September 2010

HuffPost TV: Arianna: Special Interest Groups Are Buying Public Policy (VIDEO)

September 27, 2010

On a recent episode of CBS News’ “Washington Unplugged,” Arianna joined a roundtable hosted by Bob Schieffer to discuss the state of the American economy. Slate’s John Dickerson and The Atlantic ‘s Marc Ambinder were also on the panel. Arianna made some powerful accusations about the folks in Washington: “Right now powerful public special interest groups are buying public policy. We saw what happened with the bailout– yes, we had to bail out Wall Street but did we have to do it the way we did? Without conditions or strings attached? With Goldman Sachs getting 100 cents to the dollar?” she said. “I have friends who sleep with a copy of Ayn Rand’s ‘Fountainhead’ under their pillows who are really upset about this. This is not a left-right debate…. Everybody, even the richest Americans, should want a thriving middle class.” WATCH:

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Unemployment Could Rise To 10.1 Percent In 2011, Economists Say

September 27, 2010

Even as the economy continues to grow, unemployment could rise over the next year to as high as 10.1 percent, according to a new paper by the San Francisco Fed (hat tip to the Wall Street Journal ). The paper’s authors, economists David Lang and Kevin Lansing, say that if the economic growth in the first half of 2011 is “at or below” the potential for growth, then unemployment will rise. And, they say, it’s looking like growth won’t meet its potential, which is estimated to be at least 2.1 percent annually for the next five years. Citing a rule called “Okun’s law,” the economists say that changes in the unemployment level generally correspond to changes in GDP, or economic output. If GDP growth remains lackluster, then unemployment could increase to 10.1 percent, from its current 9.6 percent. The National Bureau of Economic Research said last week that the recession ended in June 2009 , a technical demarcation that means the economy stopped shrinking and started growing. Indeed, according to data from the St. Louis Fed , the GDP bottomed out during that period and grew steadily over the next four quarters. Still, growth was modest. The seasonally adjusted annual growth rate for the GDP, according to St. Louis Fed data , was 0.9 percent in the second quarter of this year. Economists, such as Minneapolis Fed president Narayana Kocherlakota , have argued that the unemployment problem is “structural,” or that there is a “mismatch”: “Firms have jobs, but can’t find appropriate workers. The workers want to work, but can’t find appropriate jobs,” Kocherlakota said last month. “There are many possible sources of mismatch — geography, skills, demography — and they are probably all at work.” Others, though, such as Paul Krugman , have dismissed that theory as “foolish,” saying the problem is simply that companies don’t want to hire — that demand for labor is low. “Job openings have plunged in every major sector, while the number of workers forced into part-time employment in almost all industries has soared. Unemployment has surged in every major occupational category,” Krugman writes. The economic picture for most of the country remains bleak, as the net worth of American households and non-profits dropped in the second quarter of this year to a level not seen since the third quarter of 2009.

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Cadence Announces Chief Financial Officer Transition Plan

September 27, 2010

Geoff Ribar to Be Appointed Chief Financial Officer; Current Chief Financial Officer Kevin S. Palatnik to Remain With Cadence Through Transition; Company Affirms Outlook for Third Quarter and Full Year 2010

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Nielsen: U.S. Digital Music Sales Flat In 2010

September 27, 2010

According to analytics company Nielsen, digital music sales in the United States were flat during the first half of 2010; showing no positive growth from 2009.

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Andera Closes $9.0 Million Investment Led by Edison Ventures

September 27, 2010

Growth Round Will Fund Product and Market Expansion

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Video: Spears Says Southwest-AirTran Deal Will Be Approved: Video

September 27, 2010

Sept. 27 (Bloomberg) — Mit Spears, partner at the law firm Ropes & Gray and former general counsel at the Federal Trade Commission, talks with Bloomberg’s Melissa Long about Southwest Airlines Co.’s agreement to buy AirTran Holdings Inc. for about $1.4 billion in cash and stock. Southwest’s acquisition of AirTran would be the largest in its 39-year history and give the carrier access to Atlanta, the world’s busiest airport. (Source: Bloomberg)

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When Fed Signals Stimulus, It’s ‘Balls To The Walls,’ Says Hedge-Fund Manager (VIDEO)

September 27, 2010

When the Treasury Department announced one of its bank rescue plans in early 2009, few investors besides David Tepper believed the government would actually provide the capital that banks needed to rise from the wreckage. Most ran for cover while Tepper, president of Appaloosa Management, bet the farm the government wouldn’t let the big banks die. His bet paid off. By snatching up billions in Bank of America, Wells Fargo and Citigroup shares early last year, the former Goldman Sachs junk bond dealer, who reportedly keeps a brass replica of a pair of testicles affixed to a plaque in his office , made his clients $7.5 billion in 2009. “It was easy,” crowed Tepper in a rare television interview on CNBC’s “Squawk Box” Friday. “The government told you what they were going to do.” Now, as the government weighs a second round of stimulus , Tepper maintains the same robust faith in the Fed that earned his New Jersey-based firm a 132 percent return in 2009. “Either the economy is going to get better by itself in the next three months” or the Fed is going to come in with more money, said Tepper in the CNBC spot. ( Video below .) “Then what’s going to do well? Everything, in the near term, though not bonds… So let’s see what I got — I got two different situations: One, the economy gets better by itself, stocks are better, bonds are worse, gold is probably worse. The other situation is the Fed comes in with money.” Tepper’s forecasts come on the heels of last week’s meeting of the Federal Reserve Open Market Committee in which the Fed said it might “resume buying vast amounts of government debt to spur the recovery,” reports the New York Times . “You talk about when you get moments,” Tepper said, referring to the Fed’s announcement. “This might be one of those — kind of.” Watch the David Tepper interview on CNBC below:

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Video: Caldwell Says Ford Focusing on `Where the Customers Are’: Video

September 27, 2010

Sept. 27 (Bloomberg) — Jessica Caldwell, senior analyst at Edmunds.com, talks with Bloomberg’s Melissa Long about Ford Motor Co. Chief Executive Officer Alan Mulally’s remarks today that the second-biggest U.S. carmaker may reduce its product lineup to as few as 20 models. (Source: Bloomberg)

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Third Of Americans Can’t Get Mortgages As Interest Rates Hit Record Lows: Zillow

September 27, 2010

Even as a glut of unsold inventory keeps the housing market from recovering, nearly a third of Americans can’t qualify for home mortgages, according to new data from online real estate search company Zillow . Would-be homeowners with credit scores below 620 points were largely unable to take out 30-year mortgages in the first half of September, even if they offered down payments as high as 25 percent, Zillow found after analyzing more than 25,000 loan quotes and purchase requests on its website. A full 29.3 percent of Americans have a credit score that low, Zillow says, citing data from myFICO . Mortgage interest rates, meanwhile, are at a low not seen in at least 40 years. According to data compiled by the St. Louis Fed , the average interest rate on a 30-year mortgage was 4.37 percent as of September 16. The St. Louis Fed has data going back to 1971 and, in that period, before 2009, the interest rate never dipped below 5 percent. These days, according to Zillow, the lowest interest rate is 4.3 percent, available only to those with a credit score above 720 points — about 47 percent of Americans. The higher rates, ranging from 4.44 to 4.9 percent, are available to about 23.8 percent of Americans. The remaining 29.3 percent of the population can’t get loans at all. A variety of factors, including a high volume of foreclosures and weak demand, have depressed the housing market to such an extent that some experts say it won’t rebound for three years . But lenders are understandably cautious. While easily accessible mortgages might contribute to a housing recovery, lenders are still shell-shocked from the aftermath of the housing bubble. Banks have been writing off debt in record numbers — the charge-off rate this year has been higher than any year since at least 1988 , according to data from the Saint Louis Fed.

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Video: Trader Profits 14-Fold on AirTran Options Purchase: Video

September 27, 2010

Sept. 27 (Bloomberg) — An investor who bought 759 bullish AirTran Holdings Inc. options last week captured a 14-fold gain today after Southwest Airlines Co. agreed to buy the company. Bloomberg’s Jeff Kearns reports.(Source: Bloomberg)

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Video: Trader Profits 14-Fold on AirTran Options Purchase: Video

September 27, 2010

Sept. 27 (Bloomberg) — An investor who bought 759 bullish AirTran Holdings Inc. options last week captured a 14-fold gain today after Southwest Airlines Co. agreed to buy the company. Bloomberg’s Jeff Kearns reports.(Source: Bloomberg)

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Matt Wilson: Three Steps to Gain a Competitive Advantage

September 27, 2010

We’ve gathered three tips on how to gain a sustainable competitive advantage with your business. Whether you are looking to expand a current business or start an entirely new enterprise, these are three broad business strategies that will push you to the next level. These three secrets appear courtesy of Under30CEO.com the resource for young entrepreneurs Go on a Treasure Hunt and Find an Underserved Niche In the business world, there’s nothing more exciting than finding an underserved niche that represents a lucrative market that everyone else has failed to spot and target. That’s like finding gold bullion at a crowded beach — it was there for everyone else to see, but you were the one who took notice of that golden glint in the sand. That’s what happened to Gary and Diane Heavin, founders of the Curves International fitness franchise system. When the company launched in 1992, the Heavins had just $10,000 in savings to invest in their company. Today, Curves is the world’s largest fitness franchise system, with 10,000 franchise locations in 65 countries. How did Curves soar to the top? Instead of competing head-to-head with fitness giants like 24 Hour Fitness or Bally Total Fitness, the Heavins opted to serve the fitness needs of three underserved niches: middle-age and older women who are eager to get in shape but might feel intimidated by large gyms teeming with young, hard bodies; busy working women whose schedules could more easily accommodate the Curves 30-minute workout; and budget-conscious women who simply couldn’t afford the pricey monthly membership dues charged by the major gym chains. Early on, Curves clearly distinguished itself from the pack of gym competitors; its services and clientele were different. Targeting an underserved niche is a path that small start-ups can take. Even a huge multi-billion-dollar company can’t offer everything for everyone. Targeting the right niche — one that other business owners have neglected or ignored — can help build a strong and loyal customer base while limiting competition. Another entrepreneur who followed this strategy was Liz Lange. She launched a phenomenally successful designer maternity clothing company. Liz Lange Maternity eventually sold for an estimated $50 to $60 million in 2007. She also partnered with Target to launch a secondary, discount version of her line. Like the Heavins, Lange reached the heights of success by targeting an underserved niche. In her case, that meant zeroing in on the needs of pregnant fashionistas — women who refused to let a pregnancy deprive them of their fashion sense. Lange used newly developed stretch fabrics to create chic, fitted and stylish maternity clothes. They were nothing like the tent-like and frumpy maternity clothes widely available in department stores. Buck the Conventional Wisdom Bucking the conventional wisdom means ignoring those who say “It won’t work” or “It’s never been done that way.” When entrepreneurs overly rely on conventional formulas for success, they’re left with a business that’s, well, conventional. The most successful entrepreneurs are willing to veer away from established formulas and ways of thinking. If you’ve launched your own business, don’t just blindly accept the so-called best practices of your industry. Look at them with a hyper-critical eye. Dissect them, slice and dice them, contemplate different “what if” scenarios in your mind. With no capital to speak of — just $700 in cash — John Paul DeJoria, cofounder of hair products giant John Paul Mitchell Systems, bucked the conventional wisdom when he launched the Paul Mitchell line of hair-care products and decided to sell them solely to stylists and salons — never to supermarkets or drug stores. Today, the company boasts more than $900 million in annual salon retail sales. That unique system of distribution nurtured exceptional customer loyalty. The Paul Mitchell brand not only provided quality hair products for use in salons; it also created a new revenue stream for the stylists. Many of their own customers bought the shampoos and conditioners for use at home. Sara Blakely, founder of Spanx, bucked conventional wisdom when she approached hosiery mills with the idea of manufacturing footless pantyhose. The product she envisioned was a body-shaping undergarment that would hide panty lines and firm up a woman’s backside so she could wear her favorite slacks and open toe sandals with confidence. Blakely knew there was a market for such a product. But time and again, she was told footless panty hose was simply a bad idea. The mills were accustomed to making hosiery designed to improve the appearance of a woman’s legs. But Blakely was trying to convince them to manufacture a product that was completely hidden under clothes. She got rejection after rejection. It’s a good thing she persevered, though, until she finally found a willing mill in North Carolina. Today, Spanx’s estimated retail sales are in the neighborhood of $350 million. Spot a New Trend and Pounce Often, a shift in cultural or economic trends will create new entrepreneurial opportunities. Sometimes that shift arises from advances in technology. Geek Squad founder Robert Stephens was paying attention to such trends when the home PC market exploded. He figured out that most PC owners had limited technical knowledge. If their hard drive crashed, they were thrown into a state of panic. But unplugging their PC and hauling it off to a repair shop, where it would stay for a week or so, wasn’t an attractive option. Stephens spotted the trend, pounced and captured an emerging and underserved niche. Geek Squad made house calls. When Stephens launched Geek Squad back in 1994, the cash-strapped college student had just $200 to invest in his business. But that same business eventually fetched millions in 2002 when he sold the business to Best Buy. Andy and Rachel Berliner launched the Amy’s Kitchen brand of organic vegetarian frozen meals because they realized that more and more Americans were trying to eat healthier diets, eschewing processed foods in favor of organic vegetables. Vegetarians themselves, the Berliners were also keenly aware that they’d have no formidable competition. They had personally sampled the frozen vegetarian meals already on the market and they were terrible. The Berliners knew if they used quality ingredients and recipes, their business would thrive. Today, Amy’s Kitchen generates annual revenues of $270 million. All these entrepreneurs are featured in a new book, The Risk Takers: 16 Women and Men Share Their Entrepreneurial Strategies for Success . The book explores in depth how hugely successful entrepreneurs have applied these three strategies — and seven others — to propel their business to the top of the heap. For entrepreneurs, it’s often easy to lose sight of long-term goals when you’re preoccupied with day-to-day business operations. But keeping these three strategies in the forefront of your business planning can help keep you on track to take your company to the next level and beyond. Throughout the life of your business, you can channel your creative energies into finding new and fresh ways to apply these principles to create competitive advantage, expand your product line and customer base, and keep your business vital. Just think of them as your three secret weapons. This article originally appeared on Under30CEO

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Video: Buffett Calls BYD `Dynamic’ Carmaker, Affirms Investment: Video

September 27, 2010

Sept. 27 (Bloomberg) — Billionaire Warren Buffett affirmed his support for BYD Co., saying the Chinese automaker, part-owned by his Berkshire Hathaway Inc. holding company, will be a leader in selling electric cars. Bloomberg’s Stephen Engel reports. (Source: Bloomberg)

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Video: Buffett Calls BYD `Dynamic’ Carmaker, Affirms Investment: Video

September 27, 2010

Sept. 27 (Bloomberg) — Billionaire Warren Buffett affirmed his support for BYD Co., saying the Chinese automaker, part-owned by his Berkshire Hathaway Inc. holding company, will be a leader in selling electric cars. Bloomberg’s Stephen Engel reports. (Source: Bloomberg)

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Video: Hoban Says U.K. Seeks to Boost London as Financial Hub: Video

September 27, 2010

Sept. 27 (Bloomberg) — U.K. Treasury minister Mark Hoban discusses the regulation of the financial-services industry and efforts to attract companies to base their business in London. Hoban talks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

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Video: Hoban Says U.K. Seeks to Boost London as Financial Hub: Video

September 27, 2010

Sept. 27 (Bloomberg) — U.K. Treasury minister Mark Hoban discusses the regulation of the financial-services industry and efforts to attract companies to base their business in London. Hoban talks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

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Video: Dubai Ruler Leads UAE Equestrian Team to First Place: Video

September 27, 2010

Sept. 27 (Bloomberg) — Bloomberg’s Margaret Brennan reports on Dubai ruler Sheikh Mohammed Bin Rashid Al Maktoum and his participation in the FEI World Equestrian Games in Lexington, Kentucky. (Source: Bloomberg)

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Video: Dubai Ruler Leads UAE Equestrian Team to First Place: Video

September 27, 2010

Sept. 27 (Bloomberg) — Bloomberg’s Margaret Brennan reports on Dubai ruler Sheikh Mohammed Bin Rashid Al Maktoum and his participation in the FEI World Equestrian Games in Lexington, Kentucky. (Source: Bloomberg)

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Video: Kelly Sees `Dramatic’ Growth Prospects With AirTran Buy: Video

September 27, 2010

Sept. 27 (Bloomberg) — Gary Kelly, chief executive officer of Southwest Airlines Co., talks about the company’s agreement to buy AirTran Holdings Inc. for about $1.4 billion in cash and stock. Kelly speaks with Margaret Brennan and Scarlet Fu on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

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Video: Osborne Says IMF Report Is `Vote Of Confidence’ in U.K.

September 27, 2010

Sept. 27 (Bloomberg) — U.K. Chancellor of the Exchequer George Osborne talks with Bloomberg about an International Monetary Fund report on the country’s economy.

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Hyundai Recall: 139,000 Sonata Sedans Recalled For Steering Defect

September 27, 2010

WASHINGTON — Hyundai Motor Co. said it is voluntarily recalling 139,500 Sonata sedans in the U.S. because of a manufacturing defect that could cause drivers to lose steering control. The recall affects 2011 models built between Dec. 11, 2009 and Sept. 10, the National Highway Traffic Safety Administration noted on its website Sunday. Some of the cars have steering column shafts with connections that may not have been tightened enough or were improperly assembled. As a result, the steering wheel could become separated from the column or a driver could lose the ability to properly steer the car. The U.S. government had opened an investigation into possible steering problems in the vehicle in August. Hyundai, South Korea’s top automaker, has said there have been no related injuries or crashes reported. Owners of affected vehicles can go to their dealers for inspection. Dealers also will update power steering software. Owners may also call NHTSA at 888-327-4236 for more information. The recall comes as automakers ramp up their focus on safety and quality control in the wake of Toyota Motor Corp.’s massive global recall last year over gas pedal and floor mat problems. In February, Hyundai announced a recall of about 47,000 Sonata midsize sedans, mostly sold in South Korea, to replace front door latches following a handful of customer complaints. The company said it had discovered a mechanical problem with the latches which, in rare instances, would not close properly. Earlier this month, Hyundai affiliate Kia Motors said Chung Sung-eun resigned as vice chairman following a global recall of more than 100,000 vehicles due to defective wiring. Of that total, 35,185 vehicles were recalled in the United States. Together, Kia and Hyundai form the world’s fifth-largest automotive group. So far this year, U.S. sales are up 17 percent for Hyundai Motor America, though August sales fell 11 percent from a year-earlier record sparked by federal Cash for Clunkers rebates. The new Sonata has been selling well and nearly doubled its sales numbers to 21,399 in August.

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Bank Of America Stands Out For Poor HAMP Performance

September 27, 2010

Bank of America stands out among the biggest mortgage servicers for an exceptionally poor performance under the Obama administration’s Home Affordable Modification Program, according to data recently released by the government. The eight largest servicers have offered an alternative mortgage modification to 44.5 percent of homeowners whose HAMP modifications have been canceled, but Bank of America has offered alternate mods to only 24 percent of the 148,129 homeowners whose trial modifications the bank canceled. For homeowners denied trial modifications, 31.3 percent have been offered alternate modifications by the Big Eight. Bank of America has offered alternate mods to just 11 percent of these folks. “Bank of America seems to be stubbornly refusing to go along with the program,” said Valparaiso University Law School professor Alan White, who first flagged Bank of America’s standout performance in a Public Citizen blog post . “BofA has also mastered the art of false hopes,” wrote White. “It has converted only 26% of trial modifications to permanent ones, while servicers as a whole have achieved a rate of over 50% (still terrible, but it’s all relative.) Over half of BofA’s trial modifications are more than six months old, despite the fact that they are supposed to convert to permanent or be canceled after three months.” Bank of America did not immediately respond to a request for comment from HuffPost, but every month the bank puts out a press release touting its mortgage modification progress the day before the Treasury Department puts out its HAMP data. Bank of America boasted last week of its “industry-leading 79,859 completed modifications through the government’s Home Affordable Modification Program.” It has more permanent modifications than any other servicer, but that may be because the bank has an eligible pool of delinquent mortgages more than twice the size of every other servicer’s (except Chase, which services 201,771 mortgages to BofA’s 383,482). The goal of HAMP, under which the government gives servicers $1,000 incentive payments to give eligible homeowners a five-year “permanent” modification after a three-month trial period, was to “enable as many as three to four million homeowners to modify the terms of their mortgages to avoid foreclosure.” Treasury Department officials now shy from that goal as more people have been kicked out of the program than have been given permanent mods. The Treasury Department has not fined a servicer for noncompliance with HAMP or even formalized a penalty scheme. The Government Accountability Office reported in June that Treasury’s lack of penalties for bad servicers “risks inconsistent treatment of servicer noncompliance and lacks transparency with respect to the severity of the steps it will take for specific types of noncompliance.”

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Video: Siemens Offers German Employees Protection From Firings

September 27, 2010

Sept. 27 (Bloomberg) — Bloomberg’s Louise Beale reports on Siemens AG’s decision to offer its German employees open-ended employment guarantees.

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JPMorgan Foreclosure Disputed, Casting Wider Doubts

September 27, 2010

The integrity of thousands of foreclosure notices issued by JPMorgan Chase could be cast in doubt, as a court battle over one Florida homeowner’s foreclosure might implicate numerous similar filings, reports Bloomberg News . It’s the latest example of a situation that could stall foreclosures across the nation. Last week, the Washington Post reported that Jeffrey Stephan, a document processor for Ally Financial, who lives in a “modest” two-story house in a small Pennsylvania town, had approved up to 10,000 foreclosure documents a month without actually reading them. The news came to light after Ally said it was putting the brakes on foreclosures in 23 states, citing “corrective action” it needed to take. And when, at the end of the week, Ally began to withdraw foreclosure documents reviewed by another employee, Kristine Wilson , it appeared there might be yet another “robo signer.” Now, lawyers for a Florida homeowner are using a May statement by JPMorgan executive Beth Ann Cottrell to claim that the homeowner’s foreclosure isn’t valid. In her statement, Cottrell said she was part of an eight-person team that approved about 18,000 documents a month without seriously reviewing them. “My review is more or less signing the document unless it’s questionable,” she said, according to Bloomberg , where “questionable” is meant literally: “somebody has a question and brings it to me and says, ‘Beth, can you take a look at this?’” These increased doubts about foreclosure filings come as the nation’s total volume of foreclosures is itself increasing. More Americans lost their homes to foreclosure in August than in any other month on record, according to data from RealtyTrac. While the document-processing scandals may seem like good news for homeowners dealing with foreclosure, Bloomberg notes that the doubts could delay the housing market’s recovery. Home prices continue to fall, and foreclosure controversies, which create uncertainty in the market, may delay their hitting bottom.

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Video: Kiesel Says Pimco Favors Emerging Market Corporates: Video

September 27, 2010

Sept. 27 (Bloomberg) — Mark Kiesel, managing director and global head of corporate bond management at Pacific Investment Management Co., talks about his investment strategy for U.S. banks and emerging market corporate bonds. Kiesel talks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (Source: Bloomberg)

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Video: Dubai Ruler Says ‘We Are Back’ After Debt Accord: Video

September 27, 2010

Sept. 27 (Bloomberg) — Dubai ruler Sheikh Mohammed Bin Rashid Al Maktoum discusses the emirate’s recovery from a debt crisis involving state-controlled holding company Dubai World. He spoke with Bloomberg’s Margaret Brennan at the FEI World Equestrian Games in Lexington, Kentucky, yesterday. Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum also speaks. (Source: Bloomberg)

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Video: Marchionne Says Fiat Aims to Boost Efficiency in Italy

September 27, 2010

Sept. 27 (Bloomberg) — Fiat SpA Chief Executive Officer Sergio Marchionne talks about efforts to boost production at Italian factories and the outlook for partnerships with other automakers. He speaks with Bloomberg’s Flavia Rotondi in Rome.

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Video: HSBC Opens Investigation Into Leaking of Succession Plan

September 27, 2010

Sept. 27 (Bloomberg) — Bloomberg’s Elliott Gotkine reports on the leadership changes at HSBC Holdings Plc.

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STATS Names General Manager to Lead Its New ‘Sports Solutions Group’

September 27, 2010

New Business Unit Aims to Deepen Company’s Engagement Within Team Operations

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Americans Don’t Want Farm Work, Despite Economy

September 27, 2010

VISALIA, Calif. — It’s a question rekindled by the recession: Are immigrants taking jobs away from American citizens? In the heart of the nation’s biggest farming state, the answer is a resounding no. Government data analyzed by The Associated Press show most Americans simply don’t apply to harvest fruits and vegetables. And the few Americans who do usually don’t stay in the fields. “It’s just not something that most Americans are going to pack up their bags and move here to do,” said farmer Steve Fortin, who pays $10.25 an hour to foreign workers to trim strawberry plants at his nursery near the Nevada border. The AP analysis showed that, from January to June, California farmers posted ads for 1,160 farmworker positions open to U.S. citizens and legal residents. But only 233 people in those categories applied after learning of the jobs through unemployment offices in California, Texas, Nevada and Arizona. One grower brought on 36. No one else hired any. “It surprises me, too, but we do put the information out there for the public,” said Lucy Ruelas, who manages the California Employment Development Department’s agricultural services unit. “If an applicant sees the reality of the job, they might change their mind.” Sometimes, U.S. workers also will turn down the jobs because they don’t want their unemployment insurance claims to be affected, or because farm labor positions do not begin for several months, and applicants prefer to be hired immediately, Ruelas said. Fortin spent $3,000 this year to make sure that domestic workers have first dibs on his jobs in the sparsely populated stretch of the state, advertising in newspapers and on an electronic job registry. But he did not get any takers, even though he followed the requirements of a little-known, little-used program to bring in foreign farmworkers the legal way – by applying for guest worker visas. The California figures represent only a small part of the national effort to recruit domestic workers under the H-2A Guest Worker Program, but they provide a snapshot of how hard it is to to get growers to use the program – and to attract Americans to farm labor, even in the San Joaquin Valley, where the average unemployment rate is 15.8 percent. The majority of farmers rely on illegal labor to harvest their crops, but they can also use the little-known H-2A visa to hire guest workers, as long as they request the workers months in advance of the harvest season and can show that no Americans want the job. Of the estimated 40,900 full-time farmers and ranchers in California, just 23, including Fortin, petitioned this year to bring in foreign farmworkers on the visas, according to the available government data. The Labor Department did not respond to a request for comment about the findings. More than half of farmworkers in the United States are illegal immigrants, the Labor Department says. Proponents of tougher immigration laws – as well as the United Farm Workers of America – say farmers are used to a cheap, largely undocumented work force, and if growers raised wages and improved working conditions, the jobs would attract Americans. So far, an effort by the UFW to get Americans to take farm jobs has been more effective in attracting applicants than the official channels. The UFW in June launched the “Take Our Jobs Campaign,” inviting people to go online and apply. About 8,600 people filled out an application form, but only seven have been placed in farm jobs, UFW President Arturo Rodriguez said. Some Americans referred for jobs at Fortin’s nursery couldn’t do the grueling work. “A few years ago when domestic workers were referred here, we saw absentee problems, and we had people asking for time off after they had just started,” he said. “Some were actually planting the plants upside down.” Asked what the agency could do to get more U.S. workers into farm jobs, California Employment Development Department spokeswoman Patti Roberts suggested the UFW could refer applicants to the state or employers, and the state could publicize the openings through public service announcements. Economists have long argued over whether local workers would take jobs in the field if wages rose. Philip Martin, a professor of agricultural and resource economics at the University of California, Davis, said because so few farmers participate in the H-2A program, it’s hard to draw national conclusions. “Recruitment of U.S. workers in this program doesn’t work well primarily because employers have already identified who they want to bring in from abroad,” Martin said. “I don’t think a lot of U.S. workers are going out there looking for a seasonal job paying the minimum wage or a dollar more.” The Labor Department collects the same data about H-2A visa applications for all 50 states but does not make it publicly available. In response to a Freedom of Information Act request from the AP, the agency offered to provide some records for nearly $11,000 in copying fees, but it was not clear whether the information would show how many Americans had applied for farm labor jobs nationwide. The AP plans to file an administrative appeal. Even California officials say the guest worker program needs fixing, despite a reform effort announced in February by Labor Secretary Hilda Solis meant to put more domestic workers in crop-picking jobs. Benjamin Reynosa, who was picking ruby-colored grapes in 90-degree heat last week near Fowler, just south of Fresno, said he often is the only legal U.S. resident on seasonal crews. He said most people hear about the jobs through word of mouth or signs tacked outside rural stores, not the electronic registry. “I’ve been working in agriculture for 22 years, and I can tell you there are very few gringos out here,” said Reynosa, 49, of Orange Cove, about 30 miles east of Fresno. “If people know English, they go to work in packinghouses or sit in an office.” In Tulare County, where the unemployment rate is nearly 16 percent, job seekers on a recent morning crowded around computers at the job development agency. “We just don’t advertise those kinds of farmworker jobs,” said Sandi Miller, program coordinator for the county’s work force investment board. Amid the U.S. Army flyers posted in the lobby, however, under the heading “HOT JOB LEADS,” was an ad for a farmworker position, preferring someone with Spanish fluency and tractor maintenance skills. Miller said later it was the first she had seen such a notice. She hadn’t received any applications, she said.

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Ziegler Announces New Head of Healthcare Finance Practice

September 27, 2010

John Hanley Promoted

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Siteworx Names Melissa Clark Vice President of Project Management and Daryoush Mansouri Vice President of Quality and Service Initiatives

September 27, 2010

RESTON, VA–(Marketwire – September 27, 2010) – Siteworx, Inc. , a leading interactive agency with deep Web Content Management (WCM) expertise, announced today the promotion of Melissa Clark to the position of VP of Project Management. Ms. Clark will manage strategic engagements and client satisfaction across Siteworx’ accounts and oversee the Siteworx Project Management Office (PMO). Clark is taking on the role previously filled by Daryoush Mansouri, who has been named to the new role of VP of Quality and Service Initiatives.

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Siteworx Names Melissa Clark Vice President of Project Management and Daryoush Mansouri Vice President of Quality and Service Initiatives

September 27, 2010

RESTON, VA–(Marketwire – September 27, 2010) – Siteworx, Inc. , a leading interactive agency with deep Web Content Management (WCM) expertise, announced today the promotion of Melissa Clark to the position of VP of Project Management. Ms. Clark will manage strategic engagements and client satisfaction across Siteworx’ accounts and oversee the Siteworx Project Management Office (PMO). Clark is taking on the role previously filled by Daryoush Mansouri, who has been named to the new role of VP of Quality and Service Initiatives.

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Permuto Becomes Buysight; New Name Reflects Focus on Transforming Data Into Insights That Help Sellers Connect With Shoppers Who Are Ready to Buy

September 27, 2010

Ash Patel, Former Yahoo! EVP & Chief Product Officer, Joins Board of Directors

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Permuto Becomes Buysight; New Name Reflects Focus on Transforming Data Into Insights That Help Sellers Connect With Shoppers Who Are Ready to Buy

September 27, 2010

Ash Patel, Former Yahoo! EVP & Chief Product Officer, Joins Board of Directors

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Former MedStar CEO Joins JPB Enterprises Board of Advisors

September 27, 2010

COLUMBIA, MD–(Marketwire – September 27, 2010) –  JPB Enterprises, a private investment and strategic business services company, continues to strengthen the depth and breadth of its Board of Advisors with the addition of John P. McDaniel, former CEO of MedStar.

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Former MedStar CEO Joins JPB Enterprises Board of Advisors

September 27, 2010

COLUMBIA, MD–(Marketwire – September 27, 2010) –  JPB Enterprises, a private investment and strategic business services company, continues to strengthen the depth and breadth of its Board of Advisors with the addition of John P. McDaniel, former CEO of MedStar.

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Harbin Power, GE ink $24m wind power deals

September 27, 2010

Harbin Power, GE ink $24m wind power deals

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Harbin Power, GE ink $24m wind power deals

September 27, 2010

Harbin Power, GE ink $24m wind power deals

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Harbin Power, GE ink $24m wind power deals

September 27, 2010

Harbin Power, GE ink $24m wind power deals

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Harbin Power, GE ink $24m wind power deals

September 27, 2010

Harbin Power, GE ink $24m wind power deals

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Italy’s Endesa to vend gas transport network

September 27, 2010

Italy’s Endesa to vend gas transport network

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Italy’s Endesa to vend gas transport network

September 27, 2010

Italy’s Endesa to vend gas transport network

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Italy’s Endesa to vend gas transport network

September 27, 2010

Italy’s Endesa to vend gas transport network

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Italy’s Endesa to vend gas transport network

September 27, 2010

Italy’s Endesa to vend gas transport network

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Russia, China to Sign gas supplies contracts next year

September 27, 2010

Russia, China to Sign gas supplies contracts next year

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Russia, China to Sign gas supplies contracts next year

September 27, 2010

Russia, China to Sign gas supplies contracts next year

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Russia, China to Sign gas supplies contracts next year

September 27, 2010

Russia, China to Sign gas supplies contracts next year

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Russia, China to Sign gas supplies contracts next year

September 27, 2010

Russia, China to Sign gas supplies contracts next year

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Russia to begin 2nd stage of Tianwan nuclear power plant construction

September 27, 2010

Russia to begin 2nd stage of Tianwan nuclear power plant construction

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