Business News

[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...4r_L06PJvCyBhIF;_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...iNkzv2JQViyBhIF;_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...bbqUHKb.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...CViyaoWhzGyBhIF;_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...6reRH6yBhIF;_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...uFnWlyyBhIF;_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

 

[Fivetears]

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