News money 2008-08-08 Andanh.com

Wanted: Jobs at fair Thu, 07 Aug 2008 03:17:00 EST
On Tuesday, the 85-year-old Hearn lined up with others in the rain outside the Kentucky Exposition Center, but by the time he left the fairgrounds, he had to endure the heat and humidity of midday.

Airguard moving to Jeffersonville Wed, 06 Aug 2008 22:26:00 EST
Airguard Industries is moving its corporate headquarters, manufacturing and distribution operations from Louisville to Jeffersonville, Ind., where it will be consolidated with the filter manufacturer's New Albany operations.

ID-theft case a record, U.S. says Wed, 06 Aug 2008 22:27:00 EST
Federal authorities are calling it the largest hacking and identity-theft case yet. But the indictments of 11 people who allegedly plundered millions of payment-card numbers might not seriously dent the underworld where such crimes occur.

Expert: Make sure tech help is available Thu, 07 Aug 2008 03:20:00 EST
Today's consumers live in a self-service world where high-tech, interactive applications play a growing role. That makes it critical for businesses to pay close attention to how their help desks respond to, anticipate and prevent problems in those systems.

Stocks advance on oil's drop Wed, 06 Aug 2008 22:27:00 EST
Wall Street logged another winning session yesterday as another drop in oil prices and a better-than-expected profit report from technology bellwether Cisco Systems helped corral worries about the financial sector.

Churchill eyes slots at Florida track Thu, 07 Aug 2008 03:20:00 EST
Bob Evans, chief executive of Churchill Downs Inc., indicated yesterday that the Louisville-based racetrack operator might open its second slots facility next year at its Calder Race Course near Miami.

Q: I'm worried about what might happen if I lose my job and can't make my house payments. What shou Thu, 07 Aug 2008 03:11:00 EST
A: The Federal Reserve Bank of St. Louis, which serves the Louisville area, is distributing a "Foreclosure Survival Guide" through community and housing development agencies and other locations.

Business People Wed, 06 Aug 2008 21:35:00 EST
Health care, non-profit and professional service 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.

Fields says Ford met salaried cost-cut goal Wed, 06 Aug 2008 22:29:00 EST
Mark Fields, president of the Americas at Ford Motor Co., said yesterday that the automaker met its goal of cutting 15 percent of its North American salaried costs by last Friday.

Plea deal offered to former Clark executive Thu, 07 Aug 2008 16:08 EDT

A criminal case that began with a dramatic federal search of a Lexington company's headquarters in 2004 appears headed for a quiet ending.

Federal prosecutors have offered a plea deal to former Clark Material Handing Co. executive Robert E. Quinn that could end the 4-year-old case at an Aug. 26 hearing in U.S. District Court in Washington, D.C.

In documents filed with the court, prosecutors are now charging Quinn with one felony count of lying to investigators on Dec. 28, 2004, during the search of Clark's headquarters.

Quinn's boss at Clark, David Tatum, pleaded guilty earlier to the same charge and was placed on probation for 12 months.

Citigroup returning billions to investors Thu, 07 Aug 2008 22:20 EDT
Citigroup Inc. will buy back more than $7 billion in auction-rate securities and pay $100 million in fines as part of settlements with federal and state regulators, who said the bank marketed the investments as safe despite liquidity risks.

Citigroup will buy back the securities from tens of thousands of investors nationwide under separate accords announced Thursday with the Securities and Exchange Commission, New York Attorney General Andrew Cuomo and other state regulators. The buybacks from nearly 40,000 individual investors, small businesses and charities are not expected to cause significant losses for Citigroup; they must be completed by November.

Similar steps to buy back auction rate securities from customers are expected to be taken by other financial institutions. Bank of America Corp. revealed that it has received subpoenas and requests for information about its sale of the investments. Merrill Lynch & Co. said it will offer to buy back an estimated $12 billion in auction rate securities, though the company has already been actively reducing that amount.

Citi, the nation's largest financial institution, said also will pay $50 million each in civil penalties to New York state and the North American Securities Administrators Association, which represents securities regulators in the 50 states and the District of Columbia.

The SEC also will consider levying a fine on Citigroup, the agency's enforcement director Linda Thomsen, said at a news conference.

Video stores see summer sales rise Thu, 07 Aug 2008 05:20 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.

Earnings Roundup Thu, 07 Aug 2008 08:18 EDT

The following companies made earnings-related announcements on Wednesday.

Freddie Mac

Second Prior-year quarter period

Revenue $1.69B $2.34B

Toyota 1Q profit falls on US weakness, strong yen Thu, 07 Aug 2008 15:49 EDT
Toyota said Thursday that its fiscal first-quarter profit plummeted 28 percent, and the automaker stuck to its forecast that full-year profit will fall for the first time in seven years as it faces more problems from the weakening U.S. market.

Toyota Motor Corp., which had been riding on the success of its fuel-efficient cars, has consistently posted growing profit since it started reporting under U.S. accounting standards. And there's no previous comparable data that shows its annual profit has ever fallen.

But sliding North American sales, a strong yen and rising material costs have battered the earnings of Japan's top automaker, which is on track to end ailing General Motors Corp.'s 77-year reign as the world's top automaker.

Toyota does not rely as much on truck and sport utility vehicle sales as its U.S. competitors and so far has avoided the kinds of deep losses racked up by GM and Ford Motor Co. But the company still is seeing its momentous sales growth slow amid a U.S. economic downturn and soaring gas prices.

Koji Endo, auto analyst for Credit Suisse in Tokyo, said that while Toyota is boosting sales in new markets like China, it can't make up for the shortfall in giant markets like the U.S., Europe and Japan.

Stocks fall on worries about financial sector Thu, 07 Aug 2008 19:20 EDT
Wall Street tumbled Thursday as further troubles in the financial sector, higher unemployment and lackluster retail sales touched off fresh concerns about the economy. The Dow Jones industrials skidded nearly 225 points, while bond prices shot higher as investors once again sought the safety of government debt.

The stock market's pullback erased most of the 370-point gain the Dow logged the prior two sessions and shows the lack of solid conviction behind many of investors' recent bets.

Heading the list of worries, insurer American International Group Inc. reported a loss of more than $5 billion for the second quarter and the Labor Department said the number of newly laid off people seeking jobless benefits last week jumped to its highest level in more than six years. Weak sales reports from Wal-Mart Stores Inc. and other retailers added to investors' unease.

Meanwhile, an announcement by the credit-ratings agency Moody's Investors Service that it placed the long-term ratings of credit card lender American Express Co. on review for possible downgrade exacerbated investors' nervousness.

Bill Stone, chief investment strategist for PNC Wealth Management, said the stream of economic news has been somewhat negative lately, often short-circuiting the market's attempts to build on rallies. Thursday's reports on employment and financials only added to the uneasiness, he said.

Bank of America subpoenaed over sale of securities Thu, 07 Aug 2008 17:55 EDT
Bank of America Corp. revealed Thursday that it has received subpoenas and requests for information from various state and federal regulators regarding its sale of auction-rate securities.

In a filing with the Securities and Exchange Commission, the Charlotte, N.C.-based bank said subsidiaries Banc of America Investment Services Inc. and Banc of America Securities LLC are cooperating fully with the requests.

Auction-rate securities are bonds whose interest rates are set at periodic auctions, on the basis of bids submitted. The market collapsed in February amid turmoil in the credit markets.

Regulators have been investigating some banks' involvement in the sale of the securities.

Earlier Thursday, Citigroup Inc. said it reached a settlement with the New York Attorney General and regulators to repurchase $7 billion in auction-rate securities and pay $100 million in fines.

Jobless claims hit highest point since March 2002 Thu, 07 Aug 2008 22:20 EDT
The nation's jobs market sent a fresh cry of distress as the number of newly laid off people unexpectedly hit the highest level in more than six years, a Labor Department report showed Thursday.

The faltering economy and tight credit have forced companies to cut back, and as the job market shrinks, consumer spending may dwindle, too.

All that spells potentially more trouble for the country later this year as the bracing tonic of the government's tax rebates disappears. "Consumers will be very tight fisted in the coming months," predicted Richard Yamarone, economist at Argus Research. "Nothing shuts down the consumer - and the economy - like the loss of a job."

Companies are laying off workers as they struggle with slowing customer demand, harder-to-get credit and high costs for fuel and other raw materials.

New applications filed for unemployment benefits rose last week by a seasonally adjusted 7,000 to 455,000, the department said in its weekly report. That was the most since late March 2002, when the job market was struggling mightily to get back on its feet after the 2001 recession.

Survey: Public divided on in-flight cell phone use Thu, 07 Aug 2008 16:05 EDT
The friendly skies are not so affable when it comes to using cell phones on commercial airliners.

Nearly half of U.S. residents say they would oppose allowing cell phone use aboard flights even if there were no issues with the phones interfering with aircraft communications systems, a Department of Transportation survey finds. About four out of 10 residents said cell phone use should definitely or probably be permitted.

But, as any parent of a teenager could have predicted, there is a cell phone generation gap. Among residents aged 65 and older, about 60 percent oppose cell phone use in flight, while less than a third support it.

For people aged 18 to 34, nearly half support cell phone use in flight, while a little over a third oppose it, the survey found.

The opinions on in-flight cell phone use were part of the Bureau of Transportation Statistics' annual household survey, which questioned 979 residents in November 2007 and 1,063 residents in November 2006. The survey has a plus or minus error rate of about 3 percent.

Toyota profit plummets 28 percent for quarter Thu, 07 Aug 2008 23:36:00 EST
Toyota said yesterday in Tokyo that its fiscal first-quarter profit plummeted 28 percent, and the automaker reiterated its forecast that full-year profit will fall for the first time in seven years as it faces more problems from the weakening U.S. market.

Financial worries batter stocks Fri, 08 Aug 2008 02:32:00 EST
Stocks tumbled yesterday as further troubles in the financial sector, higher unemployment and lackluster retail sales touched off fresh concerns about the economy.

Lexus again alone at top in dependability study Thu, 07 Aug 2008 23:35:00 EST
Lexus once again stands alone atop a closely watched ranking of vehicle dependability after Buick slipped from the No. 1 spot it shared with the Japanese luxury brand last year, J.D. Power and Associates said yesterday.

Citigroup to buy back securities Thu, 07 Aug 2008 23:33:00 EST
Citigroup will buy back more than $7 billion in auction-rate securities and pay $100 million in fines as part of settlements with federal and state regulators, who said the bank marketed the investments as safe despite liquidity risks.

Keeneland considers expansion Thu, 07 Aug 2008 23:35:00 EST
Keeneland Race Course has hired the HOK Sport architectural firm to develop a master plan that could allow the Lexington track to play host to the Breeders' Cup World Championships.

Santa Anita could be sold to reduce Magna's debts Fri, 08 Aug 2008 02:32:00 EST
The founder and chairman of Magna Entertainment Corp., a racetrack operator and business partner of Churchill Downs Inc., suggested this week that major assets such as California's Santa Anita Park -- the home of the Breeders' Cup World Championships for the next two years -- might be sold in an effort to reduce the company's debt.

Q: What is predatory lending? Thu, 07 Aug 2008 23:37:00 EST
A: Predatory lenders charge high interest rates, high prepayment penalties and other costly and unnecessary fees, according to the Kentucky Real Estate Commission.

PharMerica had 2nd-quarter revenue of $486.3 million Thu, 07 Aug 2008 23:38:00 EST
PharMerica, a Louisville-based institutional pharmacy-service company, reported yesterday that in the three months ended June 30 it had revenue of $486.3 million, while net income was $2.9 million, or 10 cents a share.

Google believes AOL investment crumbling Thu, 07 Aug 2008 23:43:00 EST
In an assessment that could lead to a substantial charge against its future profits, Google believes its $1 billion investment in advertising partner AOL is souring.

Alumni Hall buys Dawahare's CatBird Seat locations Fri, 08 Aug 2008 13:18 EDT

Alumni Hall Stores is buying the three CatBird Seat stores from Dawahare's of Lexington for $296,000.

U.S. Bankruptcy Judge Joseph Scott approved the sale Friday. The stores are at Fayette Mall in Lexington, and Springhurst Towne Center and Mall St. Matthews in Louisville.

Alumni Hall, a Knoxville-based chain that specializes in college clothing and similar items, won the right to buy the stores in an auction conducted by Dawahare's bankruptcy attorneys at the Lexington firm of Bunch & Brock.

W. Thomas Bunch told the court there were 117 rounds of bidding that began with a $1,000 offer by iVisionary LLC of Lexington and continued with increases of at least $1,000 until Alumni Hall emerged as the winner.

Here's some of the latest in bizspeak Fri, 08 Aug 2008 01:48 EDT

From MSN Encarta, here are some popular buzzwords to help you decode the jargon of today's business world:

. Offline: For when you need to talk with someone in person or by phone rather than via e-mail or instant message.

. Ping: Also pinging . If you need to get someone's attention, you ping them, usually via e-mail or instant message.

. Deep dive: When someone asks you to do a deep dive , they're asking for more in-depth information. The phrase drill down can also be used in a similar context.

Business Notes Fri, 08 Aug 2008 01:48 EDT

Kentucky

Rhino coal company trims IPO

Lexington-based coal producer Rhino Resources has slashed the size of its initial public stock offering to $115 million from an earlier estimate of up to $180 million, the company said Thursday. Shares of coal companies have fallen sharply on concerns about declining energy prices.

Stocks jump as oil prices fall sharply Fri, 08 Aug 2008 17:50 EDT
Wall Street rebounded smartly Friday, shooting higher as a surge in the dollar and another plunge in oil prices eased some of investors' worries about losses at mortgage finance company Fannie Mae. The Dow Jones industrials soared more than 300 points, more than wiping out a big loss from the previous session, and all the major indexes had their best weekly gains since April.

The session extended a streak of volatility that has seen the Dow making frequent triple-digit moves as investors reacted feverishly to news about the financial sector, corporate earnings and the economy.

On Friday, the dollar, which has sagged along with the economy, reached its highest level against the euro since February, and in the process sent a wave of confidence through the stock market. And because the dollar's strength has contributed to the recent skid in oil prices, light, sweet crude dropped sharply again, falling $4.82 a barrel to settle at $115.20 on the New York Mercantile Exchange. That brought crude's decline over the past four weeks to more than $30.

Investors see the drop in oil as a big boost for the economy, because it should allow consumers to spend more freely. For the moment, that has allowed the market to set aside nervousness about the financial sector, which is still contending with the fallout from the year-old credit crisis.

Fresh financial worries surfaced Friday after Fannie Mae, the largest U.S. buyer and backer of home loans, reported a quarterly loss more than three larger than what Wall Street had expected and said it would slash its quarterly dividend to conserve cash.

Productivity growth slowed in spring Fri, 08 Aug 2008 16:50 EDT
The efficiency of America's workers grew at a slightly slower pace in the spring as companies sought to produce more with leaner work forces. Workers' compensation growth slowed, too.

The Labor Department reported Friday that productivity - the amount an employee produces for every hour on the job - grew at an annual rate of 2.2 percent during the April-to-June quarter. That was down from a 2.6 percent growth rate logged in the first three months of this year.

Economists were forecasting productivity to pick up slightly to a 2.7 percent pace.

"The economy is limping along and businesses are doing whatever they can to remain competitive," said Joel Naroff, president of Naroff Economics Advisors in Holland, Pa. "So, we had fewer people working shorter hours and producing more."

Meanwhile, growth in compensation - wages and benefits - also slowed as companies were less generous amid troubles in the economy and uncertainty about their own prospects.

Oil sinks on stronger dollar to $115 a barrel Fri, 08 Aug 2008 17:20 EDT
Oil prices dove to $115 a barrel on Friday, driven lower by a huge jump in the U.S. dollar, signs of moderating demand around the world and the burgeoning belief that commodities may have peaked.

Shrugging off concerns about a sabotaged oil pipeline in Turkey, investors pulled their money out of commodities and put it back into stocks - giving crude oil a weekly loss of nearly $10 a barrel, and driving the Dow Jones industrial average up more than 300 points.

With energy losing its luster in the marketplace, the cost of roadside gasoline has been crawling lower. The average retail price for a gallon of gasoline slipped to $3.836 Friday. That's down about a penny from Thursday, and down nearly 28 cents from the record high of $4.114 reached July 17.

"We're probably going to see gasoline at the retail level around $3.50 for Labor Day," said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com.

Light, sweet crude for September delivery slumped $4.82 to settle at $115.20 a barrel on the New York Mercantile Exchange - its lowest settlement since May 1. During trading, crude dipped as low as $114.90. Prices for gasoline, heating oil and natural gas also dropped.

Fannie Mae loses $2.3B in quarter as defaults rise Fri, 08 Aug 2008 17:10 EDT
Fannie Mae is making bold cutbacks that will send shock waves through the mortgage market, after posting a quarterly loss Friday that was three-times larger than Wall Street expected.

To slow its financial decline, the mortgage finance giant slashed its dividend to 5 cents a share from 35 cents a share and said it will eliminate loans for borrowers with solid credit scores, but little proof of income or small or no down payments.

The company also is raising its mortgage fees, which will be passed onto borrowers as higher interest rates or closing costs.

With Fannie Mae and its sibling company Freddie Mac becoming more risk-averse, fears are building that mortgage rates will keep climbing, making it harder for people to afford a mortgage or refinance their home, and spur even more foreclosures.

"We are already in that spiral," said Chris Mayer, real estate professor at Columbia Business School.

WTVQ's Web site should be fine now Fri, 08 Aug 2008 01:48 EDT

The Web site of ABC affiliate WTVQ-36 has been down off and on over the past several days, as the station transitioned to a new Web hosting firm.

General Manager Chris Aldridge said the change was necessary as the company moved its digital assets away from former station owner Media General.

When Morris Multimedia bought the station earlier this year, Media General agreed to continue providing e-mail and Web support through June.

The station moved those to a new company after that, but that hosting service .could not handle the volume of traffic that we were getting on the Web site..

Chinese Dir