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| Eight Belles jockey defended Mon, 05 May 2008 23:38:00 EST The executive director of the Kentucky Horse Racing Authority yesterday defended Gabriel Saez's riding of Eight Belles, the filly who suffered two broken legs and was euthanized after finishing second in Saturday's Kentucky Derby. |
| Oil futures top $120; economic worries rise Tue, 06 May 2008 03:21:00 EST Oil futures surged to an intraday record above $120 a barrel yesterday, raising concerns about higher prices for gasoline and goods and services. |
| Chase taps Costel as regional head Mon, 05 May 2008 23:44:00 EST Veteran Louisville banker Paul Costel has been promoted to president of Chase in Kentucky and Southern Indiana, succeeding Thelma Ferguson, who is moving to the bank's New York offices. Costel has been in Louisville for 27 years and at Chase for about 15 years, most recently as division manager for middle-market commercial lending. |
| Tropicana in bankruptcy Mon, 05 May 2008 23:42:00 EST The fallout from losing its New Jersey casino license will force the Northern Kentucky owner of Tropicana casinos in Atlantic City and Las Vegas to seek Chapter 11 bankruptcy protection. |
| Q: Are Louisville home prices going up or down? Mon, 05 May 2008 23:39:00 EST A: The median price recorded by local Realtors was essentially flat last year and down about 2 percent through the first three months of this year. |
| Kindred Healthcare profit up sharply in first quarter Mon, 05 May 2008 23:40:00 EST Kindred Healthcare said late yesterday that its first-quarter profit rose to $14.7 million, or 38 cents a share, from $7.8 million, or 20 cents a share, a year earlier. |
| Business People Mon, 05 May 2008 23:37:00 EST Financial services, professional services, health care, lottery and miscellaneous 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. |
| 2008 profit forecast jumps for Marvel Mon, 05 May 2008 23:41:00 EST As "Iron Man" smashed its way to an estimated $201 million in worldwide box office sales, Marvel Entertainment raised its profit forecast yesterday for the year and promised "Iron Man 2" for 2010. |
| Bankruptcies Mon, 05 May 2008 10:00 EDT |
| Wal-Mart selects 20 capitols for energy audits Tue, 06 May 2008 14:53 EDT Wal-Mart Stores Inc. has announced partnerships with 19 states and Puerto Rico to help them save on energy and electricity costs at their capitols. Wal-Mart will identify engineering experts to perform energy audits at the capitols. Wal-Mart over the past three years has worked to cut down on energy usage at its stores and suppliers. Through its Greening State Capitols partnership with the National Governors Association, Wal-Mart will offer its services in an outreach effort and to market its audit services. The states included in Tuesday's announcement are Arkansas, Connecticut, Florida, Iowa, Kentucky, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Virginia and West Virginia. |
| Stocks lift even as oil prices soar near $123 a barrel Tue, 06 May 2008 20:57 EDT Wall Street reversed early losses to close higher Tuesday, as investors monitored the movements of record high oil prices but still laid bets that the economy and companies are in recovery mode. Crude oil climbed to a record near $123 a barrel on the New York Mercantile Exchange as traders, who have nearly doubled the price of oil over the past year, reacted to the weakening U.S. dollar, supply threats, and a note from Goldman Sachs & Co. predicting that oil could reach $200 a barrel. High oil prices threaten to crimp consumers' discretionary spending. But oil price sticker-shock waned and as investors looked past wider-than-expected quarterly losses at Swiss bank UBS, government-sponsored mortgage company Fannie Mae, and homebuilder D.R. Horton Inc. "I think overall, the strength in stocks right now is on fairly firm footing," said JPMorgan equities analyst Thomas J. Lee. "In some ways, first-quarter earnings are yesterday's news." In recent weeks, stronger-than-expected results from companies outside the battered financial and housing sectors helped the stock market rebound to levels not seen since early January. Economic data has been better than expected - particularly Friday's employment report and Monday's data on the service sector - and meanwhile, the credit markets keep showing increased appetite for the risk that investors had avoided for months. |
| Oil holds above $120 a barrel on supply worries Tue, 06 May 2008 08:57 EDT Oil futures held steady above $120 a barrel Tuesday in Asia after surpassing that mark for the first time in the previous session on threats to supply and a weakening of the U.S. dollar. The surge in oil prices was also fueled by hopes that the U.S. economy will be spared a sharp downturn after the release of data Monday showing an unexpected expansion in the U.S. service sector in April, analysts said. Light, sweet crude for June delivery rose 20 cents to $120.17 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract surged to a trading record of $120.36 a barrel overnight before settling at $119.97 a barrel, up $3.65 from Friday's close. "The bulls are in control of the market," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "The economic report out of the U.S. yesterday on the service sector seems to suggest the economic slowdown may not be as deep as initially thought." "The sentiment is that the oil pricing is likely going to stay quite strong, with a lot of volatility," Shum said. |
| Thailand drops plan for rice cartel that would have fixed prices Tue, 06 May 2008 11:57 EDT Thailand is dropping plans to create a Southeast Asian rice cartel that would have fixed the price of the skyrocketing commodity over food security concerns, the country's foreign minister said Tuesday. The proposal to create an OPEC-like cartel was first floated last week by Prime Minister Samak Sundaravej to give rice producers greater control over rice prices, which have tripled since December. But the idea was heavily criticized by senators in the Philippines, a major importer, as well as some Thai rice exporters. "We are not talking about setting up a rice cartel," Foreign Minister Noppadon Pattama said after a meeting with ambassadors from six rice exporting countries in Asia. "If Thailand sets up a rice cartel and fixes a price, that will make matters worse and worsen food security." Instead, Noppadon said Thailand proposed holding a meeting on rice in the next month or two that would work with top Asian exporters including India, China, Vietnam, Myanmar, Cambodia and Pakistan to improve productivity. He also said exporting countries would discuss sharing of technology, market information and price information. Noppadon denied that the about face on the cartel had anything to do with concerns about the impact on the Philippines. |
| Merger fizzle saps Yahoo's value Tue, 06 May 2008 02:03 EDT Yahoo shares fell 15 percent Monday as hopes for the once-dominant Internet icon dimmed after Microsoft's withdrawal of a $47.5 billion takeover bid. The sell-off wiped out nearly half the gain in Yahoo Inc.'s stock price since Microsoft Corp. made its initial offer Jan. 31 in an effort to challenge online advertising and search leader Google Inc. The downturn left Yahoo's market value about $14 billion below Microsoft's last offer. Last-ditch talks between Yahoo and Microsoft were fruitless, leading Microsoft to walk away from a deal Saturday. Yahoo shares shed $4.30 on Monday to close at $24.37, below Friday's close of $28.67, when investors were still hopeful about a deal. Despite the backlash, analysts doubt Yahoo shares will fall back to their $19.18 pre-bid price, partly because some investors might still be holding out hope that the software maker will renew its takeover attempt if Yahoo continues to struggle. |
| Food inflation tied to higher feed prices Tue, 06 May 2008 02:03 EDT Americans might be getting another helping of food inflation, and it seems likely to come from higher prices for chicken and pork, as the price of feed for livestock rises. "American consumers are only just beginning to feel the impact of sharply higher food prices," said Pilgrim's Pride Corp. Chief Executive Clint Rivers. The nation's largest chicken producer posted a wider quarterly loss Monday as it paid more for feed and took a restructuring charge. Tyson Foods Inc., the world's biggest meat producer, forecasts that its expenses will rise $1 billion this year, including $600 million for corn and soybean meal and $100 million on grain. The balance will come from higher prices for cooking oil, breading and fuel costs, the company said. Last week Tyson reported a $5 million second-quarter loss and withdrew its earnings outlook, saying feed prices were too volatile. "I think food inflation has got to go up," said C. Larry Pope, president and chief executive of Smithfield Foods Inc., the world's largest pork producer, in a recent speech. "Everything that uses wheat, everything that uses corn, everything that uses corn syrup has got to go up." The exception could be beef, as already high beef prices may not see the increases that chicken and pork could, said Jim Hilker, an agricultural economist at Michigan State University. "I'm not sure beef prices will go up a lot, but they won't come back down." |
| Big Brown's boost Tue, 06 May 2008 06:30 EDT When Big Brown crossed the finish line Saturday to win the 134th Kentucky Derby, he carried United Parcel Service with him. The UPS patch on the right leg of jockey Kent Desormeaux's riding pants revealed a special relationship between the horse and the company that claims brown as its official color. UPS had sponsored a specific horse for the first time in its history and it hopes the payoff will come in the form of new business from racing fans worldwide, said Mike Mangeot, public relations manager for UPS Airlines in Louisville. "We thought it was a real unique and great opportunity to have fun and promote the company," Mangeot said Monday. The original sponsorship was just for the Derby, but "we are currently talking with the Big Brown people about the possibility of extending that," he said. No financial details were disclosed. |
| Oil nears $123 on $200 oil prediction, supply concerns Tue, 06 May 2008 20:57 EDT Oil futures blasted to a new record near $123 a barrel Tuesday, gaining momentum as investors bought on a forecast of much higher prices and on any news hinting at supply shortages. Retail gas prices edged lower, but appear poised to rise to new records of their own in coming weeks. A new Goldman Sachs prediction that oil prices could rise to $150 to $200 within two years seemed to motivate much of Tuesday's buying, although a falling dollar and increasing concerns about declining crude production in Mexico and Russia contributed, analysts say. The Energy Department raised its oil and gasoline price forecasts, but also predicted that high prices will cut demand more than previously thought. Light, sweet crude for June delivery jumped to a new record of $122.73 a barrel before retreating to settle up $1.87 at a record $121.84 on the New York Mercantile Exchange. Oil prices have nearly doubled from about $62 a barrel a year ago, which Goldman sees as a sign that the world is in the midst of a "super spike" in oil prices. Analyst Arjun Murti said in a research note released Monday that prices would ultimately force demand to fall sharply. |
| Business notes Tue, 06 May 2008 07:57 EDT NATIONAL OWNER OF TROPICANA CASINOS TO SEEK CHAPTER 11 PROTECTION The fallout from losing its New Jersey casino license will force the owner of Tropicana casinos in Atlantic City and Las Vegas to seek Chapter 11 bankruptcy protection, the company said Monday. Kentucky-based Columbia Sussex Corp., the hotel corporation founded by Tropicana owner William J. Yung III , shares administrative and business functions with the Tropicana affiliates but would not be involved in the bankruptcy filing. Tropicana Entertainment LLC said it plans to continue operating and will keep current staffing levels. It was buffeted by a chain of events that began Dec. 12 when the New Jersey Casino Control Commission determined that the company was incapable of running the "first-class operation" required by state law and stripped the Tropicana in Atlantic City of its casino license after less than a year. The company expected to file for bankruptcy protection Monday, listing assets of $2.8 billion and liabilities of $3.3 billion. BANKS TIGHTENING LOAN STANDARDS The Federal Reserve reports that more banks are tightening lending standards on home mortgages, other types of consumer loans and business loans in response to a spreading credit crisis. The Fed reported Monday that the percentage of banks reporting tighter lending standards was near historic highs for nearly all loan categories. The survey, conducted in April, found that nearly two-thirds of banks surveyed had tightened lending standards on traditional home mortgages, with 15 percent saying those standards had been tightened considerably. |
| Stocks head for lower open with oil near $120 a barrel Tue, 06 May 2008 08:57 EDT Wall Street headed for a modestly lower open Tuesday as investors awaited more first-quarter earnings reports and watched oil prices hit a new record near $121 a barrel. With oil and other commodities prices at all-time highs, investors are worried that spending by U.S. consumers and companies may be crimped - even if other economic factors improve later in the year. To investors' relief, however, companies outside the financial sector have fared better in the first quarter of the year than many analysts anticipated. Wall Street is hoping that Tuesday's earnings data brings more upbeat news. Tuesday morning, homebuilder D.R. Horton Inc. and government-sponsored mortgage lender Fannie Mae release brings first-quarter results. Later Tuesday, after the market closes, investors will parse earnings from Walt Disney Co., one of the 30 companies that make up the Dow Jones industrial average, and Cisco Systems Inc., the computer networking equipment maker. Dow futures fell 10, or 0.08 percent, to 12,957. Standard & Poor's 500 index futures fell 2.30, or 0.16 percent, to 1,406.00, and Nasdaq composite futures fell 3.50, or 0.18 percent, to 1,977.00. |
| Personnel file Mon, 05 May 2008 07:44 EDT Education Hindman Settlement School: Chad Berry, director of the Berea College Appalachian Center, has been appointed to the school's board of directors. Finance American Founders Bank: Bill Craycraft has been named senior vice president, commercial and private client group. Square One: Dr. Stephanie Eken, a child and adolescent psychiatrist, has joined the staff of the Louisville medical practice. |
| $600 How will you spend it? Mon, 05 May 2008 02:03 EDT The federal government's giving you money to burn -- if it's not already spent. The much-discussed economic stimulus checks are hitting households nationwide. Some direct deposits have already been sent, and checks via snail mail will start rolling out May 9. To see when yours will arrive, visit www.irs.gov and click on "Economic Stimulus Payments Start." Eligible individuals will receive up to $600, while married couples get up to $1,200 plus $300 per kid. So what's the best lighter fluid to help you torch your check? |
| PSC chairman reflects on his time with the agency Mon, 05 May 2008 02:03 EDT Last month, state Public Service Commission Chairman Mark David Goss surprised many in announcing his departure from the agency that regulates utilities on issues including rates and construction. His resignation comes three years before his second term as chairman would have expired. In his final days on the job last week, he sat down to discuss the reasons behind his resignation, Kentucky's critical energy issues, and offered his thoughts on improving the operation of the PSC. Goss declined to discuss pending cases, as well as certain past cases, including the controversial Kentucky American Water proceedings, saying it would be inappropriate. On his decision to leave: "In the course of those four-and-a-half years, I have maintained two households. I missed the last three years of my youngest daughter's high school years. I've driven back and forth to my hometown of Harlan at least once a week and sometimes two or three times a week. ... And quite frankly, I had just gotten a little bit tired of the travel. I feel like I have given my best to the commission and to the citizens of the state. I'm just ready to do something else. There's been no precipitating event. Nothing has happened. I just feel like it's time to go." On what's next: |
| Pressure's on for Yahoo's CEO Yang Mon, 05 May 2008 02:02 EDT Yahoo Inc. Chief Executive Jerry Yang has gotten what he wanted: a chance to prove his company is worth more than the $47.5 billion that Microsoft Corp. had offered to buy the Internet pioneer. Faced with resistance from Yang and the rest of Yahoo's board, Microsoft withdrew its offer over the weekend. Yang is facing a daunting challenge, as he will be pointedly reminded Monday, when investors are expected to show how little they think of Yahoo without a takeover bid on the table. Yahoo's stock price had climbed nearly 50 percent since Microsoft's initial offer. Many analysts think the California-based company will surrender most or all of that gain, leaving its market value about $30 billion. Disillusioned shareholders are bound to question whether the rejection of Microsoft's sweetened $33-per-share offer was driven more by emotion and ego than by sound business sense. |
| Profiting from soaring gas prices can be tricky Mon, 05 May 2008 02:03 EDT Many investors like to buy what they know. Eat a lot of fast food, the logic goes, buy McDonald's Corp. Know a department store well -- snap up shares of Macy's Inc. It's trickier, though, when it comes to the energy market. Trying to profit from soaring oil and gas prices can be tempting, but it's not without its pitfalls these days, with some observers blaming speculators for the stream of records set for these commodities since Jan. 1. Most investors who want a piece of the action could invest in stocks of big oil companies, and many already do through investments such as pensions or 401(k) plans. But daring players might wade into the often frothy waters of the commodities markets themselves, investing in products that tap into futures contracts for crude oil, refined products and natural gas. Bill Gerlach, portfolio manager for the Nationwide Natural Resources Fund, said that while he doesn't make recommendations on how people invest, he understands the inclination to try to seek some benefit from the higher costs of filling a gas tank. "We are consumers, so it would make sense to actually own some personally," he said. |
| Business awards Mon, 05 May 2008 07:34 EDT Virginia G. Carter, executive director of the Kentucky Humanities Council, has received an honorary doctorate of humanities from Union College. This honor is in recognition of years of dedicated service to the commonwealth in the area of the humanities. Each year, Kentucky Humanities Council programs like Kentucky Chautauqua, the New Books for New Readers program and the speakers' bureau reach each of the state's 120 counties. The Web application e3.ky.gov, developed by staff of the Kentucky Education Cabinet, was named Best Application Serving the Public, it was announced at the Kentucky Digital Government Summit. The e3.ky.gov site, launched in 2007, is a self-service information portal for education, economic development and employment figures. Access to the site is free. The site currently averages more than 1 million hits a month. Davis Marksbury, founder of Exstream Software by HP, and former chairman, president and CEO, has been selected for induction into the 2008 University of Kentucky College of Engineering Hall of Distinction. The Hall of Distinction inducts UK graduates who have made outstanding contributions to their profession, helping to confront and solve worldwide technological issues. Marksbury, a 1980 magna cum laude engineering graduate, has been an entrepreneur since age 26. Meade Concrete Products of Lexington and Nicholasville has received the National Concrete Masonry Association Safety Award for the third consecutive year. Meade Concrete Products and its umbrella company, Meade Block and Stone, has a staff of 32 who have logged 66,000 work hours without injury. The company is at 2004 Catnip Hill Road in Nicholasville. For more information about the company, visit www. meadeconcreteproducts.com. Twelve Kentucky businesses have become the first inductees in the Pacesetter Business Recognition Program, a new initiative designed to recognize small businesses that have made a significant impact in their community and region. The following businesses have been honored: Big Meadow Oil Co., Knob Lick; Custom Tool and Manufacturing Co., Lawrenceburg; Hitcents, Bowling Green; Interstate Natural Gas Co., Pikeville; Lawrence . LCM Co. , Lexington; Oscarware, Bonnieville; Pendleton Data Farm, Falmouth; SouthEast Telephone, Pikeville; The Gallaher Group, Ashland; Twin Rivers, Livermore; and Walbert Trucking, Glasgow. |
| Conventions Mon, 05 May 2008 07:34 EDT Events scheduled for Lexington, including headquarters and expected attendance: Coal Prep and Aggregate Processing: Through Friday, Hyatt Regency, 1,200. American Volleyball Coaches Association, Board of Directors Meeting: Sunday through May 6, 20 people. Kentucky Self-Advocates for Freedom, 2008 Statewide Annual Meeting: May 9-10, Holiday Inn North, 20. Kentucky Association of School Administrators, 2008 Professional Development Program: May 12-13, Holiday Inn North, 35. |
| Kentucky datebook Mon, 05 May 2008 08:30 EDT Classes The Kentucky Electrical Contractors Association will present the following six-hour Kentucky- and Ohio-approved electrical continuing education classes at the IEC Training Center, 950 Contract Street: Business and Employment Law, Business Practices and Compliance with OSHA, a Practical Approach (for contractors), 8 a.m.-3 p.m. May 16; 2008 NEC Code Update (for master electricians and electricians), 8 a.m.-3 p.m. May 17. For more information, (859) 266-4968 or visit www.keca-iec.org . Meetings The Central Kentucky Inventors Council will meet at 6:30 p.m. Tuesday at the Bluegrass Area Development Center, 699 Perimeter Drive. Topic: Marketing and Commercialization: A Hands-On Guide to Selling Your Product. Free. Information: www.ckic.org or (859) 201-1311. The next Professional Women's Forum meeting will be 11:30 a.m. to 1 p.m. Wednesday at the Red Mile clubhouse. Program: Lexington's Habitat for Humanity Women's Build. Reservations: e-mail Prowomensforum@aol. com. |
| Kentucky by the numbers: $106.59 Mon, 05 May 2008 07:34 EDT The Kentucky Farm Bureau Federation Marketbasket Survey showed that for Kentucky the total cost of 40 basic grocery items in the first quarter of 2008 was $106.59, up about 7.5 percent, or $7.44, from six months ago. Of the items surveyed, 29 increased and 11 decreased in average price compared to the 2007 third-quarter survey. Overall, the cost for the marketbasket items showed an increase of about 12.5 percent, compared with one year ago. Kentucky Farm Bureau conducts its informal quarterly marketbasket survey as a tool to reflect retail food price trends. According to USDA statistics, Americans spend just under 10 percent of their disposable income on food annually, the lowest average of any country in the world. Compiled by News Researcher Linda Niemi |
| Patents Mon, 05 May 2008 07:34 EDT The U.S. Patent Office issues patents weekly. These patents were issued Tuesday for inventors or assignees in the Lexington area: Directionally dependent carrier isolator for an imaging apparatus. Inventors: Marc Alan Herwald, Michael Anthony Marra III and Brian Andrew Naro, all of Lexington. Patent No. 7,364,261 assigned to Lexmark International. Nozzle members, compositions and methods for micro-fluid ejection heads. Inventors: Brian C. Hart of Georgetown; Gary A. Holt Jr., Melissa M. Waldeck and Gary R. Williams, all of Lexington; and Sean T. Weaver of Union. Patent No. 7,364,268 assigned to Lexmark. Recombinant Stokesia epoxygenase gene. Inventors: David Hildebrand of Lexington and Tomoko Hatanaka of Hyogo, Japan. Patent No. 7,364,901 assigned to University of Kentucky Research Foundation. Method of determining resonant frequency. Inventors: Craig Palmer Bush and Martin Christopher Klement, both of Lexington. Patent No. 7,365,613 assigned to Lexmark. |
| Kentucky Money Market Mon, 05 May 2008 08:03 EDT |
| Microsoft drops effort to buy Yahoo Sun, 04 May 2008 02:03 EDT Microsoft Corp. has withdrawn its $42.3 billion bid to buy Yahoo Inc., scrapping an attempt to snap up the tarnished Internet icon in hopes of toppling online search and advertising leader Google Inc. The decision to walk away from the deal came Saturday after last-ditch efforts to negotiate a mutually acceptable sale price. The talks reached a breaking point after Jerry Yang and David Filo, the co-founders of Yahoo, flew to Seattle from California in the morning to meet with Microsoft chief executive Steve Ballmer and Kevin Johnson, who runs the software maker's unprofitable online services division, according to someone familiar with the talks. The person was not authorized to speak publicly and asked not to be identified. Clearly a deal is not to be," Ballmer wrote to Yang in a letter sent late Saturday. Microsoft was willing to pay $47.5 billion, or $33 a share, up from the bid's current value of $29.40 a share, according to Ballmer's letter. |
| UBS reports 1Q net loss $11 billion Tue, 06 May 2008 18:13 EDT Swiss bank UBS, hard hit by the U.S. subprime crisis, reported a first-quarter loss of $10.97 billion and said Tuesday it will slash almost 7 percent of its work force. The 11.5 billion Swiss franc loss compares with a net profit of 3 billion francs in the same period last year. The company also said it would unload $15 billion in subprime and other mortgage-based securities from its portfolio. UBS AG shares tumbled 4.5 percent to close at 35.22 francs ($33.41). The bank warned investors last month to expect net losses of $11.42 billion from the first three months of the year after writing down about $19 billion on U.S. real estate and related credit positions. Switzerland's largest bank said it will cut 2,600 jobs in its investment banking arm - which took the blame for most of UBS' record $37.4 billion in write-downs since last summer. Most of the job cuts will be in Britain and the U.S., the bank said. |
| Cisco 3Q profit beats subdued expectations Tue, 06 May 2008 19:32 EDT Cisco Systems Inc.'s profit fell 5 percent in its fiscal third quarter but beat Wall Street's expectations, a sign the turbulent U.S. economy didn't rattle the world's largest networking equipment maker as hard as expected. The San Jose-based company reported Tuesday it earned $1.77 billion, or 29 cents per share, during the three months ended April 26. That represents a drop of 5.4 percent from the $1.87 billion, or 30 cents per share, that Cisco earned during the same period a year ago. Stripping out 9 cents per share in one-time charges for acquisition and employee stock-based compensation, Cisco earned 38 cents per share. That's 2 cents per share above the average estimate on the same basis from analysts polled by Thomson Financial. Sales were also higher than analysts' subdued forecasts, coming in at $9.79 billion in the third quarter, a 10.4 percent jump over the year-ago period, when Cisco's sales were $8.87 billion. Analysts were expecting sales of $9.75 billion in the third quarter this year. Wall Street wasn't expecting fireworks from Cisco in the third quarter because the technology bellwether lowered its sales-growth target in February. Cisco blamed weakness in the U.S. economy, which was causing big customers to delay or scuttle big purchases involving Internet infrastructure. |
| Housing picture worsens as Fannie sees price drop Tue, 06 May 2008 18:47 EDT The outlook for the housing market darkened further Tuesday as the nation's largest buyer of home mortgages said it racked up more than $2 billion in quarterly losses and forecast a steeper drop in home prices this year. If Fannie Mae's prediction proves true, the real estate woes could further shake the confidence of consumers already stung by rising food and fuel prices, and an anemic job market. Home foreclosures are accelerating around the country, adding to the glut of unsold properties and further depressing prices. As a result, a growing number of homeowners are saddled with loans that outstrip the value of their houses. "I think that right now we are in the belly of the cycle," Fannie Mae's president and CEO, Daniel Mudd, said during a conference call with analysts. Mudd said home prices fell in the first quarter "faster than anyone anticipated" and that the company foresees a decline of 7 percent to 9 percent for the year, compared with earlier forecasts of a 5 percent to 7 percent drop. |
| Swiss bank UBS reports 1Q net loss of $11 billion Tue, 06 May 2008 02:57 EDT Swiss bank UBS AG announced Tuesday it would cut 5,500 jobs and reported a net loss of 11.5 billion Swiss francs ($10.97 billion) for the first quarter of this year. This compares with a net profit of 3 billion francs in the same period last year. The losses translate to 5.63 francs ($5.35) per share, compared with earnings per share of 1.43 francs in the first quarter of 2007. The bank warned investors last month to expect net losses of 12 billion Swiss francs ($11.42 billion) for the first three months of the year after writing down about $19 billion on U.S. real estate and related credit positions in the period. Switzerland's largest bank said it will cut 2,600 jobs in its investment banking arm - blamed for the majority of failures that led to a record writedowns of $37.4 billion since last summer. A further 2,900 jobs will be slashed in other parts of the business, bringing the total number of job cuts by mid-2009 to 5,500. |
| And behind the door of house for sale? A new car! Mon, 05 May 2008 08:05 EDT So you have a house that you want to sell for $899,900, but you quickly discover that there are lots of other houses available in that price range. What are you going to do? If your name is Rick Langley and you want to move to Kansas City to take over a business you just bought, you might turn to your Realtor and ask, "What can we offer as an incentive? Can I give somebody a car?" His Realtor is his longtime friend Mike Wheatley , and Wheatley had to do some checking around before he could tell Langley that the car was a go. "It is so unusual," Wheatley said. |
| Loose change Mon, 05 May 2008 08:19 EDT |
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