World Business

SAN FRANCISCO —

Watch original video:

The owner of the San Francisco Chronicle will sell or unite the daily newspaper if it can’t dramatically disgrace expenses within the next few months.

The Hearst Corp., which owns northern California’s largest daily newspaper, didn’t specify a savings mark in Tuesday’s grim announcement. But the New York-based corporation said the cost sharp will require significant layoffs.

After years of struggles, the San Francisco newspaper’sitting troubles have worsened among the longest recession since the early 1980s. Hearst said the Chronicle reprobate $50 million last year and is hemorrhaging steady more money so far this year.

Several other struggling newspapers around the country are also on the sales mould, have filed because bankruptcy or are facing a possible shutdown.

Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008781738_apsanfranciscochronicle.html?syndication=rss

RALEIGH, N.C. —

Watch original video:

For months, prosecutors express, technicians in the cloud of a run-down North Carolina scatter seed prepared life-sustaining syringes and shipped them before ensuring they were sterile.

Investigators believe a rush to maximize profits led Dushyant Patel’s AM2PAT Inc. to produce heparin and saline syringes that killed five people and sickened hundreds of others, some resulting in spinal meningitis and permanent brain damage. Authorities are now put on some international search for Patel after he was indicted last week on 10 charges including fraud, false statements and selling adulterated medical devices.

U.S. Attorney George Holding said Tuesday that authorities believe Patel has fled to his native India and acquire turned to Interpol for cross-border aid in contagious up to him.

“Our office is committed to pursuing him and bringing him here to recital for his actions,” Holding said.

Court documents portray a disturbing recklessness that allowed syringes to ship before they were checked for contamination. Reports detailing the testing were backdated to wear the appearance they passed process in advance of shipping, and some test results were manipulated or fabricated to deceive inspectors from the U.S. Food and Drug Administration, prosecutors said.

Patel’s company sold well-nigh $7 million worth of heparin, a blood thinner, and saline syringes in 2006-07. The plant in Angier, with reference to 20 miles south of Raleigh, cut corners so it could maximize profit, including shipping products with celerity without checking on security, according to court documents.

The syringes were recalled in December 2007 after an broil of illnesses. Health inspectors identified bacterial infections in Colorado, Texas, Illinois and Florida and traced the contamination to AM2PAT.

It’s a similar disregard for consumer health that congressional leaders portrayed in the salmonella affray traced to products from a Georgia peanut plant that sickened 600 people and may have contributed to nine deaths. Company e-mails released by a U.S. House committee showed Peanut Corp. of America owner Stewart Parnell ordered products tainted with the bacteria to exist shipped because he was worried about lost sales. Parnell has not been charged, but federal officials are investigating.

Ned Feder, a staff scientist at the Washington-based nonprofit Project On Government Oversight, said the FDA sourness rely to some extent on the sincerity of plants, on the contrary that the instrumentality moreover needs to verify the paperwork companies show. The FDA doesn’t oversee often enough, largely because it is short on staff, he said.

“You hardly issue around and the FDA is breaking news,” Feder said. “If it isn’t peanuts in Georgia, it’s syringes in North Carolina. They’re completely different (cases), but they can both be traced upper part to the fact that the FDA doesn’t take the manpower to do the policing it needs to do.”

FDA spokeswoman Siobhan DeLancey declined to immediately discuss the syringe case. She acknowledged that it’s impracticable for inspectors to be in every plant at formerly but said the FDA performs regular checks.

Several people have sued since the fallout of the tainted squirt case, and prosecutors still aren’t sure exactly to what degree many were affected by it. Heparin and saline are used to flow intravenous lines during cancer treatments, kidney dialysis and other procedures.

Original text: http://seattletimes.nwsource.com/html/nationworld/2008779724_aptaintedsyringes.html?syndication=rss

Watch original video:

SPOKANE — An official with Itronix, a company that manufactures rugged laptops and handheld computers, said 300 employees will lose their jobs this year as a Spokane-area plant is shuttered.

Business Director John Schneider before-mentioned about 20 other workers choose have the opening to keep their sales and provide for jobs, and another 60 workers have the excellent to relocate to the company’s new base in Sunrise, Fla.

Itronix is a division of General Dynamics.

Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008780092_webitronix24.html?syndication=rss

Watch original video:

With Microsoft’sitting Redmond campus largely emptied out for the hibernate holidays, CEO Steve Ballmer crunched the numbers on the special level of spending for his company against the generally received economic meteorological character, which he has repeatedly referred to as a “reset” rather than just a recession. Ballmer uttered his own estimates for the weakness and lasting period of the downturn tend to subsist more severe than those of other business leaders he meets.

With that in will, he quiet on $27.5 billion of operating expenses — a level the company aims to hold relatively steady through the current financial year, that ends June 30, and for the time of its 2010 fiscal year. Ballmer made clear to financial analysts meeting in New York this morning for the company’s annual strategic update that cutting back even more significantly — say to $20 billion — would be “imprudent.”

“I esteem this is right,” Ballmer said.

To read more from the analysts meeting on Benjamin Romano’s Pri0 blog, click here:

http://blog.seattletimes.nwsource.com/techtracks/2009/02/24/microsoft_strategic_update_ballmer_tells_wall_stre.html

Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008780288_webmicrosoft24.html?syndication=rss

Watch original video:

Microsoft Research is holding its annual TechFest science fair on the Redmond campus this week, showing from advanced research experiments that could eventually toil their way into the company’s products.

One of the coolest is an experimental interface that lets you control a video projector using gestures, such as pinching your fingers, above the lens to zoom in and around the display. It’session a wild actual feeling when added to an upward pointing projector and a domed screen.

To make out more about the TechFest demonstrations attached Brier Dudley’s blog, tick here:

http://blog.seattletimes.nwsource.com/brierdudley/index.html#038149

Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008781555_webtechfest25.html?syndication=rss

Watch original video:

Unemployment in Washington represent fully jumped to each estimated 7.8 percent last month, from 7.1 percent in December, as nearly all business sectors cut jobs.

It was the second big increase in a affray for the state’session jobless rate, which stood at 6.3 percent as freshly since November — another indication of the rapidly deteriorating economy.

January’s unemployment rate topped the national rate for the primary time since December 2006. An estimated 303,570 Washingtonians — the most ever — reported being out of work last month.

In the Seattle metro area, unemployment rose from 6.3 percent in December to an estimated 6.8 percent be unexhausted month.

The unemployment numbers, reported by the state Employment Security Department today, are considered preliminary estimates. Delays in implementing a U.S. Bureau of Labor Statistics computer system that all states, including Washington, use to calculate local unemployment figures have slowed the supply of data to the states.

Nonfarm payrolls, which are determined separately from the unemployment rate and many times are considered a more reliable indicator, dropped by a seasonally adjusted 7,000 positions last month and now are 56,000 jobs below the level of a year ago.

Manufacturing accounted conducive to the bulk of the payroll-job losses. Some of the biggest cuts came in computer and electronic product manufacturing (500 jobs), aerospace (300 jobs), papermaking (900 jobs), and nutriment processing (600 jobs).

Construction, united of the hardest-hit sectors in the current recession, lost 2,400 more jobs last month; over the past time year the construction assiduousness has shed 20,700 jobs.

But the declines were widespread in the office sector as well. Truck transportation implacable by 1,300 jobs, auto dealerships corrupt 1,400, and computer-systems design was off by 1,000 jobs.

Two bright spots were state commonwealth, what one. gained 5,900 jobs last month (mostly in educational services), and actually being estate and rental leasing, up by 800 jobs.

Drew DeSilver: 206-464-3145 or ddesilver@seattletimes.com

Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008780477_webjobs24.html?syndication=rss

From Standard & Poor’s Equity Research

Watch original video:

MORGAN KEEGAN REITERATES OUTPERFORM ON CRACKER BARREL

Morgan Keegan analyst Robert Derrington says Cracker Barrel Old Country Store (CBRL) force $0.81 second cut to pieces EPS beat his $0.73 estimate on better-than-expected revenues, much lower-than-expected G&A (about $0.08 EPS).

Derrington notes the company reiterated fiscal year 2009 (July) EPS guidance of $2.65-$3.00 (vs. his $2.55), plans to complete sale leaseback of 15 stores prior to fiscal year extremity, raising $55-$60 million for debt repayment. He expects to raise his fiscal year 2009 EPS view to mid-$2.70 range from $2.55 post conference call.

He rates outperform based on the company’session unique Old Country Store motif, attractive valuation, 4.5% dividend yield and other factors.

WILLIAM BLAIR UPGRADESS NALCO HOLDINGS TO OUTPERFORM FROM MARKET PERFORM

William Blair analyst Brian Drab says he’s been warming up to Nalco Holdings (NLC) shares concerning some time, and recent talks with management accord. him greater amount of confidence in NLC’s prospects for the next 12 months and beyond.

Drab bases the upgrade without ceasing gross margin expansion, expected dazzling easy cash flow, European operations appearing to be on beaten path after leadership changes, sufficing access to capital, and attractive valuation.

He believes the Street consensus EPS estimate of $0.21 for before anything else quarter 2009 is too vulgar, largely appropriate to what he considers to have existence overly conservative gross margin assumptions. He sees $0.31 notwithstanding the first territory.

Original text: http://www.businessweek.com/investor/content/feb2009/pi20090224_983165.htm?campaign_id=rss_null

Analysts’ opinions upon stocks in the news Tuesday

From Standard & Poor’s Equity Research

Watch original video:

S&P MAINTAINS HOLD OPINION ON CLASS B SHARES OF NEWS CORP (NWS; 6.39):

Unconfirmed WSJ report says NWS COO Peter Chernin plans to leave NWS on June 30 to pursue entrepreneurial ventures/personal projects. While it’s somewhat astonishing, the tidings isn’t entirely unexpected amid speculations adhering Chernin’s contract talks, which CEO Rupert Murdoch just months ago said were “constructive” and “friendly.” A 20-year NWS adept, and one of industry’s highly-regarded execs, Chernin’s exit couldn’t be the subject of been more ill-timed, with fiscal year 2009 (June) shaping up as the rout thus remoter in NWS’sitting 50-year history. News should rekindle succession concerns around NWS’s septuagenarian planter/CEO. -T. Amobi - CPA, CFA

S&P MAINTAINS HOLD OPINION ON SHARES OF AMERICAN INTERNATIONAL GROUP (AIG; .46):

AIG confirmed it was in talks with the U.S. government to prepare additional funds. AIG has already admitted $150 billion of back recently deceased last year. While we believe the dilution from the expected interchange of the N.Y. Fed’s 79.9% interest in AIG may already have being priced into the shares, we think additional dilution is likely. We are cutting our mark price to $0.50, our lowest available mark value, from $1.50. We reiterate our view that AIG’s planned asset sales, including an unconfirmed Bloomberg story that says MetLife (MET; $20.3; hold) is biassed in a life unit, may not exist plenty to repay government loans. -C. Seifert

S&P MAINTAINS HOLD OPINION ON SHARES OF MACY’S, INC. (M; 7.62):

With appear stormy SG&A expenses than we expected, Macy’s posts January-quarter operating EPS of $1.06, vs. $1.65, $0.04 higher than our estimate. By taking aggressive clearance markdowns during the lodge, the company ended fiscal year 2009 (January) with comparable-store inventories down 7.4%, which is encouraging. While we see smaller quantity markdown risk for Macy’s this spring, we expect that sales direction likely remain promotionally driven. The social meeting reiterates its fiscal year 2010 guidance of a same-store sales decrease of 6%-8% and operating EPS of $0.40-$0.55. We will update after Macy’s conference call this morning. -J. Asaeda

S&P MAINTAINS HOLD OPINION ON SHARES OF MARVEL ENTERTAINMENT (MVL; 27.05):

MVL reports fourth be stationed EPS of $0.80, vs. $0.35, ahead of our $0.70 estimate as sales related to the DVD release of Iron Man helped to drive pellicle segment sales to $155 the public and Spiderman licensing revenue held up better than we expected. We speculate MVL’s first year of in-house film production was quite successful, but by means of no releases scheduled before May 2010, we don’t see any major near-term catalysts beyond licensing revenues stemming from FOX’session release of Wolverine this May. We maintain our 2009 EPS estimate of $1.20 and our 12-month target price of $30. -E. Kolb

S&P REITERATES BUY OPINION ON SHARES OF MEDCO HEALTH SOLUTIONS (MHS; 45.99):

Fourth region operating EPS of $0.59, vs. $0.43, meets our estimate. Revenues rose 14%, mostly on new client wins and branded drug price inflation, partly offset by a rise in lower-cost generic drug volumes. We are encouraged by 96.4% retention rate and $6.1 billion in net new affair gained in the same state far in 2009. We also like 25% mount in EBITDA per adjusted script, but we see slower 2009 growth, since most new accounts have low mail penetration rates. We view over $2 billion in operating cash flow seen for 2009 as providing financial flexibility. We keep our 2009 EPS estimate of $2.77 and our $55 mark price. -P. Seligman

Original text: http://www.businessweek.com/investor/content/feb2009/pi20090224_736779.htm?campaign_id=rss_null

It appears the stalemate betwixt the bears and the bulls is self-same, and the bears still dominion

By Mark Arbeter From Standard & Poor’s Equity Research

Watch original video:

This comment was issued by Standard & Poor’s Equity Research Services deposit on Feb. 20

Our wish greatest week was that the house market do something, and our modest request came true very quickly as the major indexes finally broke down out of fairly narrow trading ranges. It appears the stalemate between the bears and the bulls is over, and the bears still rule as the downtrend in the market is alive and well. The safe haven areas continue to work in the same manner as a charm with the U.S. dollar continuing higher, long-term treasury yields moving lower and gold prices soaring above $1000 per ounce.

Taking a seem at the three greater indexes from a chart standpoint, the DJIA is clearly the weakest with the Nasdaq holding up the best, and the “500″ in one place or another in between. The DJIA was the primitive of the three indexes to break below its November bear market bottom at 7,552, and is now approaching the 2002 bear market low at 7,286. Bearishly, there was not much of a fight by the bulls at the November lows, merited some intraday short case.

The point in dispute for the DJIA, as well as the other indexes, is that once the 2002 bear market lows are taken out to the downside, there isn’t a lot of clearly identifiable chart assist that we can talk about as a possible bottom. This makes the technician’s job excellent hard at forecasting the next price nadir. In our view, chart support and check are by far the most important levels on the chart for identifying potential tops and bottoms. Going all the end to 1996, in that place is a layer of potential chart support from a sideways consolidation that sits between 5350 and 5780 for the DJIA. Very long-term trendline support, starting off the lows in 1932 and extending through the lows in 1982, using a semi-log chart, and projecting out about a year, does not arrive in to the time when the 4000 to 4500 zone.

Another way to get a potential downside mark for the DJIA because of the shortcoming of definable chart support is to base our projections on the width of the latest consolidation. Using the low from November 20, the consolidation measured 1483 DJIA points. Subtracting this width from the failure point of 7552 gives us a potential measured move down to 6069. Looking at Fibonacci extensions based on the broadness of the latest consolidation gives us each initial target of about 6600 and a possible secondary target of 5100. There are a lot of potential targets to chew on, excepting we don’t know where the next base will eventually be. We just bear to wait until the market decides where it is.

While the S&P 500 has not busted through its November 20 lows at 752, the description is not that encouraging either. The last bastion of near-term chart support for the “500″ lies between the intraday low of 741 from November 21, and the November closing low of 752. We think that these lows will be taken out, although we do calculate upon more of a try the fortune of arms by the bulls when the index gets near or into this correspond in direction as this is a logical spot for shorts to cover their positions. Even though put/outcry (p/c) ratios are finally starting to rise again, as be solicitous strikes the options market, we just don’t think that the p/c’s have spiked enough to even illicit a passable calculator trend rally. The closing low from the 2002 bear market was 777 so once the November lows give way; we be in actual possession of to go way back on the chart to find the next potential melodrama of chart food. This comes from the 1996 price consolidation that ranges betwixt in all parts of 600 and 680.

The width of the latest price combination on the S&P 500, assuming that 752 gives way, is 182 points. This gives us a potential measure move (752-182) from a thin to a dense state to 570. An initial Fibonacci augmentation, based without interruption the width of the consolidation, targets the 640 level. Major long-term trendline (semi-log scale) support opposite to the low in 1932, which touches the significant lows in 1942, 1974, and 1982, comes in betwixt 550 and 580 when extending the line abroad into next year.

While we almost always look at semi-log charts, where the distance on the y-axis is proportional based on percentage moves, in that place are other thing technicians that use streamer, art of computation charts. Interestingly, there is a pretty fine trendline starting in 1982, and going through the lows in 1984, 1987, and 1990, that comes in on every side of the 720 level. Possibly more panic and most likely, strong, powerful demand will fix the limits of the nearest price low, so we will just have to wait and descry what level at last attracts a sufficient number of buyers.

Gold prices be in possession of reached our initial target just of rectitude too great for $1000 by means of ounce so we would take more profits being of the class who we think there could be some profit taking forthcoming the prior highs we pose in 2008. With the metal hitting major chart rebuff as fully as cycling into overbought territory, we see two potential scenarios playing out. The most well-suited from a technical standpoint and greatest in number preferred from an investment view, in our view, is a near-term pullback back to the $900 to $950 area. There are many people pieces of support in that zone starting with a 23.6% retracement of the move since November, and that targets the $935 level. Trendline support, off the highs since 2008, and formerly a resistance line, also sits not far from the $935 area. Chart succor lies between $892 and $921 while explanation trendline support, off the lows since November, comes in around $900. A 38.2% retracement of the rally since November sits just in the regions of the dead $900.

The other scenario that has less probability, in our view, is that gold hangs around the $1000 area for a couple of weeks before resuming its advance. This would not allow investors wishing to either increase their positions on weakness or initialize positions on weakness much of an opportunity. If gold pulls back or pauses, we think any strong break above $1000 will open the home to another powerful move up to the $1200 to $1500 file. This projected range is based on the width of the latest correction, Fibonacci extension targets, and longer-term trendline resistance. Needless to say, the quicker the stock market declines, the faster gold will continue to be pointed arctic, in our eye.

Original text: http://www.businessweek.com/investor/content/feb2009/pi20090223_383470.htm?campaign_id=rss_null

Last fall’s fear-driven equity meltdown was scary. The latest drop in stock prices could be even scarier

By Ben Steverman

Watch original video:

The stock market on Feb. 23 replayed its November meltdown, dropping below last year’session lows to a level not seen since April 1997.

But though stocks are it being so that back at levels not seen considering 1997, February’s orderly slide feels very different from the sharp declines seen last fall. And that’s that which’session worrying investors: November’session critical juncture sometimes felt probably irrational panic, driven by fears of a financial meltdown. February’s sell-off, by contrast, seems driven by reality.

On Feb. 23, the broad Standard & Poor’s 500-stock director closed at 742.33. That’s almost exactly half the value of the log market at the beginning of 2008. It’s not just a recent bubble that has burst. If you bought into the overall stock market—represented by the agency of the S&P 500—at any point in the last 11 years, your shares are now worth less than you paid for them.

On Nov. 20, the S&P 500 closed at 752.44. But that return to 1997 levels came after the collapse of Lehman Brothers and amid genuine fears the entire world’sitting financial system was near collapse. When investors calmed down and some rational optimism returned, investors jumped back in the place of traffic, bidding the S&P 500 up 24% by Jan. 6.

But since then, a series of developments has punctured many illusions that had driven the stock market’s take courage.

First, there was the technical analysts’ argument that the November lows represented a nonplus below that the stock market would not fall. Technicians, who prognosticate the market by studying market movements closely, repeatedly saw the market dip complete to November lows but then recover. February’session drop proves that the supports under that technical nonplus were actual broken.

Second, conditions in the economy and in the stock market are worse than continually than before. Many investors were betting on a recovery in the place of the economy in the help half of 2009. However, so far there is nothing in the economic given conditions to justify those hopes. "We’ve had three months of worsening data," says independent stock algebraist Doug Peta. "Where we are now [in terms of the economy] is worse than the emporium was anticipating in November."

Moreover, the expectations for earnings by means of companies are now far worse. Analysts are sharp profits. estimates on a daily basis, undermining a key measure that investors use to determine the value of stocks. Even with the market down 49% in the the last time 14 months, "I don’confidentially think stocks are indispensably cheap," Peta says.

But the biggest disappointment for investors has tend hitherward from Washington and the banking system. While the Bush Administration’session huge point of concentration was on stopping the place of traffic panic, investors hoped the new Obama Administration would find ways to end the credit crisis.

So in a great degree, investors haven’t heard a coherent plan from Washington, says Quincy Krosby, chief investment skilful general at the Hartford (). "At this point, investors are just left waiting," she says. "The more you tarry, the more you see deterioration of the overall management."

If any other sector of the stock market faced these problems, the rest of the market puissance be good to tread water. But the financial sector’s troubles could convenience into a deeper and more serious economic downturn. "As the financial sector goes, so goes the regulation," Krosby says.

As chief economist at Ibbotson Associates, a subsidiary of Morningstar (MORN), Michele Gambera tracks a wide variety of economic facts. But, he says, the key given conditions theme these days is the category of the bond market. He likens the confidence market to the economic motor’s transmission. "If the transmission is jammed, there is nothing that be able to move," he says.

Both investors and the Obama Administration are caught in a Catch-22. If policymakers like Treasury Secretary Timothy Geithner hurry and implement a plan quickly, it might not work. "The risk is that the current conditions force Geithner’s hand to put together a superficial and less than comprehensive be nearly equal," warns Daniel Clifton of Strategas, a Washington consulting firm.

But as investors wait for a comprehensive solution, the good housewifery and market conditions get worse. "There is no silver bullet," Peta says. "There isn’t a nondisruptive way to set everything."

Many investors fear a drastic step like the nationalization of banks, which would wipe out more shareholders. But others, like Peta, worry the Administration hasn’t been abrupt enough.

For now, investors are stuck in an unsettled environment, where everything they search into to make decisions — from earnings to economic measures to technical indicators — is deteriorating before their eyes. Stocks at these price levels could reproduce long-term bargains. But at a time like this, few investors are bold enough to challenge the bear.

Original text: http://www.businessweek.com/investor/content/feb2009/pi20090223_552263.htm?campaign_id=rss_null