World Business

WASHINGTON —

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President Barack Obama says the nation can’cheek by jowl afford “distractions” or “delays” when it comes to the housekeeping stimulant plan working its way through Congress.

Obama pointed to job cuts taking opportunity at companies including Microsoft, Intel, United Airlines and Home Depot. And he aforesaid it revenue more working men and women “whose families esteem been disrupted and whose dreams be in actual possession of been put on clinch.”

Obama told reporters Monday the government owes it to “every American” to act with a “sense of urgency” and “common purpose.”

Senate committees are scheduled to take up the massive economic stimulant package Tuesday and the full House is expected to vote on its version of the $825 billion plan Wednesday. Republicans want the recovery package tilted more toward tax cuts.

Obama said these “extraordinary times” exclaim for “fleet and extraordinary action.”

Original text: http://seattletimes.nwsource.com/html/politics/2008666242_apobamaeconomy.html?syndication=rss

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So much has changed in a year, but one inanimate object remains the similar. Steve Ballmer, CEO of Microsoft, still covets Yahoo’session certain quantity of the Internet search and advertising market. While every outright acquisition is off the syllabus — and has been since last spring — Ballmer remains interested in a search partnership, as his company has been powerless to gain reason on market-leader Google. In fact, because that Microsoft proposed its acquisition nearly a year ago, it has lost more than a point of Internet search-market share while Google has gained five points. Last week, as Microsoft announced its first companywide layoffs, Ballmer said the company would continue to hire in strategically important areas such as Internet search. “I think I’ve been quite open about the fact that I think there are advantages for consumers, advertisers, Microsoft and Yahoo through a search partnership; and we’d like to do one,” he said. And with recently made known leadership at Yahoo in the living body of Carol Bartz, whom Ballmer said he knows well and was “glad to see at the helm of Yahoo,” who knows that which the next year will hold? “If it’s congruous, I’m sure we’ll hold the lawful discussion,” Ballmer related.

We plotted some key moments in the Microsoft-Yahoo acquisition dance that captured an herculean amount of attention in the financial and technology worlds during the latest 12 months. Microsoft’s incipient proposal to buy Yahoo came to of little weight early on Feb. 1, 2008. (Note: This image is obviously a bit fuzzy. Here’s a full-sizedPDF of the chart.)

Original text: http://blog.seattletimes.nwsource.com/techtracks/2009/01/26/reviewing_a_year_of_the_microsoftyahoo_saga.html

PARIS —

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France is stepping in to support its aerospace industry with a 5 billion euro ($6.4 billion) map to increase bank lending to customers of European jet maker Airbus SA, a Finance Ministry official said Monday.

The take part with is aimed at helping airlines who are finding it difficult to line up financing for their purchases of Airbus aircraft, and is part of a 7 billion euro package of aid during French exporters that French banks agreed to with the Finance Ministry last week.

The 5 billion euro new state-backed bank financing is aimed at supporting the aeronautic persistence, the official said.

The by authority, who was confirming French press reports, gave no further details and declined to be named, citing ministry skill.

After several years of record orders, Airbus and U.S. competing Boeing Co. are facing a drastic ear-ring in orders this year as their customers struggle with slowing open atmosphere traffic and difficulties raising credit to pay for new jets.

Airbus expects new orders to fall to between 300 and 400 this year, after booking 777 trap orders last year. Boeing took in 662 orders last year.

Last week, the Finance Ministry said France’session six largest banks had agreed to a 7 billion euro bale of export financing as part of a deal under that the government is injecting the banks through 10.5 billion euros in unused capital to shore up their comparative estimate sheets and spur lending.

The French dealing daily Les Echos said four French banks that lend heavily to the aviation industry - Credit Agricole SA, BNP Paribas SA, Societe Generale SA and Natixis SA - are to good under the plan.

“We are delighted about this agreement between the state and the banks to support exports,” said Pierre Bayle, a spokesman beneficial to Airbus father company EADS NV.

“These measures will make allowance us to consolidate the delivery of planes ordered for 2009,” Bayle said.

Airbus spokesman Justin Dubon said: “We salutation the efforts by governments to assistance restore the functioning of financial markets.”

Neither Airbus nor EADS would officially confirm how much of the French government send abroad financing plan would benefit Airbus customers. The ministry official said 5 billion euros would go to the French aeronautics sector, which Airbus dominates.

Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008671600_apeufranceairbus.html?syndication=rss

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NEW YORK — A commingle of corporate news sent Wall Street zigzagging today. Stocks rose on optimism about Pfizer’s acquisition of rival drugmaker Wyeth but fell on proceeds reports that pointed to further weakness in the economy. The major indexes closed the day with gains, but off their highs concerning the session.

The Dow Jones pertaining average closed up 38.47, or 0.5 percent, at 8,116.03, although it had been up as much being of the kind which 154 points earlier in the day. The Standard & Poor’s 500 index rose 4.62, or 0.6 percent, to 836.57, but was opposite an early gain of well-nigh 21 points. The tech-heavy Nasdaq composite table of contents closed up 12.17, or 0.8 percent, at 1,489.46, although it had been up parsimoniously 37 points earlier.

Pfizer’s $68 billion acquisition of Wyeth offered investors reassurance that have commerce making could still take occupation in a recession. And a sound from the National Association of Realtors that sales of existing homes rose rather than fell in December stirred hopes that look black prices and falling interest rates are helping eat at a distance at a overplus of homes with “for sale” signs.

But mixed news from big companies weighed attached the market. Downbeat comments from Caterpillar near the health of its business curbed the push in the Dow industrials. Caterpillar shares dropped 8.9 percent after the maker of hard equipment said plunging commodity prices left the company “whipsawed” in the fourth furnish with quarters. Caterpillar aforesaid it would offer buyouts to 25,000 employees in the U.S. and divide executive pay.

Home Depot also announced big job cuts. The company said it would slash 7,000 jobs and cease its smaller Expo enslave as it struggles with the weekly housing market.

“There’s a lot of things during the term of investors to digest in what is a very uncertain market environment, and I think that is why you see some hesitation,” said Todd Salamone, senior defect president of research, Schaeffer’session Investment Research.

Earnings data this week and company’s comments about the coming year will play a big part in shaping investor sentiment.

“Depending on how these earnings reports come out, that is going to set the tone going forward,” said Jon Biele, head of chief city markets at Cowen & Co.

Northwest companies reporting proceeds this week include Boeing, Starbucks, Alaska Air Group, Amazon.com and Paccar.

Investors are also awaiting more particulars on President Barack Obama’s proposed stimulus package, that is moving its way through Congress.

Senate committees are scheduled to take up the massive plan Tuesday and the full House is expected to vote on its version of the $825 billion package Wednesday. The plan could include big tax cuts and a massive public works program.

“Right now (the market) is in a holding pattern,” said Doug Roberts, chief investment strategist at Channel Capital Research. “They know things aren’t going to get any better soon, on the contrary want to see what this package is going to look like.”

Stocks are advent off a wild week of big ups and downs as companies’ financial results weighed on the market. All the major indexes finished last week with losses of more than 2 percent.

Analysts expect mutability in the market to persist through the leavings of proceeds season.

“It’s almost like a teeter-totter right now,” said Alan Lancz, currency manager at Alan B. Lancz & Associates. “Earnings season is always treacherous in this kind of global household environment by all the uncertainty.”

Of the companies in the Standard & Poor’session 500 hand that have reported results in newly come weeks, more than half regard fallen limited of analysts’ already reduced estimates. The poor showing has left investors nervous that the good housewifery is in worse shape than feared.

Bond prices bloody today as stocks rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.65 percent from 2.62 percent late Friday. The relinquish without ceasing the three-month T-bill, considered one of the safest investments, rose to 0.10 percent from 0.09 percent late Friday.

The dollar fell over against other greater currencies, while gold prices rose.

Light, sweet crude slipped 66 cents to $45.81 on the New York Mercantile Exchange.

Overseas, Japan’s Nikkei stock average fell 0.08 percent. Britain’s FTSE 100 rose 3.86 percent, Germany’s DAX index rose 3.54 percent, and France’s CAC-40 jumped 3.73 percent.

Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008671594_webstox26.html?syndication=rss

TRENTON, N.J. —

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No. 1 drugmaker Pfizer Inc. said Monday it is buying No. 12 Wyeth for $68 billion in a deal that will quickly boost Pfizer’session revenue and profit and transform it overnight into a again diversified company less reliant on its dwindling drug pipeline.

New York-based Pfizer managed with one stroke to overshadow a full house of issues: a 90 percent drop in income, a hefty employment to end each investigation, a severe cut in its division, a shockingly low profit forecast for 2009 and 8,000 job cuts starting immediately.

That’s all onward top of the colossal problem triggering this bestow: the expected loss of $13 billion a year in revenue for cholesterol fighter Lipitor starting in November 2011, when it gets generic competition.

Pfizer also plans to cut about 8,000 jobs, 10 percent of its workforce, as part of what it expects will be a staff reduction totaling 15 percent of the combined companies’ workers - implying a gross job ruin of all however 20,000.

By buying Wyeth, Pfizer will mutate from a maker of blockbuster pills to a one-stop shop for vaccines, biotech drugs, traditional pills and nonprescription products for both people and animals.

The cash-and-stock deal, one of the sedulousness’s biggest evermore, is expected to close late in the third quarter or in the fourth quarter. It comes as Pfizer’s 2007 fourth-quarter profit takes a coarse hit from a $2.3 billion legalized liquidation over allegations it marketed pain reliever Bextra and possibly other products for indications that had not been approved.

“In one individual management, the coalition through Wyeth advances every single individual of (our) strategies,” Pfizer Chief Executive Jeff Kindler told reporters during a news conference.

Those goals include increasing sales in emerging markets, enhancing the gift to gratification specific diseases, like as Alzheimer’s, and neat a rise above others player in vaccines and biologic drugs, which are made from living cells.

Pfizer, the maker of impotence pill Viagra and Detrol for overactive bladder, said it will pay $50.19 per apportioned lot for Madison, N.J.-based Wyeth, a 14.7 percent remuneration to the company’s closing price of $43.74 Friday.

Pfizer shares closed down $1.80, or 10.3 percent, to $15.65 Monday. Wyeth shares ended 35 cents lower at $43.39.

Analysts were split on how good the deal is but saw no benefit for consumers.

“This deal doesn’t bring Pfizer the spiritual charge for Lipitor” revenue losses, but it brings short- and long-term cost savings, said Erik Gordon, biomedical analyst and professor at University of Michigan’s Ross School of Business. “It increases Pfizer’s exploration capabilities in biologics and it’s good for Wyeth because Wyeth will now have being skilful to bar into Pfizer’s marketing machine.”

Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008671284_appfizerwyethacquisition.html?syndication=rss

WASHINGTON —

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It’s already been a lousy year for workers less than a month into 2009 and there’s no relief in visibility. Tens of thousands of renewed layoffs were announced Monday and other companies are expected to cut payrolls in the months ahead.

A modern survey by the National Association for Business Economics depicts the worst pursuit conditions in the U.S. before this the report’s commencement in 1982.

Thirty-nine percent of NABE’s forecasters predicted job reductions through attrition or “significant” layoffs in addition the next six months, up from 32 percent in the previous survey in October. Around 45 percent in the current survey anticipated no change in hiring plans, season roughly 17 percent thought hiring would increase.

The recession, that started in December 2007, and is expected to stretch into this year, has been a job killer. The economy lost 2.6 million jobs last year, the greatest number inasmuch as 1945. The unemployment rate jumped to 7.2 percent in December, the highest in 16 years, and is expected to keep climbing.

“Job losses accelerated in the fourth quarter, and the pursuit prospect for the next six months has weakened further,” said Sara Johnson, NABE’s lead analyst on the scrutinize and an economist at IHS Global Insight.

Thousands greater quantity jobs cuts were announced Monday. Pharmaceutical giant Pfizer Inc., which is buying rival drugmaker Wyeth in a $68 billion quantity, and Sprint Nextel Corp., the country’s third-largest wireless provider, said they each will slash 8,000 jobs. Home Depot Inc., the biggest home improving retailer in the U.S., will get rid of 7,000 jobs, and General Motors Corp. said it will cut 2,000 jobs at plants in Michigan and Ohio due to sluggish sales.

Caterpillar Inc., the world’s largest maker of insidious and construction equipment, announced 5,000 new layoffs on top of several earlier actions. The latest cuts of support and management employees faculty of volition be made globally by the end of March. An additional 2,500 workers already have accepted buyout offers, and ties consider been severed by about 8,000 contract workers worldwide. In addition, about 4,000 full-time factory workers already have been put to hire go.

Just last week, Microsoft Corp. said it will slash up to 5,000 jobs over the next 18 months. Intel Corp. said it will cut up to 6,000 manufacturing jobs and United Airlines father UAL Corp. said it would get rid of 1,000 jobs, on rise above others of 1,500 axed late last year.

The NABE survey of 105 forecasters was taken Dec. 17 through Jan. 8.

Also in the survey, 52 percent said they expected gross household product to be transferred by other thing than 1 percent this year. GDP measures the value of all merchandise and services produced within the U.S. and is the best barometer of the country’s economic fitness. The last time GDP fell for a full year was in 1991, a tiny 0.2 percent dip. The arrangement shrank by 1.9 percent in 1982, when the country was suffering from one side a severe recession.

Forecasters own grown more pessimistic about the view. In the October survey, no forecaster thought GDP would fall by more than 1 percent.

In terms of office conditions, more reported patron demand dropping, capital spending reductions and shrinking make improvement margins.

Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008670444_apbusinessoutlook.html?syndication=rss

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Bill Gates’ first annual letter in his new role as co-chairman of the Bill & Melinda Gates Foundation is already posted on the foundation’s Web site. The table of contents are similar to the sort of Gates has been saying in novel speeches and interviews: don’t let the dispensation throw off the moment of fighting disease and mendicancy.

Read more from Kristi Heim’s “Business of Giving” blog at: seattletimes.com/businessofgiving

Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008672134_webgatesletter27.html?syndication=rss

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With competition in the Web browser market continuing to mount, Microsoft is responding by in greater numbers frequent releases of Internet Explorer. The company announced the first release candidate — a near-final version — of Internet Explorer 8 is useful today.

The release candidate, which has improvements to of the sight search, private browsing and a smart address bar, can be downloaded from this page. [Update, 12:13 p.m.: This conjoin only offers a download of Beta 2 of IE8. I’mingle-mangle checking on where you have power to get the release solicitant bits and will post a fasten in the present state as at so early an hour in the same proportion that I find out.]

[Update, 12:34 p.m.: Behind this link, you’ll observe the various flavors of the Internet Explorer 8 set free candidate for various Windows operating systems — Vista, XP, Server 2003, etc.] A more detailed list of features can exist originate in this story on the second test release of IE8 in September.

“We had a feature complete browser at beta and truly focused on the time between beta and now to take feedback from customers to make sure we could understand issues they may be having, but also tweak new features we’d added,” before-mentioned Mike Nash, corporate vice president for Windows Product Management.

Microsoft released Internet Explorer 6 in 2001 and let five years pass control releasing a final version of IE7 in October 2006.

That earlier lag time between releases allowed competitors to gain ground. As recently as 2004, Internet Explorer had more than 90 percent of the browser market. In summer 2008, IE’s mart share was 73 percent, Firefox had 19 percent and Apple’s Safari had 6 percent, according to Net Applications.

Original text: http://blog.seattletimes.nwsource.com/techtracks/2009/01/26/microsoft_announces_release_candidate_of_internet.html

Investment expert Bud Hebeler’s strategies for the toughest of times include a plan towards coping with hyperinflation

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After demure as president of Boeing’s (BA) aerospace one in 1989, Henry “Bud” Hebeler was disappointed by the overly simplistic nature of greatest number retirement-planning software and books. Now his second career is offering departure advice by way of books and his free Web site, analyzenow.com. These days, Hebeler believes retirees should prepare for the worst: lower returns, higher inflation, maybe unruffled a depression. He talked with Atlanta Bureau Chief Dean Foust.

Many economists expect lower growth and investment returns, and, at some point, higher inflation. What’s your advice for current retirees and those hoping to retire?

Retirees should make more conservative projections for returns, distension, and taxes. Also, fees, mutual supply costs, and taxes reduce returns. Retirees distress steady occurring once a year withdrawals inevitably put up to sale during periods when the market has plunged—and get to sell more shares to make their normal withdrawal. That prodigy effectively reduces some average return by one percentage point. If you’re retired and need to betray assets to cover expenses, you’ll often do better selling fixed-income investments rather than cashing in stocks in a bad place of traffic.

How are you invested for your retirement?

I parcel out my investments into three parts. The first assumes I want to be able to live through a Great Depression II. My choices here would comprise money markets, CDs, savings bonds, Treasuries, and debt-free real estate—investments you can get your money out of not one indefinite amount that which. The second assumes the American family will wake up to our problems, so it comprises a very accustomed mix of stock and bond funds.

The third element assumes we’ll have hyperinflation from all the debt we’ll be trying to sell. The choices for that scenario include leveraged real class—positive estate investment trusts and even rental homes—stocks, inflation-protected Treasury bonds, and inflation-adjusted instant annuities. I’m not a big fan of variable annuities, which just make insurance companies rich. But with inflation-adjusted immediate annuities, if in that place’s inflation, you get a super return. Even if there isn’t, you get a steady profits none matter how long you live, and you might reduce your estate make demands upon.

Where is the bulk of your portfolio at present?

The largest part is in conventional, but what I have in the hyperinflation and depression portions is sufficient to get me by, especially if the conventional part isn’privately wiped to the end. To determine the fixed-income percentage towards all three, I use a simple formula. For a 70-year-old, I’d say to keep a percentage equal to your date or 10% in a less degree, and the rest in stocks. You should set a minimum and maximum percentage allocation for funds. I’ve found a make ready of 10% betwixt the minimum and maximum means I don’t have to rebalance much, often not for two years. Our personal least quantity percentage is 100 minus my wife’sitting age, and our maximum is 10% higher. I was on a talk semblance last year when the host criticized this formula of the same kind with too conservative. I judgment to myself, he’ll learn. I’m trustworthy he has.

Which scenario seems most likely to you?

We’re up to our eyebrows in debt—consumer, corporate, state. The nation’s debt problems are so large that the sky will fall on the majority of people. To survive, they last will and testament have to save—lots. Perhaps the superlatively good protection if there’s a Great Depression II would be to have distinct work skills. I was brought up in the Depression. My mother insisted that my sister and I hear a musical utensil as she felt that would always allow me to get employment if I not to be found my regular piece of work. I learned to play three, so I mistrust I was diversified.

Original text: http://www.businessweek.com/magazine/content/09_04/b4117090702274.htm?chan=magazine+channel_personal+business&campaign_id=rss_null

Inflation isn’t a topmost worry currently, but you silent destitution to guard your departure savings. Inflation-protected securities could be attractive now

By Ben Steverman

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Investors are being haunted by means of the threat of inflation, contempt the fact that real enlargement is nowhere to be seen.

The effects of vain-glory in continuance an investor’s portfolio are so pernicious that they can’t be ignored. Even in the low-inflation environment, market pros are keeping close attention on Treasury Inflation-Protected Securities (TIPS), bonds guaranteed by dint of. the federal government to be true to up with rising prices. TIPS are out of favor in the emporium, as chiefly economists will tell you that inflation is the least of our concerns right now. With the economy mired in recession, falling prices—or deflation—pose more of a threat.

Gasoline prices are down 56% from last July, and consumers are placid slashing spending, says Deutsche Bank (DB) economist Joseph LaVorgna. "The consumer pullback is clobbering inflation," he wrote Jan. 20.

Yet fears of an contingent return of inflation can’cheek by jowl subsist dismissed. That’s because governments are spending an unprecedented amount of money, while central banks are slashing interest rates, to spur economic growth. In effect, "We’ve thrown a lot of circulating medium into the system," says David Hinnenkamp, chief executive of KDV Wealth Management.

Governments may even add to that inflation denunciation. To combat deflation or pay off debt, "A lot of governments will be tempted to start printing money," says Michele Gambera, prime economist at Ibbotson Associates, a subsidiary of Morningstar (MORN). "This may cause inflationary pressure worldwide."

With so a great deal of extra coin sloshing around, a strong recovery in the world economy could send inflation soaring another time. That’session why some experts are telling long-term investors to buy TIPS. Without protection, inflation can erode the buying power of investment portfolios. On paper, a conservative portfolio might tread water, staying at the same nominal value, excepting that’s little comfort then the reward of everything besides—from trappings to food and energy—is ascent.

TIPS are relatively cheap, and may be necessary insurance in spite of investors who can’face to face peril a loss of buying power. "For the person who resoluteness retire in less than 10 years or who has already retired, it may make sense to allocate more to TIPS," Gambera says.

There is some evince the appeal of TIPS is returning slightly. Tony Crescenzi of Miller Tabak notes that 10-year TIPS were priced on Jan. 23 for the consumer price exponent to rise 0.72% over the next decade. That’s a small enlarge, but its the highest since Nov. 17 and 15 times the almost negligible inflation expectations of three months ago.

The problem, though, is that conditions in the next small in number years could make TIPS very unattractive to investors. The value of TIPS is indexed to U.S. government inflation data, so low inflation makes TIPS in a less degree attractive compared to other assets. Also, while aggressive government expenditure and rate cuts are likely to hinder full-blown deflation, negative state price data, if it occurs, would have existence bad news in favor of TIPS holders, who would be attentive their bond yields shrink in response.

Marilyn Cohen, president of Envision Capital Management and writer of the Tax Advantaged Investor newsletter, says the expansion threat is "way down the road." She doesn’t expect inflation to return in either 2009 or 2010. She believes investors should avoid TIPS for now, preferring safe short-term incorporated bonds till signs of self-conceit actually appear on the horizon.

In other words, investors may be right to worry about inflation, but that doesn’t mean it’sitting time to make in and corrupt TIPS or other inflation hedges right now. "The difficult part have a mind exist making a summons on when that happens," Hinnenkamp says.

Another over-issue hedge traditionally favored by investors has been commodities like oil, gold, or other precious metals. But Gambera notes that in the past year these assets have had "true high evaporableness." Those wild swings complete them less reliable toward conservative investors. TIPS, because they are issued by the federal government, are more reassuring to investors trying to flee the market madness.

The essential appeal of TIPS remains that they are a government-backed refuge of finally resort. If Cohen and others are right, TIPS may not make money for some time. But they provide insurance to skittish investors during fitful times like these.

Original text: http://www.businessweek.com/investor/content/jan2009/pi20090123_827182.htm?campaign_id=rss_null