World Business

Moves to make rich schools spend in greater numbers of their megabucks are gaining traction, and tax authorities search out a new source of revenue

by means of Louis Lavelle

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As targets go, this human being is a doozy. With assets totaling $411 billion, the nation’s college and university endowments are larger than the annual gross domestic product of Belgium. That’s enough cash to run the founded on government for almost 50 days. Harvard alone has $35 billion. They pay their managers like rock stars, and, as a group, they’ve been augmenting at a double-digit rate by making riskier investments. Their ostensible purpose, providing for the financial needs of their institutions, gets a sliver of the total each year, put on the eve 4.6% of assets. And they’re tax-exempt to boot.

But haply not for long. Congress, the IRS, and more states are all taking scope at endowments. Senators Max Baucus (D-Mont.) and Charles Grassley (R-Iowa), the chairman and ranking Republican, particularly, on the powerful Senate Finance Committee, have been pushing to force endowments to disperse at least 5% of their assets each year—as other tax-exempt organizations are required to hoax. A top IRS commissioner, in a speech remain month in Washington, related the agency should be "more aggressive" about ensuring that endowments make "appropriate use" of their pecuniary means. And lawmakers in Massachusetts are considering a 2.5% tax on endowment assets exceeding $1 billion. It would cost the state’s nine mega-endowments—including Harvard, Massachusetts Institute of Technology, and Boston College—an estimated $1.4 billion.

"When you’re facing a $1.3 billion deficit, you look for some style of receipts go forth that would be available," says state Representative Paul Kujawski, who brought up the idea during budget deliberations in April. And it’s a politically tempting target. The delivery, Kujawski said, has "a destiny of legs".

Each of the proposals has a long way to go, but powerful economic and political forces are propelling them forward. Resentment against ultra-wealthy schools (BusinessWeek.com, 11/29/07), where escalating tuition is out of reach of many, is running at a fever pitch. And a state tax upon endowments has enormous appeal for the 28 states facing lot shortfalls totaling more than $40 billion for 2009—especially the 22 that are home to billion-plus endowments. A New Jersey lawgiver has already expressed an participation in the Massachusetts proposal, with one eye on Princeton’s $15.8 billion nest egg. New York State has seven $1 billion-plus institutions, California has five, and Ohio and Illinois each has three, against assets totaling more than $21 billion.

Unsurprisingly, the educational community opposes all the proposals to tap into endowments, but it has been unable to stop, or on a level slow, their progress. Indeed, in the past year, Stanford and Yale both voluntarily increased the annual payout from their endowments, and more than a twelve take the top off schools, including seven of the eight Ivy League institutions, overhauled their financial-aid policies to make themselves more affordable on this account that the middle class (BusinessWeek.com, 2/3/08).

But the saber-rattling continues, especially in the light of several years of outsize returns for endowments (BusinessWeek.com, 10/22/07). For the three years ended June 30, 2007, schools with greater amount of than $1 billion endowments earned a 16.4% return on their investments, compared with 11.7% for the S—P 500 during the same period, according to the National Association of College — University Business Officers. "The effort to co-opt this whole thing wasn’t successful," says Patrick M. Callan, president of the National Center with regard to Public Policy — Higher Education. "I dress in’t see this going away."

If anything, the critics are turnery up the heat. The IRS alone has upped the exposure requirements for endowments and plans to survey more than 400 colleges and universities in future months to find out how they clothe and use their endowments. Over the next 18 months it will be developed a broad new power to originate on standards for determining then endowments are expenditure enough. "If you are sitting on large sums of money and not doing anything with it the question is: Are you doing beneficent work?" says Steven T. Miller, IRS commissioner as far as concerns tax-exempt and government entities, the official who gave the speech calling for greater degree aggressive turn on endowments. "The question is that which we would do about that, and we’re not there over and above."

For consumers—that is, students and their families —the stakes are huge. The Congressional Research Service estimates that increasing the yearly record payout on big endowments, in the place of example from 4.5% to 5%, would allow the 30 schools with big endowments it examined to eliminate tuition increases and be doubled undergraduate financial aid.

But the big-endowment schools make compelling arguments for why a spending requirement creates problems. Most endowments are composed of thousands of individual funds, reaped ground designated for a specific purpose. Three-fourths of the Harvard endowment, made up of 11,000 funds, is spoken as being in this way. So the 5% spending ruling could pose a logistical nightmare. And a 2.5% endowment tax might make a train less attractive to big donors, who want all their circulating medium—not 97.5% of it—to obey a philanthropic purpose. Says Kevin Casey, Harvard’s associate vice-president instead of control and public affairs: "They might take that money elsewhere."

Schools also point out that they don’t exactly thumb their noses as the taxman right now. Harvard, for instance, pays $13 million in taxes to unfixed jurisdictions for commercial entities on campus that don’t be delighted with the endowment’s tax-exempt station, and $5 million in lieu of taxes to local host communities to defray the cost of civil services. But for critics of rich endowments, that’s not nearly enough.

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Democratic matters

Superdelegates, levy on your capes and fly Hillary home

Editor, The Times:

Despite having no contingency at being the Democratic presidential nominee, Hillary Rodham Clinton refuses to do what is beyond all others for the party and gracefully bow thoroughly of the race. She is hurting her once-good reputation, and worse, the Democratic Party. The only thing that will stop her is for Barack Obama to lay hold of the nomination.

The single way Obama have power to do that before the Democratic Convention in August is with the help of Democratic Party officials. They be necessitated to be at a loss a compromise in Michigan and Florida

I propose that on May 31, the day the DNC rules committee is to meet, it comes out for Obama, all at once. Superdelegates, if you really want the kind of is best for the party, you must endorse Obama. It is the only way we can achieve party unity.

Obama can mention

Lincoln, but be able to he lead like him?

In response to a doubt about his choice of running mate, Barack Obama made reference to Doris Kearns Goodwin’s book, “Team of Rivals.” My group of Seattle University doctoral students freshly discussed the book, which is about President Lincoln and his Civil War Cabinet, composed mainly of his rivals for the presidency. This book reminded us why Lincoln was a great leader.

Lincoln was a man of diverse talents and skills. He was physically strong and resilient, and extremely disciplined. He had not at all schooling, no patrons and no mentors, yet was a brilliant writer and thinker.

Equally important, he possessed “emotional intelligence.” He understood the motivations of others. Even when he saw their flaws, he appreciated their virtues, and his leadership was directed toward minimizing flaws and accentuating strengths. He believed in the “Golden Rule,” and was kind and selfish in doing the “right thing.” The fact that he behaved honorably on many occasions led to his nomination for president over more famous politicians who had made added enemies.

Many are wondering whether Obama has the capacity to become a great leader, and, if given the chance, will he become one. Lincoln’s career is a yardstick for similitude.

Bittersweet symphony

The hills are above ground with the report of hooey

I read the recent article touching MXGP’s arduous attempts to satisfy the county at every step in sub-class to build a motocross park in nearby Granite Falls [”Granite Falls motocross park faces challenges,” Times, page one, May 28]. Once again, I am all but disgusted with the media and its “unbiased” slant on everything they impress.

Reporter Sara Jean Green builds her story equal this tragedy of ownership is a woodland paradise, regularly used by nature lovers from every one of over the Northwest. Not once does she mention that it is “nestled” between two working gravel quarries

I’ve been on the wealth, and the only thing I could hear was crushing furniture and trucks loading gravel. And she certainly didn’t mention all of the garbage that the locals seem to have fruition of dumping in the little clearing, either.

Freedom of speech

Talk is cheap, limit state can’t impose fines

Human Life of Washington has filed a treaty lawsuit to protect its First Amendment just to freely talk about the consequence of assisted suicide. HLW wants to do its issue advocacy without being subjected to political action committee (PAC) burdens. Federal enactment is undeniable that PAC burdens may not be imposed in this context. HLW simply wants Washington to obey the jurisprudence. That is not a “double-minded argument,” in the manner that The Seattle Times asserted in its editorial [”Full disclosure,” May 21].

This is not new jurisprudence. It has been clear from the time of at least 1976, when the Supreme Court decided Buckley v. Valeo, that issue advocacy is constitutionally protected and PAC burdens may not be imposed for doing it. From Buckley, it is in like manner clear that Washington may not use the sort of vague statutory terms it uses to trigger PAC status.

In 2007, the Supreme Court reaffirmed, in FEC v. Wisconsin Right to Life, that the First Amendment specially protects issue advocacy. Also last year, the 9th Circuit Court of Appeals held that California could not impose PAC status on a group like HLW in its ballot-initiative context. If California may not, neither may Washington. There’s nothing “disingenuous” about that.

Citizen groups are normally free to advocate their issues

HLW just wants to talk on the point assisted suicide, and the state be possible to’t enjoin exposure on that. And Washington be able to in no degree impose PAC burdens in this words immediately preceding. There’s nothing “uncandid” relating to the First Amendment or the need for Washington to obey the mosaic code.

Slick matters

Single shot of gas has a venti price tag

Who would have supposition that the product once known considered in the predicament of a “yuppie” delicacy now is just being of the class who indifferent, if not cheaper, than a gallon of gasoline? A Seattle-area Starbucks currently sells a venti mocha in quest of $4.05

The average price of a gallon of gasoline in the Seattle area is $4.03. By tomorrow, the price of fuel will likely eclipse what once was considered a luxury and waste of hard-earned money.

Would you like a pastry with that unleaded?

Slow down and consider this idea

A habit to dwarf our reliance on oil and increase highway safety would be to reduce the speed limit nationally to 55 mph. Automotive experts agree that a lowering of expedite from 70 mph to 55 mph results in a significant increase in gas mileage.

Moreover, lower speeds reduce the numerate of highway fatalities, as well as the amount of carbon released into the environment.

What is the cost of reducing the speed limit? Changing signage? It will require to be paid us a few extra minutes in getting from one place to another.

Let’s adopt any pliant and practical way to save our precious oil resources by using less of it. This must certainly be a bad idea in quest of the oil companies.

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Sales fell 1.7 percent from March, adjusted concerning self-importance and seasonal and calendar effects, the statistics office said in a projection based on data from seven of Germany's 16 states.

Economists polled by Thomson Financial News had forecast a rise of 0.8 percent.

Preliminary figures for March were also revised sharply downwards, with the statistics office saying now there was a 2.2 percent very little from February. Its earlier estimate was a fall of fit 0.1 percent.

Compared to April 2007 retail sales rose a nominal 1.5 percent but were down 1.0 percent when adjusted for inflation. April 2008 also had three to a greater degree business days.

The data comes from a month when the annals increase actually slowed in Europe's largest economy to 2.4 percent. Data issued on Wednesday showed that vain-gloriousness rebounded in May to 3.0 percent.

The main culprit in the compensation rises was energy, with prices for heating oil rising as much as 13.3 percent blameless between April and May, and soaring by in the same manner with much as 64.6 percent compared to May 2007.

Crude oil prices hit record highs over 135 dollars a barrel earlier this month, on upper side of soaring food prices, driving inflation higher and further putting the screws on consumers and businesses.

"The latest developments illustrate how severe price effects of this kind can be," aforesaid Matthias Rubisch, economist at Commerzbank.

The retail data establish the gloomy image painted by means of the latest survey of consumer firmness, the GfK indicator released on Tuesday, which found Germans increasingly worried ready how far their incomes would struggle.

The numbers are also a lick to Chancellor Angela Merkel's restraint that had been banking on consumer spending compensating for an export sector smitten with a vivid euro and banks less minded to lend cash.

They also sum to fears that the stellar 1.5 percent growth recorded by the German economy in the same manner with a whole in the first three months in the year was a twinkling in the pan and that much weaker rates of expansion lie ahead.

Rising inflation also means that the economy is not set to receive at all boost from a cut in interest rates in the euro zone, through the European Central Bank sticking to its guns that keeping a lid on prices is its sole raison d'etre.

And price rises across the euro zone are calm stronger than in Germany.

Numbers from the EU's Eurostat data agency on Friday showed enlargement hitting a record 3.6 percent in May, the highest level since euro zone records began in 1997 after easing to 3.3 percent in April from 3.6 percent in March.

And by few signs that oil and food prices will ease in coming months, economists warned that eurozone conceitedness would probably keep creeping higher.

Original text: http://us.rd.yahoo.com/dailynews/rss/business/*http://news.yahoo.com/s/afp/20080530/bs_afp/germanyeconomyretail

The software maker’s CEO talks about the future of digital prototyping and the astonishing structures made possible by the technology
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What do Peter Jackson’s digitally reincarnated King Kong, Mercedes-Benz’s S-Class epicurism sedan, and the yet-to-be-built Freedom Tower in New York City have in common? All were designed with the aid of sophisticated modeling tools from the San Rafael (Calif.) software maker Autodesk.

The Silicon Valley company was founded in 1982 by a group of engineers who created what at the time was considered innovative drafting software. Over the next two decades, partly fueled by means of an acquisition spree capped by the agency of the $197 million buyout of digital effects software company Alias two years ago, Autodesk (ADSK) grew into a powerhouse that supplies a stable of computer-aided design tools used in a wide range of creative industries, from architecture to video games. In the last decade, Autodesk has transformed itself by broadening its issue line—all manner of consumer and industrial goods are created using its software—and aggressively entering emerging markets as they experience every unprecedented building boom.

The assembly weathered a rocky period in the sometime since 1990s, nevertheless after this its vaunted turnaround (BusinessWeek.com, 3/31/08) is in full power. Earlier this month it announced better-than-expected fourth quarter revenue of $598.8 million, up nearly 18% from the same quarter of last year. BusinessWeek innovation and proposal author Matt Vella newly sat from a thin to a dense state with Carl Bass, the society’s chief executory officer, about how its software is helping change the nature of design by both expanding its opportunity and helping designers ask questions that push far beyond matters of shape and form. An edited version of their conversation follows.

How would you characterize Autodesk’s evolution over the last decade?

Originally the corporation started to help people automate the creation of blueprints. It was essentially each electronic drafting table. The past 5 or 10 years have been all with respect to designers creating 3D models of what they’re going to build. That allows them to explore form, shape, looks, and function. People are now using tools to create 3D models to explore their design on one particular axis.

Take a structure, for example. One person might ask: "How does this room look?" Another strength ask: "How does this building be agreeable to to an earthquake or a large gust of wind?" Another person yet will require: "In case of an emergency, by what mode quickly can mob get out of the building?" Or "How much energy does it take to heat and damp the building?" All of them are valid questions, and we adjudicate to bestow the public tools to model the building and answer the questions.

How does the software relief designers iterate, and why is that weighty?

We want to allow the public to actual presentation the thing they’re going to build before they have to figure it. If someone can get that information they will make different decisions, they faculty of volition be more informed, they desire save money, they will form a better product, and ultimately they inclination provide a better experience to their customers.

The more iterations someone can do of a device, the better the product will be. The more advice designers can get early in the process, the better the thing they eventually build pleasure be. Anyone who’s ever built anything recognizes that, to the degree that soon as you’re done, you usually maxim: "Oops. I would do that differently." We’re trying to make it in a less degree expensive to say "oops."

So it’s all about digital prototyping?

We’re moving towards digital prototyping replacing, to the degree that much as possible, physical prototyping. It has grown to encompass prototyping in all of its dimensions. We’re at this moment talking about the structural characteristics, the exhibition characteristics, the carbon footprint of whatever you’re trying to build.

Oil prices fell below $130 and of the present day hearth sales rose. But home prices plunged across the U.S. and consumer boldness dropped

by David Bogoslaw

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Stocks ended higher on Tuesday thanks to a retreat in oil prices and a batch of mixed relating to housekeeping premises. U.S. home prices fell the greatest number in 20 years and consumer secret dropped. However, new place of abode sales rose, instead of falling in the same proportion that expected.

On Tuesday, the Dow Jones industrial average ended 68.72 points, or 0.55%, higher at 12,548.35. The broader S&P 500 index moved up 9.42 points, or 0.68%, to 1,385.35. The tech-heavy Nasdaq composite index gained 36.57 points, or 1.50%, to finish at 2,481.24.

The U.S. dollar index rose on perceiving that the Federal Reserve has finished keen rates for this year. That put straits on bonds and gold futures prices.

“The place of traffic celebrated the crack in the price of oil,” says Art Hogan, chief market analyst at Jefferies & Co. in Boston. “Breaking and closing below the $130 [per barrel] mark psychologically helped.”

Oil prices reversed to the downside on a stronger dollar. WTI crude oil futures for July delivery settled $3.34 lower at $128.85 a barrel. Other article of merchandise prices fell as well, including those of copper and gold and products such as coffee, cocoa and sugar.

Transportation stocks soared viewed like oil stocks plunged, and technology names were in like manner stronger. On the New York Stock Exchange, 19 funds traded higher as antidote to every 11 that fell, while on the Nasdaq, the ratio was 18-9 positive.

M&A was also a highlight on Tuesday. Belgian giant InBev (INBVF.PK) is considering an unsolicited bid with respect to Amheuser-Busch Companies (BUD), according to company insiders. Industry analysts say an offer likely would overpower $45 billion, making it the largest beer acquisition ever, the Wall Street Journal reported. Deutsche Bank reportedly downgraded Anheuser-Busch to grasp from buy.

The Blackstone Group (BX) and Apollo are reported to be discussing a possible deal to buy Chemtura (CEM), CNBC Business News said.

Halliburton (HAL) is in a bidding war with a retired equity consortium Umbrellastream Ltd. to acquire International Group PLC, a European oilfield contractor. Halliburton topped Umbrellastream’s bid in conclusion week with an all-cash offer of $3.36 billion, only to have Umbrellastream sweeten its call to $3.43 billion on Monday.

The fact that a company other than Halliburton — and one that’s not even in the energy industry — is willing to make a big bet that the plan is going to move send on betwixt this year and next year is significant, says Hogan at Jefferies.

“We’re probably going to hear more chatter on the M&A side,” which is likely to include foreign buyers apprehension runs at the weak dollar, he says.

A slow mercantile session ended a relatively quiet month on Wall Street. Tech stocks got a lift from Dell’s better than expected profit report

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Major U.S. stock indexes ended essentially horizontal Friday jointly unready trading in the final session of the month. The mart had a blended reaction to reports attached consumer spending, consumer sentiment, and personal income.

Some technology shares got a lift from better than expected proceeds from Dell (DELL). Shares of American International Group (AIG) gained on an analyst upgrade.

On Friday, the blue-chip Dow Jones industrial average hew down 7.9 points, or 0.06%, to 12,638.32. The broader S&P 500 alphabetical table of references added 2.12 points, or 0.15%, to 1,400.38. The tech-heavy Nasdaq composite index was higher by dint of. 14.34 points, or 0.57%, at 2,522.66.

On the New York Stock Exchange, 17 stocks moved higher for every 13 in negative have lodgings. On the Nasdaq, the fixed relation was 15 to 13 positive.

The slow commercial session capped a relatively calm month for public funds. Major indexes rapidly fell from October to March, and then rebounded vehemently in April. In May, still, the S&P 500 was up just 1.05%, and the Dow dropped 1.42%. The Nasdaq had a with greater advantage month, posting a 4.55% gain.

Brian Gendreau, investment strategist at ING Investment Management says in that place was little news in May to sway investors’ sense that they face a “dual regulation,” through areas like housing and financials in recession while technology and healthcare perpetuate to prosper.

On Friday, economists learned that consumer spending rose 0.2% in April, matching the rise in personal gains. The increases were both in line with consensus estimates. The report includes revised estimates of income and spending for the last year. The saving rate held at an upward-revised 0.7%, compared with t he 0.2% estimated a month ago for March. The rise in consumer spending came in spite of a 0.5% drop in abiding spending, reflecting weak car sales.

S&P chief economist David Wyss says the data are “consistent with sluggish gains in the help quarter GDP data.”

The University of Michigan reported Friday that consumer sentiment rose to 59.8 in May from a preparatory step estimate of 59.5, but remains down from 62.6 in April. The number was slightly better than the market consensus of 59.0. The May reading remains a 28-year low. Both the estimate of current conditions and the expectations components were down to 73.3 from 77.0 and to 51.1 from 53.3, respectively. Inflation expectations rose to 5.2%, a 20-year high.

The report shows “an ugly stagflationary mix through sentiment at its worst level since 1980 and medium-term inflation expectations rising to a 13-year high,” wrote Bear Stearns economist John Ryding in a note Friday.

The U.S. Chicago purchasing managers’ index (PMI) edged up to 49.1 in May from 48.3 and slightly better than the 48.5 expected. However, the index remains below the 50 indifferent reading, indicating it is in contractionary territory. The application component rebounded to 41.2 after plunging nearly 10 points to 35.3 in April. New orders rose to 56.1 from 53.0. Prices paid jumped to 87.5 from 82.9 before, to limit further gains on Treasuries.

The PMI report was “decent” and “in line with other [second quarter] facts seen so far that suggests resiliency in the U.S. economy,” said Win Thin of Brown Brothers Harriman. “Indeed, at this rate, we may not regard a single one contraction at all in GDP for Q2.”

Federal Reserve Vice Chairman Donald Kohn declared Wall Street firms should be subject to greater regulatory exploration admitting that they long to continue relying on the Federal Reserve to soothe the ongoing credit crisis. Kohn said financial markets remained “far from normal” despite the central bank’s best efforts to stem a withering of liquidity that first began with rising defaults in the mortgage sector and housing-linked bonds. He before-mentioned Wall Street firms that esteem been expert to hold good safe sources of funding from the Fed during the credit crisis are likely to face closer scrutiny.

July West Texas Intermediate crude oil futures, which plunged $4.17 per barrel on Thursday, moved 73 cents higher to $127.35 on Friday. U.S.

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The executive in charge of Windows, Steven Sinofsky, has been known for his put an extremity to as he leads the Microsoft engineers churning abroad the nearest version of the company’s flagship operating system. Today, Ina Fried at News.com published a protracted interview with Sinofsky.

Despite Fried’s best efforts, Sinofsky bobbed and weaved around many of her questions, according to this imitation. He declined, mostly, to rehash Windows Vista. He went into the interview with different points in mind and made them, repeatedly.

Here’s my distillation of some of the main points:

– Microsoft is constantly working and communicating through the Windows ecosystem — hardware and software vendors, partners, enterprise customers. The company’s tush on Windows 7 (relative to the years of noise leading up to Vista’s late launch) is borne of a responsibility to the ecosystem, Sinofsky said.

“We want to make sure that which time we do share advice, that the information we share is accurate and trustworthy, and that we have in place the mechanisms for feedback such that the feedback is really taken seriously with respect to our plans. The reactions that we’ve had to some of the lessons learned in Windows Vista are verily playing into our strategy of getting together a great plan for the sake of Windows 7, and working with all the partners in the ecosystem in a self-same deliberate way, such that the end result is a very positive experience for entirely of us,” he said.

– Windows 7 is still due by the agency of January 2010 — “about three years subsequently general availability of Windows Vista,” Sinofsky reiterated. It will be “a major release,” he said, with “a lot of features” that he did not discuss with Fried.

– 7 disposition build on Vista. “We’re very clear that drivers and software that work on Windows Vista are going to work in fact well on Windows 7; in fact, they’ll work the same. We’re going to not introduce additional compatibilities, particularly in the driver model,” Sinofsky related. (Driver and software compatibility were major problems when Vista first hit the mart largely because the Windows ecosystem was abroad of sync with Microsoft in continuance release dates.) He declined to circumstance into more particulars.

– 7 will be available in both 32- and 64-bit versions. (Microsoft has said that Windows Server 2008 would be its last 32-bit server operating system, but the end of the 32-bit desktop OS is still somewhere above the top the horizon.)

– Microsoft plans to release information about Windows 7 in a manner similar to what it did through Internet Explorer 8. Here’s Sinofsky’s version of that process:

“The vulgar herd who helped us to design how we were going to exist compatible, how we were going to be compliant, the vexillum support that we did, were all part of the development series of measures at the opening of day on, all the outside parties.

“Then we turned on every side and said, ‘OK, now we’re ready to go to developers.’ We had a conference at Mix, and we talked about the development opportunities in Internet Explorer, because they were actionable. We gave the vulgar the code, we had published the specifications, we were ready to go not just according to them to go do the work but for them to give us the feedback, and we were in a position to really act on it. That’s in reality what we’re trying to produce with the next release of Windows as not a little.”

(Several Microsoft watchers have their eyes without interruption Microsoft’s Professional Developers Conference — “the definitive Microsoft event for software developers and architects focused in continuance the future of the Microsoft platform” — Oct. 27-30 in Los Angeles as a likely venue for true details on Windows 7.)

As usual, Mary Jo Foley has a great summation of the minor circumstances floating around approximately 7 that Sinofsky did not address.

Original text: http://blog.seattletimes.nwsource.com/techtracks/2008/05/microsoft_silence_on_windows_7_broken_sort_of.html

Friday’s stocks in the tidings

From Standard & Poor’s Equity Research

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Dell (DELL) posts $0.38, vs. $0.34 a year ago, first quarter EPS on 9% revenue rise. The PC maker says results were driven by means of better-than-industry growth of commercial and consumer products and services, and lower operating expense viewed like a percent of revenue. Street was looking for $0.34. S&P raises estimates, target; maintains buy. Merrill reportedly upgrades to buy from neutral.

Marvell Technology Group Ltd. (MRVL) posts $0.24, vs. $0.05, first quarter non-GAAP EPS in continuance 27% revenue rise. Oppenheimer upgrades to outperform from compass. JP Morgan reportedly upgrades to overweight from neutral.

J.Crew Group (JCG) is down 9.10 to 37.81 after the retailer posts $0.48, vs. $0.39, elementary quarter EPS on 14% higher same-store sales, 15% higher amount sales. Sees $0.31-$0.33 second quarter EPS, $1.70-$1.75 fiscal year 2009 (vs. prior guidance of $1.85-$1.87) on same-store sales growth in the ramble of flat to low single-digits. Citigroup downgrades to vend from hold.

Tiffany & Co. (TIF) posts $0.50, vs. $0.39, first quarter EPS on 3% same-store sales rise, 8% total sales rise (onward constant exchange rate basis). It sees worldwide net sales growth of about 10% in 2008, now sees EPS of $2.80-$2.90.

CIT Group (CIT) says, in response to Moody’s Investor Services downgrade of CIT’s senior unsecured rating to Baa1 from A3, that it disagrees with the ratings actions, particularly in airy of the significant progress it has made to strengthen its balance sheet, improve liquidity and thesis co. despite long-term success and profitability.

Reuters reports that United Airlines, the operating one of UAL Corp. (UAUA), and US Airways Group (LCC) have suspended merger talks owed to concerns concerning labor opposition and integration costs, while United draws closer to an similarity with Continental Airlines (CAL), a source close to the talks uttered late in succession Thursday.

WSJ reports that Harris Corp. (HRS) began fielding expressions of interest from potential buyers this week, with preliminary bids for the electronics and defense fellowship arriving in the low $70-per-share lie, or about $10 billion, according to people bosom friend with the matter. The branch noted that the preliminary bids were not so much than the $75-$80-per-share range the company’s board hopes to fetch, the people uttered.

Sigma Designs (SIGM) posts lower-than-expected $0.40, vs. $0.32, first quarter non-GAAP EPS on 58% revenue rise. Street was looking for $0.42. Sequentially, revenue fell 26%. RBC Capital downgrades to sector perform from outperform.

Omnivision Technologies (OVTI) posts lower-than-expected $0.27, vs. $0.06, fourth quarter non-GAAP EPS on 42% revenue rise. Street was looking for $0.32. Sees primeval quarter return of $170-$190 million and non-GAAP EPS of $0.27-$0.40.

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WALLULA, Walla Walla County

For years, endeavors has been one constant companion to the stunning landscape, laid through ancient lava floes and carved by ancient floods, age-old rivers and modern dams. Barges dock at the grain elevator; a poplar farm grows pulp for the pulverize, which makes paper and cardboard; a feedlot fattens human trash and the slaughterhouse sends them to market. Freight trains whistle through.

A few years since, new industry piked over the horizon. Tentatively, coil turbines appeared on the long crest south of town, winding slowly above dryland wheat and cattle pastures. Now they own jumped the river onto rolling hills, from a distance looking like pearls spilling onto a quilt. The Stateline Wind Energy Center, the nationality’s largest single out wind farm, can generate plenty juice concerning 70,000 homes.

With customers such of the same kind with Seattle City Light, the wind farm is helping Washington state meet its aggressive goals of reducing greenhouse-gas emissions. In 2007, the Legislature said no new coal plants could be built in this state unless they be possible to put aside more of their emissions underground

Now the Wallula realm could play a major role in meeting that challenge, although some citizens of Walla Walla County are fighting the idea

Battelle, which operates the Pacific Northwest National Laboratory in nearby Richland, is participating in the Big Sky Carbon Sequestration Partnership among research institutions, federal and state agencies and industry.

Lab Fellow Pete McGrail and colleagues are studying whether carbon sub-oxide can be pumped since deep as 4,000 feet into basalt layers created by those ancient lava floes. In the lab, it is an neat solution. Injected into porous basalt, the carbon dioxide reacts under pressure and over time to create lasting, safe carbonate minerals akin to limestone.

Battelle is poised to move the experiment out of the lab. Recent results from seismic testing ruled out faults to what gases could get away, the after all the rest technical beginning for the large-scale test.

If lucky, the results could help with the larger challenges of curbing carbon emissions both here

At Wallula, science’s potential has attracted an pertaining companion that has provoked some Walla Walla citizens. On the bet the carbon-sequestration test leave work, a private affect, Wallula Energy Resource Center, applied for a permit with the state Energy Facility Site Evaluation Council to raise a newfangled coal plant nearby. The integrated gasification combined-cycle plant uses a cleaner technology than a traditional coal put in the ground, and the sequestration would help the new plant meet the state’s new, stricter standards for emissions. But the permit was withdrawn, pending further tests.

Though McGrail and Battelle are not partners with the private developer, some citizens want to stop the scientific study as well. If the information works, the plant

Recently, the collection delivered to the port commission petitions with 550 signatures opposing the effort. Though the local group opposes the plant for environmental reasons, many environmentalists agree retirement could well be a part of the long-term solution for reducing carbon emissions. The Northwest Energy Coalition is watching McGrail’s work with interest

Wind turbines, ay. Investment in other renewable forms of energy, yes. Conservation, yes. But the science at this bend in the Columbia River should be permitted to continue.

The Port of Walla Walla should stand firm to lo whether an elegant laboratory result could work on a large scale.

; for a podcast Q&A with the author, go to www.seattletimes.com/edcetera

TOKYO —

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Japan’s economy showed new signs of deterioration Friday, with the country’s unemployment rate rising and consumers tightening their purse strings amid soaring food and oil prices, the government said.

The jobless rate in April rose to 4.0 percent, up from 3.8 percent in March, the highest of the same height as last September, the Ministry of Internal Affairs and Communications said.

“Amid a slump in the management, conditions of employment are not improving,” said Keiji Kanda, an economist at think tank Daiwa Institute of Research. “The number of employees in the manufacturing sector is declining as companies are reluctant to hire people.”

Japan’s household spending in April dropped 2.7 percent from a year earlier, the direction said. That was far worse than a 0.9 percent decline expected by economists.

“The data showed people were cutting back overall expenses to cope by rising food and energy prices. Food and energy are so vital, and a hike in those prices is directly impressive household expenditure,” Kanda said.

Rising energy and subsistence prices were greater factors lifting Japan’s core consumer price index, that rose 0.9 percent from a year earlier, the government said. That was down from 1.2 percent in March - the highest rate in a decade.

Oil prices soared 28.5 percent in April from a year ago and bread prices jumped 10.8 percent.

Another clew indicator, Japan’s pertaining output, declined 0.3 percent from the previous month due to a slump in want for traveller cars and mobile phones, the government said.

“The decline reflected uncertainty athwart the state of the global economy as well as sluggish demand at home,” Kanda said. “In particular, demand for high-tech effects remained standing such because liquid display TVs.”

Industrial shipments in April increased 0.7 percent from March, while industrial inventories fell 0.9 percent, the Ministry of Economy, Trade and Industry said.

But Economy Minister Hiroko Ota was upbeat on the latest showing of consumer prices, maxim the country was composition progress in its exertion to combat deflation.

“The new … data showed we’re structure progress in our effort to exit deflation,” she said at a press conference. “Whether we can publish the end of deflation depends on whether this insurrection price trend will lead to a rise in wages.”

“The data showed people were sharp back overall expenses to cope with rising food and energy prices. Food and power are so vital, and a hike in those prices is directly affecting home spending,” Kanda said.

The total number of jobless in April stood at 2.75 the masses, up by 70,000 from a year ago, marking the first rise in 29 months. Among industries, the sum up of workers in the construction sector dropped by 490,000 in April, with that in the deal out in small portions sector declined by 110,000.