http://www.kentucky.com/473/index.xml News, sports, and entertainment from Kentucky.com en-us Copyright 2008 Kentucky.com Business - Wire 60 Wed, 09 Jul 2008 04:30:56 EDT http://blogs.law.harvard.edu/tech/rss McClatchy Interactive's Workbench webmaster@kentucky.com http://www.kentucky.com/473/story/455088.html http://www.kentucky.com/473/story/455088.html Wed, 09 Jul 2008 02:10 EDT
It came a day after the Group of Eight major industrial democracies set a goal of halving heat-trapping emissions that contribute to global warming by 2050.

The U.S.-led, 17-member group issued a final statement on the sidelines of the Group of Eight summit in northern Japan.

"We support a shared vision for long-term cooperative action, including a long-term global goal for emission reductions, that assures growth, prosperity, and other aspects of sustainable development," the expanded group said.

But the developing nations invited to the gathering were not ready to go as far as supporting the 50 percent reduction by 2050.]]> http://www.kentucky.com/473/story/455276.html http://www.kentucky.com/473/story/455276.html Wed, 09 Jul 2008 04:30 EDT
Iran's elite Revolutionary Guards fired nine long and medium range missiles Wednesday during war games officials say are a response to U.S. and Israeli threats, state television reported.

Gen. Hossein Salami, a top Guards commander, was quoted as saying the exercise "is to demonstrate our resolve and might against enemies who in recent weeks have threatened Iran with harsh language."

The drill was conducted in the Persian Gulf and the strategic Strait of Hormuz, through which about 40 percent of global oil exports pass, and comes less than a day after Iranian President Mahmoud Ahmadinejad said he sees no possibility of a war with the United States or Israel.

"I assure you that there won't be any war in the future," Ahmadinejad said Tuesday during a visit to Kuala Lumpur, Malaysia. The countries were "focusing on propaganda and psychological war," he said.]]> http://www.kentucky.com/473/story/455816.html http://www.kentucky.com/473/story/455816.html Wed, 09 Jul 2008 00:45 EDT
Alcoa, the first of the Dow Jones industrials to report earnings this quarter, said Tuesday it earned $546 million, or 66 cents per share, for the three months ended June 30, compared with $715 million, or 81 cents per share, in the year-ago period.

Quarterly revenue dropped about 6 percent to $7.62 billion.

Wall Street analysts surveyed by Thomson Financial, on average, were expecting profits of 64 cents per share on revenue of $7.36 billion.

Shares of Alcoa rose $1.12, or 3.5 percent, to $33.45 in after-hours trading Tuesday. Before the results were released, the shares fell $1.06, or 3.2 percent, to close at $32.33 in heavy trading.]]> http://www.kentucky.com/473/story/456070.html http://www.kentucky.com/473/story/456070.html Wed, 09 Jul 2008 01:01 EDT
As it turns out, women probably aren't saving enough to bankroll those extra years in style. They invest more conservatively, start saving later and are more likely to be in and out of the work force, according to a study released Wednesday by Hewitt Associates, a human resources consulting firm.

Suddenly, retirement isn't looking so rosy.

Women live an average of 22 years after retirement versus 19 years for men and medical costs are rising, so women will need to save 2 percent more than men every year over 30 years to maintain their standard of living upon retirement, the study found.

The importance of saving didn't dawn on Jerre Laughlin until she was in her 40s and started working in human resources.]]> http://www.kentucky.com/473/story/455299.html http://www.kentucky.com/473/story/455299.html Wed, 09 Jul 2008 04:30 EDT
Fed Chairman Ben Bernanke spoke of the much-awaited rules in a broader speech Tuesday about the challenges confronting policymakers in trying to stabilize a shaky U.S. financial system. To that end, Bernanke said the Fed may give squeezed Wall Street firms more time to tap the central bank's emergency loan program.

To prevent a repeat of the current mortgage mess, Bernanke said the Fed will adopt rules cracking down on a range of shady lending practices that have burned many of the nation's riskiest "subprime" borrowers - those with spotty credit or low incomes - who were hardest hit by the housing and credit debacles.

The plan, which will be voted on at a Fed board meeting on Monday, would apply to new loans made by thousands of lenders of all types, including banks and brokers.

Under the proposal unveiled last December, the rules would restrict lenders from penalizing risky borrowers who pay loans off early, require lenders to make sure these borrowers set aside money to pay for taxes and insurance and bar lenders from making loans without proof of a borrower's income. It also would prohibit lenders from engaging in a pattern or practice of lending without considering a borrower's ability to repay a home loan from sources other than the home's value.]]> http://www.kentucky.com/473/story/456067.html http://www.kentucky.com/473/story/456067.html Wed, 09 Jul 2008 00:45 EDT
AFTRA said 62 percent of voting members approved its prime-time TV contract with the Alliance of Motion Picture and Television Producers, a deal that will go in effect retroactive to July 1.

Federation President Roberta Reardon blamed the larger Screen Actors Guild for confusing its members with an "unprecedented disinformation campaign" that jeopardized the deal. A previous AFTRA contract covering soaps and talk shows received 93 percent support.

The guild claimed that approval for the deal would undermine its own talks, which are ongoing.

SAG leaders "must be held accountable for this ridiculous waste of members' dues money, including my own, in attacking another union's contract," Reardon told reporters Tuesday. "In the face of that kind of attack, the percentage we ratified this by is really good."]]> http://www.kentucky.com/473/story/456191.html http://www.kentucky.com/473/story/456191.html Wed, 09 Jul 2008 03:25 EDT
Undersecretary of Agriculture Bruce Knight met privately with local dairy operators Tuesday along with the state veterinarian and other industry officials monitoring three new cases of TB recently discovered in Fresno County dairies.

Federal and state agriculture officials were still tightlipped about the identities and locations of the three dairies where cows tested positive for the disease, which can be transmitted to humans and other mammals through the air or through drinking unpasteurized milk from an infected cow.

The discovery of the highly contagious respiratory disease already has prompted changes in interstate shipping regulations.

Pasteurization kills the TB bacteria, but trade organizations still worry about the possible financial impact on California's $7.3 billion dairy industry.]]> http://www.kentucky.com/473/story/456068.html http://www.kentucky.com/473/story/456068.html Wed, 09 Jul 2008 00:45 EDT
U.S. District Judge Karl Forester said in a 13-page opinion Tuesday that no Delta employee could be held liable for the crash of Comair Flight 5191. Comair is a subsidiary of Delta, but Delta argued that each has separate management and policies, and employs its own pilots.

"In short, there is no allegation that any Delta employee failed to exercise reasonable care in the performance of his/her duty in any manner in respect to Flight No. 5191," Forester wrote.

Plaintiffs lawyer David Royse told the Lexington Herald-Leader that the dismissal of Delta from the lawsuits won't affect an Aug. 4 trial on damages.

"Out of an abundance of caution, some plaintiffs had simply named Delta, Comair's parent company, as an additional defendant," Royse told the newspaper.]]> http://www.kentucky.com/473/story/455155.html http://www.kentucky.com/473/story/455155.html Wed, 09 Jul 2008 00:00 EDT
U.S. exports to Iran grew more than tenfold during President Bush's years in office even as he accused it of nuclear ambitions and sponsoring terrorists. America sent more cigarettes to Iran - at least $158 million worth under Bush - than any other product.

Other surprising shipments during the Bush administration: fur clothing, sculptures, perfume, musical instruments and military apparel. Top states shipping goods to Iran include California, Florida, Georgia, Louisiana, Michigan, Mississippi, New Jersey, North Carolina, Ohio and Wisconsin, according to an analysis by The Associated Press of seven years of U.S. government trade data.

Despite increasingly tough rhetoric toward Iran, which Bush has called part of an "axis of evil," U.S. trade in a range of goods survives on-again, off-again sanctions originally imposed nearly three decades ago. The rules allow sales of agricultural commodities, medicine and a few other categories of goods. The exemptions are designed to help Iranian families even as the United States pressures Iran's leaders.

"I understand that these exports have increased. However, we believe that they are increasing to a segment of the population that we want to reach out to, we want to know and understand that the U.S. government, the U.S. people want to be friends with them, want to work with them to integrate them into the world economy and become partners in the future," Gonzalo Gallegos, a State Department spokesman, said Tuesday when asked by reporters about AP's findings.]]> http://www.kentucky.com/473/story/455805.html http://www.kentucky.com/473/story/455805.html Tue, 08 Jul 2008 19:45 EDT
Anheuser-Busch Cos. Inc. made the claim in a lawsuit filed late Monday, just hours after InBev SA filed its own motion seeking to oust Anheuser-Busch's board of directors. The lawsuit, filed in St. Louis federal court, claims that InBev is deceiving Anheuser-Busch shareholders about the company's $46 billion takeover bid by concealing a number of facts.

The suit says InBev doesn't have the solid financing to underwrite the deal, as the company claims, and that it has not disclosed that it operates a brewery in Cuba, which could complicate its efforts to operate in the United States.

"Anheuser-Busch is asking the court to prevent InBev from taking any further steps to solicit Anheuser-Busch's shareholders until it provides full and accurate information concerning its proposal," Gary Rutledge, Anheuser-Busch's vice president of legal and government affairs said in a statement Tuesday.

InBev did not return a message seeking comment Tuesday. But the company did make a public appeal for support of its bid in Anheuser-Busch's home town.]]> http://www.kentucky.com/473/story/455511.html http://www.kentucky.com/473/story/455511.html Tue, 08 Jul 2008 17:10 EDT
The results of the yearlong review by the Securities and Exchange Commission illuminate the role of Wall Street's credit rating industry in the turmoil that has gripped the financial markets in recent months.

The three agencies that dominate the industry - Standard & Poor's, Moody's Investors Service and Fitch Ratings - have been widely criticized for failing to identify risks in investments tied to high-risk subprime mortgages.

The rating agencies "sometimes deviated from their own models and their own procedures," SEC Chairman Christopher Cox said at a news conference. "Conflicts of interest were not always managed properly."

The problems were serious enough to cause concern among employees of the agencies themselves, Cox noted, citing internal e-mails uncovered in the SEC review. "There were generalized concerns about laxity, about adherence to stated norms," he said.]]> http://www.kentucky.com/473/story/455549.html http://www.kentucky.com/473/story/455549.html Tue, 08 Jul 2008 17:05 EDT
Fannie Mae shares rose $1.88, or 11.9 percent, to $17.62 Tuesday, a day after shares plunged 16.2 percent. Freddie Mac shares rose $1.55, or 13 percent, to $13.46 after sliding 17.9 percent on Monday.

At issue with Fannie Mae and Freddie Mac - the nation's largest purchasers of mortgages - is how a new potential accounting rule could affect their capital requirements.

The Financial Accounting Standards Board is reviewing a rule that might force financial firms to take mortgage-backed securities that are currently off their balance sheets and place them on balance sheets.

Securitizations - the sale of bonds backed by pools of loans - are one of Fannie Mae and Freddie Mac's primary sources of generating new revenue.]]> http://www.kentucky.com/473/story/455571.html http://www.kentucky.com/473/story/455571.html Tue, 08 Jul 2008 19:40 EDT
The Federal Reserve reported Tuesday that consumer credit increased at an annual rate of 3.6 percent in May, roughly the same pace as logged in the prior month.

The pickup pushed total consumer debt up by $7.8 billion to $2.57 trillion. That was a bit more brisk than the $7 billion over-the-month increase economists were expecting.

The increase was led by much stronger demand for a category called revolving credit, which is primarily credit cards. Use of revolving credit rose at a 7.1 percent pace in May, a month where a flow of tax rebates helped to energize consumer spending. In April, consumers cut back on such credit at a 0.5 percent pace.

Still, the longer-term trend shows that consumers have been forced to charge more of their purchases on credit cards as banks have tightened lending standards on other types of loans.]]> http://www.kentucky.com/473/story/455648.html http://www.kentucky.com/473/story/455648.html Tue, 08 Jul 2008 16:20 EDT
Lexington attorney Angela Ford asked a state judge Tuesday to force the sale to settle a $42 million civil judgment against attorneys Shirley Cunningham Jr. and William Gallion. They own a minority stake in the horse.

Ford represents more than 400 people suing Gallion and Cunningham over their handling of a settlement involving the diet drug fen-phen.

A spokesman for Jess Jackson, who owns an 80 percent stake in Curlin, says Ford's request is baseless. Jackson isn't involved in the fen-phen case.

Gallion and Cunningham are awaiting a second trial on criminal charges that they conspired to illegally take $65 million from clients.]]> http://www.kentucky.com/473/story/454801.html http://www.kentucky.com/473/story/454801.html Tue, 08 Jul 2008 15:15 EDT
The lawsuit filed late Monday calls InBev's unsolicited $46 billion offer to buy Anheuser-Busch an illegal scheme.

It says InBev concealed that it does business in Cuba, which could complicate its efforts to operate in the United States.

InBev filed a motion on Monday asking Anheuser-Busch shareholders to fire the company's board of directors and replace those members with a slate selected by InBev.

Anheuser-Busch's lawsuit asks a federal judge to block InBev from making any more solicitations from its shareholders.]]> http://www.kentucky.com/473/story/455775.html http://www.kentucky.com/473/story/455775.html Tue, 08 Jul 2008 19:30 EDT
Managers informed employees of the impending job cuts Tuesday afternoon in a series of meetings, according to two people familiar with the situation who requested anonymity because the company made no announcement.

The goal in the latest round of cuts is to trim $8.8 million in salary and benefits, according to one of the people. Specific jobs to be eliminated were not disclosed to staffers.

Employees were told that 55 or 60 layoffs will be made from the current total of 578 newsroom positions by the end of August. Twenty positions already are vacant.

Company representatives declined comment.]]> http://www.kentucky.com/473/story/455277.html http://www.kentucky.com/473/story/455277.html Tue, 08 Jul 2008 07:21 EDT
The Swiss pharmaceuticals company paid current majority shareholder Nestle SA $10.4 billion cash for a 25 percent stake in Alcon. That is about $200 million less than when the deal was originally announced in April.

Novartis still has the exclusive right to buy Nestle's remaining 52 percent stake in Alcon for about $28 billion between January 2010 and July 2011.

The second step is optional, but both companies would have to agree not to exercise their rights for the deal to fall through.

The sale of Texas-based Alcon, which makes Opti-Free contact lens solution and has 14,500 employees worldwide, is the largest takeover in Swiss history.]]> http://www.kentucky.com/473/story/455086.html http://www.kentucky.com/473/story/455086.html Tue, 08 Jul 2008 09:28 EDT
In a communique released after a morning discussion about economic issues, the leaders called on petroleum suppliers to boost production and refining and to increase investment in oil exploration and output over the medium term.

The G-8 - which groups the U.S., Britain, Japan, France, Germany, Canada, Russia and Italy - also called for diversifying sources of energy and further efforts to improve energy efficiency.

"We remain positive about the long-term resilience of our economies and future global growth," the communique said, noting that growth in emerging economies remained strong.

"However, the world economy is now facing uncertainty and downside risks persist," it said.]]> http://www.kentucky.com/473/story/455496.html http://www.kentucky.com/473/story/455496.html Tue, 08 Jul 2008 15:40 EDT
The cuts are part of the carrier's plan to ground 14 of its 50-seat jets by the end of the year.

The Delta Air Lines Inc. subsidiary sent the memo to employees this week. Comair spokeswoman Kate Marx says the Erlanger, Ky.-based airline expects to cut about 300 pilot and 220 flight attendant positions.

Marx says the airline has steadily reduced non-crew staff since the beginning of the year. She says the pilot and flight attendant staffing now has to be adjusted with the grounding of the planes.]]> http://www.kentucky.com/473/story/455562.html http://www.kentucky.com/473/story/455562.html Tue, 08 Jul 2008 15:00 EDT
Sure, attendance has dwindled in recent years, but rising costs and a 40 percent drop in corporate sponsorship dealt the final blow. "It boiled down to, if we can't do it the right way, let's just not do it," said Joe Mooney, the event's organizer for all but one year.

Mooney's misery has company. From a hot air balloon festival in Jackson, Mich., to parades in Clearwater, Fla. to a seafood festival in Annapolis, Md., organizers grappling with the effects of a weakening economy are calling it quits. Or at least putting off their events until next year.

Corporate sponsors are pulling out as they worry about their own financial well-being, let alone donating money to a festival. Organizers are reluctant to raise ticket prices since families shelling out $4-a-gallon for gas may not want to pay the extra money. And costs for hiring bands, vendors and renting grounds are rising.

There are tens of thousands of festivals and parades across the country each year, ranging from events with a few balloons and a tent to those with rides, musicians and acres of vendors. Summer is the peak season, said Ira Rosen, the North American director of the International Festivals and Events Association.]]>