Posts Tagged ‘all

26
Feb

Visteon turns in 4Q profit

VAN BUREN TOWNSHIP, Mich. – Auto parts supplier Visteon Corp. posted a fourth-quarter profit Friday, helped by cost-cutting moves and the hints of a recovery in the global auto industry.

Visteon said it earned $276 million, or $2.12 per share, after a loss of $346 million, or $2.67 per share in the year-ago quarter. The 2008 quarter was affected by a $200 million charge related to its business making interior parts for vehicles.

Sales grew 23 percent to $2.03 billion. The company said sales improved across all major regions where it sells parts, a trend Visteon said was a sign that industry and broader economic conditions are getting better.

Visteon, the top supplier to and a former subsidiary of Ford Motor Co sears kerosene heaters., filed for Chapter 11 bankruptcy protection in May following a sharp downturn in the U.S. market for cars and trucks. However, overall sales began to pick up last in 2009.

Cost-cutting measures from Visteon’s restructuring also helped the quarterly results. That included a $133 million gain from terminating some employee benefit programs.

For all of 2009, Visteon earned $184 million, or 98 cents per share.

Shares of Visteon, which trade on over-the-counter markets, more than doubled in morning trading, rising 7.6 cents to nearly 14.8 cents per share.

Visteon turns in 4Q profit

Hot News: Royal Bank of Scotland loses $5.5 billion in 2009

21
Feb

NAACP elects Brock, 44, as youngest board chairman

NEW YORK – The NAACP elected a health care executive as its youngest board chairman Saturday, continuing a youth movement for the nation’s oldest civil rights organization.

Roslyn M. Brock, 44, was chosen to succeed Julian Bond. She had been vice chairman since 2001 and a member of the NAACP for 25 years.

Brock works for Bon Secours Health Systems in Maryland as vice president for advocacy and government relations, and spent 10 years working on health issues for the W.K. Kellogg Foundation. She joins Benjamin Todd Jealous, the 37-year-old CEO of the NAACP, as leader of the 500,000-member organization.

Brock said she plans to focus on pushing for policy changes to eliminate inequality, strengthening the relationship between the national and local NAACP branches and holding people accountable.

“It’s not always what someone is doing to us, but what we are doing for ourselves,” Brock said in an interview.

The departure of Bond, 70, after 10 years as board chairman marks a turning point for the National Association for the Advancement of Colored Pepole.

Bond came of age in the segregated South, helped found the Student Non-Violent Coordinating Committee and was on the front lines of the protests that led to the nation’s landmark civil rights laws. He is a symbol and icon of “the movement,” which was a defining experience for older generations.

In recent years the NAACP has endured criticism that it is old and out of touch. Then Bond brought in Jealous, then 34, as the NAACP’s youngest CEO, and endorsed Brock’s bid for board chairman.

The selection of young leaders “is deliberate, but it’s also fortuitous,” Bond said. “We are lucky to have had this confluence of a young CEO and a young chair. I don’t think we plotted and planned that in 2010 the stars would align this way.”

Jealous said he belongs to a generation “whose greatest accomplishments are in front of them … who are even more hungry for change.”

Bond said the board asked him to run for another one-year term, but he declined.

“Frankly, this is the most difficult nonpaying job I’ve ever had,” said Bond, who has served in the Georgia state legislature, is a member of several corporate boards and a professor at American University and the University of Virginia easy fast payday loans.

Brock was selected in a vote by the 64-person NAACP board. Her opponent was Rev. Wendell Anthony, leader of the NAACP’s Detroit chapter, who withdrew Friday after he was not re-elected to his seat on the board.

Brock graduated from Virginia Union University and has an MBA from Northwestern, as well as master’s degrees in health care administration and divinity.

She described health care as her passion and said the current reform debate hinges on one fundamental question.

“Am I my brother’s and my sister’s keeper?” Brock asked. “That’s the question that we’ve got to ask our legislators. Are we really, really concerned about our neighbors, and about their health, and their children’s health?”

While acknowledging the need to “retool our front line” and develop young civil rights activists, Brock said the wisdom of the older generation is still needed.

“If it were not for that ‘aging’ membership, the NAACP would not be who it is and what it is today,” she said.

Many conservatives question the need for an NAACP and say that an association for the advancement of white people would be considered racist.

Brock said the NAACP has erroneously been classified as a black group: “We are not. We are a multiracial, multiethnic organization. So as we move into our second century, our desire is to cast our net broader.”

“‘People of color’ or ‘colored people’ really speaks to those who are falling through the cracks … who feel locked out,” she said.

She said the nation was at a pivotal moment after electing the first black president.

“I’d be the first to say that at the NAACP we have to acknowledge how far we’ve come as a nation in terms of race relations, but also in that acknowledgment, understanding that we’re not where we ought to be, but we thank God we’re not what we used to be.

“We need to draw a line in the sand and say thank you, America … but also challenge America that we still have much more work to do.”

___

Jesse Washington covers race and ethnicity for The Associated Press. He is reachable at jwashington(at)ap.org or http://www.twitter.com/jessewashington.

NAACP elects Brock, 44, as youngest board chairman

Hot News: Is it time to give up your adjustable-rate loan?

19
Feb

Fed’s Move Prompts Drop in Asian Stocks, but Dollar Rises

HONG KONG — Stock markets in the Asia-Pacific region fell on Friday after the U.S. Federal Reserve increased the rate on loans made directly to banks, as the move reminded global investors that the era of cheap money was gradually drawing to a close.

The U.S. currency continued its recent rise against the euro, trading at around $1.35 by mid-morning in Asia, its strongest level against the European single currency in nice months.

Oil and other commodities fell because they are sensitive to higher interest rates, which can tame economic growth. Crude oil prices were down 1 percent at around $78.20 per barrel.

Gold, which tends to sag when the dollar rises and inflation threats recede, eased to $1,107 an ounce.

The Fed’s move, announced after the close of trade in the United States was seen as the first significant step by the Fed to start exiting some of the extraordinary stimulus measures that were announced as the global financial crisis began to escalate in late 2008. It does not affect the benchmark fed funds rate — the rate at which banks lend to each other overnight that determines the cost of borrowing for normal consumers and businesses. That rate remains at a record low.

However, Thursday’s announcement by the Fed prompted investors to focus on an eventual rise in the fed funds rate as confidence in the U.S. economy’s gradual recovery takes hold.

“The move indicates confidence in market stability and economic recovery and will make it easier to raise the Fed funds rate target,” said Dariusz Kowalczyk, chief investment strategist at SJS Markets in Hong Kong in a note no faxing pay day loans.

The Nikkei 225 index in Tokyo eased 0.7 percent by late morning, with the Japanese Finance minister, Naoto Kan, saying the Fed’s move was unlikely to hurt the Japanese economy.

The benchmark Kospi index in Seoul fell 1 percent, and in Hong Kong the Hang Seng index dropped 2.0 percent.

In Singapore, the Straits Times index in Singapore was 0.5 percent lower in morning trade. In a sign that the Asian region is recovering more quickly than the United States and Europe, the Singapore authorities on Friday said they expected the country’s economy to expand by between 4.5 percent and 6.5 percent this year, more than previously forecast. Last year, Singapore’s economy shrank by 2 percent.

The stock market in Australia, whose economy has been powering ahead thanks in large part to voracious appetite for its natural resources from China, slipped 0.3 percent, amid indications that the central bank there will continue to raise interest rates as economic conditions improve.

The markets in mainland China, Taiwan and Vietnam are closed all week for the Lunar New Year holiday.

The Fed’s increase in its so-called discount rate was by a quarter of a percentage point, to 0.75 percent from 0.50 percent, and is effective Friday.

Fed’s Move Prompts Drop in Asian Stocks, but Dollar Rises

Hot News: Case Is Said to Link HSBC to U.S. Tax Evasion Inquiry

02
Feb

Geithner says economy improved from year ago

WASHINGTON – Treasury Secretary Tim Geithner (GYT’-nur) says the nation’s economy is stronger than it was a year ago, yet the government must continue to act to stimulate job growth.

Geithner told the Senate Finance Committee Tuesday that the Obama administration is trying to balance the desire to add jobs with the need to rein in ballooning budget deficits.

President Barack Obama has proposed giving companies a $5,000 tax credit for each new worker they hire in 2010 no credit check payday loan. Businesses that increase wages or hours for their current workers in 2010 would be reimbursed for the extra Social Security payroll taxes they would pay.

Geithner says economy improved from year ago

Hot News: Oil rises above $75 on China, U.S. economy prospects

30
Jan

Davos leaves questions over global bank rules push

DAVOS, Switzerland (MarketWatch) — Bankers and politicians agreed on little in public during this week’s World Economic Forum gathering of top CEOs and policymakers in the Swiss Alps, other than the desire to see regulations coordinated around the globe.

But some attendees say it’s not clear that’s going to happen.

Bankers and politicians met behind closed doors at the annual meeting Saturday, though the discussions didn’t appear to produce any concrete agreements.

Bankers have acknowledged they are going to see more regulation, said U.S. Rep. Barney Frank, the Democratic chairman of the House Financial Services Committee, after the meeting.

Deutsche Bank chief executive Josef Ackermann, who has emerged as an unofficial spokesman for the bankers at this year’s WEF , told an audience at a panel discussion later Saturday that “something has to happen quickly to restore confidence in the banking system.”

Ackerman, who chairs the forum’s committee of finance CEOs, on Friday said the bankers were in favor of higher capital requirements, better liquidity management and improved market infrastructure, as well as measures that would ensure failed banks could be wound up without bringing down the system. Read about Ackermann’s presentation.

Davos: Jacob Zuma Promotes World Cup at Forum

South African President Jacob Zuma goes on a public relations blitz at the Davos economic forum to promote the World Cup in South Africa. WSJ reporter Roman Kessler has more.

Meanwhile, questions surround the ability of regulators to internationally coordinate new banking rules.

Ensuring some degree of uniformity in new banking rules amid intense public anger around much of the world was always going to be a tough task.

The importance of policy coordination was a “key lesson of the crisis,” International Monetary Fund Managing Director Dominique Strauss-Kahn said on Saturday. “I’m a bit afraid we’re not going in this direction.”

“The big unknown is the attitude of the United States,” said Barry Eichengreen, an economics professor at the University of California Berkeley, in an interview.

The Obama administration’s introduction last week of the “Volcker rule,” a proposal that would limit the size of commercial banks, barring them from trading for their own account and operating private equity and hedge funds,

British Chancellor of the Exchequer Alistair Darling contends that approach wouldn’t solve the problems that created the crisis fast payday loans. He’s put the emphasis on increased capital requirements and “living wills” that would detail how to close down failed banks.

French President Nicolas Sarkozy told Davos bankers and other luminaries earlier this week that the Obama measures were correct, but that no nation could go it alone. Efforts must be coordinated by the Group of 20 nations, which agreed in April that the Basel, Switzerland-based Financial Stability Board would oversee negotiations. Read about Sarkozy’s speech in Davos.

Banks say that a lack of coordination would make for an un-level playing field. Policy makers say banks would game differences in a damaging round of regulatory arbitrage.

European Central Bank President Jean-Claude Trichet told a Davos audience that failure to coordinate measures “would be a catastrophe.”

Frank has said the Obama plan would be passed within months.

In a panel discussion earlier this week, he dismissed ideas that pressing ahead with the plan threatened efforts to coordinate measures across the globe as a “false dichotomy.”

While Frank was in high demand this week, Obama administration officials were thin on the ground in Davos.

On Saturday, Eichengreen introduced a high-powered panel discussion of central bankers and business leaders on the issue of financial reform, noting that the panel lacked only a representative of the Obama administration. “But why should this panel be any different from others here at Davos this year,” he said.

White House economic adviser Lawrence Summers delivered remarks in Davos Friday, but no other high-profile administration officials were in attendance for the event that began Wednesday.

Eichengreen said a U.S. policy that insists on elements of the Obama plan such as the ban on proprietary trading by commercial banks would make it difficult to reach international agreement.

Davos leaves questions over global bank rules push

Hot News: Batch of Bad News Weighs on Asian Stock Markets

23
Jan

Market Snapshot: U.S. stocks drop for third straight session

NEW YORK (MarketWatch) — Stocks closed with steep losses for a third straight day Friday, paced by technology shares, which suffered from analyst downgrades and sky-high earnings expectations.

The selling picked up in the afternoon as fears swirled regarding the possibility that Ben Bernanke might not get confirmed to a second term as Federal Reserve chairman.

The Dow Jones Industrial Average slid 216.90, or 2.1%, to 10,172.98, off 5.2% over its three-day slide. For the week, the Dow was off 4.1%.

Hot Stocks: Energy under pressure

Energy stocks end a punishing week with more losses as a result of lower crude prices, broader-market weakness and less-than-inspiring results from Schlumberger. MarketWatch’s Steve Gelsi reports.

The S&P 500 Index plunged 2.2% to 1,091.75, off 3.9% for the week. The tech-heavy Nasdaq Composite Index ended down 2.7%, the worst decline of the major indexes. It was hurt in part by a 5.7% slide in Google , despite the Internet giant’s surge in fourth-quarter earnings. The company’s earnings and revenue came in well above analysts’ estimates, but investors seemed to have been looking for more.

“Expectations have gotten elevated over the last three quarters and it becomes a very tough short-term bar to clear,” said Jeff Markunas, portfolio manager of the RidgeWorth Large Cap Core Equity Fund. “There’s been a lot of nit-picking.”

Also weighing on the tech sector: Citigroup cut its ratings on seven semiconductor-equipment stocks, citing the risk of a correction of perhaps 30% in the sector for the short term, though a broader bullish trend remains intact.

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Of the companies downgraded by Citi, the hardest hit were Entegris , off 11 payday loans with no fax.9%; Brooks Automation , off 9.6%; and Applied Materials , off 7%.

The declines in major averages gathered some steam in late afternoon as President Barack Obama spoke at a town hall meeting regarding his plan to impose tougher limits on big banks’ speculative activity. His proposal fueled a 213-point slide in the Dow when it was unveiled on Thursday and continued to be a hot topic among investors during the latest trading session.

Investors also weighed reports that some congressional Democrats are growing skittish about confirming Bernanke to a second term as Fed chairman.

“The chief sponsor of the economy, the Fed, will be in disarray if Bernanke doesn’t get reappointed,” said strategist Bruce Bittles, of R.W. Baird & Co. “That’s a big concern for investors right now.”

Financial bellwethers extended the previous session’s sharp losses. Goldman Sachs Group was down 4.2%, while Bank of America , which focuses more on traditional banking, was off 3.7%.

General Electric rose 0.6% after reporting fourth-quarter earnings above analysts’ estimates and forecasting a return to growth in 2011. McDonald’s , meanwhile, climbed 0.3%. The fast-food giant’s fourth-quarter earnings rose 23% as same-store sales climbed across all its regions.

American Express fell 8.5% despite a tripling in its quarterly net income. The report topped Wall Street estimates, but fell short of investor expectations. The market may have already priced in the improvements, anticipating the credit card issuer’s strengthening, analysts said.

In other markets Friday, crude-oil prices fell below $75 per barrel. Gold futures also slipped.

The dollar weakened against both the euro and the yen, while Treasurys were little changed. The 10-year note was recently off 2/32 to yield 3.601%.

Market Snapshot: U.S. stocks drop for third straight session

17
Jan

Sponsor Takes the Next Step in Tennis

LAS VEGAS — Fernando Verdasco was straining against a leg-press machine as he raised 710 pounds, yet his strength and conditioning coach, Gil Reyes, was making the most noise. Reyes bellowed in two languages as Verdasco, a Spanish tennis star, raised the massive load 14 times before Reyes finally shouted at him to stop.

“He’s a beast,” Reyes said last month. “I stopped him because I didn’t want him to break down. If he totally maxed out today, there’s a good chance it would throw him off stride tomorrow or the next day.”

Reyes, an American who speaks in the tones and rhythms of an evangelist, was Andre Agassi’s trainer and protector for nearly 20 years. He is now a company man: one of three pillars of the unusual player-development program created and financed by Adidas.

The other pillars are Sven Groeneveld, a veteran Dutch coach who started the program in 2006, and Darren Cahill, an Australian coach who with Reyes helped Agassi keep scaling the heights into his mid-30s.

Groeneveld is based in Amsterdam, and Reyes and Cahill in Las Vegas, the program’s training base. Reyes still works out of his private gym decorated with Agassi’s eight Grand Slam singles trophies and 1996 Olympic gold medal. Agassi remains a frequent visitor and is also an occasional hitting partner and counselor for the players.

But the program’s scope is broader, with Groeneveld and Cahill traveling to tournaments worldwide to offer on-site assistance with Groeneveld’s assistant Mats Merkel.

The executive who devised and supervises the operation is Jim Latham, an American expatriate and former Duke tennis player who saw the program as a way to protect his company’s investment in increasingly young athletes who sometimes lacked structure and expert advice.

“It’s a compact, mobile tennis academy,” said Latham, the head of global sports marketing for tennis at Adidas.

It is also a delicate diplomatic mission in a cutthroat, territorial sport unaccustomed to coaches spreading the wealth of their knowledge democratically or to manufacturers striving to be more than suppliers of apparel and juicy contracts.

“It’s a given that we had to have elite-level coaches,” Latham said. “But the other given for me was that it had to be people who were great communicators, who could go into it with all these people and make them feel included, rather than ‘my way or the highway.’ ”

Manufacturers’ teams are the foundation of sports like Formula One auto racing. But the Adidas developmental team remains unique in tennis, and though it is not without detractors who question its part-time approach, it is playing an increasingly visible role in the sport and has been involved in some big hits as well as misses.

The hits include Ana Ivanovic’s victory at the 2008 French Open and rise to No. 1, and Verdasco’s surprise run to last year’s Australian Open semifinals and rise into the top 10. The team, Groeneveld in particular, also provided counsel and support to Caroline Wozniacki, a Danish teenager coached primarily by her father who broke into the top four last year after reaching the United States Open singles final.

The misses include players like Evgeny Korolev, Anna Chakvetadze, Marcos Baghdatis and Sania Mirza, whose rankings and singles careers have not prospered. Ivanovic also dropped out of the top 10 after a mediocre 2009 season but spent the off-season working primarily with Groeneveld.

National tennis federations have long been involved in developing talent and providing coaching at the professional level. Some private academies have done the same.

But no other company has yet plunged in, and what also makes Adidas’s program unusual is that it does not attempt to be full service, but rather a consultancy business card design.

Latham said Adidas had contracts with about 75 players, more than 40 of whom are in the singles draws at the Australian Open beginning Monday. Luminaries like Jo-Wilfried Tsonga and Justine Henin have not sought help, but Latham estimated that 30 to 35 players have had some contact like seeking a quick tip from Groeneveld or training in Las Vegas, which requires an invitation from Latham.

Working with multiple players reduces a coach’s vulnerability and dependency.

“These guys can give unsugarcoated advice,” Latham said of his team.

But the Adidas principals emphasized that their input should be supplemental and that they wanted top players to have full-time coaches.

“This is not about a threat, this is not about better than, or instead of, it’s a matter of one plus one maybe might equal three,” Latham said.

But Verdasco and Ivanovic thrived under the system when they were without full-time coaches. Patrick Mouratoglou, who owns a prominent academy in France, said that he tried to play a similar role to many players but that he felt it undermined their relationships with their personal coaches. He now focuses on one or two players.

“I don’t doubt the quality or competence of Sven or any member of the team,” he said. “I just think the system is flawed. I stopped doing it. At first, you feel good because everyone loves you, and you give a bit to everyone, and everybody wants you on their court giving input. It’s a drug. If you need affection, it’s amazing. If you want results, it doesn’t work.”

Cahill said that he was sensitive to personal coaches’ concerns but that the benefits of exchanging thoughts and challenging preconceptions outweighed the negatives.

He had other options. Early last year, he trained on a trial basis with Roger Federer in Dubai. But Cahill, who has two children and increasingly strong ties to Las Vegas, said he was not prepared to handle the travel commitment Federer required. Instead, Cahill joined Adidas last March while continuing to do television commentary for ESPN and to work with Agassi’s foundation in Las Vegas.

Latham said the team’s existence has helped Adidas recruit several players, including Daniela Hantuchova, a 26-year-old Slovak who trained with Cahill and Reyes in the off-season. But Latham and Baghdatis failed to reach an agreement, and Baghdatis is no longer under contract.

Verdasco, 26, who won a warm-up event Saturday in Australia, is definitely still with the program: exchanging embraces and fist bumps with Reyes during intense training sessions. He is seeking a second home in Las Vegas to be closer to Reyes and his weights.

Reyes prefers to work one on one, so visitors are limited to three at a time. From the outside, his gym looks like a suburban home. It is in a gated community on a road named after Agassi, who built a house next door for his parents as well as a practice court. The carpeted weight room is filled with machines Reyes designed and built himself for Agassi because nothing tennis specific enough existed.

“If this is the future, I don’t really know,” Verdasco said of the Adidas program. “But of course it really helped me a lot, because I really found Gil that I have this strong connection with. Maybe if Adidas took another guy, maybe I wouldn’t have that same connection, and maybe I wouldn’t like it as much.”

Sponsor Takes the Next Step in Tennis

02
Jan

Time Warner and Fox Reach a Cable Deal

The News Corporation and Time Warner Cable struck a deal just in time for the Sugar Bowl.

The two companies said Friday evening that they had agreed on new terms for a contract covering Fox stations in New York, Los Angeles, Orlando and other markets, averting a blackout of the weekend’s college bowl games in millions of homes. They did not disclose the terms.

The deal between the News Corporation and Time Warner caps weeks of sparring over the price that the cable company — and by extension its customers — should pay to watch Fox, ahead of an end-of-the-year contract expiration.

Analysts had expected that the deal would set a new high-water mark for local TV stations that want sizable subscriber fees in exchange for so-called retransmission rights.

In tense negotiations with Time Warner Cable, Fox had demanded about a dollar a subscriber per month, far more than other stations have received. Time Warner Cable thought 30 cents was more reasonable, said people briefed on the talks who insisted on anonymity because the specifics of the talks were confidential.

Most likely, the two companies reached a compromise on the price, but both refused to comment Friday on the figure.

“We’re pleased that, after months of negotiations, we were able to reach a fair agreement with Time Warner Cable — one that recognizes the value of our programming,” said Chase Carey, the president of News Corporation, in a statement.

Time Warner Cable’s president, Glenn Britt, called it a “reasonable deal.”

Meanwhile, customers of another major cable operator, Cablevision, were reminded Friday of what can happen when carriage talks break down. The Food Network and HGTV were unexpectedly removed from Cablevision’s lineups in New York, New Jersey and Connecticut shortly after the stroke of midnight, sending angry customers to their keyboards and phones to demand answers. Cable and satellite operators pay media firms for the right to carry channels, and those fees are reflected in customers’ bills.

Cable operators have historically resisted paying directly for the right to retransmit stations, but they have softened their stance in recent years, and some stations now receive between 10 cents and 40 cents a month per subscriber.

Fox asserted it deserved more. Rupert Murdoch, the News Corporation chairman, has positioned the company as a leader in “creating an economic template for the future.” Every cent represents millions of dollars in monthly revenue.

Analysts say the Fox station group’s aggressive stance could benefit other broadcasters. In a report last month, analysts at UBS said the current dispute was “likely a harbinger of things to come as consumers have more alternatives to cable than ever before,” giving programmers more leverage in negotiations easy payday loans.

The big fee for Fox was part of a larger package of News Corporation channel renewals, which put cable channels like FX at similar risk of vanishing from Time Warner Cable systems, at least temporarily.

Fee negotiations are usually conducted discreetly, and deals are often completed close to their deadlines without viewers ever knowing. But Fox’s clash with Time Warner Cable broke out in public in November when the cable operator started a campaign to hold the line on programmer fee increases.

Some networks, it said on its Web site, “are trying to boost their bottom line by squeezing cable TV viewers like you — and threatening to pull the plug on popular shows if we don’t roll over.”

Networks say the fee increases are a matter of survival — or at least are necessary to keep producing quality programming.

Time Warner Cable representatives traveled to Los Angeles for talks with News Corporation early in the week. Under pressure from the government and from viewers to stave off a blackout, representatives for both sides met in a conference room on the Fox studio lot at 10 a.m. Pacific time on Thursday, and talks continued through Friday evening, said an executive briefed on the talks who was not authorized to speak publicly.

The Fox negotiators had the option to pull the plug after the contract expired early Friday morning, but they decided to keep talking.

On the other side, the Food Network and HGTV outage affected about 3.1 million subscribers in the New York metropolitan area on Friday. The owner of the popular channels, Scripps Networks, says it deserves more cash for them. “The distribution rates Cablevision pays for Food and HGTV are among the lowest in the industry,” said Kenneth W. Lowe, the chief executive of Scripps Networks Interactive.

According to the research firm SNL Kagan, distributors pay about 8 cents on average for Food Network and 13 cents for HGTV. Scripps was believed to be asking for about triple that amount, or roughly 25 cents for Food and 40 cents for HGTV.

Cablevision took a hard line in its own statement Friday, saying that it had “no expectation of carrying” Scripps’s programming again, “given the dramatic changes in their approach to working with distributors to reach television viewers.”

Scripps’s contracts with Time Warner Cable also expired on Dec. 31, but those two companies continued talking into the new year without an interruption in programming.

Time Warner and Fox Reach a Cable Deal

31
Dec

No 2009 cash bonuses for top Wells Fargo execs

SAN FRANCISCO (MarketWatch) — Wells Fargo said Thursday that four top executives won’t get 2009 cash bonuses.

Wells became the latest financial institution to change its compensation policies in the wake of a national uproar over executive pay this year.

The four executives, including Chief Executive John Stumpf and Chief Financial Officer Howard Atkins, will be getting restricted stock currently worth a total of roughly $25 million, Wells added.

Steve Sanger, who chairs the Human Resource Committee of Wells board of directors, said the stock was granted to the executives to encourage them to stay at the bank to help integrate its acquisition of Wachovia and steer the company out of the recent recession.

“Given the current challenges impacting the banking industry, Wells Fargo executives, at all levels, are being increasingly and aggressively recruited by competitors,” Sanger said in a statement. “Retaining them, along with our entire senior management team, is clearly in the best interest of our Company and its shareholders.”

Wells was among the first group of large U.S. financial institutions to get tens of billions of dollars in government money via the Troubled Asset Relief Program, or TARP, in the midst of the financial crisis last year.

The bank was reluctant to take the money and became more uncomfortable with the program as it became clearer that tough compensation limits would accompany government support.

Wells said as recently as September that it would repay TARP without selling new stock and further diluting shareholders’ stakes. The bank argued that it was generating enough capital internally to exit the program.

However, on Dec. 18, Wells ended up selling 489.9 million new shares of common stock at $25 each, raising $12.25 billion to help repay government support. Last week, Wells exited TARP, freeing itself from government limits on compensation loan till payday. See full story.

Despite that, Wells and other institutions have been under pressure to change executive compensation practices, after some experts blamed excessive pay for helping fuel the credit market boom and subsequent bust. See MarketWatch.com special report on CEO Pay.

Goldman said recently that its 30-person management committee will be getting bonuses for 2009 in the form of “shares at risk” instead of cash. The shares cannot be sold for five years. The firm, which was the first major institution to exit TARP, also gave shareholders an annual vote on its pay practices. Read about recent pay changes at financial institutions.

Morgan Stanley is planning to defer more compensation for top executives over time and benchmark pay against rivals, the Wall Street Journal reported recently. See complete article on Morgan Stanley’s compensation overhaul at WSJ.com.

Wells said Thursday that Stumpf will get 379,600 shares, currently worth about $10 million.

CFO Atkins; Dave Hoyt, head of wholesale banking; and Mark Oman, who runs the bank’s Home and Consumer Finance unit, will get 189,800 shares, worth roughly $5 million, Wells added.

The bank said these shares aren’t cash compensation or a form of annual incentive bonus. The stock will be forfeited if the executives leave the company to work for a rival, Wells explained.

The shares vest after three years only if the company meets specific performance targets. After that, the stock is covered by a “long-standing” policy that a portion of all shares earned by executives as compensation must be held for as long as they work at the company, Wells added.

No 2009 cash bonuses for top Wells Fargo execs

27
Dec

Christmas and Boxing Day shoppers defy British recession

By Peter Barker

LONDON, Dec. 26 (Xinhua) — Despite the continuing recession, shoppers in Britain took to the Internet on Christmas Day and the High Street on Boxing Day in the search for bargains.

On Christmas Day all shops, banks and transport were shut, but the first shopping days after Christmas now see big discounts from high street retailers large and small, known as the Sales.

Up until the late 1990s virtually no high street chains were open on Boxing Day, December 26. After that retailers quickly seized the opportunity to be open for customers keen to find bargains.

This year supermarket chains like Tesco and Sainsbury’s opened stores, but other famous chains like Marks & Spencer and Waitrose remained shut. Some household names, like Debenhams and Next, opened earlier than usual, at 8 a.m..

The Guardian newspaper reported on its website that in London, hundreds of people queued outside Selfridges’ flagship store before the doors opened at 9 a.m.. When the doors opened shoppers rushed for bargains and stewards were used to control the crowd.

Richard Brasher, Tesco’s commercial and trading director, said in a statement: “Boxing Day is a key time for customers looking to save on electrical items, homeware and clothing. We will cut prices on big brand homeware and electricals.”

Online retail is an area which barely existed 10 years ago, but with the greater penetration of broadband and the increasing e-retail awareness of businesses, it is fast becoming an important source of income and is breaking down the old tradition that Christmas Day was a day when no shopping was done.

Internet retailing is driven by infrastructure and demand. According to the Office of National Statistics, at the end of 2008,the last period statistics are available for, 95.1 percent of all Internet connections were broadband, with 59.6 percent at speeds of more than 2 Mbps (megabytes per second).

Advertisers recognize this, and in 2008 the Internet took 23.2 percent of total ad spend, according to Ofcom, the communications industry regulator in Britain. This was beaten only by newspapers (28.4 percent) and TV (26.4 percent). The proportion of ad spend on the Internet in Britain was far higher than in any other major developed nation, with France and Germany next on 15.6 percent and15.3 percent respectively.

Robin Goad, research director at Experian Hitwise, said: “Last year Christmas Day was the seventh busiest online day of the year for online retailers, while Boxing Day was the busiest Same day payday loans.

“Over the last few years the importance of these two days has been increasing, and we see no reason for it to be any different this Christmas. We have already seen that shoppers are willing to hold out longer for a bargain this year, with ‘Cyber Monday’ moving a week closer to Christmas.

“This behavior is likely to carry through to the post-Christmas period, with people logging on after Christmas lunch to find the best discounts before hitting the high street and shopping malls the following day (Boxing Day).”

Cyber Monday is the name given to the busiest Internet shopping day of the year, usually the first Monday in December as customers place orders for their Christmas presents in time for them to be delivered.

E-retail industry body IMRG estimated that on Christmas Day 4.3million shoppers went on-line - spending 120 million pounds (about191.5 million U.S. dollars), at an average of 27.90 pounds each.

The year-on-year growth in sales value for December is expected to be around 14 percent, with around 5.2 billion pounds (about 8.3billion U.S. dollars) expected to be spent online this month.

Christmas Day sales online are boosted by the presents given earlier in the day.

David Smith, director at IMRG, described what happens. He said: “A lot of purchases are for downloads be it films or computer games. If you have received a games console or computer for Christmas one of the first things you want to do is download something.”

Brian McBride, managing director of Amazon.co.uk Ltd, said: “In2008, we saw a 150 percent increase in sales on Christmas Day compared to the previous year. One of the great things about the advent of Internet shopping is that you now have stores that are open 24/7, every single day of the year.

“We saw high volumes of gift certificates being redeemed on Christmas Day as well as a substantial number of MP3 tracks being purchased, with people presumably logging on to get content for the MP3 player that they had received as a gift earlier that day.”

McBride said that when the figures for Christmas Day 2009 were known, he expected them to be even better.

Christmas and Boxing Day shoppers defy British recession

24
Dec

Personal spending and income rise in November

WASHINGTON (Reuters) – Consumer spending rose for a second straight month in November as incomes recorded their biggest gain in six months, data showed on Wednesday, boosting hopes of a self-sustaining economic recovery.

The Commerce Department said spending increased 0.5 percent after rising by a slightly downwardly revised 0.6 percent in October. Consumer spending in October was previously reported to have increased 0.7 percent.

Analysts polled by Reuters had expected consumer spending, which normally accounts for over two-thirds of U.S. economic activity, to rise 0.6 percent last month.

The data was the latest evidence that households were starting to feel comfortable enough to spend after a long period of restraint following the most painful U.S. recession in 70 years.

Data early this month showed a strong rise in retail sales in November, with gains spread across nearly all categories.

Wednesday's report showed spending adjusted for inflation rose 0.2 percent in November, adding to the prior month's 0 business card.4 percent gain. Personal income increased 0.4 percent last month, the largest increase since May, after rising 0.3 percent in October. That was a touch below market expectations for a 0.5 percent increase.

Real disposable income climbed 0.2 percent in November after rising by the same margin in October. The rise in income saw savings increasing to an annual rate of $525.1 billion, but the savings rate was unchanged at 4.7 percent from the prior month.

Commerce Department data also showed the personal consumption expenditures price index, excluding food and energy, rising 1.4 percent from a year ago in November. The index, which is a key inflation gauge monitored by the U.S. Federal Reserve, increased 1.4 percent in October.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

Personal spending and income rise in November

15
Dec

Abu Dhabi Tightens Its Grip as It Offers Help to Dubai

LONDON — By providing a $10 billion lifeline to Dubai on Monday, oil-rich Abu Dhabi has granted its debt-stricken neighbor a critical short-term reprieve from its creditors. But in doing so, it also appears determined to tighten the reins that Dubai has long resisted.

For decades, Dubai, as the most aggressively expansionist of the seven emirates that make up the United Arab Emirates, had claimed a special autonomy from Abu Dhabi, the more conservative seat of the federal government.

This freedom let Dubai, which lacks significant oil reserves, establish itself as a city-state that welcomed all comers — from Iranian and Israeli executives to Western tourists and profit-hungry bankers.

But the $100 billion or so in liabilities that Dubai accumulated in the process proved to be unsustainable, threatening not only itself but the federation as a whole.

Indeed, some analysts now say that Dubai may have taken its last truly autonomous decision when it declared a six-month “standstill” last month on the $26 billion owed by Dubai World, its struggling flagship conglomerate, a decision that took the Abu Dhabi government as well as Dubai’s bankers by surprise.

“Dubai has always been a reluctant member of the U.A.E. federation and has carefully guarded its autonomy,” said Jim Krane, the author of “City of Gold: Dubai and the Dream of Capitalism.” “In the flourish of a pen, Abu Dhabi just tightened the union and its grip over it.”

But even as Dubai appeared to be bowing to the inevitable, the markets cheered the unexpectedly swift move by Abu Dhabi.

Stock markets across Asia rebounded after the announcement, and Europe and Wall Street were up as well. In Dubai and Abu Dhabi, beaten-down stocks of banks and real estate companies rallied sharply.

It remained unclear exactly how Abu Dhabi came to its decision. But, according to one person who was briefed on the discussions, it represented the “apex of presidential decision-making,” referring to the frequent communication in the last weeks between Dubai’s ruler, Sheik Mohammed bin Rashid al-Maktoum, and his cousin Sheik Khalifa bin Zayed al-Nahyan, who is the president of the United Arab Emirates.

According to this person, who was not authorized to speak for the record, the intensive talks about the true nature of Dubai’s debt problems broke ground in communication and disclosure between the emirates — a sign that from here on, Abu Dhabi will impose a much higher level of scrutiny and supervision over Dubai’s decisions, financial and otherwise.

Blood ties also served their purpose. Not only are the rulers of Dubai and Abu Dhabi descendants of the Bani Yas tribe that first settled the lonely stretch of desert in the 18th century, they are also joined by marriage. The daughter of Sheik Mohammed of Dubai recently married Sheik Mansour bin Zayed al-Nahyan, the half brother of Sheik Khalifa and a member of the federal cabinet easy online payday loans.

It became clear that what had started as a negotiating ploy by Dubai World with its creditors had become a compounding crisis that threatened the global credibility of not only Dubai, but the United Arab Emirates itself. Therefore, decisive action was taken.

Dubai World’s standstill created even more of an uproar when a group of foreign hedge funds that had recently become large holders of the bonds of Nakheel, Dubai World’s troubled real estate venture, threatened to drive Dubai World into default by rejecting its proposal to delay interest payments.

While there have always been tensions between the expansionist Dubai and more conservative Abu Dhabi, the prospect of foreign investors laying claim to some of the United Arab Emirates’ most valuable properties, like Dubai’s port operations, seems to have been justification enough for Abu Dhabi to step in.

According to a statement released on Monday by Dubai, the $10 billion was to be used to cover the $4.1 billion owed to the Nakheel bondholders — due on Monday — as well as to provide money for the company to pay its creditors through April 2010 on the condition that the standstill agreement was accepted.

The government also said that it would impose a “comprehensive reorganization law” to help creditors, a step that is likely to result in measures that would allow ailing companies to restructure their debts in a more orderly process.

Even with the $10 billion bailout, Dubai remains heavily burdened with debt. According to research by EFG Hermes in Dubai, it will have more than $60 billion in debt due in the coming years.

Dubai World, for example, still owes about $18 billion; Dubai Holding, the investment vehicle of Sheik Maktoum, owes about $8 billion; the Investment Corporation of Dubai owes $26 billion; and the Dubai government itself must repay $16.3 billion.

And while the bailout will probably make it easier for these various entities to restructure their shorter-term obligations with the help of their banks, it seems certain that they will only be able to do so at higher interest rates to reflect the increased risk Dubai debt now represents.

“Fundamentally, little has changed for Dubai’s outlook,” said Fahd Iqbal, an analyst at EFG Hermes. “We continue to see risk of further debt problems emerging in the coming months and quarters, particularly from Dubai Holding and Istithmar,” the investment arm of Dubai World, “and hence we are keeping our elevated equity risk premium.”

But for Abu Dhabi, long eager to bring Dubai deeper into its union, an enhanced risk premium for the federation’s future borrowings may well be a price it is willing to pay.

Bettina Wassener contributed reporting from Hong Kong.

Abu Dhabi Tightens Its Grip as It Offers Help to Dubai

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