News money 2008-08-07 Andanh.com

Natural gas prices spell high heating bills Wed, 06 Aug 2008 02:13:00 EST
Here's news to send a chill down your spine: Home and business heating bills might be near record highs this winter, the Kentucky Public Service Commission and energy companies are warning.

Dow soars 331; oil sinks Tue, 05 Aug 2008 22:35:00 EST
An already soaring Wall Street extended its advance yesterday after the Federal Reserve left interest rates unchanged and assuaged some fears about the economy.

Papa John's profit rises in 2nd quarter Tue, 05 Aug 2008 22:36:00 EST
Papa John's International yesterday reported a second-quarter profit of $7.6 million, a slight increase from the $7 million posted a year ago, and reaffirmed its full-year earnings expectations.

Churchill reports steady earnings Wed, 06 Aug 2008 01:29:00 EST
Churchill Downs Inc.'s net earnings for the April-to-June quarter held steady at $29 million compared to last year, according to results announced yesterday. That's despite disputes with horsemen at two of its tracks that made thoroughbred races unavailable to certain bettors.

Business People Tue, 05 Aug 2008 21:47:00 EST
Professional services, energy and organization 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.

Almost Family's profit nearly doubles in quarter Tue, 05 Aug 2008 22:36:00 EST
Louisville-based Almost Family reported that its second-quarter net income nearly doubled because of soaring results from its visiting-nurse business, sending its shares up more than 10 percent yesterday.

Fasig-Tipton sale capped by $2 million purchase Wed, 06 Aug 2008 14:00 EDT

Herald-Leader Staff Report

Fasig-Tipton's select yearling sale at Saratoga ended Tuesday with a two-day gross of $36.08 million for 122 horses.

The sale-topper came Tuesday, a $2 million Storm Cat colt purchased by M.V. Magnier of Coolmore Stud.

The colt, the only seven-figure horse of the evening, was consigned by Ben Walden's Gracefield Farm in Lexington.

WDKY owner signs cable agreement with Insight Wed, 06 Aug 2008 12:20 EDT

The parent company of Lexington's Fox affiliate has reached an agreement with local cable provider Insight Communications to continue broadcasting the channel on cable.

Sinclair Broadcast Group struck the three-year deal for WDKY and three more of its stations . WSYX and WTTE in Columbus, Ohio, and WSTR in Cincinnati . according to WDKY General Manager Michael Brickey.

The agreement begins Jan. 1, 2009.

Sinclair made headlines last year after it and cable operator Mediacom Communications fought bitterly over the so-called carriage agreements, in which the two negotiate whether broadcast networks are paid for offering their feed to cable. That fight left a few hundred viewers in Kentucky without access to WDKY.

Heating bills likely to increase Wed, 06 Aug 2008 01:50 EDT

The Kentucky Public Service Commission on Tuesday warned that consumers are likely to see higher heating prices this winter because of the rise in natural gas costs.

.Natural gas prices this summer have hit levels not seen since the fall of 2005, when supplies were disrupted by hurricanes Katrina and Rita,. PSC Chairman David Armstrong said in a statement. .Although prices have fallen in recent weeks, it still seems likely that heating costs this winter will be higher than in the last two years..

Under the law, utilities pass on the costs of natural gas to consumers directly, making their money instead on transport fees.

The cost of natural gas typically accounts for about 75 percent of an overall bill.

Business Notes Wed, 06 Aug 2008 01:50 EDT

Kentucky

Fasig-Tipton gross down

Fasig-Tipton 's Saratoga select yearling sale opened Monday with 60 horses selling for a total of $18.16 million. The sale continued Tuesday night. The gross was down 8.6 percent from the opening session last year. Monday's average price of $302,667 was up 16 percent, while the median price of $235,000 was up 13 percent. The buy-back rate, of horses going through the auction ring but not selling, also rose, from 22 percent last year to 29 percent on Monday night. A filly by the recently pensioned Storm Cat brought Monday's top price. Barry Irwin 's Team Valor paid $1.5 million for the Kentucky-bred filly consigned by Hill 'n' Dale Sales Agency . The top colt of the night was a $1.2 million son of A.P. Indy , purchased by Lane's End Farm . He had been a $500,000 buy-back at the 2007 Keeneland November sale for consignor Hunter Valley Farm .

Rupp sees best attendance

11 charged in retailer hacking scheme Wed, 06 Aug 2008 01:50 EDT

NEW YORK . The Justice Department said Tuesday it has charged 11 people in connection with the hacking of nine major U.S. retailers and the theft and sale of more than 40 million credit and debit card numbers.

It is thought to be the largest hacking and identity theft case ever prosecuted by the department. The charges include conspiracy, computer intrusion, fraud and identity theft.

The indictment returned Tuesday by a federal grand jury in Boston alleges that those facing charges hacked into wireless computer networks of retailers such as TJX Cos, BJ's Wholesale Club, OfficeMax, Boston Market, Barnes . Noble, Sports Authority, Forever 21 and DSW.

The indictment says the hackers installed programs to capture card numbers, passwords and account information, and then concealed the data in computer servers that they controlled in the United States and Eastern Europe.

Earnings Roundup The following companies made earnings-related announcements on Wednesday. Thu, 07 Aug 2008 01:55 EDT

Freddie Mac

Second Prior-year quarter period

Revenue $1.69B $2.34B

Net income -$821M $729M

France seeks tax on fatty foods Thu, 07 Aug 2008 01:55 EDT

PARIS . Cheese, pastries, foie gras . France's culinary delights are full of dietary sins. Now child obesity is rising and the myth is fading that French people can eat anything and stay thin. So the government is fighting back.

A government agency has pitched an increase in sales taxes on extra-fatty, salty or sugary products. The current 5.5 percent rate would rise to 19.6 percent, according to the report, a Budget Ministry official confirmed Wednesday.

Details of the tax remain to be hammered out.

It was not yet clear, for example, whether it would apply to famously fatty cheese that French consumers buy at outdoor markets and to eclairs from the bakery, or just processed junk foods.

video stores see summer sales rise Thu, 07 Aug 2008 01:55 EDT

In an industry under strain for years, movie rental stores are seeing an upswing this summer, thanks to a struggling economy.

The trend comes, oddly enough, as one of Lexington's few remaining stores has closed. But that store, the Hancock's location on Southland Drive, was open only as a favor to a former landlord searching for a new tenant.

Meanwhile, Premiere Home Video on Euclid Avenue is seeing its business skyrocket.

Over three months last summer, the store rented 12,000 dollar movies. This year, 26,000 have been rented, said manager Terri Robbins.

Get cheaper thrills at amusement parks Thu, 07 Aug 2008 01:55 EDT

From MSN Money, here are some tips for saving on your next trip to an amusement park:

. Do your research. By getting maps and brochures, you can mark down the attractions you must see, and the ones you can live without. Make sure to check their Web sites. Or visit unofficial sites such as MouseSavers.com, amusementpark.com and themeparkinsider.com.

. Buy your tickets online. You're bound to get at least some discount.

. Check your memberships. Organizations such as AAA and AARP may offer their members discounts.

CentrePointe viability debated by task force Wed, 06 Aug 2008 07:10 EDT

Developers of the downtown CentrePointe project declined Tuesday to publicly identify the project's financial backers, a stance that led to some tense moments in front of a city task force.

Vice Mayor Jim Gray wanted a letter from the investors saying the money has been pledged to build CentrePointe. Previously, developers have said the project would cost $250 million, but a financial impact analysis released Tuesday put the cost at $205 million.

.We want to guarantee this project goes forward,. Gray said.

In answer to Gray's question about revealing the investors, attorney Darby Turner, representing developer The Webb Companies, said, .No, we won't do that..

Earnings roundup Wed, 06 Aug 2008 01:50 EDT

The following companies made earnings-related announcements on Tuesday.

Churchill Downs Inc.

Second Prior-yr. quarter period

Revenue $179.3M $169.9M

Software can prevent computer glitches Wed, 06 Aug 2008 01:50 EDT

From ARA Lifestyle.com, suggestions to keep your computer in good condition:

. Clean up registry errors. Registry errors cause your computer to slow down. Everyday uses such as installing and removing software and playing online games can create errors in your PC's registry. To remedy these, download a registry cleaner.

. Eliminate spyware. Spyware is software that can be installed on your computer without your knowledge. In addition to collecting information on your surfing habits, it can also slow down your computer considerably. Antispyware programs such as Spybot can be found on the Internet.

. Keep an eye out for viruses. The best way to protect yourself is to subscribe to a virus protection software, particularly one that offers constant updates.

AIG's huge 2Q loss shows credit market woes linger Thu, 07 Aug 2008 01:01 EDT
American International Group Inc. posted its third straight quarterly loss, a rude awakening to investors hoping that troubles in the insurer's mortgage market investments were starting to level off.

Shares of AIG fell nearly 8 percent in after-hours trading.

The world's largest insurer suffered a deficit of $5.36 billion in the second quarter after losing $5.56 billion, or $3.62 billion after taxes, in what are called credit default swaps, and writing down $6.08 billion, or $4.02 billion after taxes, in the value of other investments.

Credit default swaps are insurance policies to protect bondholders against defaults. Over the past three quarters, AIG has lost more than $25 billion, pretax, to credit default swaps, and more than $15 billion, pretax, in other investments.

Financial institutions that bet heavily on risky mortgage-backed securities have been pummeled since the start of the credit crisis. When the mortgages underlying these securities began failing, the value of the investments plunged, forcing companies like AIG to heavily mark down the value of their holdings.

ECB, BoE seen leaving rates unchanged Thu, 07 Aug 2008 00:55 EDT
The European Central Bank and Bank of England will likely leave interest rates unchanged Thursday, as both banks consider how to steer their economies away from mounting inflation and slowing growth.

The ECB last month moved to cool inflation by hiking borrowing costs for the first time in a year to 4.25 percent for the 15 countries that use the euro - a bloc of 320 million people that accounts for more than 15 percent of the world's gross domestic product.

The Bank of England, however, has left rates unchanged at 5 percent since April, when it reduced its benchmark figure by a quarter of a percentage point.

Higher interest rates can ward off inflation because demand for goods and services can steady or fall as a result of money becoming more expensive or less available. On the other hand, higher rates can also quell growth as expensive money makes expansion borrowing less likely. At the same time, higher interest rates can also underpin a currency, as investors park capital in investments that earn better interest.

"The Bank of England is in the unenviable position of trying to subdue heavy inflationary pressures and defend against slowing growth," said Nicholas Mosley, a currency analyst at Wachovia Bank.

Oil steady near $119; US demand still a concern Thu, 07 Aug 2008 01:55 EDT
Oil prices were steady Thursday in Asia near $119 a barrel as concerns over slackening U.S. fuel demand offset the shutdown of a major Turkish pipeline after a fire.

"The oil market right now is overwhelmingly preoccupied with poor U.S. oil demand," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. "The market is choosing to ignore somewhat some of the supply-side issues, such as the pipeline fire."

Light, sweet crude for September delivery rose 18 cents to $118.76 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract dropped 59 cents overnight to settle at $118.58 a barrel.

The U.S. Energy Department's Energy Information Administration said Wednesday that crude supplies rose 1.7 million barrels in the week ended Aug. 1, slightly more than the 1.2 million-barrel increase expected by analysts surveyed by energy research firm Platts.

The EIA said inventories of distillate fuel, which include diesel and heating oil, jumped 2.8 million barrels. The analysts had expected an increase of 2.3 million barrels.

Japan's core machinery orders fall in June Thu, 07 Aug 2008 00:55 EDT
A key barometer of corporate capital spending fell for the first time in three months in June, indicating Japanese businesses are feeling the pinch of a sputtering global economy.

Core private sector machinery orders, which exclude often volatile orders from electric power firms and those for ships, fell 2.6 percent to 1.085 trillion yen ($9.92 billion) in June from the previous month, the Cabinet Office said Thursday.

Led by declines in the iron and steel sector, the figure marks a substantial weakening from a 10.4 percent jump in May and a 5.5 percent increase in April.

Compared with a year earlier and without seasonal adjustments, core orders increased 9.7 percent in June, the data from the Cabinet Office showed.

The orders are considered an important gauge of business investment in the future, providing a window into corporate sentiment amid economic uncertainties.

Time Warner 2Q net drops 26 percent Wed, 06 Aug 2008 21:20 EDT
Time Warner Inc.'s second-quarter earnings fell 26 percent on declining subscriber fees at its AOL online unit and lower ad revenue at the Time publishing business, the media conglomerate said Wednesday.

The company affirmed its full-year financial targets after revenue rose at its film, cable and networks segments.

Time Warner also took legal and tax steps that make it possible to split its AOL online business and sell it in parts.

The New York-based media conglomerate said net income fell to $792 million, or 22 cents per share, from $1.07 billion, or 28 cents per share, a year ago.

Excluding one-time items, profit rose to 24 cents per share from 22 cents per share last year, when gains from the sale of assets bolstered earnings.

In rural Alaska, fuel costs Thu, 07 Aug 2008 01:55 EDT

BARROW, Alaska . A gallon of unleaded gasoline: $10. Heating fuel: $9.10 a gallon. Electricity: $1.17 per kilowatt hour, 11 times the national average.

Some heavily taxed European nation? Try the remote villages of Alaska.

The seasonal barge shipments of fuel have yet to arrive, meaning villages are still paying last year's prices, already a minimum of 60 cents higher than the U.S. average.

Here in Barrow, the nation's northernmost city that lies just a few hundred miles west of the country's largest oil field, Prudhoe Bay, residents pay $4.65 for a gallon of gas. By the time the barges come, that price tag will be closer to $7.

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