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BC-MCT-BUSINESS-BJT(McClatchy-Tribune News Service Via Acquire Media NewsEdge) McClatchy-Tribune News Service Business Budget for Thursday, June 4, 2009 Updated at 9 p.m. EDT (0100 UTC) This budget is now available on MCT Direct at http://www.mctdirect.com, with direct links to stories and art. See details at the end of the budget. ^TOP STORIES< ^Financial regulator seeks powers to curb excess speculation< ^ECONOMY-DERIVATIVES:WA_< Firing the opening shot in a likely battle with Wall Street, the federal regulator who's overseeing the trading of oil contracts asked Congress on Thursday for broad powers to regulate the exotic private contracts that are thought to contribute to rising oil prices and the global financial crisis. Testifying before the Senate Agriculture Committee, Commodity Futures Trading Commission Chairman Gary Gensler told lawmakers that he needs broad authority to bring all derivatives contracts under regulatory supervision. Derivatives involve bets that derive their value based on future prices of some underlying asset, such as oil contracts, interest rates, currency or even bonds and other forms of credit. 850 (with trims) by Kevin G. Hall in Washington. MOVED ^SEC charges ex-Countrywide CEO Mozilo with fraud< ^REAL-COUNTRYWIDE:MK_<The Securities and Exchange Commission filed fraud charges against former Countrywide Chief Executive Angelo Mozilo and two other individuals, the agency said Thursday. The agency charged Mozilo and the company's former chief operating officer, David Sambol, and former financial chief, Eric Sieracki, with securities fraud for failing to disclose credit risks, concerns and uncertainties they had with the company's future, according to Khuzami. 400 by Ronald D. Orol in Washington. MOVED ^Setting Social Security straight gains urgency< ^SRS-SOCIALSECURITY-BIZPLUS:DA_<Social Security has some grim news for John Ansbach of Dallas and other members of Generation X. If the system continues on its current course, it won't have enough money to pay full benefits by the time they retire. Ansbach, born in 1971, will be eligible for full retirement benefits at 67, in 2038. But the government trustees who monitor Social Security's long-term financial soundness recently reported that the system will use up its trust funds by 2037 and have only enough from its tax collections to pay beneficiaries 76 cents on every dollar. Still, Ansbach isn't fazed by that gloomy forecast. As a member of the fiercely independent Generation X, born between 1965 and 1980, he says he's never had much faith in Social Security's ability to keep its long-range promises. Experts expect the trustees' latest report will put new pressure on the Obama administration and Congress to make a midcourse correction in Social Security so that workers in their 30s and 40s, like Ansbach, can have more confidence in the system. 1150 by Bob Moos in Dallas. MOVED ARCHIVE ILLUSTRATIONS ^GAO: U.S. aid programs overpay for food, delivery< ^FOODAID:WA_<The government's food aid programs are spending more and delivering less to hungry people than they could, according to a Government Accountability Office report released Thursday. The reason: U.S. agencies buy commodities here and ship them on high-cost U.S.-registered ships. Countries that buy food aid locally in sub-Saharan Africa and Asia, the GAO found, deliver it for about a third less. 250 by Grace Chung in Washington. (Moved as a Washington story) ^REAL ESTATE STORIES< ^Disney takes risk, adds time shares despite recession< ^REAL-DISNEY:OS_<Inside Kidani Village, the Walt Disney World time share that opened earlier this month, the domed lobby is designed to evoke a thatched African hut. At the Treehouse Villas, which open Monday, the "cabin casual" theme includes exposed-wood support beams and refrigerators done in a dark, textured brown. And at Bay Lake Tower, which opens this summer, floor-to-ceiling windows offer views of Cinderella Castle and Space Mountain. ^The three new Central Florida properties_<along with 50 new units that will open later this year at Disneyland in Anaheim, Calif. _ constitute the most ambitious expansion yet for Disney Vacation Club, Disney's 17-year-old time-share unit. It may also be the riskiest. 900 (with trims) by Jason Garcia in Orlando, Fla. MOVED PHOTO ^Renters evicted from foreclosed homes< ^REAL-RENTERS-FORECLOSURE:OS_<When Joe Isserles moved his wife and four sons, one of whom is comatose, into a rental home in Davenport, Fla., earlier this year, the landlord failed to mention that the house was in the final stages of foreclosure. Soon after they paid $1,200 rent for April, there was a knock on the door. "It was a representative from Coldwell Banker representing Chase Bank, saying the bank took over the loan because the homeowners hadn't paid the mortgage in a year," Isserles said. "The next morning, the sheriff showed up to padlock us out." ^The Isserleses are among countless renters across the country who have become unwitting victims of foreclosure_<paying rent to landlords who pocket the rent money rather than use it to pay the mortgage. The houses go into foreclosure, and evicted tenants are left scrambling for a home. 1000 (with trims) by Mary Shanklin in Orlando, Fla. MOVED PHOTO ^Investors watch builders for housing hints< ^REAL-BUILDERS:MK_<Markets will be focused on quarterly results from a pair of the nation's largest home builders this week to check the pulse of the key selling season that traditionally plays out during the warm months. However, a fresh sales promotion from Beazer Homes USA Inc. unveiled on Monday is a reminder that builders need to layer on additional enticements for nervous buyers despite still-attractive mortgage rates and discounted prices. Atlanta-based Beazer said it will be offering "exceptional savings and additional incentives" to qualified buyers during a sales campaign set to run June 12 to 14. Other builders have been trotting out promotions in an effort to juice sagging sales, including rock-bottom interest rates and free upgrades. 550 in Boston. MOVED ^Real estate Q&A< ^REAL-REALESTATE:MCT_<Real estate Q&A. 600 by Thomas Musil. MOVED ^MORE BUSINESS NEWS< ^Women-led companies coping better with recession, survey finds< ^WOMENLED:MI_< Challenged by the economic downturn, Rachel Sapoznik knew she had to get creative. Sapoznik wanted to continue growing revenue at her employee benefits business, but she wasn't willing to cut staff. Instead, she needed to think strategic. She began looking harder for new customers, selling more products to her existing accounts and creating alliances with other firms who will recommend her services. A survey released Thursday shows women-led businesses are surviving the recession better than most other businesses, according to Florida International University's Center for Leadership and The Commonwealth Institute South Florida. 600 by Cindy Krischer Goodman in Miami. DIVERSITY. MOVED ^GM expects to return to profitability by 2011< ^AUTO-GM:DE_< General Motors Corp. expects to return to annual profits in 2011, and estimates stock in the new company it will launch from bankruptcy will be worth $38 billion to $48 billion. According to financial estimates filed Thursday as part of its bankruptcy case, the new GM will count on a rebound in U.S. vehicle sales to about 16 million a year by 2012 to pull it back into profitability, pumping up its output from 3.8 million vehicles worldwide this year to 6 million by 2014. 450 by Justin Hyde in Washington. MOVED GRAPHIC ^Penske near deal to buy GM's Saturn brand< ^AUTO-GM-SATURN:DE_< Roger Penske, who led Detroit's Super Bowl preparations, downtown cleanup program and revived the city's grand prix racing_all while running the nation's No. 2 auto retailer _ is on the verge of rescuing General Motors' embattled Saturn brand. GM is close to selling its Saturn division to Penske in a deal that could keep the brand alive and allow a new manufacturer access to the dealer network, people briefed on the matter said Thursday. An official announcement could occur within 24 hours. 250 by Tim Higgins in Detroit. MOVED ^Ongoing jobless claims dip; record streak breaks< ^ECONOMY-JOBS:MK_<After reaching new weekly record highs since January, the number of continuing claims for state unemployment benefits has finally declined, the Labor Department reported Thursday. Also, the number of first-time claims for benefits is down, but both continuing and first-time claims remain at relatively high levels, according to the most recent weekly data. 400 by Ruth Mantell in Washington. MOVED GRAPHIC ^COWs puts the 'Moo' in moving< ^COWS:MI_<Even though fewer Americans are moving today, companies are clamoring to offer mobile storage solutions as the recession forces more people to downsize and find cost-effective ways to deal with their extra belongings. Competition is what motivated Mike Frank to get creative in the design of his mobile storage moving company: Miami-based, cattle-themed COWs, or Container On Wheels. From the containers to the pricing, COWs is all about cows. ^The company operates under the motto "Can you say mooove?" Each container sports a cow's head_<and the spots are coming soon. Pricing categories are called cattle programs. Dealers are called barns. Mobile dumpsters read: "Feed the Cow, Easy Waste Removal." Frank _ "leader of the herd" _ plans to unveil magnets, ranging from Santa hats to beards and sunglasses, to dress up the cows on the containers, making moving an interactive adventure. "If you have a lot of fun, it creates a great brand," said Frank, president of TrailPods, parent company of COWs, which launched its product this year. "Then when they need you, people remember." But COWs are more than fun. They're also practical. And Frank says he couldn't have picked a better time to enter the industry, which has expanded rapidly in recent years as more people discover the advantages of self storage. 950 by Yudy Pineiro in Miami. MOVED PHOTO ^Interactive game helps teach history to high-school kids< ^CPT-HISTORYGAME:OS_<Students who have trouble staying awake in history class now have a new way to learn about the Civil War and other topics: an interactive video game where they try to stop a band of evildoers from changing the past. The game, called "Conspiracy Code," was jointly developed by The Florida Virtual School and 360Ed, an Orlando company that makes education video games and software. The game officially launched Monday, although the two companies have been testing it with students and teachers since February. "They are not memorizing facts, they are experiencing history," said Andy Ross, vice president of Global Services for the Florida Virtual School, which is based in Orlando and provides online courses to more than 60,000 students. "It's a different way of learning, and it's really engaging a lot of elements that kids look at today." In the last couple of years, schools across the country have been incorporating video games and multimedia tools into lesson plans, using technologies students are familiar with the engage and entertain them. 450 by Etan Horowitz in Orlando, Fla. MOVED ^United looking at Dreamliner, other jets to replace its fleet< ^UNITED-1ST-LEDE:TB_<Boeing's 787 Dreamliner could figure prominently in United Airline's plans to replace all of the large jets in its fleet as well as some older narrow-body planes. Chicago-based United opened a high-stakes contest for an order for as many as 150 planes by sending requests for proposals to Boeing Co. and Airbus SAS. United is expected to drive a tough bargain with the planemakers, who are struggling to land sales while they cope with delays and cancellations from other airline customers amid a depressed market for aircraft sales. 650 (with trims) by Julie Johnsson in Chicago. MOVED ^Market report: Financial services bellwether doubles in value since March low< ^MARKETS:MK_< As Wall Street finished higher Thursday with financial shares in the lead, a bellwether of the sector rose to a level marking a doubling in value since its early March bottom, with analysts debating whether the move is a bullish signal for the overall market. Shares of the Financial Select Sector SPDR climbed above $12, up more than 2 percent on the session. Shares have doubled since the exchange-traded fund dipped to an intraday low below $6 on March 6. 450 by Kate Gibson in New York. MOVED ^Pre likely to make a splash, but can new smartphone rescue Palm?< ^CPT-PALMPRE:SJ_<The new Pre smartphone from Palm is likely to make a splash when it goes on sale this Saturday, but will that be enough to turn things around for the struggling Silicon Valley company? "There's everything riding on this," said Jack Gold, a wireless industry analyst. "If they don't have a winning product here, they're not likely to get a second chance." Early reviews suggest the Pre may stand up well against Apple's iPhone, thanks to a design that combines both a touch screen and a keyboard with a new operating system that promises to let users run multiple applications at the same time, while quickly accessing Twitter, Facebook and other popular Web-based services. 900 (with trims) by Brandon Bailey in San Jose, Calif. MOVED ^Sprint betting on big release for Palm Pre< ^CPT-PALMPRE-SPRINT:KC_< By offering you a cooler computer in your pocket, Sprint hopes to get a grip on your wallet. The wireless carrier is reaching with the new Palm Pre, a smart phone that it hopes can challenge the Apple iPhone as the gotta-have-it it gadget. The Pre, on sale with Sprint service contracts this weekend, could give the company a precious toehold in a data-hungry world where the handset is more than just a way to call home or text your girlfriend. 1200 (with trims) by Scott Canon in Kansas City, Mo. MOVED ^BUSINESS BOOKS< ^Economic maelstrom tough for authors< ^BOOK-PACHTER:MI_<Unless you're an economics wonk, finance books can be excruciatingly boring. And when they're not preternaturally soporific, they often have something else going for them, like a gimmick, a little humor, an overriding story or, in the very worst case, a fable or parable featuring a nest full of anthropomorphic vermin. But that's often not enough. Here are four new books dealing with current financial issues and achieving mixed results. 600 by Richard Pachter. MOVED ^SYNDICATED COLUMNS< ^Lexus still has RX for crossovers< ^AUTO-MATEJA-TESTDRIVE-ADV07:TB_<The funny-looking Toyota concept Sport Luxury Vehicle bowed at the 1997 Chicago Auto Show as an alternative to the station wagon and minivan. When visitors, who vote with purses and wallets, gave it a big thumbs up, it was approved for production and renamed RX300 for sale in March 1998. It quickly became the best-selling vehicle for Toyota's Lexus division and a segment that has been growing in leaps and bounds. The newest rendition, the 2010 RX350, is available in front-wheel-drive for warm climes and all-wheel-drive for the Snow Belt, with the hybrid RX450h due this summer. 950 by Jim Mateja. MOVED PHOTO ^Here's why we reviewed a Bentley< ^AUTO-MATEJA-LETTERS-ADV07:TB_<800 by Jim Mateja. MOVED PHOTOS TO SUBSCRIBE TO THESE COLUMNS These columns are sold separately and are not included in your MCT News Service subscription. 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To obtain a user ID and password, please call Rick DeChantal at Tribune Media Services, 1-800-245-6536, Ext. 4544 or e-mail [email protected]. MCT Business Supervisor: Business Editor Kristina Campbell, 202-383-0001, [email protected] MCT News Desk: 202-383-6080, [email protected] MCT Photo Service: 202-383-6099, [email protected] MCT Graphics Network: 202-383-6064, [email protected] MCT Special Sections: 202-383-6151, [email protected] ___ (c) 2009, McClatchy-Tribune Information Services. Not for publication or retransmission without permission of MCT. |