sâmbătă, 27 iunie 2009

Climate Change Bill to Heat Up Senate


Word that the House has narrowly passed a (historic! landmark!) climate change bill that would employ a cap-and-trade system to reduce greenhouse gases in the United States to 83 percent below 2005 levels by mid-century, touches down on the front pages of each major paper and finds a top spot on most business news Web sites. The controversial bill now heads to the Senate, "where political divisions and regional differences are even more stark [than in the House]," according to the New York Times. Adds the Wall Street Journal, "The 1,200 page bill—formally known as the 'American Clean Energy and Security Act'—will reach into almost every corner of the U.S. economy. By putting a price on emissions of greenhouse gases such as carbon dioxide, the bill would affect the way electricity is generated, how homes and offices are designed, how foreign trade is conducted and how much Americans pay to drive cars or to heat their homes." The Congressional Budget Office estimates the measure would cost an average of $175 a year per household, Bloomberg says.

Cap-and-trade works by setting "a limit on overall emissions of heat-trapping gases while allowing utilities, manufacturers and other emitters to trade pollution permits, or allowances, among themselves. The cap would grow tighter over the years, pushing up the price of emissions and presumably driving industry to find cleaner ways of making energy," the NYT explains. Proponents of the bill, including Dow Chemical (DOW) and Ford (F), a slew of environmental clubs and the president himself, say the measure would create jobs while helping save the environment. Opponents


—chiefly House Republicans—argue that the bill is no more than a national energy tax that would, in fact, cause the economy to shed more jobs rather than gain them. Diana Furchtgott-Roth, former chief economist at the U.S. Department of Labor, clearly lays out much of the opposition's view in a column published by Reuters, highlighting issues such as the lack of technology to meet the would-be requirements under the legislation: "Meeting these standards now is technologically impossible without radically reducing our standards of living, but Congress is hoping that technology will magically appear as needed." As well as the effect it would have on businesses: "Not only does the bill penalize American firms through higher costs, it gives firms a financial incentive to move abroad through 'offsets,' activities that supposedly lower carbon emissions elsewhere."

In the last court day before Bernard Madoff, 71, is sentenced in next week, U.S. prosecutors argued that he should get 150 years for conducting Wall Street's largest-ever fraud, or "a term of years that both would assure that Madoff will remain in prison for life," Reuters reports. In response, Madoff's lawyer, Ira Lee Sorkin, argued a sentence of 12 years "would be sufficient." Madoff plead guilty in March to 11 criminal charges. In other Madoff news, the WSJ reports that Ruth Madoff, Bernie's wife, has reached an agreement with federal prosecutors to cede her potential claim to more than $80 million worth of assets, instead keeping "just" $2.5 million in cash. The court has also issued an order for the family to forfeit $170 billion, "which represents the amount of money that prosecutors say flowed into his investment firm." However, the paper explains, "that massive amount is largely symbolic and simply an indication that prosecutors can tap any assets of Madoff's they can find." Over the years the $170 billion was used to pay investors' withdrawals and fund the Madoffs' "lavish lifestyle and that of some associates."

Regulators on Friday closed four small banks, bringing the total of bank closures this year to 44. That amount vastly surpasses last year's 25 failures and 2007's mere three, according to Reuters. But on a more positive note, the WSJ says small banks "are not shying away from TARP funds," casting a sharp contrast to the actions of Wall Street's biggest banks, which have rushed to pay back loans. Since May 31, 20 small banks have received a total of $164.1 million in taxpayer-funded capital, the paper says. With that, the banks are granting loans to local businesses and charities. "Analysts see no end in sight to the trend," according to the Journal. "The recession and borrowers are squeezing most of the 8,200 federally insured commercial banks and savings institutions in the U.S., so even a dollop of TARP funds could make a difference."

It appears, however, that not everyone is short on cash—or the need for advice from one of Wall Street's most sought-after sages. Yesterday, an unidentified bidder agreed to pay $1.68 million as part of a charity auction for a steak lunch with Warren Buffett. The auction marked the tenth year Buffett has participated, and the bid placed second among the most anyone has paid for the privilege. Last year's amount still holds the record at $2.11 million, which was forked over by Hong Kong-based investor Zhao Danyang. The starting price was $25,000. Winning bidders in the past have paid $650,100 (in 2007) and $620,100 (in 2006).The winner and up to seven friends may dine with Buffett at the Smith & Wollensky steakhouse in New York.

U.S. stocks fell last week, "giving the Standard & Poor's 500 Index the first two-week decline since March, after the highest American savings rate in 15 years spurred concern that consumer spending will slow and oil retreated," Bloomberg says. The savings rate surged to 6.9 percent, the highest level since December 1993. The S&P 500 dropped 0.2 percent to 918.88; the Dow Jones Industrial Average fell 34.01 points, or 0.4 percent, to 8,438.39. The dollar lost ground on a call from China's central bank for a worldwide currency, slumping 0.7 percent. In addition to a hike in the savings rate, consumer spending in May rose for the first time since February "as federal stimulus measures boosted incomes, bolstering the view that the economy was close to emerging from recession," Reuters reports. Consumer spending, accounting for more than 70 percent of U.S. economic activity, rose 0.3 percent last month.

And finally, Wacko Jacko (Michael Jackson's erstwhile nickname) has left behind a financial mess, the NYT says in a look at the departed pop star's monetary situation. Although Jackson had made some shrewd business moves over the years—see the rights to the Beatles' catalogue—his accounts have dwindled in recent years "as he burned through millions of dollars to maintain his Neverland ranch, go on art-buying sprees and indulge in whimsies like traveling with a pet chimpanzee named Bubbles." Alvin Malnik, a former adviser to Jackson, the (maybe) executor of the pop star's estate, and the (definite) godfather of Prince Michael II, the youngest of Jackson's three children, tells the Times, "Michael never thought his personal finances were out of control. He never kept track of what he was spending. He would indiscriminately charter jets. He would buy paintings for $1.5 million. You couldn't do that every other week and expect your books to balance." What will become of Jackson's assets remains unknown.

According to the paper, Jackson is estimated to have raked in some $700 million in the '80s and on, though much of that has likely been spent. His debts, on the other hand, could reach up to $500 million. "His single biggest asset is a 50 percent share in Sony/ATV Music Publishing—which owns the rights to more than 200 Beatles songs, along with thousands of others—valued at more than $500 million, but he has about $300 million of debt against it held by Barclays, Jackson's biggest creditor. He also owns his own publishing catalog, called Mijac, which is estimated to be worth $50 million to $100 million, and has an unknown amount of debt attached," the Times writes.

miercuri, 24 iunie 2009

Ho5

Michael Jackson is dead!!!!!!!!!!!!!!!!!!!!!!!!!!
Sad news of the day is that Pop Star Michel Jackson has died at the age of 50 on Thursday after suffering a heart attack at his Holmby Hills home and he has died just after 12:00 pm local time at UCLA Medical Center.

Michael Jackson was born August 29, 1958 in Gary, Indiana, USA. Son of Joseph Walter "Joe and Katherine Esther, was an amazing dancer, American recording artist, entertainer and businessman.The seventh child of Jackson family. He started to work at age of just 11 year. He was legend of Pop music. He produced many albums during his life.






Michael Jackson death still unsolved after autopsy

LOS ANGELES (Reuters) - Doctors conducted an autopsy on the body of Michael Jackson on Friday but could not immediately determine what killed the "King of Pop," amid reports he had been injected with a narcotic painkiller shortly before collapsing. Jackson was in full cardiac arrest when paramedics arrived at his rented mansion in the Holmby Hills neighborhood of Los Angeles on Thursday afternoon, with his personal physician trying desperately to revive him.

Farrah Fawcett funeral set for Tuesday in L.A

LOS ANGELES (Reuters) - A private funeral for actress Farrah Fawcett will be held at the Catholic cathedral of Los Angeles next Tuesday, church officials said on Friday. The service for the former "Charlie's Angels" actress will take place at the Cathedral of Our Lady of the Angels at 4 p.m. PDT (1900 EDT).

Hello Goodbye: Jackson's Beatles rights at risk

LOS ANGELES (Reuters) - Beatles For Sale? The Fab Four's prized catalog -- specifically 267 songs mostly written by John Lennon and Paul McCartney -- is embarking on a long and winding road of ownership uncertainty following the death of Michael Jackson on Thursday.

Rapper Coolio pleads guilty to cocaine possession

LOS ANGELES (Reuters) - Rap star Coolio pleaded guilty on Friday to possession of cocaine and will avoid jail by entering an 18-month drug rehabilitation program, a spokeswoman for prosecutors said. Coolio, who had hits in the mid-1990s with "Gangsta's Paradise" and "Fantastic Voyage," faced three years in prison if convicted of all the charges against him, said Jane Robison, spokeswoman for the L.A. County District Attorney's Office.

Michael Jackson feared he'd "end up" like Elvis: Lisa Marie

LOS ANGELES (Reuters) - Michael Jackson's former wife Lisa Marie Presley said on Friday the pop star was a tortured soul who once predicted that he would "end up" like her father, the late rock icon Elvis Presley. Writing on her MySpace blog, Presley also ripped into reports in the media that her relationship with Jackson was contrived, saying they split because she could not save him from self-destructive behavior.

Jackson leaves hefty debts, unrealized comeback

LOS ANGELES/NEW YORK (Reuters) - Along with a vast musical legacy and legions of adoring fans, pop superstar Michael Jackson leaves behind a mountain of debt and an unfulfilled comeback many hoped would rake in millions and erase his financial troubles. The King of Pop died suddenly on Thursday at the age of 50, after a career spanning 40 years that included the biggest-selling pop album of all time, "Thriller."

"Transformers" in high gear already

LOS ANGELES (Hollywood Reporter) - Debuting Wednesday to an estimated $60.6 million, "Transformers: Revenge of the Fallen" already has begun its triumphal rounding of the box office bases that should see it set a record or two by weekend's end. Once Michael Bay's sequel to the 2007 hit based on the Hasbro toy line staked out the upcoming weekend, there was never any question that it would dominate overall sales. Competitors steered clear of the date, with only Warner Bros. fielding the feel-good weepie "My Sister's Keeper" in a modest bit of counterprogramming.

Studios wary of Oscar's new best-picture rule

LOS ANGELES (Hollywood Reporter) - If ever there were a time that the town needed a jolt of adrenaline, Wednesday was it -- but from, of all places, the staid, mostly predictable Academy of Motion Pictures Arts and Sciences? What everyone thought would be another sleepy announcement about an arcane rule change in the documentary or foreign language category turned into the headline of the day -- opening up the Oscar race to 10 best picture nominees.

NBC sets fall schedule dates

LOS ANGELES (Hollywood Reporter) - NBC will launch the bulk of its fall schedule during the weeks of September 14 and September 21, the latter marking the official premiere week. A day after the September 13 kickoff of "Sunday Night Football," the network will roll out its most prominent new program, weeknight "The Jay Leno Show."

"Old Boy" proceeds despite legal scuffle

TOKYO/SEOUL (Hollywood Reporter) - Steven Spielberg and Will Smith are moving forward with plans for a remake of "Old Boy" despite a complex, behind-the-scenes rights wrangle involving the Japanese publishers of the original manga and the Korean producers of Park Chan-Wook's 2003 cult hit. Futabasha, publisher of the manga by Nobuaki Minegishi and Garon Tsuchiya, has filed a case against Show East in Seoul, alleging the Korean company never had the right to negotiate a remake.