December 2009

San Francisco apartment buildings acquired by foreclosure

December 31, 2009

area are being acquired through the “loan to own” technique that is growing in popularity among buyers of distressed assets. Private equity firm Tribeca Cos. bought the defaulted debt from the lender UBS AG at 50 cents on the dollar. Now it is pressing

Read the full article →

Program takes the stress out of distressed debt

December 31, 2009

Recently, many lawyers have found themselves taking crash courses in dealing with distressed companies and defaults. PLI’s Recent Developments in Distressed Debt, Restructurings and Workouts — Fallout From the Credit Crunch, being held Jan. 28 and ,

Read the full article →

Program takes the stress out of distressed debt

December 31, 2009

Recently, many lawyers have found themselves taking crash courses in dealing with distressed companies and defaults. PLI’s Recent Developments in Distressed Debt, Restructurings and Workouts — Fallout From the Credit Crunch, being held Jan. 28 and ,

Read the full article →

Video: Cinnamond Says CSG Systems Attractive Among Small-Caps: Video

December 31, 2009

Dec. 31 (Bloomberg) — Eric Cinnamond, manager of the Intrepid Small Cap Fund, talks with Bloomberg’s Betty Liu and Jon Erlichman about investment strategy in small-capitalization stocks and the performance of CSG Systems International Inc. (Source: Bloomberg)

Read the full article →

Bankrupt Village Homes purchased

December 31, 2009

Two real estate powerhouses have teamed up to buy the assets of bankrupt Village Homes for $21.9 million. Homebuilder Capital Solutions, an affiliate of Louisville-based Colorado & Santa Fe Real Estate

Read the full article →

Bankrupt Village Homes purchased

December 31, 2009

Two real estate powerhouses have teamed up to buy the assets of bankrupt Village Homes for $21.9 million. Homebuilder Capital Solutions, an affiliate of Louisville-based Colorado & Santa Fe Real Estate

Read the full article →

Written agreement with Sterling Financial

December 31, 2009

Written agreement with Sterling Financial

Read the full article →

Housing In 2010 (Forbes)

December 31, 2009

Christopher Hyzy, Paul Maidment, Bernie McSherry and Carol Pepper discuss the housing sector’s outlook in 2010.

Read the full article →

Northwest Airlines No More: Delta Dropping Northwest Name After FAA Grants Permission To Work As One

December 31, 2009

ATLANTA — Delta Air lines Inc. has received government permission to operate its namesake service and its Northwest Airlines subsidiary as a single carrier, a Delta executive said Thursday. The single operating certificate from the Federal Aviation Administration allows Delta to put its code on Northwest flights and phase out the Northwest name. That process will be complete in the first quarter of 2010. For now, travelers won’t notice anything different. Delta, based in Atlanta, acquired Northwest for $2.8 billion in stock in October 2008 to become the world’s biggest airline. Delta and Northwest are now one airline, meaning that for the first time pre-merger Northwest operations will be combined into Delta’s operations, Chief Operating Officer Stephen E. Gorman said in an internal memo. Labor issues remain, however. While pilots and some smaller work groups from both carriers are operating under joint contracts and seniority lists, flight attendants and gate and reservation agents and ramp workers have not resolved representation issues. Pre-merger Northwest was heavily unionized, while pre-merger Delta was not – its pilots were its only major work group to be in a union. Meanwhile, more than 80 percent of pre-merger Northwest aircraft have already been painted over with the Delta livery. Employees of both carriers are wearing the same uniforms, and the two carriers frequent-flier programs have already been combined under the Delta SkyMiles brand. But operationally, the two carriers have been kept separate while Delta sought the FAA certificate. Delta plans to operate Northwest-coded flights until all seats and fares are consolidated in Delta’s reservations system. Once that occurs, it will remove the distinction for passengers of purchasing on Delta or Northwest, and the Northwest Web site will be folded into Delta’s. Still unresolved for Delta is its effort to lure Japan Airlines Corp. away from its alliance with American Airlines and into Delta’s SkyTeam alliance. There’s been no word on a decision by JAL, which is said to be teetering on the verge of bankruptcy. Delta also is dealing with the aftermath of a failed terrorist attack on a Northwest flight from Amsterdam to Detroit on Christmas.

Read the full article →

Experts: Commercial Real Estate To Fare Worst In 2010

December 31, 2009

Most turnaround professionals predict a hard slog toward economic recovery in 2010 as businesses weighed down by debt hit rough patches and credit markets shun them, a new survey found. Three out of four respondents to the Turnaround Management

Read the full article →

Experts: Commercial Real Estate To Fare Worst In 2010

December 31, 2009

Most turnaround professionals predict a hard slog toward economic recovery in 2010 as businesses weighed down by debt hit rough patches and credit markets shun them, a new survey found. Three out of four respondents to the Turnaround Management

Read the full article →

AT&T Drops Tiger Woods Sponsorship

December 31, 2009

The Wall Street Journal reports that AT&T is ending its sponsorship of Tiger Woods. According to the article, “AT&T’s logo appeared on Mr. Woods’ golf bag, and has been the title sponsor of a PGA event in July with Mr. Woods as the host.” AT&T is not alone in reevaluating its relationship with Woods. Accenture is another company to drop Woods as a sponsor in light of his long list of alleged mistresses . Meanwhile, one study estimated that Woods has caused $12 billion worth of damage . Among other companies that have apparently shied away from Woods are Gatorade, which discontinued its Tiger Focus drink (although it claims the decision had been made prior to the golfer’s scandal) and Gillette, which said it will limit Woods’ role in the company’s marketing . Tag Heuer, on the other hand, has prominently backed Woods , featuring a graphic on its web site saying the company “stands with” the golfer. Women linked to Tiger Woods: Playboy model Loredana Jolie. 40-something “cougar” Theresa Rogers : picture. NSFW pictures of porn star Joslyn James. NSFW pictures of porn star Holly Sampson. Mindy Lawton , who claims Woods is “very well endowed.” Pictures of Jamie Jungers , alleged Tiger Woods mistress. The latest Jaimee Grubbs pictures . Photo and video of another alleged mistress, Kalika Moquin. More pictures of Jaimee Grubbs . Pictures of Rachel Uchitel . Additional pictures of Uchitel. Cori Rist , Woods’ sixth alleged mistress. Pictures of Woods’ ex-girlfriend , Joanna Jagoda. Pictures of Woods’ wife , Elin Nordegren. Text messages Tiger Woods allegedly sent Jaimee Grubbs. The voicemail Woods allegedly left Grubbs. Photographs of the storied clients that Rachel Uchitel’s attorney has represented over the years. Get HuffPost Sports on Facebook and Twitter!

Read the full article →

Video: Kennedy Says NHL Winter Classic to Benefit Fenway Brand: Video

December 31, 2009

Dec. 31 (Bloomberg) — Sam Kennedy, president of the Fenway Sports Group and chief operating officer of the Boston Red Sox, talks with Bloomberg’s Betty Liu about the outlook for the 2010 Winter Classic at Fenway Park, which will pit the Boston Bruins against the Philadelphia Flyers tomorrow. (Source: Bloomberg)

Read the full article →

Video: Achuthan Discusses Economy, Fed Monetary Policy: Video

December 31, 2009

Dec. 31 (Bloomberg) — Lakshman Achuthan, managing director at the Economic Cycle Research Institute, talks with Bloomberg’s Betty Liu about the outlook for the U.S. economic recovery. Achuthan also discusses investment strategy, the labor market and its correlation to Federal Reserve monetary policy. (Source: Bloomberg)

Read the full article →

College Food Banks See An Increase In Hungry Students (VIDEO)

December 31, 2009

For many students, the myth of the easy college life has always been fantasy. But the dual forces of a crippling recession and rising tuition costs are choking off the ability of many parents to help pay for their kids’ education. Which may be why, according to this report from NBC, university officials around the country are reporting that an increasing number of students are relying on college food banks. Thanh Truong of “The Today Show” visited a student food bank at Michigan State University in East Lansing, where university officials insisted that the students who use the facility are in desperate need. “The perception that college students are free and easy, that they can go party any time, and that they have a lot of excess money just isn’t real anymore,” Dennis Martell, the university’s Director of Health Education Services, said. WATCH: Visit msnbc.com for breaking news , world news , and news about the economy Get HuffPost Business On Facebook and Twitter !

Read the full article →

Joseph Stiglitz: 5 Lessons From The Crisis We May Need To Learn All Over Again

December 31, 2009

The best that can be said for 2009 is that it could have been worse, that we pulled back from the precipice on which we seemed to be perched in late 2008, and that 2010 will almost surely be better for most countries around the world. The world has also learned some valuable lessons, though at great cost both to current and future prosperity – costs that were unnecessarily high given that we should already have learned them. The first lesson is that markets are not self-correcting.

Read the full article →

Kilroy Realty’s Fourth Quarter 2009 Earnings Conference Call

December 31, 2009

Kilroy Realty Corporation has scheduled its quarterly conference call to discuss its fourth quarter financial results on Tuesday, January 26, 2010 at 11:00 a.m. PT .

Read the full article →

Video: E-Reader Sales May Double in 2010 as New Devices Debut: Video

December 31, 2009

Dec. 31 (Bloomberg) — Bloomberg’s Cris Valerio reports on the outlook for the electronic book-reader market. (Source: Bloomberg)

Read the full article →

Rick Warren’s Saddleback Church Asks For Urgent $900,000

December 31, 2009

LAKE FOREST, Calif. — Evangelical pastor Rick Warren appealed to parishioners at his Orange County megachurch Wednesday to help fill a $900,000 deficit by the first of the year. Warren made the appeal in a letter posted on the Saddleback Church Web site. It begins “Dear Saddleback Family, THIS IS AN URGENT LETTER.” “With 10 percent of our church family out of work due to the recession, our expenses in caring for our community in 2009 rose dramatically while our income stagnated,” the letter reads. Still, Warren said the church managed to stay within its budget, but “the bottom dropped out” when Christmas donations dropped. “On the last weekend of 2009, our total offerings were less than half of what we normally receive – leaving us $900,000 in the red for the year,” the letter reads. “It’s basically having to do more with less,” church spokesman A. Larry Ross said. “The seasonal Christmas offering was down significantly and, commensurately, the need for services the church is expected to provide is up,” Ross said. Warren’s appeal presents an opportunity for those who haven’t been hit by the recession to step up and help, Ross said. The letter details some of the church’s accomplishments in 2009 and where the donations would be used, including the church’s food pantry, homeless ministry, counseling and support groups. It then lists three ways parishioners can make their donations. Warren was named the top newsmaker of the year by the Religion Newswriters Association. He gained attention with his invocation at the inauguration of President Barack Obama and comments in the aftermath of California’s Proposition 8, which overturned gay marriage. Warren also gained attention for his work in Africa involving AIDS relief and other humanitarian activities. Warren is the author of numerous books, including the best-selling “The Purpose Driven Life.” He founded Saddleback Church in 1980 in Lake Forest, about 65 miles southeast of Los Angeles.

Read the full article →

Video: RBS’s Stanley Sees Growth in U.S. Temporary Jobs Hiring: Video

December 31, 2009

Dec. 31 (Bloomberg) — Stephen Stanley, chief economist at RBS Securities Inc., talks with Bloomberg’s Deirdre Bolton and Jon Erlichman about the outlook for the U.S. jobs market, economy and Federal Reserve monetary policy. (Source: Bloomberg)

Read the full article →

Advanced Distressed Debt Lesson #4: General Growth Properties …

December 31, 2009

By Hunter. It has been a few months since we had our last advanced distressed debt lesson The rest is here: Advanced Distressed Debt Lesson #4: General Growth Properties (Guru Focus). Read the original: Advanced Distressed Debt Lesson …

Read the full article →

Advanced Distressed Debt Lesson #3: Fraudulent Conveyance (Guru Focus)

December 31, 2009

By Hunter. Before getting to our lesson on fraudulent conveyance, I would like thank those that have applied to the Distressed Debt Investors Club. The rate of applications coming in is better than I expected. I am humbled by the response of our readers. Remember, we will take applications through next weekend before the site is opened up to admitted members. Apply soon! Read more » »

Read the full article →

Video: Reporter Stelter on News Corp., Time Warner Cable Talks: Video

December 31, 2009

Dec. 31 (Bloomberg) — New York Times reporter Brian Stelter talks with Bloomberg’s Jon Erlichman and Deirdre Bolton about News Corp.’s transmission fees negotiations with Time Warner Cable Inc. Stelter also discusses the relationship between broadcasters and cable providers and other media outlets viewers may turn to in the event Fox is pulled from the cable system. (Source: Bloomberg)

Read the full article →

New Jobless Claims Fall Unexpectedly

December 31, 2009

WASHINGTON — A record 20 million-plus people collected unemployment benefits at some point in 2009, a year that ended with the jobless rate at 10 percent. As the pace of layoffs slows, the number of new applicants visiting unemployment offices has been on the decline in recent months. But limited hiring means the ranks of the long-term unemployed continues to grow, with more than 5.8 million people out of work for more than six months. The number of new claims for jobless benefits dropped last week to 432,000, the Labor Department said Thursday, down sharply from its late March peak of 674,000. The decline signals that the economy could begin adding a small number of jobs in January, several economists said. Still, hiring is unlikely to be strong enough to quickly bring down the unemployment rate, which fell from 10.2 percent in October to 10 percent in November. December’s rate will be announced Jan. 8. Companies will remain cautious about adding staff until they are confident the economic recovery is sustainable – something they remain unsure about as consumers and businesses keep a lid on spending, and as the government begins to wind down various stimulus programs. The Federal Reserve and private economists expect joblessness to stay above 9 percent through the end of 2010. The slow pace of hiring will force Congress and the Obama administration in 2010 to spend as much as $70 billion to extend jobless aid for the long-term unemployed, or else let benefits – which were extended several times in 2009 – expire for millions of people. “Fewer people are getting fired, but nobody is finding a job,” said Dan Greenhaus, chief economic strategist at Miller Tabak. Thursday’s report illustrates the two different trends: first-time jobless claims are falling as layoffs ease, but the total number of people collecting unemployment checks is still rising. More than 10.1 million people collected jobless benefits in the week of Dec. 12, the latest data available. That’s up by about 200,000 compared with the previous week. That figure includes 5.3 million people receiving the 26 weeks of aid customarily provided by the states, and 4.8 million people that have shifted to the extended benefit programs enacted by Congress over the past two years and paid for by the federal government. Unemployment insurance averages about $300 per week. But the extensions are set to expire in February. That could mean as many as 1 million people would run out of unemployment aid in March, according to the National Employment Law Project, a nonprofit group. The total number of people who at one point collected benefits in 2009 – roughly 20.7 million – is also a record. A larger proportion of the unemployed received jobless benefits in the last steep recession in 1981-82, but the work force has grown by about one-third since then. Fifteen million Americans are out of work, an increase of 3.8 million since the start of 2009. There are six unemployed people, on average, for each available job. And the so-called underemployment rate, counting part-time workers who want full-time jobs and laid-off workers who have given up their job hunt, stands at 17.2 percent. Budget-strapped state governments will struggle with higher spending on unemployment insurance in 2010. States are required to set aside money in a trust fund to pay jobless benefits, but 25 have already run through their funds and have borrowed $26 billion from the federal government. The Labor Department has projected that 40 states may need to borrow as much as $90 billion by 2012. Thirty-five states have already increased the unemployment insurance taxes they levy on employers for 2010, according to the National Association of State Workforce Agencies. Some are also cutting benefits as they try to reduce the size of budget shortfalls that are expected to reach $180 billion in the coming fiscal year. The drain on federal and state finances could force Congress to consider raising the federal unemployment insurance tax, which is currently 0.8 percent on the first $7,000 of wages, or making other changes.

Read the full article →

Video: U.S. Estate Tax Scheduled to Expire at Midnight for Year: Video

December 31, 2009

Dec. 31 (Bloomberg) — Bloomberg’s Lindsey Arent reports on the U.S. federal estate tax, which is set to expire at midnight tonight and not be reinstated for at least one year. (Source: Bloomberg)

Read the full article →

Video: McCullough Says Dollar to Strengthen Over Euro, Gold: Video

December 31, 2009

Dec. 31 (Bloomberg) — Keith McCullough, chief executive officer of Research Edge LLC, talks with Bloomberg’s Deirdre Bolton and Jon Erlichman about the outlook for the dollar. McCullough also discusses the drivers contributing to the dollar’s rise, investment strategy and the outlook for the currency market. (Source: Bloomberg)

Read the full article →

Advanced Distressed Debt Lesson #3: Fraudulent Conveyance

December 31, 2009

Before getting to our lesson on fraudulent conveyance, I would like thank those that have applied to the Distressed Debt Investors Club. The rate of applications coming in is better than I expected. I am humbled by the response of our …

Read the full article →

High CEO Pay May Correlate With Lower Long-Term Stock Value, According To Two Studies

December 31, 2009

The defenders of Wall Street pay usually rely on a rather familiar argument. It goes something like this: CEOs demand millions because they deliver profits, which are passed along to their shareholders. And, the argument goes, corporate executives who aren’t paid well will simply pack up and take their vaunted leadership skills somewhere else. (The argument has been a favorite of executives at near-failed companies like AIG.) But two recent studies suggest that lavish CEO compensation may in fact undermine shareholder wealth. In a study released last week , Raghavendra Rau and Huseyin Gulen of Purdue University and Michael J. Cooper of the University of Utah surveyed 1,500 companies that extended incentive compensation to their CEOs between 1994 and 2006, and examined whether pay correlated to stock performance. The researchers compared CEO pay across their data set and found that the 10 percent of companies with the most highly paid CEOs earned unusually low returns in both the near- and long-term. And the effects worsened over time: “The results are striking. In the year after the firms are classified into the lowest and highest compensation deciles respectively (column titled “(+1,+12)”), firms in the lowest total compensation decile earn insignificant industry- and momentum adjusted returns of -0.76%. In contrast, the firms in the highest compensation decile earn a highly significant -4.38%. The performance worsens significantly over time. In the five years after the classification period, firms in the high compensation decile earn a significant negative excess return of -12.27% while firms in the lowest compensation decile earn an insignificant 0.29%. The pattern is similar when we sort on either cash or incentive compensation separately.” For the companies whose CEOs earn the most in incentive compensation — defined as restricted stock and stock options — the returns were especially low. (This may not bode well for those Wall Street firms, like Goldman Sachs, who have taken to cutting down cash bonuses and boosting stock awards for execs.) As for an explanation of the findings, the authors speculated that when “over-confident managers” take oversize pay packages, “investors over-react to these pay grants and are subsequently disappointed.” A separate study led by Harvard Law’s Lucian Bebchuk investigated the relationship between future company performance and “CEO pay slice” (CPS) — the percentage of the total compensation for the top five executives that is allocated to the CEO alone. Bebchuk and his colleagues found a negative relationship between a higher CEO share of the executive compensation pot and firm value. Which is another way of saying that high CEO pay may actually hurt certain aspects of corporate performance: “CPS also has a rich set of relations with firms’ behavior and performance: in particular, CPS is correlated with (i) lower (industry-adjusted) accounting profitability, (ii) lower stock returns accompanying acquisitions announced by the firm and higher likelihood of a negative stock return accompanying such announcements, (iii) higher odds of the CEO’s receiving a “lucky” option grant at the lowest price of the month, (iv) greater tendency to reward the CEO for luck due to positive industry-wide shocks, (v) lower performance sensitivity of CEO turnover, (vi) lower firm-specific variability of stock returns over time, and (vii) lower stock market returns accompanying the filing of proxy statements for periods where CPS increases.” Read Professor Bebchuk’s study here . Get HuffPost Business On Facebook and Twitter !

Read the full article →

Video: GMAC Gets $3.8 Billion in Third U.S. Bailout Package: Video

December 31, 2009

Dec. 31 (Bloomberg) — GMAC Inc., the auto and home lender bailed out twice by the U.S. government, received a third rescue package valued at $3.79 billion that gives taxpayers a majority stake in the Detroit-based company. Bloomberg’s Lindsey Arent reports. (Source: Bloomberg)

Read the full article →

Advanced Distressed Debt Lesson #2

December 31, 2009

By Hunter. In our first edition of Advanced Distressed Debt learning / knowledge base, we discussed negative pledges. In this post, we will discuss the issue of exclusivity. Read more » »

Read the full article →

Hix, Goodman Lead List of London’s New Restaurants in 2009: Richard Vines

December 31, 2009

By Richard Vines Dec. 31 (Bloomberg) — The combination of recession, job losses and shrinking bonuses might have spelled trouble for London restaurants, so it comes as a surprise that it’s easier to list the ones that opened in 2009 than those that closed. In picking the top 10 newcomers, I’ve focused on places I’ve reviewed this year. (Some opened late in 2008.) Iberica and the excellent Harwood Arms are missing only because I haven’t yet published full reviews. Here is the list: 10. Ba Shan. This corner eatery focuses on snacks and street food from China’s Sichuan province and Xi’an, with a menu that is dominated by dumplings and noodles. The flavors are big, the portions are small and the prices are more comfortable than the stool you may be expected to sit on. Favorite dish: Jia Mo Shaanxi flatbread buns. 24 Romilly Street, W1D 5AH. Tel. +44-20-7287-3266. 9. The Albion. Terence Conran and his business partner Peter Prescott didn’t put a foot wrong this year. First, they opened Boundary, in Shoreditch, with its basement restaurant, roof terrace and street-level cafe. Then Lutyens, on Fleet Street. Albion, Boundary’s cafe, serves solid British food at reasonable prices. Favorite dish: deviled kidneys on toast. 2-4 Boundary Street, E2 7DD. Tel. +44-20-7729-1051 or click on http://www.albioncaff.co.uk/ . 8. Bar Trattoria Semplice. This small offshoot of the Michelin-starred Ristorante Semplice shares many of the qualities of its big sister: great produce imported from Italy, a tempting wine list and cooking that is unfussy. It’s on a small street between Oxford Street and Bond Street. The service can be uneven but it’s hard to beat the Trattoria for value. Favorite dish: pan-fried calf’s liver with onions. 22-23 Woodstock St., W1C 2AP. Tel. 44-20-7491-8638 or click on http://www.bartrattoriasemplice.com/ . 7. Kitchen W8. This is the neighborhood establishment created by the chef Phil Howard (The Square) and restaurateur Rebecca Mascarenhas. High Street Kensington is posh, so don’t expect any rough edges. The menu is enticing, the ingredients are good, the dishes are creative and the prices are reasonable. Favorite dish: Game consomme with bacon, cream and a small game hot dog. 11-13 Abingdon Road, London, W8 6AH. Tel. +44-20-7937-0120 or click on http://www.kitchenw8.com/ . 6. Galvin La Chapelle. Brothers Chris and Jeff Galvin (of Galvin Bistrot de Luxe) opened this establishment in a high- ceilinged, listed building in October. Careful restoration and a lot of time and money have given it the look of a beautiful church. The same focus and attention to detail have gone into the food, both in the restaurant and the cafe next door. Favorite dish: roast cote de boeuf, truffle macaroni. 35 Spital Square, London, E1 6DY. Tel. +44-20-7299-0400 or click on http://www.galvinrestaurants.com . 5. Bocca di Lupo. This little Soho eatery serving small plates of food from across Italy can be one of the most difficult venues to get a booking. The best seats are at the counter, where you can watch chef Jacob Kennedy at work. Those seats are also the best for service, because you can intercept waiters. I showed the wine list to some sommeliers and they were most impressed. Favorite dish: Tuna carpaccio with oranges, capers and pine nuts. 12 Archer Street, W1D 7BB. Tel. +4420-7734-2223 or click on http://www.boccadilupo.com/ . 4. Terroirs. This is one of a trio of eateries to open in the past 12-18 months serving small plates of food to share in informal surroundings. (The other two are Bocca di Lupo and Polpo.) Terroirs describes itself as a wine bar, with a list that focuses on organic wines made by small artisan growers. For food lovers, the rustic French fare is also very much a draw. Favorite dish: fricassee of girolles, duck egg. 5 William IV Street, WC2N 4DW. Tel. +44-20-7036-0660 or click on http://www.terroirswinebar.com . 3. Polpo. A shop front in Soho tells you little about this Venetian-style wine and snack bar owned by Russell Norman, the former operations director of Caprice Holdings Ltd. Norman formerly managed Zuma, among other venues, and is respected by his peers in the hospitality business. The place is always packed, and a no-bookings policy can mean long waits. For a fun night out with friends, Polpo is very hard to beat. Favorite dish: chopped chicken liver. 41 Beak Street, W1F 9SB. Tel. +44-20-7734-4479 or click on http://www.polpo.co.uk . 2. Goodman. Rarely has a London restaurant enjoyed as much universal approval as Goodman, a Russian-owned Mayfair steak house that combines fine meat with professional service. The waiters will happily take the time to discuss the merits of the various cuts and I have yet to be disappointed with any dish I’ve been served there. It’s not cheap but the prices aren’t crazy and there’s an epic hamburger if you’re on a budget. Favorite dish: Bloody Mary. 26 Maddox Street, London, W1S 1QH. Telephone +44-20-7499- 3776 or click http://www.goodmanrestaurants.com . 1. Hix. Mark Hix’s new Soho restaurant is often filled with celebrities and friends of the chef and you might feel like a competition winner at a fancy party. (I admit it: I’m friendly with him.) Hix’s specialty of carefully sourced British produce, prepared with a minimum of fuss by Kevin Gratton, who heads the kitchen, provides the kind of comfort and joy that’s needed in an economic recession. The basement bar serves the best cocktails I’ve had in London. Favorite dish: wild duck on toast with salsify and elderberries. 66-70 Brewer Street, London, W1F 9UP. Tel. +44-20-7292- 3518 or click http://www.hixsoho.co.uk/ . ( Richard Vines is the chief food critic for Bloomberg News. The opinions expressed are his own.) To contact the writer on the story: Richard Vines in London at rvines@bloomberg.net .

Read the full article →

Microsoft’s Windows Needs a Swift Kick in the Boot-Up: Rich Jaroslovsky

December 31, 2009

Commentary by Rich Jaroslovsky Dec. 31 (Bloomberg) — It took about 20 years before television viewers no longer had to wait for their sets to warm up. Yet here we are, 30-plus years into the personal computer era, and the instant-on PC remains elusive. That may be about to change. Today’s tech consumers have grown accustomed to always-on smart phones and efficient netbooks they can leave for hours in “sleep” mode without rebooting. As a result, they are losing patience with the spinning logos, hourglasses, and twiddling thumbs that define the experience of booting up most Windows PCs. And they are showing a growing interest in hardware and software that speed up the process, or can even sidestep it. By most accounts, Windows 7, the current version of Microsoft Corp. ’s operating system, is quicker off the mark than its predecessor, Windows Vista. Microsoft cites its efforts with partners such as Lenovo Group Ltd. to optimize Windows boot-up times, and its work on power management that it says makes Windows’ sleep mode the moral equivalent of instant-on. Still, making Windows faster isn’t the same thing as making Windows fast; starting a PC can take anywhere from less than one minute to more than 10, depending on its hardware and the version of Windows it’s using. And leaving computers in indefinite sleep runs counter to the U.S. government’s best advice on saving energy. So if you’re impatient for a better solution — and after all, impatience is what this is all about — here are three ways to get closer to the goal: Windows Add-On — Run an instant-on operating system in addition to Windows. A number of programs aim to work around Windows’ slow boot times by simply not booting Windows. Instead, these programs — some of which come installed on new computers from Dell Inc ., Hewlett-Packard Co. , Asustek Computer Inc. and Acer Inc. , among others — launch a stripped-down desktop that allows you to surf the Web, handle any e-mail you can view in a browser and perform other basic tasks. Windows is there, but only to be summoned when needed. I’ve been using one such program, HyperSpace from Phoenix Technologies Ltd. , on a Samsung NC10 netbook for the last couple of weeks. If it’s a quick start you’re looking for, HyperSpace provides it. Press the power button, and within 15 seconds, the Linux- based HyperSpace presents you with a customizable screen including a browser, a notepad application, RealNetworks Inc. ’s RealPlayer media software and news, weather and stock information. I could jot a quick note, view videos from YouTube and even make calls using Skype , all without ever launching Windows. Less Satisfying The experience became a little less satisfying, though, once I hit the icon on the HyperSpace desktop to launch Windows. For one thing, you can’t load Windows in the background, so using HyperSpace doesn’t eliminate waiting for it to boot, just delays it. Moreover, while the two systems exist side by side, jumping back and forth between them can pose problems. I found the speed of the switch to be highly variable: Sometimes it was quite brisk; other times, especially when running off of the Samsung’s battery, I faced long, uncomfortable pauses where nothing seemed to be happening on the screen. Do I keep waiting? Do I click again? If you’re like me, you may find yourself doing fewer and fewer things within the Windows environment. Which may be good for your productivity — but can’t possibly be good news for Microsoft. Solid-State Drives — Switch to a solid-state drive. Conventional hard drives are mechanical devices, and it takes time to locate and access your data on a spinning platter. Solid-state drives, by contrast, have no moving parts; information is stored on microchips, and is instantly accessible. As a result, SSDs are faster and use 80 percent less power, according to Samsung, which along with Intel is a major supplier of the drives. I’ve been using a Dell Latitude E4300 notebook computer outfitted with a 256 gigabyte Samsung SSD. No messing around with multiple operating systems here. Instead, it is pure Windows — at light speed. Using Windows 7, the Latitude rockets from zero to ready for action in a mere 20 seconds. As an added benefit, just about every other function gets a speed boost too. Programs launch in the blink of an eye, and the computer shuts down in five seconds. Stiff Price Alas, the speed comes at a stiff price. There’s still a vast gulf between SSDs and mechanical drives: Putting an SSD in the Latitude adds about $700 to its price, compared with a conventional hard disk of similar capacity. In other words, solid state is the way to go, but only if you’ve got the dough. — Get rid of Windows. There are more operating-system alternatives to Windows today than at any point in the last two decades. And the options are increasing. Most obviously, there’s Apple Inc. ’s OS X. The current version, Snow Leopard, boots 10 percent to 15 percent faster than Windows 7, according to most tests. While that’s good, no one would describe a Mac as “instant on.” And its advantages come at the cost of higher prices and less hardware selection than its PC equivalents. For those with less money in their wallets and more adventure in their souls, there’s Ubuntu , a free, consumer- oriented Linux environment from Canonical Ltd. with startup times comparable to HyperSpace. And lurking in the wings is Google Inc. , which is promising its own operating system, Chrome OS, for 2010. Chrome OS was designed with instant-on in mind. At its public debut this summer, Google executives showed a netbook reaching its log-in screen seven seconds after powering up, and said they were working to bring that down even more. All these developments put Microsoft on notice that it is going to have to move more quickly — literally — to retain its dominant position. Speaking for computer users everywhere, I can’t wait. ( Rich Jaroslovsky is a Bloomberg News columnist. The opinions expressed are his own.) Click on “Send Comment” in the sidebar display to send a letter to the editor. To contact the writer of this column: Rich Jaroslovsky in New York at rjaroslovsky@bloomberg.net .

Read the full article →

Goldman Sachs’s Blankfein, Microsoft’s Gates Visited White House This Year

December 31, 2009

By John McCormick and Brian Faler Dec. 31 (Bloomberg) — President Barack Obama or top administration officials met at the White House with Goldman Sachs Group Inc. Chairman Lloyd Blankfein , Microsoft Corp. co- founder Bill Gates and World Bank President Robert Zoellick , records show. Blankfein and Gates met with economic adviser Lawrence Summers , while Zoellick met with the president. The visits were among more than 27,000 added to the White House Web site yesterday as part of a periodic release of visitor logs that the Obama administration and its predecessors had sought to keep private. Steven Rattner , the former private-equity executive and automotive adviser to the Obama administration, visited the White House more than 50 times between the January inauguration and mid-July, often to see Summers. On Sept. 17, the day before it was reported that Federal Communications Commission Chairman Julius Genachowski planned to propose rules requiring Internet companies to treat content providers equally, Summers met with the FCC chief, the records show. Muhtar Kent , chairman of Coca-Cola Co. , the world’s largest soft-drink maker, also met with Summers, the records show. Penny Pritzker , who led Obama’s campaign fundraising effort and is chairman of Pritzker Realty Group, visited 15 times between the inauguration and mid-June. She met with the president, first lady Michelle Obama and senior adviser Pete Rouse and attended economic events. Longtime Friends David Axelrod , a senior adviser to the president, met with several longtime friends and early supporters from Obama’s adopted hometown of Chicago. One Chicago visitor was Bettylu Saltzman, a Democratic activist who introduced Axelrod to Obama in 1992. On May 20, she met with Axelrod and Rouse, returning on July 20 to meet with Rouse. Axelrod and Obama had July 30 meetings with Chicagoan Louis Susman , the U.S. ambassador to the U.K. He is a retired Citigroup Inc. senior investment banker who raised between $200,000 and $500,000 for Obama’s campaign. Actor Mario Van Peebles visited the White House on Sept. 24. Musician Bono of U2 met with Budget Director Peter Orszag on Sept. 30. Jeffrey Immelt , the chairman of Fairfield, Connecticut- based General Electric Co. , met with Orszag on Sept. 23. The latest release includes the period from Sept. 16 through Sept. 30, as well as about 2,000 records generated from queries from the media and others for visits before that period. While the records include names, they don’t include titles, companies or associations. Almost 700 Queries Norm Eisen , special counsel to the president for ethics and government reform, said in a statement that almost 700 visitor queries were filed by the public during November for the period before Sept. 16, the date the White House decided to use as a starting point for the routine release of visitor information. “We are excited about the visitor records policy not only because we are breaking new ground for this administration, but also because we are establishing a new standard for all future administrations,” Eisen said. “We know of no comparable initiative in the history of the White House.” The White House released about 500 records in October and about 1,600 in November, he said. Lawsuit The watchdog group Citizens for Responsibility and Ethics in Washington pressed for release of records showing who met with administration officials. In July, the group sued to force the Secret Service to release information about visits by coal company executives since Obama took office in January. The information is made public at the end of each month. White House press secretary Robert Gibbs has said that 70,000 to 100,000 people visit the White House monthly. The public logs omit visitors whose names can’t be disclosed because of national security concerns or in cases where the visit is confidential, such as a presidential interview with a potential Supreme Court nominee. The records also don’t include personal guests of the Obama children. To contact the reporters on this story: John McCormick in St. Paul at jmccormick16@bloomberg.net ; Brian Faler in Washington at bfaler@bloomberg.net

Read the full article →

Obama Urged to Boost Anti-Terror Efforts as Bomb Attempt Shows Safety Gap

December 31, 2009

By Jonathan D. Salant and Angela Greiling Keane Dec. 31 (Bloomberg) — President Barack Obama is being urged to strengthen anti-terrorism efforts as he awaits initial results of an investigation into the Dec. 25 attempted bombing of a U.S. airliner. Senate Intelligence Committee Chairwoman Dianne Feinstein asked the president in a letter yesterday to change a 2008 policy that limits the government’s ability to place people on a watch list requiring extra screening or banning them from flying. “The U.S. government should watch-list, and deny visas to, anyone who is reasonably believed to be affiliated with, part of, or acting on behalf of a terrorist organization,” Feinstein, a California Democrat, said in the letter. Obama has requested the criteria used for placing people on watch lists as part of the examination of anti-terror policies. Obama, on vacation in Hawaii, is to receive preliminary results today from a probe of what he called the “systemic failure” that let Umar Farouk Abdulmutallab carry explosives onto a U.S. airliner leaving Amsterdam on Dec. 25. Although Abdulmutallab was on a list of potential terrorists, he wasn’t subject to special screening at the airport. He is charged with trying to blow up the Northwest Airlines flight as it prepared to land in Detroit. The Netherlands and Nigeria announced yesterday they will start using full-body scanners to detect explosives being carried by passengers. Airline security and intelligence were overhauled after the Sept. 11 attacks, including creation of the Department of Homeland Security to improve intelligence-gathering and the Transportation Security Administration to take over passenger screening at airports. ‘Same Kind of Failures’ Eight years later, “the same kind of failures that were there in 9/11 were present in this one,” former New Jersey Governor Tom Kean , a Republican who was chairman of the commission that examined the Sept. 11 attacks, said in an interview yesterday. “No one is connecting the dots. It’s the same thing all over again, and that’s what is frustrating.” Obama said Dec. 29 that U.S. intelligence agencies missed “red flags” that could have put Abdulmutallab, a 23-year-old Nigerian, on a watch list requiring extra screening or banning him from flying. Conventional metal detectors don’t detect the explosives Abdulmutallab was carrying. Three congressional committees plan to hold hearings next month on the incident. Breakdown in Procedures “We have to fully investigate this incident to find accountability for the breakdown in security procedures,” said Byron Dorgan of North Dakota, a member of the Senate Commerce Committee. U.S. Representative John Mica of Florida, the top Republican on the House Transportation and Infrastructure Committee , said more is needed. “Unfortunately, it’s turned into sort of a reactionary system and not enough initiatives to handle situations like we’ve got,” Mica said. The TSA “has been sort of floundering” in the past year, he said. The TSA is without a top administrator because Senator Jim DeMint , a South Carolina Republican, is blocking the Senate from confirming Obama nominee Erroll Southers, an antiterrorism expert. DeMint opposes efforts to allow TSA employees to form a union; public employee unions have given Democrats 91 percent of their $4.5 million in campaign donations since Jan. 1. Abdulmutallab and would-be shoe-bomber Richard Reid boarded U.S. airlines overseas, and that’s where security officials need to target, Mica said. Israeli Model “There’s no reason you can’t adopt an Israeli model and do a better examination of the passengers before they depart” from overseas airports to deny people with suspected terrorist connections from entering the U.S., Mica said. TSA will take the lead on increasing security in response to the attempted bombing, said Hasbrouck Miller, a vice president of London-based Smiths Group Plc’s Smiths Detection unit, which makes explosive-detection equipment. “TSA is given a lot of latitude to shift around where they see needs and requirements,” Miller said in an interview. The agency is responding with such things as bomb-sniffing dogs and additional screening, spokesman Greg Soule said. “TSA has a layered approach to security that allows us to surge resources as needed on a daily basis,” Soule said. A number of government commissions since the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland, have called for increased passenger screening for explosives. Liquid Explosives Two decades later, machines that can detect explosives under passengers’ clothes are in use at 19 U.S. airports , most of the time only as a secondary check on selected passengers, according to the TSA. In 2007, the Government Accountability Office said its investigators smuggled liquid explosives and detonators past airport security screeners. “It’s just incredible that this is still going on,” said Kathleen Flynn of Montville, New Jersey, who lost a son in the Pan Am 103 bombing. She was a member of the White House Commission on Aviation Safety during President Bill Clinton’s administration. “With our technology and our wherewithal, we should be able to conquer this,” she said. To contact the reporters on this story: Jonathan D. Salant in Washington at jsalant@bloomberg.net ; Angela Greiling Keane in Washington at agreilingkea@bloomberg.net .

Read the full article →

Obama Urged to Boost Anti-Terror Efforts as Bomb Attempt Shows Safety Gaps

December 31, 2009

By Jonathan D. Salant and Angela Greiling Keane Dec. 31 (Bloomberg) — President Barack Obama is being urged to strengthen anti-terrorism efforts as he awaits initial results of an investigation into the Dec. 25 attempted bombing of a U.S. airliner. Senate Intelligence Committee Chairwoman Dianne Feinstein asked the president in a letter yesterday to change a 2008 policy that limits the government’s ability to place people on a watch list requiring extra screening or banning them from flying. “The U.S. government should watch-list, and deny visas to, anyone who is reasonably believed to be affiliated with, part of, or acting on behalf of a terrorist organization,” Feinstein, a California Democrat, said in the letter. Obama has requested the criteria used for placing people on watch lists as part of the examination of anti-terror policies. Obama, on vacation in Hawaii, is to receive preliminary results today from a probe of what he called the “systemic failure” that let Umar Farouk Abdulmutallab carry explosives onto a U.S. airliner leaving Amsterdam on Dec. 25. Although Abdulmutallab was on a list of potential terrorists, he wasn’t subject to special screening at the airport. He is charged with trying to blow up the Northwest Airlines flight as it prepared to land in Detroit. The Netherlands and Nigeria announced yesterday they will start using full-body scanners to detect explosives being carried by passengers. Airline security and intelligence were overhauled after the Sept. 11 attacks, including creation of the Department of Homeland Security to improve intelligence-gathering and the Transportation Security Administration to take over passenger screening at airports. ‘Same Kind of Failures’ Eight years later, “the same kind of failures that were there in 9/11 were present in this one,” former New Jersey Governor Tom Kean , a Republican who was chairman of the commission that examined the Sept. 11 attacks, said in an interview yesterday. “No one is connecting the dots. It’s the same thing all over again, and that’s what is frustrating.” Obama said Dec. 29 that U.S. intelligence agencies missed “red flags” that could have put Abdulmutallab, a 23-year-old Nigerian, on a watch list requiring extra screening or banning him from flying. Conventional metal detectors don’t detect the explosives Abdulmutallab was carrying. Three congressional committees plan to hold hearings next month on the incident. Breakdown in Procedures “We have to fully investigate this incident to find accountability for the breakdown in security procedures,” said Byron Dorgan of North Dakota, a member of the Senate Commerce Committee. U.S. Representative John Mica of Florida, the top Republican on the House Transportation and Infrastructure Committee , said more is needed. “Unfortunately, it’s turned into sort of a reactionary system and not enough initiatives to handle situations like we’ve got,” Mica said. The TSA “has been sort of floundering” in the past year, he said. The TSA is without a top administrator because Senator Jim DeMint , a South Carolina Republican, is blocking the Senate from confirming Obama nominee Erroll Southers, an antiterrorism expert. DeMint opposes efforts to allow TSA employees to form a union; public employee unions have given Democrats 91 percent of their $4.5 million in campaign donations since Jan. 1. Abdulmutallab and would-be shoe-bomber Richard Reid boarded U.S. airlines overseas, and that’s where security officials need to target, Mica said. Israeli Model “There’s no reason you can’t adopt an Israeli model and do a better examination of the passengers before they depart” from overseas airports to deny people with suspected terrorist connections from entering the U.S., Mica said. TSA will take the lead on increasing security in response to the attempted bombing, said Hasbrouck Miller, a vice president of London-based Smiths Group Plc’s Smiths Detection unit, which makes explosive-detection equipment. “TSA is given a lot of latitude to shift around where they see needs and requirements,” Miller said in an interview. The agency is responding with such things as bomb-sniffing dogs and additional screening, spokesman Greg Soule said. “TSA has a layered approach to security that allows us to surge resources as needed on a daily basis,” Soule said. A number of government commissions since the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland, have called for increased passenger screening for explosives. Liquid Explosives Two decades later, machines that can detect explosives under passengers’ clothes are in use at 19 U.S. airports , most of the time only as a secondary check on selected passengers, according to the TSA. In 2007, the Government Accountability Office said its investigators smuggled liquid explosives and detonators past airport security screeners. “It’s just incredible that this is still going on,” said Kathleen Flynn of Montville, New Jersey, who lost a son in the Pan Am 103 bombing. She was a member of the White House Commission on Aviation Safety during President Bill Clinton’s administration. “With our technology and our wherewithal, we should be able to conquer this,” she said. To contact the reporters on this story: Jonathan D. Salant in Washington at jsalant@bloomberg.net ; Angela Greiling Keane in Washington at agreilingkea@bloomberg.net .

Read the full article →

Turkish Bond Yields Drop Most Since 2004 on IMF Loan Talks, Tax-Cut Report

December 31, 2009

By Ercan Ersoy and Seda Sezer Dec. 31 (Bloomberg) — Turkish bonds surged, cutting yields the most since 2004, on speculation the government is close to signing an accord with the International Monetary Fund and plans to reduce a tax for domestic investors on bond income. Yields on benchmark bonds plunged as much as 85 basis points to 8.59 percent, the biggest decline since October 2004, according to an ABN Amro index. Yields were at 8.86 percent at 1:50 p.m. in Istanbul. The benchmark ISE 100 stock index added 2.5 percent to 52,961.75, extending this year’s rally to 97 percent, the biggest since 1999. Prime Minister Recep Tayyip Erdogan told top officials from his party that the government is close to signing a two-year loan accord with the IMF after an agreement on the conditions, according to two politicians present at the meeting late yesterday. Investors expect the IMF to lend Turkey as much as $30 billion, according to Evsen Yanik , a bond trader at ING Bank in Istanbul. “The market is buying on the IMF news,” said Mustafa Satir , a trader at Turk Ekonomi Bankasi AS in Istanbul. Turkey has been talking with the IMF since a previous $10 billion loan program expired in May last year. The government has resisted borrowing more money from the fund as Erdogan balked at IMF demands for spending restraints, even as the global credit crisis plunged the economy into its deepest recession for half a century this year. Deputy Prime Minister Ali Babacan said on Dec. 29 that Turkey may sign a two-year IMF accord. The Finance Ministry announced increases in taxes on cigarettes, alcohol, cars and fuel today to raise as much as 5.5 billion liras ($3.7 billion). Withholding Tax The tax increases “give the impression that the government is preparing to make a deal,” said Satir. Bonds were also boosted by a report in Referans newspaper that the government will tax profits made by local bond investors at a 3 percent rate, down from 10% currently, compared with the tax-free gains available to foreign bondholders. The country’s highest court in October ruled that the discrepancy was unconstitutional. “The market expectation was that the withholding tax would be 10 percent for foreign investors or 5 percent for local and foreign investors, nobody was calculating that it would be less than five percent,” said Evsen Yanik , a bond trader at ING Bank in Istanbul. The average Turkish government bond yield has fallen from a high of 25.01 percent in October 2008 as the central bank lowered its interest rate for 13 straight months before ending the sequence in December. The cuts helped to reduce the year-on- year contraction of the economy to 3.3 percent in the third quarter from a record 14.7 percent in the first. Turkey aims to reduce the budget deficit to 4.9 percent of economic output next year from an estimated 6.6 percent this year, according to the State Planning Organization Web site. The lira added 0.7 percent to 1.4977 per dollar. The currency is up 2.8 percent this year. To contact the reporter on this story: Ercan Ersoy in Istanbul at eersoy@bloomberg.net Seda Sezer in Istanbul at ssezer2@bloomberg.net .

Read the full article →

Stocks Rise as World Index Heads for Best Year Since 2003; Copper Rallies

December 31, 2009

By Sandy Hendry and Will Kennedy Dec. 31 (Bloomberg) — Stocks rose around the world, set for the biggest annual gain since 2003, and copper headed for its best rally in at least a decade after China pledged to maintain policies that helped pull the world from recession. The MSCI World Index climbed 0.4 percent at 12:05 p.m. in London, bringing its 2009 advance to 28 percent. Standard & Poor’s 500 Index futures added 0.2 percent. The dollar dropped against higher-yielding currencies, including Australia’s dollar. Treasury futures fell, with bonds heading for the worst performance since at least 1978. The S&P GSCI Index of 24 raw materials rose 0.8 percent, taking its annual gain to 51 percent, the best year since at least 1970. The governor of China’s central bank, Zhou Xiaochuan , said today he will maintain “moderately loose” monetary policy because 2010 will be “a crucial year in strengthening the stabilization and recovery of the economy and defeating the international financial crisis.” U.S. jobless claims probably stayed below 500,000 for a sixth week, the best performance since 2008, according to a Bloomberg survey of economists before a government report. “This year has certainly been the year of China, which single-handedly pushed up commodity prices, held up intra- regional trade and benefited its neighbors,” said Daphne Roth , head of Asian equity research in Singapore at ABN Amro Private Banking, which oversees about $21 billion in the region. “We’re still positive on 2010, as there remains a lot of filtering down of fiscal stimulus.” Low Interest Rates Stocks worldwide have risen the most since 2003 this year on speculation interest rates near zero and increased government spending will sustain the recovery from the first global recession since World War II. The MSCI World Index plunged 42 percent in 2008, the most in its 40-year history, hurt by the collapse of the subprime-mortgage market in the U.S. and the bankruptcy of Lehman Brothers Holdings Inc. The U.K.’s FTSE 100 index rose as much as 0.6 percent today, headed for a 22 percent annual increase, the biggest since 1997. France’s CAC 40 climbed 0.6 percent, bringing this year’s gain to 23 percent, the most since 2005. The MSCI Emerging Markets Index added 0.9 percent for a yearly gain of 75 percent, the biggest since records began in 1988. Russia’s RTS Index added 0.6 percent to this year’s 128 percent rally, the biggest worldwide. Turkish Bonds Turkey’s ISE National Index climbed 1.5 percent to the highest level in almost 12 months, while yields on government bonds plunged the most since 2004, after politicians who attended a meeting with Prime Minister Recep Tayyip Erdogan said the nation is close to signing a loan agreement with the International Monetary Fund. Separately, the Referans newspaper said the country will cut taxes on bond income for domestic investors. Asian companies cemented their position among the world’s biggest by market value. PetroChina Co. ’s 41 percent advance this year makes China’s largest oil company the most valuable, and Industrial & Commercial Bank of China Ltd. is ranked fourth after Exxon Mobil Corp. and Microsoft Corp., following the lender’s 56 percent climb this year. PetroChina climbed 0.9 percent today and ICBC gained 1.4 percent. The Shanghai Composite Index rose 80 percent this year. The dollar fell 0.6 percent to $1.4419 per euro, bringing its decline this year to 3.1 percent. Australia’s dollar climbed 0.6 percent to 89.96 U.S. cents and added 0.4 percent to 83.03 yen. The so-called Aussie strengthened against 14 of its 16 most-traded counterparts this year as raw-materials prices gained. New Zealand’s dollar, another so-called commodity currency, gained 0.7 percent. China Rebound Commodities and the currencies of raw-materials producers have rallied as China’s economic rebound sucks in imports of industrial metals and energy. Gross domestic product probably grew 8.5 percent in 2009, topping the government’s 8 percent target, economists forecast, after the government revised higher its data for the last two years. Copper rose as much as 1.2 percent in London to $7,415 a metric ton, doubling this year for the biggest increase in more than two decades. Gold for immediate delivery rose 0.9 percent to $1,102 an ounce, taking this year’s advance to 24 percent, a ninth straight annual gain. The yield on 10-year Treasury futures contracts for March delivery rose 1 basis point to 4.07 percent. The yield on the benchmark note climbed to as high as 3.82 percent yesterday, approaching the 3.86 percent reached on Dec. 29, the highest level since Aug. 10. It has increased 1.58 percentage points this year. Obama Borrows President Barack Obama is borrowing unprecedented amounts for programs to revive the economy. U.S. marketable debt increased to a record $7.17 trillion in November, from $5.80 trillion at the end of last year. U.S. securities have fallen 3.5 percent this year, the most among Group of Seven countries, according to Bank of America Merrill Lynch indexes. The cost of insuring corporate bonds against default using credit-default swaps tumbled around the world this year. Contracts on the Markit CDX North America Investment-Grade Index dropped about 115 basis points to 84, according to CMA DataVision prices. In Japan, the benchmark gauge fell about 150 basis points to 133 and the Markit iTraxx Europe Index fell about 110 to 73. The appetite for corporate bonds has surged. The extra yield, or spread, that investors demand to buy investment-grade corporate bonds instead of Treasuries shrank to 1.93 percentage points from 6.04 last year, according to Merrill Lynch & Co.’s U.S. Corporate Master index. The bonds yield 4.87 percent on average. The spread for European investment-grade bonds over government debt shrank to as little as 1.68 percentage points this year, down from a record 4.63 percentage points in March, Merrill Lynch indexes show. To contact the reporters on this story: Sandy Hendry in Hong Kong at shendry@bloomberg.net ; Will Kennedy in London at wkennedy3@bloomberg.net .

Read the full article →

Video: Small Cap Stock Rally May Continue Past January Effect: Video

December 31, 2009

Dec. 31 (Bloomberg) — Bloomberg’s Sheila Dharmarajan reports on the outlook for small cap stocks. (Source: Bloomberg)

Read the full article →

Economic Rebound No Sure Thing in 2010, Turnaround Experts Say

December 31, 2009

Most turnaround professionals predict a hard slog toward economic recovery in 2010 as businesses weighed down by debt hit rough patches and credit markets shun them. Nearly half (49 percent) the respondents to the Turnaround Management Association’s

Read the full article →

Economic Rebound No Sure Thing in 2010, Turnaround Experts Say

December 31, 2009

Most turnaround professionals predict a hard slog toward economic recovery in 2010 as businesses weighed down by debt hit rough patches and credit markets shun them. Nearly half (49 percent) the respondents to the Turnaround Management Association’s

Read the full article →

Video: Euro Aided Foreign Exchange Market Boom for Past Decade: Video

December 31, 2009

Dec. 31 (Bloomberg) — Bloomberg’s Sara Eisen reports on the performance of the foreign exchange market during the past ten years. (Source: Bloomberg)

Read the full article →

Video: Texas Tech Fires Coach Leach Amid Mistreatment Claim: Video

December 31, 2009

Dec. 31 (Bloomberg) — Mike Leach was fired as football coach at Texas Tech University after allegations he mistreated a player who was diagnosed with a concussion. School officials said they notified Leach’s attorney of their decision before the two sides were to appear in a Lubbock, Texas, courtroom for a hearing on the coach’s suspension. Bloomberg’s Brian Weiss reports. (Source: Bloomberg)

Read the full article →

Video: Limbaugh in Honolulu Hospital; Kumar to Waive Indictment: Video

December 31, 2009

Dec. 31 (Bloomberg) — Bloomberg’s Deirdre Bolton reports on major newsmakers in today’s Movers & Shakers. (Source: Bloomberg)

Read the full article →

Video: GMAC Gets Third Aid Package; Pimco Files for New Fund: Video

December 31, 2009

Dec. 31 (Bloomberg) — Bloomberg’s Deirdre Bolton reports on the latest breaking business news and top stories in today’s Business Briefs. (Source: Bloomberg)

Read the full article →

A look back: South coastal O.C. real estate (Laguna News Post)

December 31, 2009

Here’s what local experts had to say about the trends we saw in real estate in Laguna Beach, Dana Point and San Clemente.

Read the full article →

Year Ender: The world in 2009

December 31, 2009

Year Ender: The world in 2009

Read the full article →

Hyundai reports 10% increase in annual sales

December 31, 2009

Hyundai reports 10% increase in annual sales

Read the full article →

Singapore’s economy contracts 2.1% in 2009

December 31, 2009

Singapore’s economy contracts 2.1% in 2009

Read the full article →

China set to reform currency

December 31, 2009

China set to reform currency

Read the full article →

American Tower eyes stake in India’s Essar

December 31, 2009

American Tower eyes stake in India’s Essar

Read the full article →