U.S. markets were mixed Tuesday, following a sharp sell off in the previous session that pushed the Dow Jones industrial average down 2.35 percent.
At the close, the Dow Jones industrial average lost 16.10 points or 0.19 percent to 8,322.91. The Standard & Poor's (NYSE:MHP) 500 rose 0.23 percent, 2.06 points, to 895.10. The Nasdaq composite index lost 1.27 points, 0.07 percent, to 1,764.92.
On the New York Stock Exchange, 1,418 stocks advanced and 1,577 declined on a volume of 5.8 billion shares traded.
The benchmark 10-year U.S. Treasury bond rose 12/32 to yield 3.64 percent.
The euro rose to $1.4075, compared to Monday's $1.3866. Against the Japanese yen, the dollar fell to 95.23 yen, compared to Monday's 95.92 yen.
In Tokyo, the Nikkei average lost 276.66 points to 9,549.61, down 2.82 percent.
In London, the FTSE index lost 4.03 points, 0.1 percent, to 4,230.02.
Objections say GM to move jobs overseas
NEW YORK, June 23 (UPI) -- Objections filed in U.S. Bankruptcy Court in New York said General Motor's Corp.'s plan to close a Michigan transmission plant would shift jobs overseas.
The objections filed by Michigan counties Wayne and Washtenaw and the City of Ypsilanti say GM's plans to close the Willow Run facility would move U.S. jobs to Mexico and France, the Detroit Free Press reported Tuesday.
GM has said it needed to consolidate six-speed transmission production due to reduced demand. Last week, however, local officials negotiated tax breaks with the company, hoping to provide a financial incentive to keep Willow Run open.
'Since they made their determination, we hope we've made it more economical for them to operate at Willow Run than any other locations,' Wayne County Executive Robert Ficano said.
In a separate objection, Wayne County joined with Oakland County and the City of Detroit to recoup about $2.2 million in back taxes and outstanding water and sewer bills owed by GM, the newspaper said.
Madoff's lawyer asks for 12-year sentence
NEW YORK, June 23 (UPI) -- A lawyer for New York investor Bernard Madoff has requested a sentence of 12 years, for 11 fraud-related counts that lost investors an estimated $65 billion.
To date, 1,341 Madoff victims have been discovered with a collective loss of $13 billion, CNN reported Tuesday.
Madoff, who pleaded guilty in March, 'is currently 71 years old and has a life expectancy of 13 years,' wrote attorney Ira Sorkin in a letter requesting federal Judge Denny Chin consider a 12-year term.
The letter refers to Madoff's turning himself in to authorities and his 'non-violent' nature.'
'We seek neither mercy nor sympathy,' Sorkin wrote, acknowledging 'terrible losses have been suffered as a result of Mr. Madoff's conduct.'
The judge has other letters to consider.
'For what Mr. Madoff has done to us and to thousands of others like us, he deserves to spend the rest of his life in prison, just as we will spend the rest of our lives in financial ruin,' a letter from Leonard Forrest of Port St. Lucie, Fla., said.
Madoff's sentencing is scheduled for June 29. At that appearance, 'Madoff will speak to the shame he has felt and to the pain he has caused,' Sorkin's letter said.
Automakers given $8B in DOE loans
WASHINGTON, June 23 (UPI) -- The U.S. Department of Energy said Tuesday it had awarded three automakers $8 billion in loans to develop fuel-efficient vehicles.
Loans of $5.9 billion to Ford Motor Co. (NYSE:F PRS) (NYSE:F PRA) (NYSE:F) , $1.6 billion to Nissan North America Inc. (NASDAQ:NSANY) , and $465 million to Telsa Motors will 'create thousands of green jobs while helping reduce the nation's dangerous dependence on foreign oil,' the department said in a statement.
The loan awarded to Ford is specifically designed to help the company 'transform factories across Illinois, Kentucky, Michigan, Missouri and Ohio to produce 13 more fuel efficient models.'
Nissan's loan is meant to help the company produce electric vehicles in Smyrna, Tenn. The loan given Telsa is designated for production of 'electric drive trains and electric vehicles in California.'
U.S. President Barack Obama called the loans 'an historic opportunity.'
'These loans … will create good jobs and help the auto industry to meet and even exceed the tough fuel economy standards we've set, while helping us to regain our competitive edge in the world market,' Obama said in the statement.
The DOE estimated the grants, provided through the Advanced Technology Vehicles Manufacturing Loan Program, would reduce U.S. gasoline consumption by 140 billion gallons a year.
Tuesday, June 23, 2009
Wednesday, June 3, 2009
A Regional Initiative to Fight Marine Pollution in the Mediterranean
Coastal and marine ecosystems play a complex and vital role in supporting economic prosperity and social welfare in developing countries. They sustain the livelihoods of millions of poor households; provide multiple ecosystem services that are essential for life, yield vast amounts of food, and play a critical role in driving weather and climate.
Today, marine resources are threatened by oil pollution, land-based sources of pollution, habitat degradation, overexploitation of some fishery stocks, and climate change.
The seminar will gather representatives of about 12 countries from both north and southern shores of the Mediterranean, and participants will be invited to look at issues that are common to the various countries, specifically with regard to coastal zone and marine pollution in the Mediterranean within the framework of the Barcelona Convention of 1995 and the 2002 Protocol.
The seminar constitutes the first official meeting of the Mediterranean Network of Prosecutors. It is also held in the context of the up-coming “Sustainable MED” Program, expected to be shortly launched by the World Bank’s Middle East and North Africa Region.
The objective is to create a network of investigators and prosecutors to, initially, fight voluntary marine pollution in the Mediterranean.
The network is intended for prosecution services of Mediterranean countries which have expressed an interest in fighting marine pollution.
The objectives of the network are:
To promote the exchange of information and experience;
T o identify best practices and facilitate the adjustment of national legal and regulatory frameworks;
And to promote awareness of the various actors engaged in the fight against marine pollution and to identify their training and capacity needs.
It is expected that, over time, the network will contribute in promoting greater operational cooperation in investigation and prosecution. Practical initiatives will be considered, such as case studies, harmonization in drafting techniques for prosecution forms, the organization of joint training sessions, joint analysis of national legislation, and the establishment of joint information and alert systems.
This idea was inspired by the earlier experience of the network of investigators and prosecutors for the North Sea, established with the support of the European Union and based on the magistrates network’s approach to facilitate law enforcement.
Today, marine resources are threatened by oil pollution, land-based sources of pollution, habitat degradation, overexploitation of some fishery stocks, and climate change.
The seminar will gather representatives of about 12 countries from both north and southern shores of the Mediterranean, and participants will be invited to look at issues that are common to the various countries, specifically with regard to coastal zone and marine pollution in the Mediterranean within the framework of the Barcelona Convention of 1995 and the 2002 Protocol.
The seminar constitutes the first official meeting of the Mediterranean Network of Prosecutors. It is also held in the context of the up-coming “Sustainable MED” Program, expected to be shortly launched by the World Bank’s Middle East and North Africa Region.
The objective is to create a network of investigators and prosecutors to, initially, fight voluntary marine pollution in the Mediterranean.
The network is intended for prosecution services of Mediterranean countries which have expressed an interest in fighting marine pollution.
The objectives of the network are:
To promote the exchange of information and experience;
T o identify best practices and facilitate the adjustment of national legal and regulatory frameworks;
And to promote awareness of the various actors engaged in the fight against marine pollution and to identify their training and capacity needs.
It is expected that, over time, the network will contribute in promoting greater operational cooperation in investigation and prosecution. Practical initiatives will be considered, such as case studies, harmonization in drafting techniques for prosecution forms, the organization of joint training sessions, joint analysis of national legislation, and the establishment of joint information and alert systems.
This idea was inspired by the earlier experience of the network of investigators and prosecutors for the North Sea, established with the support of the European Union and based on the magistrates network’s approach to facilitate law enforcement.
A visit to the Dnipro Hydroelectric Station – Past, Present and Future Champion of Sustainable Development in Ukraine
In April 2009, a World Bank team led by the Country Director, Martin Raiser and the Lead Energy Specialist, Dejan Ostojic, visited the Dnipro Hydroelectric Station (or Dnipro HES). Dnipro HES, situated on the Dnipro river in Zaporizhia, is the largest hydroelectric power station in Ukraine. It is also one of main objects included in a large Hyrdropower Rehabilitation Program, partially financed by a World Bank loan, and at the core of Ukraine’s strategy for greater energy security and environmentally sustainable energy production. The program is implemented by Ukrhydroenergo (UHE), a state-owned enterprise celebrating its 15th birthday this year. Enough reasons for a senior Bank team to travel to Zaporizhia and inspect the progress made at first hand.
You cannot miss Dnipro HES as you drive into the city of Zaporizhia. The dam, which holds back the might Dnipro river to generate hydroelectric power, stretches 800 meters across the Dnipro right in the center of the city, and is currently 61 meters high. Over its long history, Dnipro HES was hailed as one of the biggest achievements of Soviet industrialization programs. It was planned to provide electricity for several aluminum production plants and a high quality steel production plant that were also to be constructed in the area .The construction of this heavyweight began in 1927 and the plant started to produce electricity in October 1932. Generating some 650 MW, the station became the largest Soviet power plant at the time and one of the largest in the world.
“I had heard about the history of the Dnipro HES”, says Martin Raiser, “now it was time to look at this impressive engineering achievement myself. The Dnipro HES was a huge and ambitious undertaking when it was started over 80 years ago. But it is equally a project of the future, supporting secure and clean energy supply for Ukraine for generations to come.”
During World War II, the strategically important dam and plant was dynamited. The dam suffered extensive damage and the powerhouse hall was nearly destroyed. Both were rebuilt and power generation was restarted in 1950. In 1969-80, the second powerhouse was built with a planned production capacity of 836 MW. The construction of Dnipro HES was the basis for the establishment of large industrial complexes (aluminum, steel, chemicals) in this part of Ukraine and the development of Zaporozhia, Kryvy Rih and Dnipropetrovsk. The city of Zaporozhia was built at the same time as the hydropower plant. Zaporozhie was very much an 'engineering city' during Soviet times. The construction of the Dnipro HES was the first step in developing the 1000km long hydropower cascade on the Dnipro river which now comprises six major dams and represents one of the largest hydropower systems in the world. Today, Ukraine obtains around X percent of its total power supply from hydropower, which is particularly valuable as it helps reduce carbon emissions and can be used as a source of peak power supply, thereby stabilizing the entire power distribution system.
But the dam wasn’t only designed to generate power. When it was first constructed it raised the level of the Dnipro in Zaporizhia by 37 meters, flooding the rapids upstream and making the Dnipro navigable to commercial ships, when before only the daring Cosacks had been able to successfully negotiate the fast currents and rapids around Zaporizhia (indeed there is an island just across from the dam that was the seat of the Cosack Sich – the “capital” of the Cosack lands). Furthermore, the dam ensured protection from floods and stable supply of water for millions of people living along the Dnipro river. Today, more than 30 million people use the Dnipro river water. For Ukraine, the Dnipro river is often considered as its life line, where more than 50 large cities, over 10,000 industrial enterprises, over 2,000 rural, more than 1,000 public utilities, and over 50,000 irrigation systems are provided with Dnipro water. The reservoirs of the Dnipro cascade system are multi purpose built and the water resources are used for: (i) supply of urban, rural and industrial water, (ii) hydroelectric generation, (iii) irrigation, (iv) fisheries, (v) navigation (water transportation), and (vi) recreation.
“The Dnipro Hydropower Cascade serves multiple economic and social needs with practically zero emissions of CO2.” says Dejan Ostojic, “In a multi-year cooperation program with Ukrhydroenergo that started more than 10 years ago and is expected to last through 2017, our objective is to ensure this unique resource is properly maintained and upgraded to ensure it delivers up to its full potential.”
The main objective of the World Bank Hydropower Rehabilitation Project is to improve efficiency of hydropower generation, enhance dam safety, and improve environmental performance through substitution of equivalent production from coal-fired plants. The project will help increase the installed capacity of the Dnipro Hydropower Cascade by about 400 MW and its production by about 500 GWh which is equivalent to building a major new hydropower plant. The project also pioneered the concept of Carbon Financing in Ukraine as it was the first Joint Implementation Project under the Kyoto Protocol in the country.
But plans do not stop here. The reservoirs and banks of this large cascade are also potential sites for the development of several hundreds of MW of wind power generation which would further increase and diversify the renewable energy potential of the Dnipro cascade. By using pumped storage technology, such as the existing Kiev pumped storage plant, the non-dispatchable wind power generation can be converted to highly valuable hydroelectricity suitable for the most demanding operating regimes of the national power grid. Such potential of the Dnipro Hydropower Cascade ensures that it will continue to be at the forefront of sustainable development in Ukraine and the whole region.
You cannot miss Dnipro HES as you drive into the city of Zaporizhia. The dam, which holds back the might Dnipro river to generate hydroelectric power, stretches 800 meters across the Dnipro right in the center of the city, and is currently 61 meters high. Over its long history, Dnipro HES was hailed as one of the biggest achievements of Soviet industrialization programs. It was planned to provide electricity for several aluminum production plants and a high quality steel production plant that were also to be constructed in the area .The construction of this heavyweight began in 1927 and the plant started to produce electricity in October 1932. Generating some 650 MW, the station became the largest Soviet power plant at the time and one of the largest in the world.
“I had heard about the history of the Dnipro HES”, says Martin Raiser, “now it was time to look at this impressive engineering achievement myself. The Dnipro HES was a huge and ambitious undertaking when it was started over 80 years ago. But it is equally a project of the future, supporting secure and clean energy supply for Ukraine for generations to come.”
During World War II, the strategically important dam and plant was dynamited. The dam suffered extensive damage and the powerhouse hall was nearly destroyed. Both were rebuilt and power generation was restarted in 1950. In 1969-80, the second powerhouse was built with a planned production capacity of 836 MW. The construction of Dnipro HES was the basis for the establishment of large industrial complexes (aluminum, steel, chemicals) in this part of Ukraine and the development of Zaporozhia, Kryvy Rih and Dnipropetrovsk. The city of Zaporozhia was built at the same time as the hydropower plant. Zaporozhie was very much an 'engineering city' during Soviet times. The construction of the Dnipro HES was the first step in developing the 1000km long hydropower cascade on the Dnipro river which now comprises six major dams and represents one of the largest hydropower systems in the world. Today, Ukraine obtains around X percent of its total power supply from hydropower, which is particularly valuable as it helps reduce carbon emissions and can be used as a source of peak power supply, thereby stabilizing the entire power distribution system.
But the dam wasn’t only designed to generate power. When it was first constructed it raised the level of the Dnipro in Zaporizhia by 37 meters, flooding the rapids upstream and making the Dnipro navigable to commercial ships, when before only the daring Cosacks had been able to successfully negotiate the fast currents and rapids around Zaporizhia (indeed there is an island just across from the dam that was the seat of the Cosack Sich – the “capital” of the Cosack lands). Furthermore, the dam ensured protection from floods and stable supply of water for millions of people living along the Dnipro river. Today, more than 30 million people use the Dnipro river water. For Ukraine, the Dnipro river is often considered as its life line, where more than 50 large cities, over 10,000 industrial enterprises, over 2,000 rural, more than 1,000 public utilities, and over 50,000 irrigation systems are provided with Dnipro water. The reservoirs of the Dnipro cascade system are multi purpose built and the water resources are used for: (i) supply of urban, rural and industrial water, (ii) hydroelectric generation, (iii) irrigation, (iv) fisheries, (v) navigation (water transportation), and (vi) recreation.
“The Dnipro Hydropower Cascade serves multiple economic and social needs with practically zero emissions of CO2.” says Dejan Ostojic, “In a multi-year cooperation program with Ukrhydroenergo that started more than 10 years ago and is expected to last through 2017, our objective is to ensure this unique resource is properly maintained and upgraded to ensure it delivers up to its full potential.”
The main objective of the World Bank Hydropower Rehabilitation Project is to improve efficiency of hydropower generation, enhance dam safety, and improve environmental performance through substitution of equivalent production from coal-fired plants. The project will help increase the installed capacity of the Dnipro Hydropower Cascade by about 400 MW and its production by about 500 GWh which is equivalent to building a major new hydropower plant. The project also pioneered the concept of Carbon Financing in Ukraine as it was the first Joint Implementation Project under the Kyoto Protocol in the country.
But plans do not stop here. The reservoirs and banks of this large cascade are also potential sites for the development of several hundreds of MW of wind power generation which would further increase and diversify the renewable energy potential of the Dnipro cascade. By using pumped storage technology, such as the existing Kiev pumped storage plant, the non-dispatchable wind power generation can be converted to highly valuable hydroelectricity suitable for the most demanding operating regimes of the national power grid. Such potential of the Dnipro Hydropower Cascade ensures that it will continue to be at the forefront of sustainable development in Ukraine and the whole region.
Mortgage activity declined in week
The volume of applications for U.S. mortgages decreased last week, falling by a seasonally adjusted 16.2 percent, an industry group said.
The Market Composite Index, which measures mortgage loan application volume, fell from 786 to 658.7 in the week ending May 29, the Mortgage Bankers Association said in a release Wednesday.
The Refinance Index also fell, dropping 24.1 percent to 2,953.6, the MBA said.
The average interest rate for 30-year, fixed-rate mortgages increased from 4.81 percent to 5.25 percent with points falling from 1.28 to 1.02, the organization said.
Rates for the average 15-year, fixed-rate mortgage increased from 4.44 percent to 4.8 percent. Points in 15-year, fixed-rate mortgages fell from 1.16 to 1.1.
The average interest rate for one-year adjustable rate mortgages rose from 6.55 percent with an average 0.12 points to 6.61 percent with 0.15 points, the report said.
The Market Composite Index, which measures mortgage loan application volume, fell from 786 to 658.7 in the week ending May 29, the Mortgage Bankers Association said in a release Wednesday.
The Refinance Index also fell, dropping 24.1 percent to 2,953.6, the MBA said.
The average interest rate for 30-year, fixed-rate mortgages increased from 4.81 percent to 5.25 percent with points falling from 1.28 to 1.02, the organization said.
Rates for the average 15-year, fixed-rate mortgage increased from 4.44 percent to 4.8 percent. Points in 15-year, fixed-rate mortgages fell from 1.16 to 1.1.
The average interest rate for one-year adjustable rate mortgages rose from 6.55 percent with an average 0.12 points to 6.61 percent with 0.15 points, the report said.
Mortgage modifications decline
Mortgage modifications among struggling U.S. homeowners dropped sharply in May compared to April, a university study said.
Even as the Obama administration touts its commitment to help homeowners, a study conducted by Alan White at Valparaiso University Law School said the number of loan modifications declined 11 percent April to May.
One gap in the system is homeowners who pay their bills, The New York Times reported Wednesday.
Bank of America spokesman Rick Simon said the bank was concentrating on modifications for homeowners 'who are already in severe threat of foreclosure.'
'We're still putting the systems in place to handle people who are current on their loans,' Simon said.
Recently laid off, Eileen Ulery of Mesa, Ariz., called her mortgage lender, Countrywide. The bank offered two refinancing plans, but no modifications to ease her current financial stress.
One option included an $18,000 payment, slightly lower monthly bills and a higher interest rate.
'I just laughed. It was a really good deal for them,' she said.
'Who this bailout is helping,' Ulery told the Times, 'I don't think the government gets it.'
'These are the same people you couldn't trust before,' she said.
Even as the Obama administration touts its commitment to help homeowners, a study conducted by Alan White at Valparaiso University Law School said the number of loan modifications declined 11 percent April to May.
One gap in the system is homeowners who pay their bills, The New York Times reported Wednesday.
Bank of America spokesman Rick Simon said the bank was concentrating on modifications for homeowners 'who are already in severe threat of foreclosure.'
'We're still putting the systems in place to handle people who are current on their loans,' Simon said.
Recently laid off, Eileen Ulery of Mesa, Ariz., called her mortgage lender, Countrywide. The bank offered two refinancing plans, but no modifications to ease her current financial stress.
One option included an $18,000 payment, slightly lower monthly bills and a higher interest rate.
'I just laughed. It was a really good deal for them,' she said.
'Who this bailout is helping,' Ulery told the Times, 'I don't think the government gets it.'
'These are the same people you couldn't trust before,' she said.
U.S. markets slide Wednesday
U.S. markets turned lower Wednesday after Automatic Data Processing said 532,000 private sector jobs were lost from April to May.
ADP also revised its March to April job loss estimate to 545,000, after previously estimating 491,000 jobs were lost a month ago. Factory orders rose 0.7 percent in April, the Census Bureau reported. But, non-manufacturing business activity declined in May, the Institute for Supply Management said.
By close, the Dow Jones industrial average dropped 65.59 points, or 0.75 percent, to 8,675.28. The Standard & Poor's (NYSE:MHP) 500 fell 1.37 percent, 12.98 points, to 931.76. The Nasdaq composite index lost 10.88 points, 0.59 percent, to 1,825.92.
On the New York Stock Exchange, 830 stocks advanced and 2,178 declined on a volume of 6.2 billion shares traded.
The benchmark 10-year U.S. Treasury bond rose 18/32 to yield 3.544 percent.
The euro rose to $1.4159, compared to Tuesday's $1.4155. Against the Japanese yen, the dollar held even, trading at 95.98 yen.
In Tokyo, the Nikkei average rose 0.38 percent, 37.36 points, to 9,741.67. In London, the FTSE 100 index shed 93.60 points, 2.09 percent, to 4,383.42.
ADP also revised its March to April job loss estimate to 545,000, after previously estimating 491,000 jobs were lost a month ago. Factory orders rose 0.7 percent in April, the Census Bureau reported. But, non-manufacturing business activity declined in May, the Institute for Supply Management said.
By close, the Dow Jones industrial average dropped 65.59 points, or 0.75 percent, to 8,675.28. The Standard & Poor's (NYSE:MHP) 500 fell 1.37 percent, 12.98 points, to 931.76. The Nasdaq composite index lost 10.88 points, 0.59 percent, to 1,825.92.
On the New York Stock Exchange, 830 stocks advanced and 2,178 declined on a volume of 6.2 billion shares traded.
The benchmark 10-year U.S. Treasury bond rose 18/32 to yield 3.544 percent.
The euro rose to $1.4159, compared to Tuesday's $1.4155. Against the Japanese yen, the dollar held even, trading at 95.98 yen.
In Tokyo, the Nikkei average rose 0.38 percent, 37.36 points, to 9,741.67. In London, the FTSE 100 index shed 93.60 points, 2.09 percent, to 4,383.42.
UPI NewsTrack Business
U.S. markets slide Wednesday
NEW YORK, June 3 (UPI) -- U.S. markets turned lower Wednesday after Automatic Data Processing said 532,000 private sector jobs were lost from April to May.
ADP also revised its March to April job loss estimate to 545,000, after previously estimating 491,000 jobs were lost a month ago. Factory orders rose 0.7 percent in April, the Census Bureau reported. But, non-manufacturing business activity declined in May, the Institute for Supply Management said.
By close, the Dow Jones industrial average dropped 65.59 points, or 0.75 percent, to 8,675.28. The Standard & Poor's (NYSE:MHP) 500 fell 1.37 percent, 12.98 points, to 931.76. The Nasdaq composite index lost 10.88 points, 0.59 percent, to 1,825.92.
On the New York Stock Exchange, 830 stocks advanced and 2,178 declined on a volume of 6.2 billion shares traded.
The benchmark 10-year U.S. Treasury bond rose 18/32 to yield 3.544 percent.
The euro rose to $1.4159, compared to Tuesday's $1.4155. Against the Japanese yen, the dollar held even, trading at 95.98 yen.
In Tokyo, the Nikkei average rose 0.38 percent, 37.36 points, to 9,741.67. In London, the FTSE 100 index shed 93.60 points, 2.09 percent, to 4,383.42.
Bernanke warns of tough choices
WASHINGTON, June 3 (UPI) -- U.S. Federal Reserve Chairman Ben Bernanke told the House Budget Committee Wednesday to expect difficult choices to control spending.
'In the end, the fundamental decision that the Congress, the Administration, and the American people must confront is how large a share of the nation's economic resources to devote to federal government programs, including entitlement programs,' Bernanke said in a prepared statement.
'Crucially, whatever size of government is chosen, tax rates must ultimately be set at a level sufficient enough to achieve an appropriate balance of spending and revenues in the long run,' he said.
With recently accelerated spending to prop up banks and automakers and combat unemployment, the federal deficit will reach $1.8 trillion in this fiscal year before declining to $1.3 trillion in 2010 and $900 billion in 2011, Bernanke said.
'As a consequence of this elevated level of borrowing,' Bernanke said, the federal debt would likely grow from 40 percent of the nation's gross domestic product to 70 percent.
'These developments would leave the debt-to-GDP ratio at its highest level since the early 1950s, the years following the massive debt buildup during World War II,' he said.
Auto execs likely to have pensions cut
DETROIT, June 3 (UPI) -- Bankruptcies at U.S. automakers Chrysler and General Motors Corp. (OOTC:GMGMQ) will likely cost former executives at least part of their pension plans, the companies said.
Chrysler has already demanded former executives, including the iconic Lee Iacocca, return or buy their company cars by May 31, The Detroit News reported Wednesday.
The gesture is one step towards retrieving what could be big money. GM's former Chief Executive Officer Rick Wagoner is still, technically on the payroll, receiving $1 for his work in 2009. But, Wagoner's $22 million pension plan is also at stake, the News said.
Robert Lutz the vice chairman of GM who has worked at Chrysler and Ford confirmed that his Chrysler pension had been reduced, but he would not give details, the newspaper said.
Chrysler cut pension payments to about 1,200 retirees when it filed for bankruptcy April 30. The fate of those pension plans will be decided in court.
GM said, 'the amount of non-qualified pension for some executive retirees may be affected,' but kept the decision out of its court proceedings.
The company will decide on pensions after GM emerges from bankruptcy, GM spokeswoman Julie Gibson said.
Ruling tips in Starbucks' favor
LOS ANGELES, June 3 (UPI) -- A California appeals court saved Starbucks Corp. (NASDAQ:SBUX) $100 million, ruling supervisors can keep their share of gratuities taken from counter top tip jars.
San Diego County Superior Court Judge Patricia Cowett issued the previous ruling on a complaint filed in 2004 on behalf of more than 100,000 Starbucks servers, the Los Angeles Times reported Wednesday.
Cowett ruled Starbucks should not have allowed supervisors to take a share of tips and ordered the company to compensate baristas with $86 million in lost income and $20 million in lost interest.
But the appeals court said supervisors at the nation's premier coffee chain 'essentially perform the same job as baristas.'
'The applicable statutes do not prohibit Starbucks from permitting shift supervisors to share in the proceeds placed in collective tip boxes,' the appeals court said.
David Lowe, a lawyer for the servers said the case would continue. 'We will be looking to the California Supreme Court to fix this error,' he said.
On average, shift supervisors make $3 more an hour than servers, supervisor Tameko Aubry told the Times.
Starbucks argued that shift supervisors take customer orders and pour coffee and should be entitled to a share of a store's collective tips.
NEW YORK, June 3 (UPI) -- U.S. markets turned lower Wednesday after Automatic Data Processing said 532,000 private sector jobs were lost from April to May.
ADP also revised its March to April job loss estimate to 545,000, after previously estimating 491,000 jobs were lost a month ago. Factory orders rose 0.7 percent in April, the Census Bureau reported. But, non-manufacturing business activity declined in May, the Institute for Supply Management said.
By close, the Dow Jones industrial average dropped 65.59 points, or 0.75 percent, to 8,675.28. The Standard & Poor's (NYSE:MHP) 500 fell 1.37 percent, 12.98 points, to 931.76. The Nasdaq composite index lost 10.88 points, 0.59 percent, to 1,825.92.
On the New York Stock Exchange, 830 stocks advanced and 2,178 declined on a volume of 6.2 billion shares traded.
The benchmark 10-year U.S. Treasury bond rose 18/32 to yield 3.544 percent.
The euro rose to $1.4159, compared to Tuesday's $1.4155. Against the Japanese yen, the dollar held even, trading at 95.98 yen.
In Tokyo, the Nikkei average rose 0.38 percent, 37.36 points, to 9,741.67. In London, the FTSE 100 index shed 93.60 points, 2.09 percent, to 4,383.42.
Bernanke warns of tough choices
WASHINGTON, June 3 (UPI) -- U.S. Federal Reserve Chairman Ben Bernanke told the House Budget Committee Wednesday to expect difficult choices to control spending.
'In the end, the fundamental decision that the Congress, the Administration, and the American people must confront is how large a share of the nation's economic resources to devote to federal government programs, including entitlement programs,' Bernanke said in a prepared statement.
'Crucially, whatever size of government is chosen, tax rates must ultimately be set at a level sufficient enough to achieve an appropriate balance of spending and revenues in the long run,' he said.
With recently accelerated spending to prop up banks and automakers and combat unemployment, the federal deficit will reach $1.8 trillion in this fiscal year before declining to $1.3 trillion in 2010 and $900 billion in 2011, Bernanke said.
'As a consequence of this elevated level of borrowing,' Bernanke said, the federal debt would likely grow from 40 percent of the nation's gross domestic product to 70 percent.
'These developments would leave the debt-to-GDP ratio at its highest level since the early 1950s, the years following the massive debt buildup during World War II,' he said.
Auto execs likely to have pensions cut
DETROIT, June 3 (UPI) -- Bankruptcies at U.S. automakers Chrysler and General Motors Corp. (OOTC:GMGMQ) will likely cost former executives at least part of their pension plans, the companies said.
Chrysler has already demanded former executives, including the iconic Lee Iacocca, return or buy their company cars by May 31, The Detroit News reported Wednesday.
The gesture is one step towards retrieving what could be big money. GM's former Chief Executive Officer Rick Wagoner is still, technically on the payroll, receiving $1 for his work in 2009. But, Wagoner's $22 million pension plan is also at stake, the News said.
Robert Lutz the vice chairman of GM who has worked at Chrysler and Ford confirmed that his Chrysler pension had been reduced, but he would not give details, the newspaper said.
Chrysler cut pension payments to about 1,200 retirees when it filed for bankruptcy April 30. The fate of those pension plans will be decided in court.
GM said, 'the amount of non-qualified pension for some executive retirees may be affected,' but kept the decision out of its court proceedings.
The company will decide on pensions after GM emerges from bankruptcy, GM spokeswoman Julie Gibson said.
Ruling tips in Starbucks' favor
LOS ANGELES, June 3 (UPI) -- A California appeals court saved Starbucks Corp. (NASDAQ:SBUX) $100 million, ruling supervisors can keep their share of gratuities taken from counter top tip jars.
San Diego County Superior Court Judge Patricia Cowett issued the previous ruling on a complaint filed in 2004 on behalf of more than 100,000 Starbucks servers, the Los Angeles Times reported Wednesday.
Cowett ruled Starbucks should not have allowed supervisors to take a share of tips and ordered the company to compensate baristas with $86 million in lost income and $20 million in lost interest.
But the appeals court said supervisors at the nation's premier coffee chain 'essentially perform the same job as baristas.'
'The applicable statutes do not prohibit Starbucks from permitting shift supervisors to share in the proceeds placed in collective tip boxes,' the appeals court said.
David Lowe, a lawyer for the servers said the case would continue. 'We will be looking to the California Supreme Court to fix this error,' he said.
On average, shift supervisors make $3 more an hour than servers, supervisor Tameko Aubry told the Times.
Starbucks argued that shift supervisors take customer orders and pour coffee and should be entitled to a share of a store's collective tips.
Subscribe to:
Posts (Atom)