dow Jones industrial average futures rose 113, or 0.92 percent, to 13,114. Standard . and Nasdaq composite futures rose 21.50, or 1.08 percent, to 2,004.75.

Thailand floats idea of rice cartel Fri, 02 May 2008 09:56 EDT
Asian countries sought Friday to tame the spiraling rice market, with Thailand proposing an OPEC-style cartel for exporters and the Philippines shoring up supplies while aiming to end its status as the world's largest importer.

The moves came as prices for rice and other food staples have been rising rapidly around the world, sparking violent protests in Haiti and Egypt along with concerns of unrest elsewhere amid profiteering and hoarding.

The sudden crisis - the price of rice has more than tripled since January - has experts calling for major changes in food production to improve crop yields and cut waste.

"The world has come together in the past," said Robert Zeigler, director general of the International Rice Research Institute in Los Banos, Philippines. "I think they could come together again to make sure that humanity has enough to eat. We just need the political will."

Zeigler's comments came as Philippine President Gloria Macapagal Arroyo visited the institute, underscoring the need to show a grumbling public that the government is doing something to deal with the rice prices and stock. Arroyo has ordered a crackdown on speculators and angrily demanded to know why more people haven't been arrested.

Change is natural part of growing economy
Business column

Chinese Dir