http://http://www.kentucky.com/473/index.xml News, sports, and entertainment from Kentucky.com en-us Copyright 2009 Kentucky.com Business - Wire 60 Fri, 10 Jul 2009 16:30:39 EDT http://blogs.law.harvard.edu/tech/rss McClatchy Interactive's Workbench interactive-ops@herald-leader.com http://www.kentucky.com/473/story/858623.html http://www.kentucky.com/473/story/858623.html Fri, 10 Jul 2009 16:20 EDT
By failing to shield Stillwater Mining Co.'s platinum and palladium mines, Schweitzer said Friday that the administration had shown a bias against his state at a time when other U.S. jobs were protected with a "buy American" clause in the $787 billion stimulus act.

Details of the case paint a more complex picture: GM was effectively subsidizing production at the Montana mines, often paying above market prices for the metals. And since 2003, the mines have been majority-owned by a Russian company, Norilsk Nickel.

GM, which emerged from bankruptcy protection Friday, canceled its contract with Stillwater as part of a reorganization that will infuse the automaker with $50 billion in government loans. The loans are separate from the stimulus bill.

Stillwater executives said the decision means GM will have to import its supply of precious metals.]]> http://www.kentucky.com/473/story/858649.html http://www.kentucky.com/473/story/858649.html Fri, 10 Jul 2009 13:39 EDT
The Colorado Democrat is sponsoring a bill that would repeal a ban on regulating hydraulic fracturing under the federal Safe Drinking Water Act. The 2005 energy bill exempted the process, also called "fracking," from federal oversight.

The bill, also sponsored by Rep. Maurice Hinchey, D-N.Y., is being vigorously opposed by industry groups, which say the technology is used to drill the majority of the country's oil and gas wells and is crucial to energy development. The industry says claims that fracking threatens groundwater are unsubstantiated.

The process injects liquids, sand and chemicals underground to force open channels in tight sand and rock formations so that oil and gas will flow.

The industry says fracking is crucial to producing gas from the tight sands of the Rockies as well as gas shale reserves such as the Marcellus Shale that underlies much of New York, Ohio, Pennsylvania and West Virginia.]]> http://www.kentucky.com/473/story/858702.html http://www.kentucky.com/473/story/858702.html Fri, 10 Jul 2009 14:29 EDT
Rosetta Stone, whose products teach customers to speak foreign languages, said Google's Adwords advertising policy was changed last month to let advertisers use its trademark or similar terms in the ad text even if they don't own the trademark or have approval to use it.

Advertisers can buy certain key words in Google search. When consumers type in those key words, the sponsored links by these advertisers appear along with organic search results. Google gets paid by the advertiser if people click on those links.

Rosetta Stone contends that rivals and other companies can buy its brand name as key words and include them in the ad's text or title to route folks to their Web sites or mislead people in other ways, with Google benefiting financially from the transactions.

Google did not immediately return a call for comment.]]> http://www.kentucky.com/473/story/858757.html http://www.kentucky.com/473/story/858757.html Fri, 10 Jul 2009 15:20 EDT
Chevron's stock fell $1.74, or 2.8 percent, to $61.31 in afternoon trading.

The nation's second-largest oil company did not provide specific earnings estimates, but did report unfavorable foreign currency effects of more than $400 million as a result of the weakening U.S. dollar against most other major currencies.

Macquarie Research analyst Jason Gammel said the second quarter looks "disappointing," and lowered his quarterly profit estimate to 99 cents per share, down from $1.34 per share.

On a positive note, the company's production volumes remain on track for 5 percent to 6 percent growth in 2009, Gammel said.]]> http://www.kentucky.com/473/story/858311.html http://www.kentucky.com/473/story/858311.html Fri, 10 Jul 2009 04:04 EDT
The Bank of Japan's corporate good price index, which tracks the cost of a wide range of products sold domestically, declined for the sixth straight month. On a monthly basis, prices slipped 0.3 percent from May.

The yearly fall was the largest since the central bank began keeping comparable data in 1960.

Deflation can hurt economic growth because it cuts into company profits as prices fall. It can also lead consumers to put off purchases on the expectation that prices will fall further, and increase debt burdens.

Last month, another key indicator also showed prices were falling in Japan. The government said the country's key consumer price index fell at a record pace in May, the third straight month of decline.]]> http://www.kentucky.com/473/story/858774.html http://www.kentucky.com/473/story/858774.html Fri, 10 Jul 2009 16:15 EDT
The approval makes Lilly's Effient the first real competition to the blood thinner Plavix, the world's second-best selling medication made by Sanofi-Aventis and Bristol-Myers Squibb.

The FDA delayed its decision on Effient multiple times during an 18-month review, as agency staffers weighed the drug's benefits versus its risks.

A study of over 13,000 patients conducted by Lilly found that Effient prevents more heart attacks than Plavix, but also causes more internal bleeding.

The FDA said Effient will carry a boxed warning to alert physicians to the risks of "significant, sometimes fatal, bleeding." The boxed warning is reserved for issues that can cause serious injury or death.]]> http://www.kentucky.com/473/story/858358.html http://www.kentucky.com/473/story/858358.html Fri, 10 Jul 2009 05:54 EDT
With about 98 percent harvested, the U.S. Department of Agriculture estimates the yield will add up to around 73.5 million bushels, said Mike Schulte, executive director of the Oklahoma Wheat Commission. That would be well below 2008's bumper crop of 166.5 million bushels.

"This happens to be a year that is going to be extremely difficult for producers in the state," Schulte said.

The Oklahoma Department of Agriculture, Food and Forestry has estimated that about 3.5 million acres will be harvested, a decline of about 1 million acres, said agency spokesman Jack Carson.

Drought that developed in parts of Oklahoma in 2008 was eased in the northwest part of the state by a snowstorm that brought up to 2 feet of snow in late March. In early April, a hard freeze damaged plants that had already begun maturing, particularly in southwestern Oklahoma, officials said. When heavy rains and floods came in May, growers had trouble getting into their fields.]]> http://www.kentucky.com/473/story/858800.html http://www.kentucky.com/473/story/858800.html Fri, 10 Jul 2009 15:55 EDT
Two of the biggest issuers in the nation - Bank of America and Chase - say they're switching some fixed-rate cards to variable rates to manage costs in light of the sweeping new reforms to the credit card industry. The interest on variable-rate cards is tied to the rise and fall of the prime rate.

The changes will be effective starting in August for both banks.

The moves are just the latest clampdown on cardholders over the past year. To prepare for a new law that will limit banks' ability to change card terms, lenders have been raising interest rates, tightening credit limits and even closing inactive accounts.

Now banks say the switch to variable rates will further limit their risk under the new credit card law, which becomes effective in February.]]> http://www.kentucky.com/473/story/858292.html http://www.kentucky.com/473/story/858292.html Fri, 10 Jul 2009 14:34 EDT
The initiative announced at the end of a Group of Eight summit marked a new emphasis on helping farmers in the developing world boost production over the long term, moving away from an emphasis on emergency food aid for people suffering from drought and famine.

"We believe that the purpose of aid must be to create the conditions where it's no longer needed - to help people become self-sufficient, provide for their families, and lift their standards of living," President Barack Obama said.

The promised aid was $5 billion higher than originally expected, and the United Nations and anti-poverty groups welcomed the deal. But they stressed that it was important to see how much would actually be delivered from newly allocated funds and not moved from other development projects.

Obama told Pope Benedict XVI before a private meeting that the package is "something concrete" but the final text of the leaders' statement seemed less than definitive. It said the leaders "welcomed commitments made by countries represented at L'Aquila toward a goal of mobilizing $20 billion over three years."]]> http://www.kentucky.com/473/story/858446.html http://www.kentucky.com/473/story/858446.html Fri, 10 Jul 2009 11:59 EDT
The slight rebound in exports, combined with a slower pace of decline in imports, showed that the nosedive in global activity may be starting to ebb. Delayed revivals overseas likely will hinder a rebound in the U.S., but most analysts still expect the American economy to grow a bit later this year.

The Commerce Department said Friday the deficit narrowed to $26 billion, a drop of 9.8 percent from April and the lowest level since November 1999. Economists expected the deficit to widen to $30.2 billion in May.

So far this year, the deficit is running at an annual rate of $350 billion, about half of the $695.9 billion deficit for all of 2008. Economists believe that trend will continue as weakness in the U.S. depresses demand for imported goods.

"I think this was a very positive report and consistent with the idea that the U.S. recession will come to an end in the next few months," said Mark Zandi, chief economist for Moody's Economy.com.]]> http://www.kentucky.com/473/story/858506.html http://www.kentucky.com/473/story/858506.html Fri, 10 Jul 2009 13:19 EDT
The New York-based financier to small and mid-sized businesses faces a liquidity crisis absent help from the government, according to analysts.

CIT is still awaiting word on whether it will receive funds from the Federal Deposit Insurance Corp.'s Temporary Liquidity Guarantee Program, which lets cash-squeezed companies issue government-backed bonds to raise capital at a lower cost. As of June 8, the program has backed $335.4 billion of debt.

FDIC Chairwoman Sheila Bair has said that the program is selective about the companies admitted to limit taxpayer exposure. The program gives preference to companies with high credit ratings or that are considered pivotal to the overall economy. CIT spokesman Curt Ritter confirmed Friday that the company's application to the FDIC program remains outstanding.

"We continue to be in discussions with the government," he said.]]> http://www.kentucky.com/473/story/858564.html http://www.kentucky.com/473/story/858564.html Fri, 10 Jul 2009 12:39 EDT
Statistics Canada announced Friday that Canada lost 7,400 jobs in June, as the unemployment rate rose to 8.6 percent, the highest since February 1998 and up from 8.4 percent in May.

The agency said that while 47,500 full-time jobs disappeared in June, roughly 40,100 part-time positions were added.

The 7,400 job loss figure was surprisingly low given the previous month's 42,000 retreat and general weakness in the economy.

Economists had expected a 35,000 drop in employment in June and for the jobless rate to hit 8.7 percent.]]> http://www.kentucky.com/473/story/858596.html http://www.kentucky.com/473/story/858596.html Fri, 10 Jul 2009 12:19 EDT
Ameriprise did not admit or deny wrongdoing in its settlement with the Securities and Exchange Commission. The Minneapolis-based company - which provides financial planning, asset management and insurance with a major focus on baby boomers who have $100,000 to $1 million in assets - did agree to refrain from future violations of the securities laws and to pay $17.3 million in civil fines and restitution.

According to the SEC, Ameriprise did not disclose compensation for selling certain real estate investment trusts to customers between 2000 and May 2004. REITs own and often operate income-producing real estate or related assets such as office buildings, retail stores and hotels.

The SEC alleged in an administrative proceeding that Ameriprise failed to disclose to investors the roughly $30.8 million it received in connection with sales of the REIT shares and the potential conflicts of interest the payments created.

"Few things are more important to investors than getting unbiased advice from their financial advisers," SEC Enforcement Director Robert Khuzami said in a statement. "Ameriprise customers were not informed about the incentives its brokers had to sell these investments."]]> http://www.kentucky.com/473/story/858628.html http://www.kentucky.com/473/story/858628.html Fri, 10 Jul 2009 16:20 EDT
WASHINGTON -Treasury releases federal budget for June, 2 p.m.; House Financial Services subcommittee hearing on preventing unfair trading by government officials.

JACKSONVILLE, Fla. - CSX Corp. reports second-quarter financial results.

NEW YORK - Prominent lawyer Marc Dreier, who pleaded guilty to using impersonations and fake documents to defraud hedge funds out of more than $400 million, is sentenced.

TUESDAY, July 14]]> http://www.kentucky.com/473/story/858650.html http://www.kentucky.com/473/story/858650.html Fri, 10 Jul 2009 13:39 EDT
Henderson, 48, recently became a professor at Harvard Business School and has been a director at IDEXX Laboratories Inc. since 2003. Amgen said her specialties include technology strategy and strategic problems faced by companies in high technology industries. She is also a research associate at the National Bureau of Economic Research.

Her appointment expands the size of Amgen's board to 13.

In afternoon trading, Amgen shares were down 67 cents to $57.46.]]> http://www.kentucky.com/473/story/858720.html http://www.kentucky.com/473/story/858720.html Fri, 10 Jul 2009 14:45 EDT
The Neubiberg-based company said Apollo Global Management LLC, has agreed to acquire about 326 million of the shares which will be issued at a subscription price of euro2.15.

Apollo, which is based in New York, is expected to hold a minimum of 15 percent of Infineon share capital after the rights issue, up to a maximum shareholding of 30 percent, minus one share. Apollo would also get added Infineon supervisory board representation with a 15 percent investment.

Infineon said it would announce details of the offering and the dates of the subscription period in the near future.

The company said it intended to use the capital to repay debt and strengthen its liquidity position.]]> http://www.kentucky.com/473/story/858272.html http://www.kentucky.com/473/story/858272.html Fri, 10 Jul 2009 09:54 EDT
The four employees, including an Australian, were detained Sunday as Rio, the world's third-largest mining company, negotiated on behalf of global iron ore suppliers with Chinese steel mills. The government says it has proof they stole state secrets.

The Rio employees are accused of bribing Chinese steel company personnel to obtain summaries of meetings by Chinese negotiators and gain an edge in the price talks, newspapers said, citing the Ministry of State Security, China's domestic intelligence agency. They said that damaged China's "economic safety."

The accusations reflect the communist government's sensitivity about fields such as steel and energy that it deems strategic and its intense secrecy about a wide array of economic and industrial information.

"If you're foreign, information is power in China, and they tend to think most of their information is national security information," said Robert Broadfoot, managing director of Political and Economic Risk Consultancy in Hong Kong, who has advised companies on China since the 1970s.]]> http://www.kentucky.com/473/story/858760.html http://www.kentucky.com/473/story/858760.html Fri, 10 Jul 2009 15:25 EDT
The proposal unveiled Friday is part of the sweeping plan for overhauling the U.S. financial rule book that the administration is pressing Congress to enact to help avert another meltdown. It seeks to put investment advisers providing services to retail investors and stockbrokers under the same standards of conduct, and to strengthen rules governing the timing and quality of disclosures by investment funds.

For example, the SEC could require that investors be given a concise summary prospectus of funds and a simple disclosure showing the costs of a fund before the completion of a sale. Currently, most fund disclosures and prospectuses don't have to be delivered to investors until after a transaction is completed.

The 20-page legislative proposal also clarifies the SEC's authority to conduct consumer testing as a way of creating more effective and clearer disclosure documents.

In addition, the SEC would be empowered to establish a fund to pay whistleblowers for information leading to enforcement actions and financial penalties against companies and individuals violating securities laws. Gaps would be closed in the SEC's legal authority to pursue parties that aid securities fraud.]]> http://www.kentucky.com/473/story/858354.html http://www.kentucky.com/473/story/858354.html Fri, 10 Jul 2009 05:44 EDT
Exports fell 21.4 percent in June from a year earlier, the government's Xinhua News Agency reported, citing the Chinese customs agency. That was an improvement over May's record 26.4 percent decline.

China's trade collapsed in late 2008 as the global consumer demand plunged, wiping out millions of factory jobs. Analysts say a full-fledged recovery will have to wait until China's key U.S. and European export markets rebound.

"Overseas demand still hasn't recovered yet," said Hu Xiaoyue, an economist at Shanghai Securities. "The role of exports in economic growth will continue to weaken."

Beijing is trying to shield the economy from the downturn by boosting domestic consumption with a 4 trillion yuan ($586 million) package of spending on public works construction and other initiatives.]]> http://www.kentucky.com/473/story/858790.html http://www.kentucky.com/473/story/858790.html Fri, 10 Jul 2009 16:26 EDT
Frederic Bourke, 63, of Greenwich, Conn., also was convicted by a jury in U.S. District Court in Manhattan of making false statements to the FBI. America's special Middle East envoy, George Mitchell, testified on his behalf during the five-week trial. He was acquitted of money laundering conspiracy.

Bourke faces up to 10 years in prison for conspiring to violate the Foreign Corrupt Practices Act, which makes it a crime to offer payment to foreign government officials to obtain or retain business, and the Travel Act. A sentencing date was not immediately set.

Bourke had been accused of conspiring to corrupt the oil privatization process in Azerbaijan.

Mitchell testified that he still trusts Bourke even though he lost $200,000 in an investment related to Bourke's business venture.]]>