News money 2008-07-27 Andanh.com

Chrysler to exit leasing business Fri, 25 Jul 2008 23:16:00 EST
Chrysler LLC said yesterday that its financial arm will quit the auto-leasing business by the end of the month because economic conditions have made leasing more expensive than buying, for both consumers and Chrysler.

Comic-book publishers flex superpower muscle Sat, 26 Jul 2008 01:44:00 EST
There's a new team of superheroes in entertainment. But it isn't made up of fantastic creatures that defy the laws of physics.

GE to realign corporate setup Fri, 25 Jul 2008 23:16:00 EST
General Electric Co., which is planning to shed its Louisville-based Consumer & Industrial operations, said yesterday that it will restructure into four businesses from six.

Crude oil drop sinks in at pump Fri, 25 Jul 2008 23:16:00 EST
Americans now live in an economy where the prospect of a gallon of gasoline for less than $4 is cause for relief.

2nd-quarter foreclosure activity fell in Louisville Fri, 25 Jul 2008 23:16:00 EST
While the number of U.S. households facing the foreclosure process more than doubled in the second quarter compared to a year ago, the Louisville area and Kentucky in general fared much better, according to a report yesterday.

Business Watch Fri, 25 Jul 2008 23:17:00 EST

New home sales dropped in June Sat, 26 Jul 2008 03:19 EDT

WASHINGTON . Sales of new homes fell in June for the seventh time in the past eight months, but the decline was less than expected, raising faint hopes that the nation's housing recession could be approaching a bottom.

The Commerce Department reported Friday that sales of new single-family homes dropped by 0.6 percent last month to a seasonally adjusted annual rate of 530,000 units. That was less than half the expected decline and the May performance was revised up a bit.

Even with the changes, new home sales were down by a sharp 33.2 percent from a year ago, showing how severe the slump in housing has become.

But some analysts said they saw cause for optimism that the worst of the decline could be drawing to a close, especially if a sweeping housing rescue package now pending in Congress can slow a flood of foreclosures and spur sales to first-time home buyers.

GE restructures from 6 to 4 businesses GE restructures to streamline businesses Sat, 26 Jul 2008 07:07 EDT

HARTFORD, Conn. . General Electric Co., which owns businesses ranging from light bulbs to NBC television, on Friday said it will restructure into four businesses from six, a move that Chief Executive Officer Jeff Immelt says will focus the company on growth.

Immelt has been under pressure to shake up GE since it announced disappointing first-quarter earnings in April, shocking investors and pushing down its share price.

Friday's move follows GE's recent plan to consider spinning off its iconic lighting and appliance businesses, a brand familiar to generations of Americans.

That appliance business is based in Louisville, Ky.

Database lists Ky. tax incentives Sat, 26 Jul 2008 07:07 EDT

The state Cabinet for Economic Development has unveiled a searchable database of tax incentives granted to companies located in Kentucky.

The database is accessible by clicking .Data Center. and then .Searchable Databases. on the cabinet's home page at www.thinkkentucky.com. It includes information on all projects receiving incentives that were active as of Jan. 1, said cabinet spokeswoman Mandy Lambert.

The searchable fields include company name, type of incentive, amount of the incentives, as well as average hourly wages for the workers expected to be hired.

The database is also searchable by county.

MSHA cites prep plant over fatality Fri, 25 Jul 2008 14:41 EDT
The federal Mine Safety and Health Administration has cited the owner of a West Virginia coal preparation plant over the death of a contract mechanic last March.

In a report issued Friday, MSHA says Ashland, Ky.-based Appalachian Fuels LLC violated federal regulations by allowing 47-year-old John G. Workman to work under the improperly secured belly pan of a Caterpillar dozer at its Alloy Preparation Plant No. 1 in Boomer. Workman was killed when the 1,360-pound plate fell on him March 12.

MSHA did not say whether it has assessed a fine for the violation yet.

Appalachian Fuels did not immediately respond to a request for comment.

Workman was the first of four West Virginia miners killed this year. Nationally, 16 coal miners have died in 2008.

US foreclosure filings more than double in 2QBank home seizures up 121% Sat, 26 Jul 2008 03:19 EDT

NEW YORK . The number of households facing the foreclosure process more than doubled in the second quarter compared to a year ago, according to data released Friday.

Nationwide, 739,714 homes received at least one foreclosure-related notice during the quarter, or one in every 171 U.S. households, RealtyTrac Inc. said. That's up 121 percent from the second quarter of 2007.

In Kentucky, 1,834 homes received at least one such notice, or one in every 1,030 homes. Overall, Kentucky's rate increased only 0.6 percent year-over-year.

Soft housing sales, declining home values, tighter lending standards and a sluggish U.S. economy have left strapped homeowners with few options to avoid foreclosure. Many can't find buyers or owe more than their home is worth and can't refinance into an affordable loan.

Three ways to choose a rewards card Sat, 26 Jul 2008 03:19 EDT

While rewards credit cards can in fact be rewarding, it really depends on how you use them. From Consumer Reports magazine, here are a few tips for how to use reward cards so that you benefit:

. Run the numbers. Before choosing a card, estimate your spending and translate that into how much cash back or points you'll earn through the program. Once you have that number in mind, find out how many points you'll need to qualify for something you want.

. Think twice about rewards if you carry a balance. Rewards cards often charge relatively high interest rates.

. Be wary of charity cards. Charity rewards cards give your rewards to a charity, but most cards pay only between 25 and 50 cents per every $100 you spend. Another downside of these cards is you can't write off the donation on your taxes.

Earnings roundup Sat, 26 Jul 2008 07:08 EDT

The following companies made earnings-related announcements on Friday:

Netflix Inc.

Second Prior-year quarter period

Revenue $337.6M $303.7M

Business Notes Sat, 26 Jul 2008 07:07 EDT

National

FCC's 3-2 vote OKs Sirius, XM merger

Federal regulators have formally approved the merger of the nation's only two satellite radio operators, ending a 16-month-long drama closely watched by Washington and Wall Street. Sirius Satellite Radio Inc. 's $3.6 billion buyout of rival XM Satellite Radio Holdings Inc. will mean 18 million-plus subscribers will be able to receive programming from both services. Executives say it will mean huge cost savings that will lead to a first-ever profit for the relatively nascent industry. The Federal Communications Commission voted 3-2 to approve the buyout with the tie-breaking vote coming when the companies agreed to pay $19.7 million to the U.S. Treasury to settle FCC rule violations.

Chrysler to no longer lease

Louisville arena financing plan may have to change Sat, 26 Jul 2008 03:19 EDT

LOUISVILLE . The Louisville Arena Authority may have to put together a new financial game plan to pay for the $249 million arena planned for downtown Louisville.

Authority chairman Jim Host said Thursday that using bonds to pay for the arena . an approach that took months to assemble due to turmoil in credit markets . is .on hold..

The latest development follows a move by Moody's Investors Service to consider downgrading its opinion of the financial strength of the arena's bond insurer, Assured Guaranty.

Such a move could add more than $60 million to the project's total debt cost, which is about $600 million, Host said. .If that happens, then we have to have something else lined up,. he said.

No angry lines of customers after bank takeover Sun, 27 Jul 2008 02:25 EDT
Customers of two banks closed by federal regulators were assured that every penny of their money was protected, preventing lines of angry accountholders from forming Saturday.

The calm response was a stark contrast to the hundreds of angry customers who waited for hours earlier this month in Southern California to demand their money after IndyMac Bank's assets were seized.

The 28 branches of the 1st National Bank of Nevada and First Heritage Bank N.A. - owned by Scottsdale, Ariz.-based First National Bank Holding Co. - were closed Friday by the FDIC. First National Bank of Nevada also operates as First National Bank of Arizona.

But Mutual of Omaha Bank bought all the two banks' deposits, even those over the amount protected by FDIC insurance limits. IndyMac customers had to take a loss on whatever amount they had in the bank over the insurance limits.

One 1st National Bank of Arizona in downtown Phoenix didn't even have a note outside to tell customers about the trouble Saturday. But there were no customers outside to tell.

Impact on wildlife limited in Miss. River spill Sat, 26 Jul 2008 21:20 EDT
A large fuel spill that has shut down 100 miles of the Mississippi River for four days has had a limited impact on wildlife so far, but officials are worried about fragile wetlands downstream.

Almost 800 cleanup workers used containment booms, vacuum skimmers and other equipment Saturday to continue scrubbing oil-coated riverbanks along the nation's busiest inland waterway.

A tanker and a barge collided early Wednesday, spilling about 419,000 gallons of fuel oil from the barge, closing the river from New Orleans to the Gulf of Mexico and temporarily idling some 200 oil supertankers, grain barges and other ships.

The U.S. Fish and Wildlife Service had reports of almost 60 animals coated with oil, mostly ducks and wading birds, regional spokesman Tom MacKenzie said Saturday.

Officials said they had reports of only limited impact on stretches of the winding river fronted by levees topped with rocky cover, concrete mats and other anti-erosion materials. But MacKenzie cautioned that canvassing such a vast area was a tall challenge and probably only a fraction of the affected wildlife had been spotted.

Beers with more alcohol, flavor gain market share Sat, 26 Jul 2008 10:50 EDT
Tucked in a corner at the Deschutes Brewery, barrels that once aged fine wines and whiskeys are nurturing beverages that are challenging drinkers to think of beer more like wine.

High-alcohol brews like Black Butte XX and The Abyss, known in the trade as big or extreme beers, are among many craft beers that are grabbing a growing market share in the United States from their mass-produced and heavily advertised counterparts. Even at prices ranging from $4 to more than $100 for a single bottle.

"We are looking for what we like to term that 'Wow Factor,'" said Deschutes CEO Gary Fish. "We want somebody to take a drink, stop, look at the glass and say, 'What was that?'"

Sales of premium beers, which include the household names of Budweiser, Coors Light and Miller High Life, have been nearly flat - up just 1.9 percent last year according to Information Resources Inc., a retail research firm.

As consumer tastes change and rising costs for ingredients pinch their profits, the nation's biggest brewers are looking for relief in consolidation. No. 1 Anheuser-Busch is being taken over by Belgian beverage giant InBev SA. No. 2 Miller Brewing Co. and No. 3 Molson Coors Brewing Co. are combining U.S. operations.

California bans restaurants from using trans fats Sat, 26 Jul 2008 17:05 EDT
California on Friday became the first state to ban trans fats from restaurant food, following several cities and major fast-food chains in erasing the notorious artery-clogger from menus.

Gov. Arnold Schwarzenegger signed legislation that will ban restaurants and other retail food establishments from using oil, margarine and shortening containing trans fats.

In a statement, Schwarzenegger noted that consuming trans fat is linked to coronary heart disease.

"Today we are taking a strong step toward creating a healthier future for California," he said.

Violations could result in fines of $25 to $1,000. Food items sold in their manufacturers' sealed packaging would be exempt.

ICAP keeps eye on futures Sun, 27 Jul 2008 01:26:00 EST
In a nondescript office building off Ormsby Station Road, dozens of employees at ICAP Energy huddle around computer screens while they track the price of natural gas, coal and electricity.

Senate is moving ahead with oil speculation bill Sat, 26 Jul 2008 22:43:00 EST
The U.S. Senate is moving ahead with a Democratic plan to curb speculation in oil markets that has been blamed for some of the recent run-up in oil prices.

Hawaiians eye sending trash to mainland Sat, 26 Jul 2008 23:03:00 EST
With sugar cane and pineapples fading, Hawaii's next big export to the U.S. mainland could be less sweet -- 100,000 tons of trash a year.

Avoiding debit-card hold when buying gas Sat, 26 Jul 2008 22:40:00 EST
When I use my debit card to buy gas at the pump, I've noticed that a hold gets put on funds in my account for a few days -- sometimes for more than what I purchased. What gives? Is there any way to avoid this?

Government seeks clearer data on 401(k) fees Sat, 26 Jul 2008 22:39:00 EST
Millions of participants in 401(k)-style retirement plans would receive more information about the costs of those programs, a move that could help boost savings, under a rule proposed by the Labor Department.

Humor can help keep workplace stress-free Sat, 26 Jul 2008 22:39:00 EST
Should companies use levity to boost their bottom line? Could laughter help firms keep workers? Authors Adrian Gostick and Scott Christopher say absolutely.

Olympic ads may sap strength Sat, 26 Jul 2008 22:38:00 EST
Executives at Nike believe the athletic shoe and sportswear maker can still achieve its fiscal 2009 revenue growth target of "in the high single-digit" percentages despite U.S. economic headwinds.

Fans getting in touch with screen demand Sat, 26 Jul 2008 22:35:00 EST
It's been a good year for touch screens. The launch of the first iPhone model a year ago boosted interest in the technology tremendously, and the updated model that went on sale this month is likely to continue to stoke the enthusiasm.

Frugality movement expands Sat, 26 Jul 2008 22:37:00 EST
Give up worldly goods and help save the Earth. Oh, and save lots of money. As the economy worsens, one group of Americans is turning to an Earth-friendly way of life as a hard-line strategy for saving.

No trans fats for California restaurants Sat, 26 Jul 2008 22:38:00 EST
California has become the first state to move to ban trans fats from restaurant food, following several cities and major fast-food chains in getting the notorious artery-clogger off menus.

The 'best' 'Vette yet' Sun, 27 Jul 2008 07:04 EDT

BOWLING GREEN . The first Corvette ZR1, the fastest-ever model of the popular American-made sports car, has rolled off the assembly line.

The ZR1, with a supercharged 638-horsepower V-8 engine, has a top speed of 205 miles per hour and the ability to go from 0 to 60 mph in 3.4 seconds.

.This is a unique super-performance car,. said Paul Graham, manager at the General Motors assembly plant in Bowling Green.

Dave Ressler, a car dealer from Montana, paid $1 million for the first ZR1 at a charity auction. The car carried a sticker price of $103,300. The additional $896,700 he paid will go to United Way.

Readings on economy, jobs could dominate trading Sun, 27 Jul 2008 18:30 EDT
Investors head into the week with a bit more resolve that U.S. companies are doing a better-than-expected job managing their way through an economy stifled by unprecedented turmoil in the housing and credit markets.

Wall Street is about midway through second-quarter earnings season, and the overall results haven't been as dreary as some analysts feared. About 61 percent of the Standard & Poor's 500 index companies reporting results so far have surpassed projections, and 72 percent of them were able to top last year's sales figures.

Expectations were low for the quarter and that helped some companies beat forecasts. But if you strip out the market's problem child - the financial sector - S&P said companies are headed for a 10 percent growth rate from last year.

"Regardless of the estimates or hype, a double-digit gain from non-financials is impressive - in any economy," said Howard Silverblatt, S&P's senior index analyst.

The fact that earnings have withstood the second-quarter turmoil might help put a more positive spin on the coming week. Investors are awaiting reports from several members of the Dow Jones industrial average and dozens of S&P 500 companies.

SemGroup co-founder reassures employees amid probe Sun, 27 Jul 2008 18:30 EDT
SemGroup LP co-founder Tom Kivisto this weekend attempted to reassure employees of the embattled company, following his removal as chief executive and president amid investigations by federal regulators and the U.S. Attorney's Office.

"Tulsa has always rebounded well when bad things happen to one of its corporate citizens," Kivisto said Saturday at a news conference where he refused to take questions from the media.

"With an investigation under way, I cannot answer any of the pressing questions or comment on speculations regarding the SemGroup situation," he said. A full transcript of his statement was published on the Web site of newspaper Tulsa World.

Kivisto added he believes "as the facts and truths surrounding this chain of events are revealed, the SemGroup employees will regain their trust in what they initially believed" about the organization.

The comments came one day after Bank of America Corp. sued Kivisto and his trust organization in Tulsa federal court for $12.8 million and interest unpaid on a 2006 loan.

Inflation's next front is retailers as costs rise Sun, 27 Jul 2008 22:05 EDT
Coming to a store near you: Even higher prices.

Most inflation this year has come from food and fuel, as retailers resisted passing along to strapped consumers the higher prices manufacturers charged them, but coming increases from companies such as Johnson & Johnson and Hasbro Inc. may leave them with no choice.

"While these increases have not for the most part been passed on at the retail level, it is inevitable that they will be at some point," said Dean Baker, co-director of the Center for Economic and Policy Research. "Car dealers and other retailers cannot continue to absorb rising costs at the wholesale level and not pass some of these increases on to consumers."

Sherwin Williams Co. on July 17 announced its third price increase in eight months. The company has been having "difficult discussions" with retailers, Chris Connor, chairman and CEO, said on its quarterly conference call.

The price increases are "well supported with facts in terms of why the company needs them," he said. "Our customers, to the best of their ability, are passing them on."

Some 52,000 Lufthansa workers plan for strike Sun, 27 Jul 2008 18:30 EDT
Frankfurt and Hamburg airports will be the hardest hit on Monday when 52,000 employees of Lufthansa AG go on strike, a union official said Sunday.

All other German airports served by Germany's biggest airline will also be affected by the massive walkout, Ver.di spokesman Harald Reutter told The Associated Press.

The union, which represents workers of Lufthansa ground crews and service personnel, sought a pay increase of 9.8 percent early this year. The union rejected a Lufthansa offer of 6.7 percent spread through February 2010, plus a one-time bonus payment, and the dispute has not been resolved.

The union and the airline were not in discussions over the weekend.

Ver.di has calculated that the strike will cost Lufthansa $7.8 million per day, according to Bild newspaper. The strike is scheduled to begin at midnight.

Report: Motorola to reorganize home, networks unit Sun, 27 Jul 2008 17:35 EDT
Motorola Inc. will restructure its home and networks mobility unit into three separate businesses, which could ease the way for their potential sale, according to media reports.

Motorola said in March that it plans to separate the handset business, which has been hurt by a two-year-long decline in cell phone sales, from the home and networks business. Now, the world's third-largest cell phone maker told employees in a memo last week it will split its second-largest division into three segments, according to a story published on The Wall Street Journal's Web site Sunday.

The home and networks business sells TV set-top boxes, digital video recording equipment and modems, as well as network gear such as data and voice equipment for telecom service providers. The division posted a 2 percent increase in fiscal first-quarter sales to $2.4 billion.

Shares of Schaumburg, Ill.-based Motorola have struggled, as Wall Street worries that economic distress will hurt the sale of its cell phone handsets in the second half of the year, despite signs that competitors are thriving. Analysts have said the company's handset business continued to lose ground in second quarter as market share tumbled and the average selling prices for its products declined.

That has signaled to Wall Street that Motorola's competitive stance is weakening against rivals like Nokia Corp. and Samsung Electronics Co., the world's No. 1 and No. 2 cell phone handset makers.

Two banks closed by FDIC to reopen under new company Sun, 27 Jul 2008 04:04 EDT

CARSON CITY, Nev. . Two banks operating in Nevada, Arizona and California . 1st National Bank of Nevada and First Heritage Bank N.A. . were closed Friday by federal regulators. The 28 branches of the banks, owned by Scottsdale, Ariz.-based First National Bank Holding Co., were scheduled to reopen Monday as Mutual of Omaha Bank branches, the Federal Deposit Insurance Corp. said.

The FDIC said the takeover of the failed banks was the least costly resolution and that all depositors . including those with funds in excess of FDIC insurance limits . will switch to Mutual of Omaha with .the full amount of their deposits..

The FDIC also said account holders can access their funds during the weekend by writing checks or using ATM or debit cards.

As of June 30, the closed banks had total assets of $3.6 billion. That's down from $4.1 billion six months earlier. Most of the assets are in 1st National; First Heritage N.A. accounts for $254 million.

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