Business News

[Fivetears]

Michelin & Union Reach Tentative US Tire Agreement
CHICAGO - Michelin and the United Steelworkers on Tuesday reached a tentative agreement on a new contract for hourly workers at three of its BFGoodrich tire plants in the United States. Details of the agreements, which cover about 3,450 workers, will not be released until the union has completed ratification votes, Michelin spokeswoman Lynn Mann said. The contracts covering the Michelin union workers in North America were to expire at midnight on July 22, but both sides had agreed to temporary extensions while talks continued.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=OBR&Date=20060725&ID=5895447

[Fivetears]

Big Companies Cash in on Fed Contracts
WASHINGTON - At least $12 billion in contracts the government claimed it gave to small companies last year wound up instead in the coffers of corporate giants like Microsoft and Rolls Royce, greatly inflating the Bush administration's record of help to small businesses, Democratic congressional investigators say. When small business contracts with large companies are excluded, the government missed for a sixth straight year a requirement that 23 percent of its $314 billion in annual contracts go to small businesses, House Democrats conclude in a report to be released Wednesday. There were two basic problems, the investigators said: Federal agencies miscoded thousands of contracts to big companies as small business awards. And many other companies that started small grew large or were purchased by corporate giants but continued to get small business contracts. "It's just unbelievable," said Rep. Nydia Velazquez of New York, the top Democrat on the House Small Business Committee. "We have just got to start holding agencies accountable." Velazquez is asking the Government Accountability Office and internal watchdogs for the State, Treasury, Defense and Transportation departments to investigate their contracting procedures and see if criminal activity is involved. Under federal law, representatives of large companies that falsely claim to be small firms can be punished with 10 years in prison, $500,000 in fines, and a permanent ban from doing government business.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=AP&Date=20060725&ID=5895227

[Fivetears]

Hewlett-Packard to Buy Mercury Interactive
SAN FRANCISCO - Hewlett Packard Co. is biting off its biggest acquisition in four years with a $4.5 billion purchase of Mercury Interactive Corp., the business management software maker that has been entangled in a stock options scandal. The deal, announced Tuesday by the Palo Alto, Calif.-based computer and printer maker, isn't cheap. The all-cash price works out to $52 per share -- a price that Mercury's long-slumping stock hasn't topped for more than two years. HP's offer represents a 33 percent premium above Mercury's closing price of $39 in the over-the-counter market.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=AP&Date=20060725&ID=5894880

[Fivetears]

Ford Shares Upgraded
Merrill Lynch analyst John Murphy upgraded his rating on shares of Ford to "neutral" from "sell," given that the market appears to have priced in the negative results from Ford's second-quarter loss. On Thursday, Ford reported a $123 million loss in the second quarter, due mainly to weak demand for its trucks and sport utility vehicles and to rising gas prices. But Murphy said it appears that the market is pricing in most of the bad news from Ford. "The market is well aware of the company's tough competitive position and outsized cost structure in its key North American operations as well as the mounting earnings pressure at Ford Motor Credit," Ford's financing arm, he said. For now, Murphy estimated Ford's balance sheet is in good shape, with liquidity of over $30 billion and $24 billion in cash, and the company's' cash-burn rate is manageable at $4 billion. In addition, Murphy said Ford's Premier Auto Group, Ford Motor Credit and Mazda assets could further support the company's liquidity if necessary.
http://www.forbes.com/2006/07/25/ford-0725markets17.html?partner=msn

[Fivetears]

Heat-Related Blackouts Hurting Small Businesses
California — When a blackout hit Benny Marino's working-class block, he started to get nervous. Soon the salmon, shrimp and skate he sold at his Marino & Sons Fish Market in Queens would spoil. When it did, the smell of rotting food and stale air began to permeate the neighborhood. "We lost a lot of product," said Marino, whose grandfather opened the store in 1932. Marino, like other business owners, was still reeling Monday from the blackout, which devastated the inventories of ice cream parlors, groceries, butcher shops, fish mongers and restaurants. City officials estimated that at least 750 businesses were affected and said that the losses could reach into the millions of dollars.
http://www.foxnews.com/story/0,2933,205432,00.html

[Fivetears]

Motorola Unveils New, Unpronounceable Cell-Phone Models
Illinois — Motorola Inc. on Monday unveiled several new handsets, including the Krzr and the Rizr, which are narrower than its flagship Razr. The new models are part of a family of cellphones that Motorola is building around the Razr, which has helped the company revitalize its brand in the last two years. Its latest phones included phones designed for high-speed mobile Web-surfing and phones with dedicated buttons for cameras and music players as well as a new sliding format. The Krzr, a 42-millimeter-wide phone, flips open like the 54-millimeter-wide Razr but is slightly thicker as it has a camera and space for extra storage for up to 500 songs. "We think this is big," said Chief Executive Ed Zander, at the phone launch event in a Chicago suburb. He said Motorola aims to eventually sell 500 million versions of the Razr.
http://www.foxnews.com/story/0,2933,205484,00.html

[Fivetears]

Boise Wants Vegas' Boxing Business
Sports promoters in Boise are looking to take on the West's boxing heavyweight, Las Vegas, to get a share of lucrative professional title bouts between big-name fighters. A first step is Saturday's title fight at the 6,400-seat arena, where Roy Jones Jr. will end a 10-month layoff and try to take "Prince" Badi Ajamu's North American Boxing Organization light heavyweight title. The fight is scheduled for 12 rounds and will be shown live in about 40 countries on pay-per-view outlets. "It's pretty hard to rival Nevada," said Ritch Danner, vice president and director of Sports and Entertainment Media Inc., the company promoting the Jones-Ajamu fight. "But it (Boise) could on a show-by-show basis. We're kind of blazing a trail here and introducing a concept that probably hasn't been in Boise before that will allow for worldwide exposure." Whether boxing will return to Boise after the fight depends on ticket sales, Danner said. To help fill Qwest Arena on Saturday, 38-year-old local fighter Kenny Keene, 51-3, is on the card. Keene rarely fights outside the state and has lost only once in it. About 2,000 tickets had been sold early this week, with ticket prices ranging from $50 to $350. The pay-per-view price is $25, and those sales won't be known until the night of the fights.
http://news.moneycentral.msn.com/category/topicarticle.asp?feed=AP&Date=20060725&ID=5895041&topic=TOPIC_ECONOMIC_INDICATORS&iSub=3

[Fivetears]

GM's Earnings Report to Put Spotlight on Turnaround Efforts
DETROIT - General Motors Corp. will have a chance to show its turnaround efforts are working when the world's biggest automaker releases its second-quarter financial results Wednesday. The earnings report comes as the beleagured American icon is facing pressure to join an alliance with Japan's Nissan and France's Renault and less than a week after rival Ford Motor Co. conceded that its own restructuring was moving too slowly.
http://biz.yahoo.com/ap/060725/gm_outlook.html?.v=7

[Fivetears]

UPDATE 3-Lawmakers try to nail down pension deal
WASHINGTON - U.S. lawmakers said they were nailing down final details of legislation to overhaul the corporate pension system, but differences over airline aid and other issues kept them from clinching a deal on Tuesday. "We're close but we haven't got the language on a number of different provisions," said Sen. Edward Kennedy, a Massachusetts Democrat, after a closed-door negotiating session involving a key group of House and Senate lawmakers. "And many of us are not going to (agree) until we have the specific language," Kennedy said. Lawmakers discussed giving bankrupt airlines Delta Air Lines Inc and Northwest Airlines Corp 17 years each to make up funding gaps in their pension plans. That would be 10 years more than other companies would get in the bill, business lobbyists and congressional aides said. Northwest and Delta could also get to use a different, presumably more favorable interest rate to calculate pension liabilities, said the lobbyists and aides who asked not to be named because of the sensitivity and late stage of talks. Haggling continued over how two other carriers, American Airlines and Continental Airlines would be affected.
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com: 20060726:MTFH91975_2006-07-26_00-16-15_N25209767&type=comktNews&rpc=44

[Fivetears]

Altria Beats Wall Street Expectations, Raises Full-Year Outlook; Stock Hits New 52-Week High
NEW YORK - Shares of Altria hit a new 52-week high on Tuesday after the world's biggest cigarette maker reported stronger-than-expected second-quarter earnings and predicted profit would continue to rise as international sales expand. Analysts said if a civil racketeering case goes in its favor, Altria would be free to pursue a break-up plan that could unlock value for shareholders. Altria Group Inc., which is also a majority owner of Kraft Foods, said its net profit grew 1.6 percent on strong growth in international tobacco and food sales. The maker of Marlboro and Parliament cigarettes also raised its full-year guidance. Chief Financial Officer Dinyar Devitre projected further growth for Philip Morris International Inc., which saw improvement in markets in Western Europe, Asia and the Middle East.
http://biz.yahoo.com/ap/060725/earns_altria.html?.v=18

[Fivetears]

JetBlue Says Second-Quarter Profit Rose Modestly, While Alaska Air Says 2Q Profit Tripled
NEW YORK - JetBlue Airways Corp. said Tuesday its second-quarter profit rose modestly, beating Wall Street's expectations, and that it is willing to fly more empty seats in exchange for passengers paying higher fares. But the carrier said it foresees the rest of the year being close to break even, as continued high fuel prices drag on results. The outlook helped send its stock more than 5 percent lower. Seattle-based Alaska Air Group Inc., meanwhile, reported its second-quarter profit tripled, as revenue growth more than offset its higher fuel costs. The company, which operates Alaska Airlines and Horizon Air, saw its shares rise. Higher revenue and fuel costs have been the key themes of the industry's earnings season. Carriers have been pulling available seats out of the market, giving the industry more pricing power to raise fares and offset higher fuel prices. With improved revenue, analysts are expecting the industry to post some of its best results since before the Sept. 11, 2001 terrorist attacks.
http://biz.yahoo.com/ap/060725/earns_airlines.html?.v=8

[Fivetears]

Honda to Enter Aircraft Business With Small Jet
OSHKOSH, Wis. — Honda Motor Co. announced plans Tuesday to start accepting sales orders this fall for the small jet it debuted last year. The company also said it has formed a business alliance with Piper Aircraft. "Aviation has been an important dream of Honda for more than four decades," said Satoshi Toshida, Honda's senior managing director, in a statement announcing the move at the Experimental Aircraft Association AirVenture 2006 convention in Oshkosh. "Our goal is consistent with the philosophy of other Honda products — to provide convenient and efficient transportation that will make people's lives better." The company said it will set up a new U.S. company to hold Federal Aviation Administration type certification and production certification for its HondaJet, with the goal of completing type certification in about three to four years, followed by the start of production in the United States. Honda said HondaJet's patented over-the-wing engine-mount configuration helps eliminate the need for a structure to mount the engines to the rear fuselage, maximizing space in the fuselage for passengers and luggage. It said the over-the-wing mount also reduces drag at high speed to improve fuel efficiency.
http://www.foxnews.com/story/0,2933,205477,00.html

[fabijo]

Heat-Related Blackouts Hurting Small Businesses
California — When a blackout hit Benny Marino's working-class block, he started to get nervous. Soon the salmon, shrimp and skate he sold at his Marino & Sons Fish Market in Queens would spoil. When it did, the smell of rotting food and stale air began to permeate the neighborhood. "We lost a lot of product," said Marino, whose grandfather opened the store in 1932. Marino, like other business owners, was still reeling Monday from the blackout, which devastated the inventories of ice cream parlors, groceries, butcher shops, fish mongers and restaurants. City officials estimated that at least 750 businesses were affected and said that the losses could reach into the millions of dollars.
http://www.foxnews.com/story/0,2933,205432,00.html

And ConEd is limiting the amount of reimbursement to $7000 for businesses that lost food and $300 to residents that had spoiled food - but you need to show receipts.

I'm expecting ConEd's stocks to go down when their summer earnings reports come out. After the big drop might be a good time to buy. Stock symbol: ED

[Fivetears]

Another bummer for Mr. & Mrs. Average Consumer is... who saves grocery the darned reciept after you annotate the checking account register? :( Ouch.And ConEd is limiting the amount of reimbursement to $7000 for businesses that lost food and $300 to residents that had spoiled food - but you need to show receipts.

I'm expecting ConEd's stocks to go down when their summer earnings reports come out. After the big drop might be a good time to buy. Stock symbol: ED

[Fivetears]

Northwest, Mechanics Union to Resume Talks
The union representing Northwest Airlines mechanics who have been on strike for nearly a year said Thursday that contract talks will resume Aug. 15. Neither side has attached any preconditions, said Jeff Mathews, spokesman for the Aircraft Mechanics Fraternal Association bargaining committee. There have been no talks since November. AMFA struck on Aug. 20, 2005, and Northwest imposed a new contract on those who crossed the picket line. Most of the striking mechanics have lost their jobs. But union members in December voted down a contract offer that would have officially switched their status from on strike to laid off. That would have made them eligible for state unemployment benefits.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=AP&Date=20060727&ID=5904010

[Fivetears]

Mazda Profit Surges Nearly 16-Fold
TOKYO - Mazda Motor Corp. said profit surged nearly 16-fold in the April-June quarter from a year earlier as solid sales of its minivan and sport convertible models in the U.S. and Europe offset sluggish domestic sales. The Japanese affiliate of Ford Motor Co. posted a group net income of 6.61 billion yen ($57 million US) in the quarter ended June 30, up from the 419 million yen it posted a year earlier. Healthy sales of the Mazda5 minivan and Mazda MX-5 Miata sports car in the American and European markets lifted revenues, the company said. The weakening of the yen against other major currencies also helped to boost revenues, it said.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=AP&Date=20060727&ID=5904011

[Fivetears]

DaimlerChrysler Profit More Than Doubles
DETROIT - Fueled by a turnaround at Mercedes-Benz, DaimlerChrysler AG's second-quarter profit more than doubled from the previous year, but the numbers would have been far better without a dramatic slump at the Chrysler Group. Overall, the automaker on Thursday reported earnings of $2.3 billion in the April-June period, compared with $942 million in the second quarter of 2005.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=AP&Date=20060727&ID=5900394

[Fivetears]

Bristol-Myers Announces Probe; Profit Off
NEW YORK - Bristol-Myers Squibb Co. said Thursday it is the subject of a criminal antitrust probe over a pending deal with a generic drug maker involving its best-selling product, Plavix, and reported a 33 percent drop in second-quarter profit. Bristol-Myers' shares fell nearly 8 percent after it announced the U.S. Department of Justice had launched an investigation into a settlement awaiting regulatory approval it reached with Apotex Inc. to keep a generic version of blood-thinner Plavix off the market until at least 2011.
http://biz.yahoo.com/ap/060728/earns_drugs.html?.v=2

[Fivetears]

Intel Unveils New Chips, Slashes Prices
California - Intel Corp. launched its biggest product revamp in six years Thursday, unveiling 10 microprocessors that are expected to help the world's largest chip maker retake ground lost to smaller competitor Advanced Micro Devices Inc. The Core 2 Duo microprocessors, which are being rolled out gradually over the next month, are Intel's first desktop and mobile chips to feature a blueprint designed to deliver significantly better performance while requiring less power and kicking off less heat. Also Thursday, Intel slashed prices as much as 61 percent on some of its older chips -- a move likely to put more pressure on AMD and result in lower prices for consumers.
http://biz.yahoo.com/ap/060727/intel_chip_debut.html?.v=12

[Fivetears]

Negotiators struggle to reach deal on pensions system overhaul
WASHINGTON - Agreement on major pension overhaul legislation was jeopardized late Thursday by an angry split between the House and Senate on whether to include popular tax credits in the bill. House Republicans, demanding the tax measures be excluded from the bill, boycotted a meeting called by the chairman of the House-Senate conference, Sen. Mike Enzi, R-Wyo. Enzi had hoped to win approval of a compromise plan, months in the making, that would allow passage of the pension bill before Congress departs for the August recess. Senate Finance Committee Chairman Charles Grassley, R-Iowa, speaking at a meeting attended by 10 senators and two House Democrats, asked House Republicans "why you wouldn't have guts enough to come forth and cast a vote." Grassley contended that House Republicans were part of a deal he made earlier in the year to attach the tax credits to the pension bill. "I'll continue to keep my word even if I am knifed in the back."
http://www.usatoday.com/money/companies/management/2006-07-28-pensions_x.htm
http://www.tsptalk.com/mb/showpost.php?p=51214&postcount=9

[Fivetears]

Payless is determined to put a fashionably shod foot forward
NEW YORK — Fifth Avenue is famous for such foo-foo retailers as Gucci, Tiffany and Salvatore Ferragamo. Joining the club — just down the street with its grand opening Friday: Payless "Fashion Lab." Payless —Fashion Lab? Well, it's not officially called Fashion Lab. At least, not yet. That's an unofficial nickname that company executives have assigned to what may be the shoe giant's grandest experiment: a serious toehold in the world of fashion. Why shouldn't the big kahuna of the $47 billion shoe industry strut some fashion in the design of its shoes and stores? How else can it continue to sell one of every 10 pairs of shoes purchased in America?
http://www.usatoday.com/money/industries/retail/2006-07-27-payless-usat_x.htm

[Fivetears]

Aldila, Callaway Golf shares in the rough
LOS ANGELES — Shares of golf equipment maker Aldila lost nearly half their value Thursday after a sharp drop in sales fueled investor fears that interest in golf is waning in the USA. Callaway Golf's stock was also in the rough, a day after the company posted quarterly earnings that missed Wall Street expectations as it works to restructure its business. Shares of Aldila fell 45% to $14.21 & Callaway shares fell over 6% to $11.70 in afternoon trade on the New York Stock Exchange. Bearish golf investors have long pointed to the sport's aging demographic, high cost to play, and statistics pointing to slowing trends as proof that the days of growth are over.
http://www.usatoday.com/money/industries/manufacturing/2006-07-27-golf_x.htm

[Fivetears]

Cadillac unveils new ads to grab attention of luxury buyers
Cadillac's new advertising strategy is about life, liberty and the pursuit of a new campaign. It's been four years since General Motors' luxury brand began featuring Led Zeppelin's '70s hit Rock and Roll in TV ads. The spots, part of its Break Through campaign, were widely credited with helping to breathe new life into a stodgy nameplate. On Wednesday, Cadillac unveiled its new ad campaign called Life. Liberty. And the Pursuit, which it plans to launch formally today. Cadillac is fighting to appeal to American customers at a time when foreign luxury brands are making gains. Cadillac's new-vehicle sales in the USA fell 21% to 23,265 in the first half of this year compared with the year-ago period, while overseas brands Mercedes-Benz and Lexus saw sales increases of 14% and 6.3%, respectively.
http://www.usatoday.com/money/advertising/2006-07-27-cadillac_x.htm

[Fivetears]

Metallica to sell 4 albums on iTunes
LOS ANGELES — Hard rockers Metallica, who long refused to make available individual songs from its albums for sale online, has begun doing so on the iTunes Music Store. Beginning on Tuesday, the band put up four of its records —Kill 'Em All, Ride The Lightning, Master of Puppets and ...And Justice For All— for sale on U.S. and Canadian versions of the popular online music retailer. Fans may buy tracks a la carte for 99 cents or purchase the albums, starting at $9.90.
http://www.usatoday.com/tech/products/services/2006-07-27-metallica-itunes_x.htm

[Fivetears]

EU in antitrust probe of rival DVD format creators
BRUSSELS — European Commission antitrust officials are probing the licensing strategies of two rival new generation DVD developers, HD DVD and Blu-ray Disc, the EU executive said on Thursday. HD DVD was created by Toshiba Corp, while Blu-ray Disc was developed by a Sony-led consortium which includes Apple, Philips, Samsung and Panasonic. "We have sent a letter earlier this month to the makers of HD DVD and Blu-ray to request information about licensing," a Commission spokesman said, declining to give any further information. The two products will be battling for a share in the lucrative audio-visual market providing they can convince consumers they should upgrade from their current DVD standard. HD DVD was released in April in the United States and has the support of Intel and Microsoft and the exclusive backing of General Electric Co.'s Universal Studios, makers of films such as King Kong and The Bourne Supremacy.
http://www.usatoday.com/tech/news/2006-07-27-eu-probes-dvd_x.htm

[Fivetears]

Lego kit builds better 'bots
NEW YORK — It's fun when a collection of plastic parts seems to have personality. Put together a robot with Lego's new Mindstorms NXT kit, set it on the kitchen floor, and watch it trundle forward on its rubber wheels till it senses an obstacle (a cabinet). It backs up, swings left, then proceeds on its new course, till it senses the next impediment. That's the charm of robotics — seeing something of ourselves, however basic, in an inanimate object. Most robot toys, however, are designed to do only one or a couple of things, and get boring quickly. Their charm often doesn't outlive the first set of batteries. Enthusiasts, many of them adults, have used it to build robots that sort Lego bricks by color, dispense soft drinks, or climb stairs. One Dane even turned it into a low-resolution scanner that took 3 to 4 hours to scan a CD cover. The latest version of Mindstorms, which will appear in stores Tuesday priced at $249.99, is a complete revamp that makes it easier to build a wider variety of mechanical friends.
http://www.usatoday.com/tech/products/gear/2006-07-26-lego-mindstorms_x.htm

[Fivetears]

GM global sales rise in quarter
DETROIT - General Motors Corp. (NYSE:GM - news) said on Friday that it sold 2.4 million vehicles globally in the second quarter, a 8.7 percent increase over the previous quarter. GM said its year-to-date sales were down 2.3 percent to 4.6 million compared to the same period a year ago, largely because of last year's popular employee discount incentive program in North America, which boosted sales, and lower fleet sales in Europe.
http://news.yahoo.com/s/nm/20060728/bs_nm/autos_gm_sales_dc_2

[Fivetears]

Wal-Mart sees July same-store sales up 2.4 pct
CHICAGO - Wal-Mart Stores Inc. on Saturday estimated that July sales rose 2.4 percent at its U.S. stores open at least a year, toward the high end of its forecast, as it lowered prices to lure back-to-school shoppers. Wal-Mart, the world's biggest retailer, had forecast 1 percent to 3 percent same-store sales growth for July. Wal-Mart and most other major retailers will release final July sales totals on Thursday. But Wal-Mart kicked off its back-to-school campaign earlier than usual in July, and may have drawn customers away from rivals, analysts said. Wal-Mart used similar tactics during the November-December holiday shopping season in 2005.
http://news.yahoo.com/s/nm/20060729/bs_nm/retail_walmart_sales_dc_1

[Fivetears]

Wal-Mart to Abandon Germany
FRANKFURT — Wal-Mart Stores, admitting defeat in Germany’s giant but cutthroat retail market, announced Friday that it would sell its 85 stores here to a German retailer, incurring a loss of $1 billion. Wal-Mart is retreating from the German retail market by selling out to the Metro Group. One of its 85 stores is in Dortmund, above. The decision to sell out to the Metro Group came two months after Wal-Mart sold its stores in South Korea and amounts to a marked retreat by the world’s largest retailer from its breakneck global expansion.
http://www.nytimes.com/2006/07/29/business/worldbusiness/29shop.html?_r=1&ref=worldbusiness&oref=slogin

[Fivetears]

Automakers expect to see July sales drop
DETROIT - U.S. automakers are expected to register a dramatic decline in July vehicle sales compared with a year ago when heavy discounts stoked near-record sales. At the same time, high gas prices are driving many buyers toward more fuel-efficient models, an area where Asian manufacturers still dominate. New vehicle sales are expected to come in at about 1.54 million units, a 15 percent decrease from July 2005, according to estimates by the vehicle research site Edmunds.com. Automakers release their July sales results on Tuesday.
http://news.yahoo.com/s/ap/20060728/ap_on_bi_ge/auto_sales_outlook_1;_ylt=AlUMSiINDRMQG36b2NTETMTq xQcB;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl

[Fivetears]

GM restates second-quarter loss
DETROIT - General Motors Corp. said on Tuesday it was restating its net loss for the just-reported second quarter, increasing the loss by $200 million to reflect a tax provision related to the sale of its finance arm, GMAC.
http://news.yahoo.com/s/nm/20060802/bs_nm/autos_gm_gmac_dc_4

[Fivetears]

Toyota’s U.S. Sales Edge Past Ford’s
Toyota, which ranks No. 2 globally behind G.M., has been on an aggressive expansion push in the United States this decade, with a growing American network of plants. Toyota will open a factory in San Antonio this fall and is deciding where to build another assembly plant and an engine plant. Its expansion is a reason many analysts predict Toyota could beat G.M. in global sales as soon as this year. G.M. retained a narrow lead in the first half of 2006, numbers from Toyota this week showed. Toyota’s sales in July gave it 16.2 percent of the American market, compared with 15.9 percent for Ford. Three months ago, Toyota passed DaimlerChrysler, including both Chrysler and Mercedes-Benz, to rank as the third-biggest company in terms of American sales. In all, Detroit companies fell to their lowest market share in history last month, just 52 percent, as their lineups, laden with pickups and S.U.V.’s, failed to attract American buyers seeking fuel-efficient models in the face of high gasoline prices. Asian automakers, by contrast, took 41.4 percent of the market in July, their best performance ever, topping the 40 percent share they captured in May.
http://www.nytimes.com/2006/08/02/automobiles/02auto.html?ex=1312171200&en=fb90e48bc85b4a5d&ei=5089&partner=rssyahoo&emc=rss

[Fivetears]

July auto sales drop
DETROIT - U.S. auto sales slid 17 percent in July as Americans shunned trucks and opted for more fuel-efficient cars, catapulting Japan's Toyota Motor Corp. past Ford Motor Co. into the No. 2 spot for the first time. Detroit-based automakers suffered double-digit declines in sales from the peak of last summer's incentive-driven boom, with DaimlerChrysler AG's Chrysler Group and Ford hardest-hit in a market hurt by high interest rates and gas prices. Chrysler Group lost 37 percent and Ford 34 percent, but Toyota jumped an industry-leading 16 percent, driven by a 25 percent surge for passenger cars such as the Corolla.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=OBR&Date=20060801&ID=5913139

[Fivetears]

Northwest Flight Attendants Reject Pact
MINNEAPOLIS - Northwest Airlines flight attendants said on Tuesday that they've started a 15-day countdown toward a strike on the night of Aug. 15, putting the bankrupt carrier at risk for even more financial problems. The Association of Flight Attendants made the threat after Northwest imposed a new contract that 80% of flight attendants had rejected in June. Flight attendants rejected a second agreement on Monday. The union has said its job actions could range from limited, brief work stoppages to a full-fledged strike. The airline doesn't believe that's legal.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060801-000731-1237

[JOVARN]

DaimlerChrysler Profit More Than Doubles
DETROIT - Fueled by a turnaround at Mercedes-Benz, DaimlerChrysler AG's second-quarter profit more than doubled from the previous year, but the numbers would have been far better without a dramatic slump at the Chrysler Group. Overall, the automaker on Thursday reported earnings of $2.3 billion in the April-June period, compared with $942 million in the second quarter of 2005.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=AP&Date=20060727&ID=5900394
i love the new commercials with the German guy with the mustache. I know 4 people who bought the new charger and they love it 4 doors and all.

[Pilgrim]

i love the new commercials with the German guy with the mustache. I know 4 people who bought the new charger and they love it 4 doors and all.
Dr Z really is cool, I hope hollywood finds a good supporting role for him. But having experienced the VW microbus in the 60's (a friend had one) it will eternally irritate me to hear Chrysler claming to have invented the mini-van.

[SkyPilot]

Dr Z really is cool, I hope hollywood finds a good supporting role for him. But having experienced the VW microbus in the 60's (a friend had one) it will eternally irritate me to hear Chrysler claming to have invented the mini-van.

VW has historically resented the notion that the microbus is a van of any sort, mini or otherwise. That's why in the "Convoy", it's "seven long haired friends of Jesus, in a chartreause microbus" :D

To me though, it is a distinction without a difference, and I agree a mini-van is a minivan is a minivan...

[Fivetears]

Northwest Airlines net loss widens
CHICAGO - Bankrupt Northwest Airlines Corp. (Other OTC:NWACQ - news) on Monday posted a wider quarterly net loss, but said that excluding costs related to its reorganization, it saw a profit. The carrier, which filed for bankruptcy protection in September, said its second-quarter net loss amounted to $285 million, or $3.27 per share, compared with $234 million or $2.69 per share a year earlier. The carrier said its operating revenue increased 3 percent to $3.3 billion. "Our second-quarter results demonstrate that we are making steady progress on our restructuring goals, which is reflected in our year-over-year cost and revenue performance improvements," Chief Executive Doug Steenland said in a statement.
http://news.yahoo.com/s/nm/20060807/bs_nm/airlines_northwest_earns_dc_4

[Fivetears]

Krispy Kreme to open first shop in Chinese-speaking world
HONG KONG — Doughnut maker Krispy Kreme plans to begin dipping into the massive Chinese-speaking market Tuesday, opening a shop in Hong Kong — China's richest city. The 2,000-square foot shop tucked in a side street in the busy Causeway Bay shopping district marks Krispy Kreme's debut on Chinese soil and only its second foray into East Asia. So far, Krispy Kreme has nine shops in South Korea, but it's expanding aggressively in other parts of the region. Other than Hong Kong, the company has signed franchise deals with groups in Japan, the Philippines and Indonesia that plan to open stores by the end of the year. There are already more than 20 stores in Sydney, Australia. It's also signed up a franchisee in the Middle East.
http://www.usatoday.com/money/industries/food/2006-08-07-krispy-kreme-hongkong_x.htm

[Fivetears]

Time to Dump Your AmEx Card?
AMERICAN EXPRESS'S ANNOUNCEMENT last week that they would increase the fees on most of their Green and Gold charge cards — while reducing some popular membership rewards benefits like double points on everyday purchases — hasn't resulted in a rousing cheer from card holders.
http://foxnews.smartmoney.com/consumer/index.cfm?story=20060807

[Fivetears]

Chain store sales up in latest week:
NEW YORK - U.S. chain store sales rose in the first week of August, helped by back-to-school tax holidays in some states and summer clearance sales, a report showed on Tuesday. Sales at major retailers were up 3.2 percent on a year-over-year basis for the week ended August 5, following a 2.8 percent rise the week before, said Redbook Research, an independent company.
Sales at U.S. retailers so far in August were 0.2 percent higher when compared with the same period in July.
http://news.yahoo.com/s/nm/20060808/bs_nm/economy_retail_redbook_dc;_ylt=AjmDYOeeHNCSLiFXZTe AgoSyBhIF;_ylu=X3oDMTA0cDJlYmhvBHNlYwM-

[Fivetears]

Productivity rises at 1.1 pct pace
WASHINGTON - U.S. business productivity rose at a faster-than-expected 1.1 percent annual rate in the second quarter while unit labor costs increased at their fastest pace since the fourth quarter of 2004 as hourly compensation surged, preliminary Labor Department data showed on Tuesday. The report will provide the Federal Reserve with a final key piece of data before its policy committee meets later on Tuesday to decide whether to pause a two-year campaign of rate hikes. Wall Street analysts polled by Reuters had expected productivity to climb 0.9 percent after a previously reported increase of 3.7 percent in the first quarter. The Labor Department revised the first quarter figure sharply upward, to 4.3 percent.
http://news.yahoo.com/s/nm/20060808/bs_nm/economy_productivity_dc;_ylt=ArRWakf4UdEjuIsBhEdFE XGyBhIF;_ylu=X3oDMTA0cDJlYmhvBHNlYwM-

[Fivetears]

Criticism flies over BP's pipeline maintenance
Even though it markets itself as environmentally conscious, oil giant BP had a troubled record in its Alaskan operations even before late Sunday's announcement that it is shutting down Prudhoe Bay production to replace corroded, leaking pipeline. The move will take away about 8% of U.S. domestic oil production for weeks or months. Environmentalists say that BP (BP) appears to have let its infrastructure deteriorate in what is an aging oil field, instead of investing in upgrades, such as new pipe.
http://www.usatoday.com/money/industries/energy/2006-08-08-pipeline-usat_x.htm

[Fivetears]

Nokia to Buy Loudeye for $60 Million
Finland - Nokia Corp. said Tuesday it has agreed to buy U.S.-based digital music distributor Loudeye Corp. for about US$60 million (euro51 million) as the world's No. 1 handset maker seeks to grab a larger share of the growing digital mobile music market. Under the deal, Nokia will pay US$4.50 (euro3.50) for each share of Loudeye, a provider of digital music platforms and digital media distribution services. "By acquiring Loudeye, Nokia can offer consumers a comprehensive mobile music experience, including devices, applications and the ability to purchase digital music," the Finnish company said.
http://biz.yahoo.com/ap/060808/nokia_loudeye.html?.v=2

[Fivetears]

Productivity Gains Slow, Labor Costs Surge
WASHINGTON -U.S. productivity growth slowed during the second quarter, while unit labor costs increased at a rate higher than expected. Non-farm business sector productivity increased 1.1% during April through June, after rising 4.3% in the first quarter, the Labor Department said Tuesday. Productivity is output divided by hours worked. The median estimate of 22 economists surveyed by Dow Jones Newswires and CNBC was productivity rising at a 0.8% annual rate in the second quarter. Unit labor costs - a gauge of inflationary pressures - rose by 4.2%. Costs in the first quarter increased 2.5%.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060808-000265-0845

[Fivetears]

NWA attendants delay strike due to terror alerts
The Association of Flight Attendants has decided to postpone possible strike action against Northwest Airlines for 10 days due to current security worries. The union, which had intended to launch job actions in the coming week, announced Friday that security duties come first. This moves the strike deadline to 10:01 p.m. EDT, or 4:01 p.m. HST, on August 25, a Friday. Northwest Airlines said Friday night that the union and the airline's flight attendants recognized that the passengers' needs were paramount at a time like this.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=ACBJ&Date=20060812&ID=5943018

[Fivetears]

JetBlue Courts Corporate America
In an attempt to make greater inroads with corporate customers, low-cost airline JetBlue signed agreements on Friday with travel reservation systems giants Sabre Holdings and Galileo International. The terms of the agreements were not disclosed. Galileo is a unit of Cendant. JetBlue specializes in point-to-point routes between underserved markets and on metropolitan areas with relatively high fares. It has been popular with cost-sensitive consumers but since mid 2005 has taken small steps to broaden its appeal to business travelers. The company was unprofitable in 2005 and expects to lose money this year as well. The agreement highlights the airline's new focus of targeting business travelers, while still maintaining its base of cost conscious customers. In the five-year Sabre deal, travel agents who subscribe to the global reservation system will have access to all of JetBlue’s flights. They will also be available on Travelocity, Sabre’s consumer-oriented website
http://www.forbes.com/2006/08/11/jetblue-0811markets12.html?partner=msn

[Fivetears]

Gates Stresses Search for HIV Vaccine
TORONTO - Bill and Melinda Gates, whose foundation has contributed $1.9 billion to fight AIDS, said Sunday that the search for HIV prevention drugs that would empower women could be the "next big breakthrough" in combating the disease. The couple joined more than 24,000 scientists, activists, celebrities, HIV-positive people and humanitarians from 132 countries for a conference on how to combat the disease that has killed 25 million people since the first case was reported a quarter of a century ago. Gates, who recently announced he would step down from his day-to-day duties at Microsoft Corp. and devote more time to philanthropy, said the search for a vaccine to prevent the virus that causes AIDS was now the foundation's top priority.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=AP&Date=20060813&ID=5943159

[Fivetears]

UAW says Delphi talks "at best disappointing"
CHICAGO - The United Auto Workers said on Friday negotiations with bankrupt auto parts maker Delphi Corp. have been "at best disappointing," raising the possibility of potentially crippling strikes. Delphi, its unions and GM have been in talks for months to try to reach agreement over Delphi's proposed wage and benefit cuts for U.S. hourly workers. Absent an agreement, Delphi wants authority to impose those cuts, which the unions have vowed would trigger strikes. Such strikes could quickly hamper production at GM, potentially costing it billions of dollars while it is deep into its own restructuring plans.
http://news.yahoo.com/s/nm/20060811/bs_nm/autos_delphi_labor_dc;_ylt=Arjl5VHEbz_1oOWAW0jsEGa yBhIF;_ylu=X3oDMTA0cDJlYmhvBHNlYwM-

[Fivetears]

Trickle-Down Despair At Ford
Pull up a stool during lunch hour at Miller's Bar, a modest but popular joint a mile west of Ford Motor Co.'s boxy "Glass House" headquarters in Dearborn, Mich., and you can hear plenty of frazzled workers worried about the state of the company. These are hard days in "Ford Country," as Dearborn is often called. Market share has fallen four points, to 16%, since 2001, when family scion William C. Ford Jr. took over. The company is worth $14 billion, half what it was then. Things have gotten so bad that Ford has hired an investment banker to look into selling off troubled luxury brands like Jaguar. These problems are well-known. What outsiders can't detect is the depth of employee despair, much of which stems from internal problems such as managerial churn and constant strategy changes. At Miller's, another senior manager who last April was bused to a conference center on the grounds of the Henry Ford historical museum in nearby Greenfield Village for a presentation about the company's dire health, said he has never felt so downbeat. "The trouble with the auto business is that it takes years to fix what's wrong," says this employee, who, like others, did not wish to be identified for fear of losing his job. "We're four years into fixing it already, and it will be three more years till we see any daylight. Who ever heard of a seven-year turnaround plan?"
http://news.yahoo.com/s/bw/20060811/bs_bw/b3998045;_ylt=AnklI7dFlfUXN3ZOEOgw4ZGyBhIF;_ylu=X3 oDMTA0cDJlYmhvBHNlYwM-

[Fivetears]

PepsiCo names first woman CEO
NEW YORK (CNNMoney.com) -- Soft drink and snack company PepsiCo Inc. announced Monday that Chairman and CEO Steve Reinemund will retire in May 2007, and that Chief Financial Officer Indra Nooyi will assume the CEO job this October, becoming the first woman to hold the post. Reinemund, who has seen PepsiCo pass rival Coca-Cola in terms of market capitalization in December for the first time in its history, will remain as chairman of the company until his retirement. Pepisco Chief Financial Officer Indra Nooyi, who will assume the CEO job in October. Indian-born Nooyi, who was ranked No. 11 in Fortune's list of the most powerful women in business, joined the company in 1994 and was named CFO in 2001.
http://money.cnn.com/2006/08/14/news/companies/pepsico_ceo/index.htm

[Fivetears]

The world catches up to Honda
While other automakers rushed to beef up their pickup trucks and SUVs with stronger frames and bigger motors, Honda stood to one side, refusing to develop either a V-8 engine or a traditional body-on-frame light truck. Likewise, when other manufacturers engaged in a horsepower race to lure consumers and take advantage of cheap gasoline, Honda held back. Staying true to its philosophy of "maximum man, minimum machine" it concentrated on smaller, more efficient four- and six-cylinder engines. Finally, while other automakers reluctantly explored internal combustion alternatives like gas-electric hybrids and fuel cells, Honda plunged all the way in, launching research efforts into everything from clean diesels to hydrogen power. Honda's decision to stick with what it believes in is now paying off big time. Look at what happened in July. For its first quarter, Honda reported sales up 15 percent and operating profit up 19 percent. The Honda Accord and Civic ranked as the second and fourth best selling passenger cars in America. In a U.S. market where overall sales fell 17.4 percent, Honda brand vehicles rose 6 percent.
http://money.cnn.com/2006/08/11/news/companies/pluggedin_taylor.fortune/index.htm

[Fivetears]

BP's hard road ahead
NEW YORK - BP estimates it will cost $100 million to replace the 16 miles of corroding pipeline at its giant oilfield in Prudhoe Bay, Alaska. As if that wasn't enough, the company must also face tough questions about why the two hundred million dollars a year it says it spent in maintenance wasn't enough to keep the 400,000 barrel per day field, the country's largest, running smoothly. BP now faces the task of explaining what went wrong, just when it knew of the problem, and complete the difficult job of bringing the field back to full capacity. The maintenance failure led BP to shut down most production after pipeline walls were found to have corroded by as much as 80 percent. Originally the company said all 400,000 barrels per day would be offline for months. But last Friday, after inspecting the pipes, BP said half the field will remain open, at least for now.
http://money.cnn.com/2006/08/14/news/economy/bp_fix/index.htm

[Fivetears]

Wal-Mart charge hurts profit
CHICAGO - Wal-Mart Stores Inc. on Tuesday reported a 26 percent drop in quarterly profit -- its first earnings decline in more than 10 years -- because of a charge for selling its German stores to a rival, but it maintained its full-year profit forecast. Excluding an $863 million loss on the sale of the German stores to Metro AG, earnings per share were 72 cents in the latest period, in line with the average forecast of analysts polled by Reuters Estimates. Quarterly sales rose 11.3 percent to $84.52 billion. Wal-Mart has been adding more upscale merchandise, such as trendy clothing and organic food, to try to get wealthier shoppers to buy more high-margin items. The retailer is also in the process of remodeling hundreds of stores, and some analysts have questioned whether those efforts have caused disruption and hurt sales.
http://news.yahoo.com/s/nm/20060815/bs_nm/retail_walmart_earns_dc_7

[Fivetears]

Home Depot posts profit rise
ATLANTA - Home Depot Inc., the world's largest home improvement retailer, on Tuesday posted a 5 percent rise in second-quarter profit but softened its sales and earnings growth outlook for this year, as the U.S. housing market cools. Citing "mixed economic signals" and a "challenging" second half, the company said profit and sales should rise at the low end of its previous forecast.
http://news.yahoo.com/s/nm/20060815/bs_nm/retail_homedepot_earns_dc_3

[Fivetears]

Staples profit rises 19 percent
NEW YORK - Staples Inc., the No. 1 specialty office supplies retailer, on Tuesday said quarterly profit rose 19 percent, driven by market share gains in North America and improvements in its international operations. Net income for the second quarter ended on July 29 rose to $161.2 million, or 22 cents per share, from $135.2 million, or 18 cents per share, a year earlier. The results matched the average outlook of analysts polled by Reuters Estimates. Total sales rose 12 percent to $3.88 billion from $3.47 billion, modestly exceeding analysts' average forecast of $3.81 billion.
http://news.yahoo.com/s/nm/20060815/bs_nm/retail_staples_earns_dc_3

[Fivetears]

Dell Will Recall Batteries in PC’s
Dell is recalling 4.1 million notebook computer batteries because they could erupt in flames, the company said yesterday. It will be the largest safety recall in the history of the consumer electronics industry, the Consumer Product Safety Commission said. Dell, the world’s largest PC maker, said the lithium-ion batteries were made by Sony and were installed in notebooks sold from April 2004 to July 18 of this year. The recall raises broader questions about lithium-ion batteries, which are used in devices like cellphones, portable power tools, camcorders, digital cameras and MP3 players. The potential for such batteries to catch fire has been acknowledged for years, and has prompted more limited recalls in the past. But a number of recent fires involving notebook computers, some aboard planes, have brought renewed scrutiny.
http://www.nytimes.com/2006/08/15/technology/15battery.html?ex=1313294400&en=af57f2b0357e0f52&ei=5089&partner=rssyahoo&emc=rss

[Fivetears]

Monsanto to buy Delta and Pine
Missouri - Monsanto Co. on Tuesday said it agreed to buy Delta and Pine Land Co., a leading producer and marketer of cotton-plant seeds, for $1.5 billion in cash to expand its product mix. Under the terms of the deal, Delta and Pine Land shareowners will get $42 a share in cash, a 16 percent premium over Delta and Pine's closing stock price on Monday. Monsanto, which has targeted the cotton industry as a leading growth area, said it plans to finance the deal with cash on hand and a debt offering. The acquisition is expected to boost Monsanto's earnings per share by the second year after completion of the deal, which is subject to regulatory approval.
http://news.yahoo.com/s/nm/20060815/bs_nm/textiles_deltaandpine_monsanto_dc_1

[Fivetears]

BP Faces More Pipeline Problems in Alaska
ANCHORAGE - BP PLC planned Wednesday to inspect a major pipeline in Prudhoe Bay after two mishaps forced the line to be shut down - another setback for the operator of the crippled oil field. The first incident occurred last Thursday, days after BP began shutting down much of Prudhoe following the discovery of corroded transit pipe in the nation's largest field. A drilling rig was traveling on a gravel road when some of its tires sank in a soft spot. The rig tilted toward a rack of pipelines, including a line that typically carries 20,000 barrels of crude oil, natural gas and water daily from the Point McIntyre field north of Prudhoe Bay. The line was shut down in mid-July for scheduled maintenance to an oil gathering center in the western half of Prudhoe, BP spokesman Daren Beaudo said Wednesday. The Point McIntyre line is among pipes leading to the facility - called gathering center 1 - and was being phased back into service when the rig listed. As a precaution, BP shut down and depressurized the line and workers brought in a vacuum truck to pick up any oil in case of a spill, the Anchorage Daily News first reported Wednesday. After the rig was righted, the second mishap occurred shortly after midnight Friday as workers moved to restart the line. A pressure surge thrust liquids through with such force that a portion of the elevated line was knocked off support mounts and onto the tundra. Beaudo said the pipeline stayed intact, no oil leaked and no one was hurt.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060816-000720-1511

[Fivetears]

Insurance Industry 1, Katrina Victims 0
SAN FRANCISCO - The first trial pitting an insurer against a policyholder seeking redress from last year's hurricanes was decided by a judge in favor of the industry on Tuesday. However, it wasn't a complete victory because the judge questioned some clauses commonly used in homeowners insurance policies. The case involved police officer Paul Leonard and his wife Julie, who claimed Nationwide Mutual Insurance Co., a division of Nationwide Financial Services, refused to cover damage to their home from Hurricane Katrina last year. The suit, filed by Richard Scruggs, an attorney famous for his litigation against tobacco firms in the 1990s, argued that Nationwide denied the Leonards' claim without finding out whether the damage was caused by Katrina's wind or the storm waters that were pushed up onto the land and into their Mississippi coastal home. Nationwide argued that its homeowners policies don't cover flooding and the Leonards shouldn't be able to effectively rewrite a contract after the event. Judge L.T. Senter of the U.S. District Court for the Southern District of Mississippi said on Tuesday that the parts of Nationwide's insurance policy that exclude damage caused by water are "valid and enforceable," according to a copy of the ruling. Senter ordered Nationwide to pay the Leonards $1,228 for wind damage to a window and exterior walls above where water damaged their property. That was much less than the more than $130,000 in Katrina damage that the Leonards wanted Nationwide to cover.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060815-000598-1711

[Fivetears]

H-P Beats Estimates, Sees Steady Gains
PALO ALTO, Calif. - Hewlett-Packard Co. posted solid third-quarter results with its best operating margin on personal computers in years and ambitions to continue cutting costs, Chief Executive Mark Hurd said Wednesday. Speaking on a conference call with reporters, Hurd said H-P cut 1,900 jobs during the third-quarter ended July 31 and would cut several thousand more in the fourth quarter. During a question and answer period, he later acknowledged the fourth-quarter cuts could be close to 5,000 positions.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060816-000786-1724

[Fivetears]

Sears hints of acquisitions
CHICAGO - Sears Holdings Corp. on Thursday said it may spend some of its $3.7 billion in cash for acquisitions as it posted a better-than-expected 83 percent jump in quarterly profit. The owner of Sears and Kmart stores, headed by hedge fund manager Edward Lampert, has been cutting costs and eliminating clearance sales to boost profit. The result has been strong cash flow but weak sales.
http://news.yahoo.com/s/nm/20060817/bs_nm/retail_sears_earns_dc_3

[Fivetears]

Boeing discontinues broadband service
NEW YORK - Boeing Co. on Thursday said it will discontinue its loss-making, high-speed broadband communications service, Connexion by Boeing, resulting in charges of up to $320 million in the second half. Boeing said it will take a pretax charge of about $290 million in the third quarter and the balance in the fourth quarter. The company said the total charges, which relate to writing down assets and payments of termination fees, amount to about 26 cents a share. Last month, Boeing said the Connexion unit, which supplies high-speed Internet equipment for airlines, might take a charge of up to $350 million this year. In June, it said it was considering the sale of the unit.
http://news.yahoo.com/s/nm/20060817/bs_nm/transport_boeing_connexion_dc_2

[Fivetears]

Qantas to cut 1,000 jobs after profit tumbles
SYDNEY, Australia - Qantas Airways Ltd. said Thursday annual profit fell 30 percent on higher fuel and redundancy costs and said it planned to slash more jobs, including more than 1,000 management and support staff. Australia's biggest airline, which also owns the discount carrier Jetstar, said high fuel prices would continue to have a severe impact and it expected flat earnings this year. Shares in Qantas, which has ordered 65 Boeing 787 jets to help Jetstar expand in Asia and eventually Europe, were up 4.2 percent at A$3.26 ($2.49) by in early morning trade in a broader market up 1.7 percent, with the result a shade above the median of analysts' forecasts. The stock is down 19 percent so far this calendar year.
http://money.cnn.com/2006/08/17/news/international/bc.airlines.australia.qantas.reut/index.htm

[Fivetears]

Sears reports better-than-expected 2Q
HOFFMAN ESTATES, Ill. - Sears Holding Corp., the nation's third-largest retailer, reported better-than-expected second-quarter earnings on Thursday, due to improved margins at Kmart and domestic Sears operations.
http://news.yahoo.com/i/749;_ylt=AtOEHBAqs9M0Co4ExAWFHVWb.HQA;_ylu=X3oDMTA 3bGI2aDNqBHNlYwM3NDk-

[Fivetears]

Bush to sign massive pension overhaul
WASHINGTON - Sweeping new rules aimed at prodding companies into shoring up their pension plans and ensuring that workers get the retirement benefits they've been promised are about to become law. President Bush planned to sign the bill Thursday and has already praised it as "the most comprehensive reforms to America's pension system in over 30 years." The massive legislation reflects the evolution of workers' retirement benefits — the decline in traditional pensions that give retired employees a fixed payment each month and the rise of defined-contribution savings plans that rely on workers to build retirement assets. It could also save taxpayers from funding a multibillion-dollar bailout of the federal agency that insures pension plans.
http://news.yahoo.com/s/ap/20060817/ap_on_go_pr_wh/pensions_overhaul

[Fivetears]

Barnes & Noble profit rises
The company, whose stock option practices are being investigated by the Securities and Exchange Commission, said it expects a loss of 4 cents to 8 cents per share in the third quarter, including 4 cents per share in option expenses. Barnes and Noble shares fell 27 cents, or 0.8 percent, to $35.08 in premarket trading on the Inet electronic brokerage. The company posted a profit increase in the second quarter despite lower sales compared with a year before, when the latest book in the Harry Potter series generated extraordinary sales.
http://news.yahoo.com/s/nm/20060817/bs_nm/retail_barnesnoble_earns_dc

[Fivetears]

Japan proposes 16-nation Asian trade bloc
KUALA LUMPUR - Japanese officials have proposed a sprawling 16-nation free-trade grouping with China, South Korea, Australia, India, New Zealand and the 10-nation Southeast Asian bloc. The 16 last year formed the East Asia Summit -- seen as a precursor of a giant free-trade community embracing half the world's population. "Minister (Toshihiro) Nikai will certainly speak out about that at the lunch of the 16 ministers next week," Ramon Vicente Kabigting, a director at the Philippines' department of trade and industry told reporters Thursday. Kabigting said that economic officials from each of the countries meeting here this week would have to brief their ministers who are holding their annual dialogue in the Malaysian capital next week.
http://news.yahoo.com/s/afp/20060817/bs_afp/aseanjapanchinaskoreaaustraliaindianzealand

[Fivetears]

Tween Brands revisits first strategy
COLUMBUS, Ohio — Stung by slumping profits and what it called fashion missteps just a few years ago, the girls' retailer formerly known as Too Inc. has rejuvenated its bottom line by putting its focus back where it began.
Tween Brands, which changed its name last month, attributes the turnaround to re-emphasizing its core customer — girls 7 to 14, often called "tweens" — especially through its 2-year-old discount chain, Justice. The brand's success has been a key factor in driving the company's sales growth and stock price, which set records in spring. Tween Brands reported Wednesday that it earned $6 million, or 18 cents a share, in the quarter ended July 29, up from $4 million, or 12 cents, in the year-ago period. The company abandoned an earlier line of stores that catered to teenagers in favor of launching Justice, a chain that targets the same age group as its flagship Limited Too stores but with lower prices to better compete with retailers such as Target and Old Navy. Tween Brands has announced plans to open hundreds of new Justice stores over the next five years.
http://www.usatoday.com/money/industries/retail/2006-08-17-tween_x.htm

[Fivetears]

Disposable respirator demand on rise
The threat of a flu pandemic has boosted demand for disposable respirators, and companies or governments stockpiling them face longer waits. "All manufacturers have gone from shipping instantly to taking a week, a month, 90 days or longer," says Kurt Braun, general manager of distributor Edwards Medical Supply of Illinois. The respirators, also called N95 masks, are harder to get for corporate stockpiles than Tamiflu, the No. 1 antiviral, he adds. N95s cost 50 cents to $1 each and are used in industries from health care to construction. Unlike surgical masks, they fit snugly around the wearer's mouth and nose. When properly fitted, they prevent inhalation of 95% of microscopic particles down to a certain size. N95s haven't been tested against flu viruses, but the hope is they'll protect wearers from viruses traveling via cough or sneeze. The Health Ministry of Quebec wants to stockpile 2.5 million masks. One maker, Inovel of California, has said full delivery will take about eight months. Before stockpiling started, delivery would have taken weeks, says Jim Hornstein, Inovel president.
http://www.usatoday.com/money/industries/health/2006-08-17-n95-masks-usat_x.htm

[Fivetears]

She stood by her man — until now
Karen Mayo Kozlowski, the wife of former Tyco CEO Dennis Kozlowski and the woman whose $2 million birthday party in Sardinia came to represent an era of executive excess, wants a divorce. Her husband is serving a sentence of 8 1/2 to 25 years in prison after being convicted last year of stealing hundreds of millions of dollars from Tyco.
http://www.usatoday.com/money/industries/manufacturing/2006-08-16-kozlowski-divorce_x.htm

[Fivetears]

Immigrant hotel workers in New Orleans sue Decatur, Astor Crowne Plaza
NEW ORLEANS — Immigrant workers recruited from South America and the Dominican Republic after Hurricane Katrina sued a prominent hotelier Wednesday, saying they are being exploited. More than 80 workers from Peru, Bolivia and the Dominican Republic have joined the lawsuit filed in U.S. District Court against Decatur Hotels and CEO F. Patrick Quinn III. The workers are employed in housekeeping, maintenance and other hotel support jobs in New Orleans. Mary Bauer, a Southern Poverty Law Center attorney who helped file the lawsuit, said workers were lured by recruiters in their home countries with promises of high wages and steady work. The lawsuit against Decatur, which operates luxury hotels including the Astor Crowne Plaza, says the company abused the H-2B visa program to bring in foreign workers. Such visas can be obtained by employers who certify that no one in the USA can do the work. LeBlanc said Decatur used the visa program for the first time after Hurricane Katrina because of difficulty finding hourly workers. The visas, which typically are good for less than a year, tie workers to the employer, so a worker may not take employment elsewhere even if working conditions are not as expected, a provision Bauer says effectively indentures immigrant workers.
http://www.usatoday.com/money/workplace/2006-08-17-katrina-immigrants_x.htm

[Fivetears]

Merck held negligent in federal Vioxx case
NEW ORLEANS - A federal jury in New Orleans on Thursday found that Merck & Co. Inc. was negligent and knowingly made misrepresentations about its withdrawn pain medicine Vioxx. It said adequate compensation would be $50 million to plaintiff Gerald Barnett, a retired FBI agent who suffered a heart attack in 2002 after taking Vioxx for 31 months for pain caused by a car accident. The jury, which said that doctors in the case and the 62-year-old plaintiff himself were not at fault, said that Merck had knowingly misrepresented or failed to disclose a material fact to Barnett's physicians. The jury has not yet decided on punitive damages in the case.
http://news.yahoo.com/s/nm/20060817/bs_nm/vioxx_dc_6

[Fivetears]

Delphi to see exodus of union workers
CHICAGO - Bankrupt auto parts maker Delphi Corp. said on Friday that 6,300 IUE-CWA union U.S. hourly workers at Delphi took retirement or buyout options under a deal reached in June, or 83 percent of those eligible. The International Union of Electrical Workers-Communications Workers of America represents about one-quarter of Delphi's U.S. blue collar work force, the second largest representation behind the United Auto Workers. Delphi did not disclose how many workers took retirement or early retirement offers and how many accepted buyouts.
http://news.yahoo.com/s/nm/20060818/bs_nm/autos_delphi_dc_2

[Fivetears]

Ford to cut production
DETROIT - Ford Motor Co. on Friday said it would cut fourth-quarter production by 21 percent and also reduce third-quarter production to accelerate its turnaround plan. The automaker said it would cut North American production in the fourth quarter by 168,000 units and reduce third-quarter production by 20,000 vehicles.
http://news.yahoo.com/s/nm/20060818/bs_nm/autos_ford_dc_2

[Fivetears]

Microsoft buys back $3.8 billion in shares
NEW YORK - Microsoft Corp. on Friday said it will have purchased nearly $3.8 billion worth of its shares in a tender offer this week as part of a larger share repurchase program. Microsoft said it expected to acquire about 155 million shares at $24.75 per share, or 1.5 percent of its outstanding stock, according to preliminary results from a tender offer that expired on Thursday.
http://news.yahoo.com/s/nm/20060818/bs_nm/microsoft_auction_dc_1

[Fivetears]

Profit Falls by Half at Dell
Three days after its announcement of a vast safety recall, Dell reported little but bad news yesterday: profits down by half, and an informal Securities and Exchange Commission investigation into its accounting. Michael S. Dell, the company’s founder and chairman, said, “We are not satisfied with our performance, and we will do better.” While the company has told analysts for more than a year that it will do better, it has not been able to follow through. In a changing market, Dell has been unable to gain traction against competitors as it has in the past, when it has cut prices to gain market share.
http://www.nytimes.com/2006/08/18/business/18dell.html?ei=5089&en=f38d58586440e62b&ex=1313553600&adxnnl=1&partner=rssyahoo&emc=rss&adxnnlx=1155909842-vgFPxEmem1d6zti93Yoovg

[Fivetears]

Gap Profit Tumbles, Forecast Fades
CHICAGO - Apparel giant Gap Inc. said second-quarter earnings tumbled 53%, blaming aggressive markdowns that slammed margins, and pared its full-year forecast. Shares were down 7.1% at $16.07 in Friday premarket trading on Inet. On a late-afternoon conference call on Thursday, executives repeated their disappointment with consumers' first takes on new apparel lines and accessories at Gap, Old Navy and Banana Republic outlets, but insisted it was just the beginning of a long-term strategy.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060818-000552-0838

[Fivetears]

Ann Taylor Profit Soars as Sales Jump
NEW YORK - AnnTaylor Stores Corp. on Friday said second-quarter profit rose more than sixfold, helped by more full-priced selling and tighter inventories at its Ann Taylor and Loft stores, and raised its forecast for the year. Shares were up 6.6% at $43.30 in premarket trading on Inet. The New York-based retailer said net income rose to $43.2 million, or 59 cents a share, from $7.1 million, or 10 cents a share.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060818-000553-0838

[Fivetears]

Chip Maker Marvell Sees Slowdown Ahead
SAN FRANCISCO - Marvell Technology Group Ltd. late Thursday said its sales rose 47% from a year ago, but it offered a soft financial forecast during a slowdown for its PC-storage and wireless Internet router chips. Shares sank more than 8% in late trading. Marvell Tech said its second-quarter sales climbed to $574 million from $390.5 million in last year's same period. The results fell short of Wall Street's expectations, which called for sales of $583 million.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060817-000993-2313

[Fivetears]

Tobacco Ruling May Speed Altria Breakup
What is being called a "hollow" court victory for the government against Big Tobacco is widely expected to accelerate the breakup of its biggest member, Altria Group Inc. Thursday's after-market ruling by a federal district judge that Altria and other cigarette makers violated racketeering laws, but which didn't impose onerous financial penalties, clears the way for Altria's board to move ahead on the company's long-contemplated restructuring, analysts agreed. But there was disagreement over how soon the board might make known its intentions on breaking up Altria into three segments - Philip Morris USA, Philip Morris International and Kraft Foods Inc.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060818-000593-0928

[Fivetears]

Boeing: May end C-17 production in 2009
NEW YORK - Boeing Co. said on Friday it will end production of its C-17 military cargo plane in mid-2009 if it does not receive any further orders from the U.S. armed forces. In a widely expected announcement, Boeing said it told suppliers to stop work on any planes for which there is no firm funding, which it said was the first step in the long process of shutting down its supply chain. The company said shutting the production line could ultimately cost 5,500 Boeing jobs in California, Missouri, Georgia, and Arizona.
http://news.yahoo.com/s/nm/20060818/bs_nm/arms_boeing_dc_1

[Fivetears]

Ford to halt production at 10 plants
DETROIT - Ford Motor Co. said Friday it would temporarily halt production at 10 assembly plants between now and the end of the year, blaming high gas prices for pushing many consumers away from its pickups and SUVs and toward higher-mileage models. Ford said the cuts will reduce the need for costly incentives to reduce bloated inventories. But they also illustrate just how out of step the lineup at the nation's second-largest automaker has become, as it loses market share to mostly Asian competitors under the watch of Chairman and Chief Executive Bill Ford.
http://news.yahoo.com/s/ap/20060819/ap_on_bi_ge/ford_production_cuts

[Fivetears]

Japan ends U.S. long-grain rice imports
Japan has suspended imports of U.S. long-grain rice following a positive test for trace amounts of a genetically modified strain not approved for human consumption, a news report said Sunday. Japan's Health Ministry imposed the suspension on Saturday after being informed by U.S. federal officials that trace amounts of the unapproved strain had been discovered in commercially available long-grain rice.
http://news.yahoo.com/s/ap/20060820/ap_on_bi_ge/japan_us_rice

[Fivetears]

Irish company challenges scientists to test 'free energy' technology
DUBLIN - An Irish company has thrown down the gauntlet to the worldwide scientific community to test a technology it has developed that it claims produces free energy. The company, Steorn, says its discovery is based on the interaction of magnetic fields and allows the production of clean, free and constant energy -- a concept that challenges one of the basic rules of physics. It claims the technology can be used to supply energy for virtually all devices, from mobile phones to cars. Steorn issued its challenge through an advertisement in the Economist magazine this week quoting Ireland's Nobel prize-winning author George Bernard Shaw who said that "all great truths begin as blasphemies".
http://news.yahoo.com/s/afp/20060818/bs_afp/irelandscienceenergy

[Fivetears]

Photo Release - Christening of Northrop Grumman-Built Makin Island (LHD 8) Honors Heroes, Offers Hope for Gulf Coast Shipbuilders
PASCAGOULA, Mississippi - Patriotic tradition and unyielding optimism joined today when ship's sponsor Silke B. Hagee smashed a champagne bottle against the hull of the Northrop Grumman-built amphibious assault ship Makin Island (LHD 8) before an audience of more than 1,000 guests. With a confident and spirited swing, Hagee, wife of U.S. Marine Corps commandant Gen. Michael Hagee, capped a ceremony that honored some of America's most heroic Marines and also signified a major milestone in the recovery of Northrop Grumman Corporation's Pascagoula facility, which today hosted its first ship christening since the devastation of Hurricane Katrina. The Makin Island is 844 feet long and 106 feet wide and weighs 42,800 tons. Its 70,000 horsepower hybrid propulsion system will drive it to speeds in excess of 20 knots. As a multi-purpose amphibious assault ship, it is designed to transport and land a Marine Expeditionary Unit, a force of almost 2,000 Marines, ashore by helicopter, landing craft and amphibious assault vehicle. It will also have secondary missions of sea control and power projection by helicopter and fixed-wing vertical short take-off and landing aircraft; command and control; and mission support, including a hospital with six operating rooms. Northrop Grumman Corporation is a global defense company headquartered in Los Angeles, Calif. Northrop Grumman provides technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology. With more than 120,000 employees and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=PZ&Date=20060819&ID=5958670

http://media.primezone.com/noc/gallery/display?o=189&pkgid=2806&max=3&start=0

[Fivetears]

Navistar says Ford cuts will result in nearly 400 layoffs
CHICAGO - Navistar International Corp. the U.S. diesel engine maker, said on Monday it would lay off nearly 400 workers after Ford Motor Co, one of its key customers announced it was cutting fourth-quarter production by 20 percent. The Warrenville, Illinois-based company said 380 unionized workers at its Indianapolis, Indiana, engine assembly plant would be idled beginning October 2 as a result of the move. It said an undetermined number of non-union workers would also be laid off as a result of the production cuts. Navistar builds the 6.0-liter V-8 diesel engine that powers Ford's F-Series Super Duty pickup.
http://news.yahoo.com/s/nm/20060828/bs_nm/manufacturing_navistar_dc

[Fivetears]

Ford to offer up to $140,000 as buyout: UAW
The United Auto Workers union said on Thursday Ford Motor Co. is offering 8 buyout packages to its U.S. union-represented factory workers, including up to $140,000 one-time payment. The buyout packages are part of Ford's accelerated turnaround plan that will be detailed on Friday. The offers, which include early retirement incentives, are also being extended to union-represented workers at Automotive Components Holdings, a group of factories formerly held by Visteon Corp. Ford's former parts unit.
http://news.yahoo.com/s/nm/20060914/bs_nm/autos_ford_uaw_packages_dc_1

[Fivetears]

Ford Offers 75,000 Workers Buyouts
Michigan — The Ford Motor Company and the United Automobile Workers union agreed today on a program that will offer buyouts and other incentives to more than 75,000 Ford workers in the United States to persuade them to leave their jobs.
http://www.nytimes.com/2006/09/14/business/15fordcnd.html?ex=1315886400&en=e91069c5dd1b4cc1&ei=5089&partner=rssyahoo&emc=rss

[nnuut]

Cool for the Ford folks. They offer us a measly $25k, which is the same incentive they offered 15 years ago, what about inflation? Yes, that's my Uncle Sam.:o

[Fivetears]

Ford to cut one-third of work force
DETROIT - Ford Motor Co. said on Friday it will slash $5 billion in costs and one-third of its work force as it warned its auto business would not make a profit in North America for another three years. The automaker also ruled out an immediate sale of its Jaguar brand, disappointing investors who wanted Ford to press ahead with asset sales to raise cash. Ford shares dropped as much as 15 percent Friday, the biggest single-day percentage decline in almost four years. Ford also suspended its dividend and pledged to revamp its vehicle line-up, an area of weakness widely cited by analysts.
http://news.yahoo.com/s/nm/20060915/bs_nm/autos_ford_dc_13

[Fivetears]

DaimlerChrysler Cuts Profit Forecast
BERLIN - DaimlerChrysler AG cut its 2006 operating profit forecast Friday, saying it now expects a euro1.2 billion ($1.52 billion) third-quarter loss at Chrysler -- more than twice the amount anticipated. Shares in the company fell more than 5 percent. The German-American automaker lowered its operating profit forecast for 2006 to approximately euro5 billion ($6.34 billion), based on an expected full-year loss for the U.S.-based Chrysler Group of euro1 billion ($1.27 billion).
http://biz.yahoo.com/ap/060915/germany_daimlerchrysler.html?.v=15

[Fivetears]

Ford Cuts 10,000 Jobs, Closes 2 Plants in Bid to Remold Itself Into More Competitive Company
DETROIT - Ford took drastic steps on Friday to remold itself into a smaller, more competitive company, slashing thousands of jobs and shuttering two additional plants to cut costs and fend off a financial crisis. The company announced it would cut 10,000 more white-collar positions in addition to offering buyout and early retirement packages to all of its 75,000 hourly employees. It also suspended its dividend. The blue-collar cuts at Ford, the second-biggest U.S. automaker, are another blow to organized labor, which has been losing members as the auto industry reshapes itself to battle lower-cost, nonunion rivals. Ford Motor Co. said it would shutter a stamping plant in Maumee, Ohio, in 2008 and its Essex engine plant in Windsor, Ontario, in 2007. It will also close an assembly plant in Norfolk, Va., in 2007, a year earlier than previously announced and will cut a shift in January. An assembly plant in St. Paul, Minn., which is scheduled to close in 2008, also will have a shift reduction in 2007. The new cuts bring the total number of plant closures to 16, adding to the 14 plants announced in a previous restructuring plan. The company has identified nine plants to be closed through 2008, but Ford officials would not talk about which facilities would be shut down after that. Ford said it would complete its cuts of about 30,000 hourly jobs by the end of the 2008, four years ahead of its previous target. The company said it had cut 4,000 salaried positions in the first quarter of this year. The new cuts would reduce Ford's total North American work force by 29 percent, from the current level of about 130,000 to about 92,000 by the end of 2008. The salaried job cuts represent about a third of that work force.
http://biz.yahoo.com/ap/060915/ford_cuts.html?.v=46

[Fivetears]

These plant closures in the US auto industry will be community killers. It's not just Ford. US jobless claims are sure to soar over the next two years. Hope these folks can find good paying jobs elsewhere. :(

[The_Technician]

These plant closures in the US auto industry will be community killers. It's not just Ford. US jobless claims are sure to soar over the next two years. Hope these folks can find good paying jobs elsewhere. :(

Yeap, gonna be a real widow maker.....

[Show-me]

The trickle down effect has been already happening in our communities. Yesterday the local news reported that another parts manufacture laying off 150 of 420 in a very small community. Happy Thanksgiving.:( :(

These plant closures in the US auto industry will be community killers. It's not just Ford. US jobless claims are sure to soar over the next two years. Hope these folks can find good paying jobs elsewhere. :(

[Fivetears]

I was just in Dawsin, St. Helen, Lapeer & Saginaw Michigan; 9 - 12 August. Such beautiful areas, beautiful homes, powerful automotive industy and factories. A fishing paradise. Farms. Some of the nicest people "Don'tcha Know." A place you'd think and even believe you could go from "rags to riches" if you ever lost it all anywhere else in the world...; not the opposite.

What will become of all this 2 years down the road? The families. :(

[Fivetears]

Report Says General Motors and Ford Have Discussed Possibility of a Merger or Alliance
DETROIT - Executives of General Motors Corp. and Ford Motor Co. have discussed a possible merger or alliance, the trade journal Automotive News reported Monday. Both companies declined comment. Automotive News quoted what it said were several people familiar with the talks as saying that discussions involving senior executives began in July and are not taking place now. The journal quoted one source as saying that GM Chief Financial Officer Fritz Henderson and his Ford counterpart, Don Leclair, discussed a GM-Ford alliance in August. The report comes as GM and Ford have been slashing their work forces and closing plants in efforts to reverse multibillion dollar losses. Their sales have been hurt by competition from more fuel-efficient models from Asian automakers. As the two biggest U.S. automakers, any deal would presumably face scrutiny by U.S. antitrust regulators.
http://biz.yahoo.com/ap/060918/gm_ford.html?.v=8

[Fivetears]

Ford, GM have discussed alliance: reports
Citing several sources familiar with the discussions, industry newspaper Automotive News reported there were no ongoing talks between the two companies and said it was not clear earlier discussions would bear fruit. The Wall Street Journal said Ford and GM "briefly discussed" an alliance, but had since dropped the idea with no plans for further talks. GM and Ford declined comment. "As we've often said, GM officials routinely discuss issues of mutual interest with other automakers," GM spokesman Brian Akre said. "As a policy, we do not confirm or comment publicly on those private discussions, which in many cases never lead anywhere." To further complicate matters, GM is already in the midst of a 90-day study of a potential tie-up with Nissan Motor Co. Ltd. and Renault SA in which Nissan and Renault could buy up to a 20 percent stake in GM. That deal, urged by GM's largest individual shareholder, billionaire investor Kirk Kerkorian, has been widely viewed as a means of prodding Wagoner to speed up the company's turnaround efforts.
http://news.yahoo.com/s/nm/20060918/bs_nm/autos_gm_ford_dc_4

[Fivetears]

Trade deficit up to $218.4B in 2nd qtr.
WASHINGTON - America's trade deficit increased in the spring to the second-highest level in history, reflecting a big jump in payments for foreign oil and a deterioration in the country's investment position. The deficit in the U.S. current account rose to $218.4 billion in the April-June quarter, an increase of 2.4 percent over the first three months of the year, the Commerce Department reported Monday. Democrats called the widening of the deficit further evidence that President Bush's free-trade policies have left American workers exposed to unfair trade competition and a steep loss of manufacturing jobs.
http://news.yahoo.com/s/ap/20060918/ap_on_bi_go_ec_fi/economy_3

[Fivetears]

Current account gap widens
WASHINGTON - Surging oil costs helped widen the U.S. current account deficit more than expected in the second quarter and capital flows into the United States in July ebbed, two government reports showed on Monday. Meanwhile, a third report showed U.S. homebuilder optimism sank to the lowest level in 15 years after decreasing for the eighth consecutive month in September. The National Association of Home Builders said its index of homebuilder sentiment declined 3 points in September to 30, the lowest since February 1991, when the economy was in recession.
http://news.yahoo.com/s/nm/20060918/bs_nm/economy_dc_4

[Fivetears]

Allstate CEO Edward Liddy to Step Down at End of 2006, Will Remain As Chairman Until 2008
CHICAGO - Allstate Corp. said Monday CEO Edward Liddy, who has led the insurer for nearly eight years after orchestrating its 1994 spinoff off from Sears, Roebuck and Co., is stepping down at the end of 2006 and will be succeeded by No. 2 executive Thomas Wilson.Liddy's planned departure and the promotion of Wilson, currently president and chief operating officer, were announced following approval of the succession plan by the Northbrook-based company's board of directors.
http://biz.yahoo.com/ap/060918/allstate_ceo.html?.v=12

[Fivetears]

Airport Restrictions Force Businesses That Sell Edible Local Specialties to Adapt to Changes
Nebraska - Fifteen live lobsters? Those you can take on a plane. But the ice or gel packs to keep the lobsters cold are not allowed under the recent ban on liquids and gels in carryon luggage. The restrictions, put in place after an alleged plot to blow up U.S.-bound planes using liquid explosives, are forcing airport businesses that sell edible local specialties to adapt. Omaha Steaks has been selling steaks at the city's Eppley Airfield since the late 1970s. The two kiosks are upstairs, outside security checkpoints. But most people have already checked their luggage downstairs by the time they walk past. Before the restrictions were in place, the frozen steaks were kept cold by gel packs, and many people carried them on to stow in overhead bins or under seats.
http://biz.yahoo.com/ap/060918/steaks_on_a_plane.html?.v=3

[Fivetears]

Chrysler Plans 'Significant' Production Cuts
DETROIT -Chrysler Group will implement "significant" production cuts in the third and fourth quarters in response to bloated U.S. inventories, which are leading the company to forecast a wider-than-expected third-quarter loss, a spokesman said Monday. In a telephone interview, Chrysler spokesman Jason Vines said the company will expand the cuts beyond the 65,000 to 75,000 vehicles initially projected for the period but declined to give specifics. "We reserve the right to change our mind," Vines said, pointing out that the market could shift on particular models, leading to an unexpected positive or negative swing. Chrysler, the U.S. arm of DaimlerChrysler AG (DCX), has posted a string of profitable quarters dating back to 2003 as the benefits of a deep restructuring and a revised lineup of vehicles have taken hold. But the company's momentum is hitting the brakes, with executives forecasting a $1.5 billion loss for the third quarter and red ink for the whole of 2006.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060918-000582-1450

[Fivetears]

E. Coli Outbreak Traced to Top Organic Farm
SAN FRANCISCO - Federal agents from the Centers for Disease Control and Prevention intervened this weekend to help investigate an E. coli outbreak tied to tainted spinach from California's Central Valley. The spinach could have been contaminated in the field or during processing. About 74% of the fresh market spinach grown in the U.S. comes from California, according to the California Farm Bureau Federation. There have been previous bacterial contamination outbreaks linked to spinach and lettuce grown in the state. Federal officials stressed that the bacteria hadn't been isolated in products sold by Natural Selection Foods, based in San Juan Bautista, Calif., and known for Earthbound Farm and other brands. As the investigation continues, other brands may be implicated, officials said. Natural Selection officials couldn't be immediately reached for comment on Sunday. The company was founded in 1984 by Drew and Myra Goodman. Within two years, Earthbound Farm began shipping pre-washed, packaged salad fixings, and the company's "spring mix" became a mainstay of restaurants and supermarkets.
http://foxnews.smartmoney.com/bn/smw/index.cfm?story=20060918100734

[Fivetears]

Target raises September sales forecast
LOS ANGELES - Target Corp. on Monday raised its September forecast for sales at established stores to about 5 percent, sending its shares up nearly 3 percent. The second-largest U.S. discount retailer had said on August 31 that September sales would likely be up 3 percent to 5 percent at its stores open at least a year -- a key retail measure known as same-store sales.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=OBR&Date=20060918&ID=6031539

[Fivetears]

Moody's, S and P cut Ford's rating deeper into junk
CHICAGO - Ratings agencies Standard and Poor's and Moody's cut Ford Motor Co.'s credit rating deeper into junk status. S and P cited "the seemingly relentless deterioration in Ford's North American automotive operations" while Moody's said the downgrade reflected "the intense pressure the company is facing as a result of the shift in consumer preference away from trucks and SUVs, and toward more fuel efficient vehicles." S and P lowered Ford's crediting rating one notch to B with a negative outlook. Moody's lowered Ford's rating to B3 from B2. The cuts bring Ford's rating in line with that of rival General Motors, which had until recently been widely considered to be in worse shape. However, GM has managed to make significant progress
http://news.yahoo.com/s/afp/20060919/ts_alt_afp/usautofordcompany

[Fivetears]

DaimlerChrysler to cut deliveries in 3Q
DETROIT — Faced with vehicles languishing on its U.S. dealer lots, DaimlerChrysler AG said Tuesday it will slash retail deliveries by nearly 24 percent in the third quarter. The lineup of subsidiary Chrysler Group has been bogged down by gas guzzlers and a misplaced faith in summer incentives. The move would follow the lead of Ford Motor Co. and General Motors Corp., which previously announced production cuts in response to slow sales of trucks and SUVs. Chrysler is cutting retail shipments in the quarter that ends Sept. 30 by 90,000 vehicles to 290,000 vehicles. It had originally planned to ship 380,000. The company plans to knock another 45,000 units off its schedule in the fourth quarter. For the entire second half of the year, retail shipments will be cut by 16 percent to 705,000 vehicles from the previous target of 840,000, Chrysler said.
http://news.yahoo.com/s/ap/20060919/ap_on_bi_ge/chrysler_sales_outlook

[Fivetears]

Oracle profit tops Wall Street forecasts, shares up
SAN FRANCISCO - Business software maker Oracle Corp. posted a profit on Tuesday that topped Wall Street estimates and forecast solid growth this quarter, and its shares rose 9 percent to their highest level in four years. The company posted its strongest first-quarter license growth in more than five years, gaining share across all its product lines, and its chief financial officer forecast 22 percent to 24 percent revenue growth for the second quarter.
http://news.yahoo.com/s/nm/20060919/bs_nm/oracle_earns_dc

[Fivetears]

Fisher-Price unveils T.M.X. Elmo
New York - Fisher-Price, a unit of Mattel Inc., on Tuesday took the wraps off T.M.X. Elmo, ending months of unprecedented secrecy that's had the toy industry abuzz. Until the unveiling, only about 50 people had seen it. He's still red, fuzzy and really ticklish, but now Elmo's laughing fits have him slapping his knee, falling to the floor, rolling over and pounding his arm. Predicted to be a hot holiday seller, the new and improved Tickle Me Elmo made its debut on ABC's "Good Morning America" as customers lined up at Toys "R" Us, Wal-Mart and KB Toys. The "X" in T.M.X. stands for extreme.
http://news.yahoo.com/s/ap/20060919/ap_on_bi_ge/elmo_unveiled

[Fivetears]

Auto supplier BorgWarner to cut jobs
DETROIT - U.S. automakers' production cuts are rippling through the supplier industry, with BorgWarner Inc. saying Friday that it is eliminating 13 percent of its North American work force and Lear Corp. earlier this week cutting its sales forecast by $300 million. The U.S. Big Three are losing market share to Asian automakers at the same time that the U.S. economy is softening and domestic car sales are slowing. Suppliers that do a heavy business with General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's U.S.-based Chrysler Group are sharing their customers' pain.
http://news.yahoo.com/s/ap/20060922/ap_on_bi_ge/auto_suppliers_cuts;_ylt=ApCjZIu2z5iCg4r_L06PJvCyB hIF;_ylu=X3oDMTA0cDJlYmhvBHNlYwM-

[Fivetears]

CarMax profit up 44 percent, boosts outlook
CHICAGO - CarMax Inc., the largest U.S. retailer of used cars, on Wednesday posted a 44 percent increase in quarterly profit and boosted its full-year profit outlook. The company also said it expects same-store sales of used vehicles this year to grow 6 percent to 8 percent. It had previously forecast 2 percent to 8 percent growth.
http://news.yahoo.com/s/nm/20060922/bs_nm/autos_carmax_earns_dc;_ylt=Agatq8tT7QwjXiNkzv2JQVi yBhIF;_ylu=X3oDMTA0cDJlYmhvBHNlYwM-

[Fivetears]

FCC chair said to OK AT&T-BellSouth deal
WASHINGTON - The chairman of the Federal Communications Commission is recommending approval of AT&T Inc.'s $67 billion purchase of BellSouth Corp., people familiar with the matter said Friday. FCC Chairman Kevin Martin circulated a recommendation approving the purchase without conditions late Thursday night, meaning a formal vote is likely to occur at the agency's Oct. 12 meeting. The FCC's action is unusual in that it comes before the Justice Department has reached a decision on whether the deal will adversely affect competition and possibly harm consumers.
http://news.yahoo.com/s/ap/20060922/ap_on_bi_ge/at_t_bellsouth_merger;_ylt=AsyzqlhanBYGPCxfKbbqUHK b.HQA;_ylu=X3oDMTA3bGI2aDNqBHNlYwM3NDk-

[Fivetears]

Nike profit beats Street, shares up 6 pct
LOS ANGELES - Nike Inc., the world's No. 1 sport shoe and apparel maker, on Thursday posted quarterly earnings above Wall Street targets, boosting its shares nearly 6 percent and easing some fears that pricey styles bearing its signature swoosh were losing their luster. Although stock-based compensation and marketing spending crimped results, Chief Executive Mark Parker dispelled Wall Street speculation that U.S. consumers were moving away from pricey styles by Nike, which has seen slower sales of such footwear in parts of Europe and Japan.
http://news.yahoo.com/s/nm/20060922/bs_nm/textiles_nike_earns_dc;_ylt=AvEj9EZZ7cfjPCViyaoWhz GyBhIF;_ylu=X3oDMTA0cDJlYmhvBHNlYwM-

[Fivetears]

Amaranth Swears Off Energy After $6B Loss
NEW YORK - Hedge fund Amaranth Advisors LLC, which lost about $6 billion trading natural gas futures this month, said Friday it plans to stay in business but has sworn off energy trading. But Amaranth founder Nicholas Maounis, founder of the Greenwich, Conn.-based fund didn't give investors who want out a clear indication of when they would be able to access their funds.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060922-000910-1551

[Fivetears]

Fresh Spinach May Be Back in Stores Soon
WASHINGTON - It's safe to eat spinach grown outside California's Salinas Valley, federal health officials say, and the leafy greens could return to produce shelves in a few days. On Friday, officials said spinach grown anywhere outside that area is safe to eat -- but industry needs to figure out how to let consumers know the origin of what they're buying before the green can return to sale, said Dr. David Acheson of the FDA's Center for Food Safety and Applied Nutrition. An ongoing outbreak of E. coli linked to fresh spinach had sickened 166 people in 25 states through Friday. That's up from 157 victims in 23 states a day earlier, according to the Centers for Disease Control and Prevention. Of those infected in the outbreak, 88 have been hospitalized, including a Wisconsin woman who died. Two other deaths have been reported in suspected cases -- a child in Idaho and an elderly woman in Maryland -- but those cases are still being investigated.
http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=AP&Date=20060923&ID=6025793

[Fivetears]

Walgreen 4th-quarter profit up 25 pct.
CHICAGO - Walgreen Co. posted 25 percent fourth-quarter earnings growth to cap its biggest-ever expansion year, but its stock tumbled on continuing investor concern about fallout for drugstore chains from Wal-Mart's plan to sell discounted generic drugs. The profit gain was fueled by an 18 percent increase in prescription drug sales from a year earlier and a 16 percent jump in total revenue. While the resulting $412.3 million in earnings was on target with Wall Street's expectations, the stock fell sharply for the second time in three trading days as industry experts speculated about the potential for trouble ahead because of the Wal-Mart plan.
http://news.yahoo.com/s/ap/20060925/ap_on_bi_ge/earns_walgreen;_ylt=Ao4_EIzDbk_F3z9KC6reRH6yBhIF;_ ylu=X3oDMTA2Z2szazkxBHNlYwN0bQ--

[Fivetears]

House panel subpoenas 3 in HP scandal
WASHINGTON - Three people involved in Hewlett-Packard Co.'s efforts to unmask a boardroom leak have been ordered to testify at this week's congressional hearing on the corporate spying scandal that's so far claimed the company's chairwoman and two directors. The subpoenas are the first issued by the panel in its investigation. They were served over the weekend, according to a congressional aide who asked not to be identified because the investigation is continuing. Until now, the invitations to testify at Thursday's hearing had been voluntary and other witnesses had accepted them.
http://news.yahoo.com/s/ap/20060925/ap_on_bi_ge/hewlett_packard_directors;_ylt=AkICHArCopq5gBxYWuF nWlyyBhIF;_ylu=X3oDMTA2Z2szazkxBHNlYwN0bQ--

[Fivetears]

GM, Renault Bosses to Renew Talks
TOKYO - Carlos Ghosn, the head of Nissan Motor Co. and Renault, and General Motors Corp. CEO Richard Wagoner plan to hold talks this week in Paris as they continue to assess the possibility of an alliance among the three automakers, Nissan said Monday.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060925-000298-0911

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United Airlines to Explore Mergers
ELK GROVE VILLAGE, Ill. - United Airlines parent UAL Corp. has retained Goldman Sachs Group Inc. to explore strategic options, including possible mergers with other carriers, according to a published report. Goldman Sachs is expected to help United Airlines assess the value of its domestic and international holdings, advise it on sales or purchases of domestic or international routes, and scout for mergers, according to the Monday edition of Crain's Chicago Business, citing unidentified people close to United. United declined to comment on the report. "We don't comment on rumors or speculation," spokeswoman Jean Medina said.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060925-000569-1352

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Dell Adds 500 Engineering Jobs in Texas
AUSTIN, Texas - Texas Gov. Rick Perry got a chance to burnish his pro-business credentials Monday, when Dell Inc. Chairman Michael Dell appeared with him to tout the company's plans to hire 500 new engineers in Central Texas. Chairman Dell first announced the hiring last week while overseas. The company's Central Texas workforce will grow to about 18,500 once it's complete.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060925-000520-1243

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Boeing, EADS to Compete for Air Force Tanker Deal
WASHINGTON - The U.S. Air Force wants a new tanker plane big enough to carry gas and cargo, the service said Monday as it released a draft request for bids. For now, the service is still leaning toward picking one company next year to design and build the new tankers. But Air Force leaders also are considering awarding a pair of design contracts if they can find money to extend the time that two teams are in the running. Two competitors are in the running: Boeing Co. and a team of Northrop Grumman Corp. and the European Aeronautic Defence and Space Co., parent company of Airbus. The new draft notice sketches out the tanker contest but plans won't be final until at least December, when the Air Force plans to release its final request for bids.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060925-000590-1426

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Chrysler Considering 'Structural' Changes
DETROIT - Chrysler Group Chief Executive Tom LaSorda said Monday that the auto maker is considering "structural" changes as it deals with bloated inventories, production cuts and a third-quarter operating loss. Chrysler will cut third-quarter retail-vehicle production by 90,000 vehicles, or 24%, and second-half output by 16%. The auto maker surprised investors earlier this month by saying it would more than double its expected third-quarter operating loss to $1.5 billion. LaSorda, speaking Monday during an Automotive Press Association brunch, wasn't specific on what types of changes might be coming. The auto maker already is idling plants temporarily as it cuts production. He said North America is the most "cut-throat" market in the world and said the environment got more difficult as high gasoline prices weighed on the consumer.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060925-000504-1227

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Health Insurance Premiums Have Smallest Increase Since 1999 but Are Twice the Inflation Rate
WASHINGTON - Workers won't find much comfort in the smallest increase in health insurance premiums since 1999. The 7.7 percent increase this year was still more than twice the rate of inflation. "To working people and business owners, a reduction in an already very high rate of increase just means you're still paying more," said Dr. Drew Altman, president and chief executive officer of the Kaiser Family Foundation, a health care research organization that annually tracks the cost of health insurance. Altman said the rising gap between premium growth and wages is particularly startling when one takes a longer look back. Since 2000, health insurance premiums have gone up 78 percent; wages 20 percent.
http://biz.yahoo.com/ap/060926/insurance_rising_premiums.html?.v=3

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U.S. falls to 6th in world competitiveness
GENEVA - The United States fell to sixth place in the World Economic Forum's 2006 global competitiveness rankings, ceding the top place to Switzerland as macroeconomic concerns eroded prospects for the world's largest economy. In a report released Tuesday, the World Economic Forum said Washington's huge defense and homeland security spending commitments, plans to lower taxes further, and long-term potential costs from health care and pensions were creating worrisome fiscal strains.
http://money.cnn.com/2006/09/26/news/international/bc.economy.competitiveness.reut/index.htm

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GM: No Hurry in Nissan/Renault Talks
DETROIT - General Motors Corp. Chief Financial Officer Fritz Henderson said Tuesday that the company will continue a "thoughtful, thorough and objective assessment" of a potential alliance with Renault SA and Nissan Motor Co. and that it expects to wrap up discussions by Oct. 15.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060926-000563-1312

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United Tech, Caterpillar Sued Over 401(k) Fees
LOS ANGELES - Lawsuits filed in four states accuse seven large companies of violating pension laws by allowing their employees to be overcharged by outside firms operating 401(k) retirement plans. The employees were charged millions of dollars in excessive management fees, which often were hidden in obscure agreements and not disclosed to the workers, according to attorney Jerome Schlichter, who filed the suits earlier this month in federal district courts in California, Connecticut, Illinois and Missouri.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060926-000749-1647

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Intel CEO Talks Up New Processors
SAN FRANCISCO - Intel Corp. Chief Executive Paul Otellini said the company will ship a Core 2 Duo chip for high-performance personal computers in November. Speaking at the Intel Developers Forum in Dan Francisco, Otellini said the product, which will have four computing cores, will run 70% faster. Chips in today's personal computers have one or two core microprocessors, or computing brains. In the first quarter, Intel will release a Core 2 Quad in volumes for mainstream PCs.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060926-000543-1256

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Northwest, Flight Attendants to Resume Talks
MINNEAPOLIS - Negotiations will resume Wednesday between Northwest Airlines Corp. and its flight attendants. Flight attendants have sought to stage random, unannounced walkouts after Northwest imposed pay cuts and work rule changes. Northwest made the changes with a bankruptcy judge's permission after flight attendants twice voted down negotiated agreements. Northwest has won court orders barring job actions, at least for now. The union has appealed.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060926-000651-1429

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CBS to Merge Syndication, Distribution Units
NEW YORK - CBS Corp. will combine its syndication and distribution assets under a newly formed division called CBS Television Distribution Group. The new division unites CBS groups that distribute series like "CSI" in syndication and hold a slate of talk and game shows like "Judge Judy" and "the Oprah Winfrey Show."
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060926-000775-1716

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Microsoft Rushes Fix for Flaw in Explorer
NEW YORK - Microsoft Corp. is offering an early update to fix a flaw in its Internet Explorer browser that hackers can exploit to get control of a victim's computer. The software company said on its security Web site Tuesday that it was releasing a "critical security update" to address this flaw. The company generally issues patches monthly and the next one was scheduled for Oct. 10. It's unusual for the company to issue an early patch.
http://foxnews.smartmoney.com/bn/ON/index.cfm?story=ON-20060926-000751-1648