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August 16, 2011

Qantas to slash 1,000 jobs, start new Asia airline

Filed under: business, small business — Tags: , , , — ManInBlack @ 7:52 am

Qantas Airways Ltd. said Tuesday it plans to cut up to 1,000 jobs as part of a major shakeup of its international business that will include the launch of a new Asia-based airline.

The flagship Australian carrier, which is struggling to offset losses from its international operations, will buy between 106 and 110 Airbus A320 aircraft, and retire older planes as part of the five-year plan. It will also defer the delivery of six Airbus A380 superjumbo planes for up to six years.

The changes are expected to affect around 1,000 jobs, Qantas said.

The airline has forecast a loss of Australian dollars 200 million ($210 million) for the 2011 financial year, and CEO Alan Joyce said the changes were needed to ensure the airline’s profitability.

“Qantas International is a great airline with a proud history,” Joyce said in a statement. “But it is suffering big financial losses and a substantial decline in market share. To reverse that decline we need fundamental change.”

Under the plan, Qantas will invest in a new premium airline in Asia that will operate under a different name payday loans. It will also launch a budget airline in Japan to be called Jetstar Japan in partnership with Japan Airlines Co. and Mitsubishi Corp.

Unions immediately condemned the move, with the Australian Council of Trade Unions accusing the airline of showing “blatant contempt for its loyal work force.”

“This is one of the darkest days in the history of Qantas,” ACTU Secretary Jeff Lawrence said in a statement. “Today, Qantas management has turned its back on Australia and on Australian jobs to head down the path of a race to the bottom that would see a large section of its work force employed on the pay and conditions of developing countries.”

Qantas shares were up 4.3 percent to AU$1.59 in early morning trading.

Source

July 24, 2011

A boom in corporate profits, a bust in jobs, wages

Filed under: business, legal — Tags: , , , — ManInBlack @ 2:24 pm

Strong second-quarter earnings from McDonald’s, General Electric and Caterpillar on Friday are just the latest proof that booming profits have allowed Corporate America to leave the Great Recession far behind.

But millions of ordinary Americans are stranded in a labor market that looks like it’s still in recession. Unemployment is stuck at 9.2 percent, two years into what economists call a recovery. Job growth has been slow and wages stagnant.

“I’ve never seen labor markets this weak in 35 years of research,” says Andrew Sum, director of the Center for Labor Market Studies at Northeastern University.

Wages and salaries accounted for just 1 percent of economic growth in the first 18 months after economists declared that the recession had ended in June 2009, according to Sum and other Northeastern researchers.

In the same period after the 2001 recession, wages and salaries accounted for 15 percent. They were 50 percent after the 1991-92 recession and 25 percent after the 1981-82 recession.

Corporate profits, by contrast, accounted for an unprecedented 88 percent of economic growth during those first 18 months. That’s compared with 53 percent after the 2001 recession, nothing after the 1991-92 recession and 28 percent after the 1981-82 recession.

What’s behind the disconnect between strong corporate profits and a weak labor market? Several factors:

_ U.S. corporations are expanding overseas, not so much at home. McDonalds and Caterpillar said overseas sales growth outperformed the U.S. in the April-June quarter. U.S.-based multinational companies have been focused overseas for years: In the 2000s, they added 2.4 million jobs in foreign countries and cut 2.9 million jobs in the United States, according to the Commerce Department.

_ Back in the U.S., companies are squeezing more productivity out of staffs thinned by layoffs during the Great Recession. They don’t need to hire. And they don’t need to be generous with pay raises; they know their employees have nowhere else to go.

_ Companies remain reluctant to spend the $1.9 trillion in cash they’ve accumulated, especially in the United States, which would create jobs faxless payday advance. They’re unconvinced that consumers are ready to spend again with the vigor they showed before the recession, and they are worried about uncertainty in U.S. government policies.

“Lack of clarity on a U.S. deficit-reduction plan, trade policy, regulation, much needed tax reform and the absence of a long-term plan to improve the country’s deteriorating infrastructure do not create an environment that provides our customers with the confidence to invest,” Caterpillar CEO Doug Oberhelman said.

Caterpillar said second-quarter earnings shot up 44 percent to $1 billion_ though that still disappointed Wall Street. General Electric’s second-quarter earnings were up 21 percent to $3.8 billion. And McDonald’s quarterly earnings increased 15 percent to $1.4 billion.

Still, the U.S. economy is missing the engines that usually drive it out of a recession.

Carl Van Horn, director of the Center for Workforce Development at Rutgers University, says the housing market would normally revive in the early stages of an economic recovery, driving demand for building materials, furnishings and appliances _ creating jobs. But that isn’t happening this time.

And policymakers in Washington have chosen to focus on cutting federal spending to reduce huge federal deficits instead of spending money on programs to create jobs: “If we want the recovery to strengthen, we can’t be doing that,” says Chad Stone, chief economist at the Center on Budget and Policy Priorities, a research group that focuses on how government programs affect the poor and middle class.

For now, corporations aren’t eager to hire or hand out decent raises until they see consumers spending again. And consumers, still paying down the debts they ran up before the recession, can’t spend freely until they’re comfortable with their paychecks and secure in their jobs.

Said Van Horn: “I don’t think there’s an easy way out.”

Source

July 14, 2011

Wholesale prices drop for first time in a year

Filed under: business, technology — Tags: , , , — ManInBlack @ 8:48 pm

Companies paid less for raw materials and factory goods in June, evidence that inflation pressures are weakening as gas prices fall.

The Labor Department says that the Producer Price Index, which measures price changes before they reach the consumer, declined 0.4 percent in June, the steepest drop since February 2010. Wholesale energy prices fell 2.8 percent, the biggest decline in nearly two years.

Gas prices averaged $3.65 a gallon on Wednesday, according to AAA. That’s down from nearly $4 in early May.

Food prices rose 0.6 percent in June, mostly because of higher fruit and melon costs.

Excluding the volatile food and energy categories, the so-called core index rose 0.3 percent, driven largely by a jump in prices for pickup trucks.

Source

July 11, 2011

World stocks decline after weak US jobs report

Filed under: business, news — Tags: , , , — ManInBlack @ 2:44 pm

World stock markets slid Monday, dragged by global economic angst after an unexpectedly weak U.S. jobs report and surging inflation in China.

Wall Street’s sharp drop before the weekend extended to Asia and Europe, where investors digested news that U.S. employers created the fewest number of jobs in nine months. The 18,000 net jobs in created in June were a fraction of what many economists expected and dampened hopes that the economy is improving.

“Economic news in the U.S. was disappointing,” said a Barclays Capital report Monday. “The employment report was weaker than expected across the board _ employment, unemployment, hours, and wages all reflected the same worrisome trend.”

As trading got under way in Europe, France’s CAC 40 was off 1.3 percent at 3,861.08 and Britain’s FTSE 100 dropped 0.2 percent to 5,976.79. Germany’s DAX shed 0.9 percent to 7,337.62. Wall Street was also set for losses with Dow futures down 0.7 percent at 12,529.

In Asia, Japan’s Nikkei 225 stock average lost 0.7 percent to 10,069.53 and Hong Kong’s Hang Seng retreated 1.7 percent to 22,347.23. South Korea’s Kospi fell 1.1 percent to 2,157.16 while the Shanghai Composite index edged up 0.2 percent to 2,802.69.

Also dragging sentiment was data released Saturday showing China’s inflation accelerated to a three-year high in June even as the overheated economy began to cool.

Consumer prices rose 6.4 percent over a year ago, a sharp jump from May’s 5.5 percent rate, China’s government said Saturday. Communist leaders declared taming prices their priority this year, but they have been frustrated amid inflation’s steady rise.

In Australia, the government’s new carbon tax proposal battered stocks. The S&P/ASX 200 shed 1.6 percent to 4,582.30.

Prime Minister Julia Gillard unveiled a plan Sunday to force the country’s 500 worst polluters to pay 23 Australian dollars ($25) for every ton of carbon dioxide they emit.

Australia’s flagship carrier Qantas said Monday the tax will cost it 110 million to 115 million Australian dollars ($118 million to $123 million) for the 2013 financial year and lead to an increase in passenger fares.

Qantas Airways shares tumbled 3.3 percent, and Virgin Blue Australia Holdings fell 2.9 percent.

Another big loser in Australia was Rupert Murdoch’s News Corp., which fell more than 5 percent. The 80-year-old CEO arrived in London over the weekend to tackle a phone-hacking crisis that led to the quick demise of his best-selling Sunday tabloid, the News of the World.

In Tokyo, chip-related shares tumbled after Credit Suisse downgraded its rating on Elpida Memory Inc. to “underperform” from “neutral.” The issue fell more than 13 percent, while chip equipment maker Tokyo Electron Ltd. slid 2.9 percent.

“PC demand continues to slump, reflecting market saturation in advanced countries, and the severe delay in the Chinese laptop market staging a recovery,” Credit Suisse analyst Hideyuki Maekawa said of DRAM chips.

In New York Friday, the Dow Jones industrial average lost 62.29, or 0.5 percent, to 12,657.20.

The Standard and Poor’s 500 index fell 9.42 points, or 0.7 percent, to 1,343.80. The tech-heavy Nasdaq composite dropped 12.85, or 0.4 percent, to 2,859.81.

Oil prices fell to below $96 a barrel Monday in Asia amid signs of a struggling U.S. economy.

Benchmark oil for August delivery was down $1.29 to $94.91 a barrel in electronic trading on the New York Mercantile Exchange. Crude gave up $2.47 to settle at $96.20 on Friday.

In London, Brent crude was steady at $118.33 per barrel on the ICE Futures exchange.

The euro was trading at $1.4124. The dollar was changing hands for 80.75 yen.

Source

July 9, 2011

Murdoch backs UK news operation CEO amid scandal

Filed under: business, technology — Tags: , , , — ManInBlack @ 11:48 pm

Rupert Murdoch has expressed his full support for the head of his U.K. newspaper division amid continuing fallout from an expanding phone-hacking scandal at the News of the World.

The tabloid, forced to close amid fresh revelations of impropriety, is printing its final issue Saturday.

Many journalists and media watchers have expressed astonishment that Rebekah Brooks, who was editor of Murdoch-owned News of the World when some of the hacking allegedly occurred, was keeping her job even as the paper’s journalists are put out of work fast payday loan no faxing.

When asked by reporters Saturday in Sun Valley, Idaho _ where he is attending a media conference _ if Brooks continues to have his support, Murdoch replied simply: “Total.”

“We already apologized,” he said. “We’ve been let down by people … the paper let down its readers.”

Murdoch is expected in London Sunday on a scheduled visit.

Source

July 6, 2011

British PM backs Murdoch’s NewsCorp deal for BSKYB

Filed under: business, mortgage — Tags: , , , — ManInBlack @ 6:32 pm

British Prime Minister David Cameron said the phone hacking scandal will not affect Rupert Murdoch’s politically sensitive multibillion pound (dollar) takeover of broadcaster BSkyB in Britain.

The government has already given qualified approval to Murdoch’s NewsCorp. to take full control of the satellite broadcaster. Media regulator OFCOM now has to sign off the deal.

Opposition leader Ed Miliband had asked Cameron to reconsider after allegations that Murdoch-owned tabloid News of the World had hacked into the mobile phones of a missing schoolgirl and the families of London terror victims, in addition to celebrities and royals.

Cameron said Wednesday that the government had followed the correct procedures over the BSkyB deal.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

LONDON (AP) _ Britain’s Prime Minister David Cameron has called for a further inquiry into the phone hacking scandal engulfing the News of the World tabloid.

Cameron says an independent inquiry needs to look at why an original police investigation did not get to bottom of what happened when the scandal first emerged several years ago.

The demand came as British police revealed they would investigate allegations that officers received payments from the tabloid newspaper, thanks to new documents given police by the tabloid’s parent company, News International.

Lawmakers are staging an emergency House of Commons debate Wednesday to vent their outrage over a widening tabloid phone hacking scandal that allegedly targeted a missing schoolgirl and the families of London terror victims in addition to celebrities and royals.

News International is the British linchpin of Rupert Murdoch’s global media empire.

Source

June 30, 2011

Maple Leaf Foods names Purdy Crawford as non-executive chairman

Filed under: business, loans — Tags: , , , — ManInBlack @ 6:24 am

TORONTO

June 25, 2011

Judge sends unapologetic Black back to prison

Filed under: business, economics — Tags: , , , — ManInBlack @ 5:24 am

Conrad Black, once a media mogul whose newspaper empire spanned several continents, is headed back to prison after a federal judge ruled Friday that he had not served enough time for defrauding investors.

Judge Amy St. Eve sentenced Black to 3 1/2 years in prison after berating and then praising him. But prosecutors say he will be given credit for more than two years he already had served, meaning the 66-year-old will go back for a little more than a year.

As St. Eve announced the sentence with Black standing expressionless before her, his 70-year-old wife, Barbara Amiel, fainted on a wooden courtroom bench. As she sprawled across the laps of other spectators, medics rushed in to attend to her.

In a 20-minute statement before he was sentenced, Black spoke confidently and philosophically, citing poetry and maintaining he had been falsely accused. At no point did he apologize.

His final words to St. Eve were to ask for a lesser sentence.

“I never ask for mercy,” he said, standing with his hands on the podium, “but I do ask for avoidance of injustice.”

St. Eve had originally sentenced Black to 6 1/2 years in prison after he was convicted in 2007 of defrauding investors in Hollinger International Inc.

Black, whose empire once included the Chicago Sun-Times, The Daily Telegraph of London, The Jerusalem Post and small papers across the U.S. and Canada, served part of the sentence before being freed on bail to pursue what would be partially successful appeals.

St. Eve said Friday that Black had “violated the trust” of his shareholders.

“As you stand before me today, I still scratch my head as to why you engaged in this conduct,” she said.

The judge said she rejected the option of sending Black back to prison for more than four years in part because of dozens of letters she had received from inmates saying Black had changed their lives through lectures he gave on writing, history, economics and other subjects.

Prosecutor Julie Porter said the government, which had sought a longer sentence, was pleased with the result.

It “sends a very strong message to corporate executives,” she said.

After the hearing, the Blacks walked out of the federal courthouse together, his arm around her. They got into a chauffeured vehicle and drove away.

Eddie Greenspan, Black’s Canadian lawyer, said it’s too early to say if defense attorneys will appeal the new sentence, though he added they will consider all their options.

Black will have to report to prison in about six weeks, though a fixed date hadn’t been set, U.S. Attorney’s Office spokesman Randall Samborn said instant payday loan.

The former mogul had been in the Coleman Federal Correctional Complex in central Florida, and he could return there. But a final decision on where he serves the additional year will be made later.

George Tombs, author of “Robber Baron: Lord Black of Crossharbour,” said another prison stint will be rough for Black, who received his title when he became a member of the British House of Lords.

“He was born with a silver spoon in his mouth,” Tombs said. “He’s a lawmaker in Great Britain for goodness sakes.

Tombs said Black lives in a bubble.

“He doesn’t realize that he did anything wrong,” he said. “He does not acknowledge anything.”

Black’s big chance to squash his convictions arose in June 2010, when the U.S. Supreme Court sharply curtailed the disputed “honest services” laws that underpinned part of his case.

The 7th U.S. Circuit Court of Appeals in Chicago tossed out two of Black’s fraud convictions last year, citing that landmark ruling.

But it said one conviction for fraud and one for obstruction of justice were not affected by the Supreme Court’s ruling. The fraud conviction, the judges concluded, involved Black and others taking $600,000 and had nothing to do with honest services: It was, they asserted, straightforward theft.

The appeals court said St. Eve would have to sentence Black again for those two standing counts.

Despite the nullified counts, prosecutors had asked St. Eve to hand Black the same sentence she originally meted out.

“He fails to acknowledge his central role in destroying Hollinger International through greed and lies, instead blaming the government and others for what he describes as an unjust persecution,” prosecutors said in a recent filing.

At Friday’s hearing, Black said obliquely that, “It is not the case that I have no remorse.” But he didn’t say those feelings had anything to do with any wrongdoing on his part, rather that he had been too trusting of others.

Black’s lawyers argued that he was a model prisoner who gladly offered advice about business and other matters to prisoners who constantly approached him.

Prosecutors say the defense painted too rosy a picture.

One prison employee, Tammy Padgett, claimed in an affidavit filed by prosecutors that Black had arranged for inmates _ “acting like servants” _ to iron his clothes, mop his floor and perform other chores. Another employee told her Black once insisted she address him as “Lord Black,” Padgett added.

Source

June 6, 2011

Diamond withdraws nomination for Fed board

Filed under: business, economics — Tags: , , , — ManInBlack @ 7:33 pm

The White House says it’s “deeply disappointed” that Nobel Prize-winning economist Peter Diamond is withdrawing his nomination to the Federal Reserve Board.

Press secretary Jay Carney said Monday that Diamond “fell victim to partisan obstructionism.”

Senate Republicans attacked the 71-year-old MIT professor as a proponent of bailouts and big government. And Diamond wrote in a New York Times op-ed piece that it’s clear the GOP wouldn’t let him serve.

But Carney says President Barack Obama believes Diamond would have brought knowledge and expertise to the Fed board.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

Nobel Prize-winning economist Peter Diamond is withdrawing his nomination for the Federal Reserve board.

In an op-ed piece first published on The New York Times website on Sunday and in its print edition on Monday, Diamond seemed frustrated by the confirmation process, detailing how President Barack Obama had nominated and re-nominated him to fill a vacancy on the seven-member board.

The Fed often operates with vacancies on its board. The board hasn’t had every seat filled since 2006.

Diamond’s initial nomination fizzled when the Senate adjourned in December without acting on it. When Obama resubmitted the nomination in January to the newly convened Senate, the Republicans held six additional seats, which was expected to make the confirmation process more difficult.

Senate Republicans blocked a floor vote on Diamond’s confirmation and have questioned his practical experience and research. Diamond is considered an authority on Social Security, pensions and taxation. He shared the Nobel Prize in economics that was awarded in October, with Diamond saying that his portion of the prize was for his work on unemployment and the labor market.

In the op-ed piece, Diamond took aim at Washington’s “partisan polarization” and said that there was “a failure to recognize that the analysis of unemployment is crucial to conducting monetary policy.”

“It is time for me to withdraw, as I plan to inform the White House,” Diamond wrote.

There was no immediate comment from the White House on Diamond’s plans.

Diamond said the leading opponent to his appointment was the ranking Republican on the Senate Banking Committee, Richard C. Shelby of Alabama. Diamond said Shelby questioned how his academic work on pensions and the labor market fit with conducting monetary policy.

“But understanding the labor market - and the process by which workers and jobs come together and separate - is critical to devising an effective monetary policy,” he wrote.

Diamond said he would continue as a professor at the Massachusetts Institute of Technology and would take advantage of opportunities presented to a Nobel laureate.

“I had hoped to bring some of my own expertise and experience to the Fed. Now I hope someone else can,” he said.

Source

May 10, 2011

Conservative economic strategy faces tests

Filed under: business, uk — Tags: , , , — ManInBlack @ 5:55 am

OTTAWA

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