The count of Americans seeking unemployment benefits for the first time climbed unexpectedly by 17,000 to 551,000 for the week ended September 26, indicating that labour market remains strained despite easing economic conditions.
The figures come a day after official data showed that the US economy contracted less than expected at 0.7 per cent i the June quarter.
According to the US Labor Department, the number of initial claims for jobless benefits rose 17,000 to 551,000 for the week ended September 26.
In the previous week, the figure stood at 534,000. As per the data, the four-week moving average was 548,000.
However, the count of those receiving unemployment benefits dropped as much as 70,000 to 6,090,000 for the week ended September 19.
"The 4-week moving average was 6,154,500, a decrease of 39,250 from the preceding week's revised average of 6,193,750," the Labor Department said in a statement today.
Yesterday, payroll-processing firm ADP in its National Employment Report said that 254,000 jobs evaporated in the American private sector in September.
However, the report noted that the decrease was the smallest since July 2008.
Agencies
Showing posts with label New York. Show all posts
Showing posts with label New York. Show all posts
Thursday, October 1, 2009
Tuesday, September 22, 2009
Twenty seven lose job every hour in America
Despite the US economy showing indications of recovery, the global job market remains gloomy, with companies laying off at least 27 employees every hour to cut costs.
With companies continuing to reduce their headcount in their efforts to tackle the downturn, around 13,000 jobs have been slashed so far in September by some of the leading global firms most of them headquartered in the US.
Job losses of about 12,900 have been witnessed in just 20 days of this month, translating into an average of 645 people being laid off per day. In turn, the toll comes to at least 27 people losing jobs per hour.
The lay-offs are happening across almost all the sectors from pharma to software to refinery, among others.
Most of the job cuts happened in the United States, which has already seen a staggering 5,50,000 Americans filing for unemployment benefits in the first week of September.
Last week, US Federal Reserve chairman Ben Bernanke said the recession is “very likely over,” while America’s retail sales data strengthened on hopes that recovery from the economic downturn was progressing.
Bernanke, however, said that recovery would be slow and it would take time to create jobs.
September’s job cut wave was led by pharma major Eli Lilly & Company, which will slash around 5,500 jobs globally by 2011.
While in terms of numbers, diversified technology leader Danaher came next with 3,300job cuts followed by agricultural company Monsanto, which would reduce its headcount by 8% of its total workforce or about 1,800 people.
Defence major BAE Systems is also planning to cut 1,116 jobs across plants in the country and may shut down one of its facilities by the end of 2012.
Moreover, US-based computer maker Dell is eliminating 500 people while Deere & Company is reducing its workforce by 367 manufacturing employees.
Other companies which announced job cuts include — Valero Energy, which slashed the jobs of 150 employees and 100 contractors, HJ Heinz’s frozen food arm fires 65 workers in Idaho.
Agencies
With companies continuing to reduce their headcount in their efforts to tackle the downturn, around 13,000 jobs have been slashed so far in September by some of the leading global firms most of them headquartered in the US.
Job losses of about 12,900 have been witnessed in just 20 days of this month, translating into an average of 645 people being laid off per day. In turn, the toll comes to at least 27 people losing jobs per hour.
The lay-offs are happening across almost all the sectors from pharma to software to refinery, among others.
Most of the job cuts happened in the United States, which has already seen a staggering 5,50,000 Americans filing for unemployment benefits in the first week of September.
Last week, US Federal Reserve chairman Ben Bernanke said the recession is “very likely over,” while America’s retail sales data strengthened on hopes that recovery from the economic downturn was progressing.
Bernanke, however, said that recovery would be slow and it would take time to create jobs.
September’s job cut wave was led by pharma major Eli Lilly & Company, which will slash around 5,500 jobs globally by 2011.
While in terms of numbers, diversified technology leader Danaher came next with 3,300job cuts followed by agricultural company Monsanto, which would reduce its headcount by 8% of its total workforce or about 1,800 people.
Defence major BAE Systems is also planning to cut 1,116 jobs across plants in the country and may shut down one of its facilities by the end of 2012.
Moreover, US-based computer maker Dell is eliminating 500 people while Deere & Company is reducing its workforce by 367 manufacturing employees.
Other companies which announced job cuts include — Valero Energy, which slashed the jobs of 150 employees and 100 contractors, HJ Heinz’s frozen food arm fires 65 workers in Idaho.
Agencies
Saturday, September 12, 2009
IBM, Google, Oracle, Microsoft suggest newspapers ways To generate net revenue
Some of the world’s most prominent technology companies are offering suggestions to publishers on how they can charge readers for news online.
IBM, Microsoft, Oracle and Google — a company some newspapers blame for helping dig their financial hole — responded to a request by the Newspaper Association of America for proposals on ways to easily charge for news on the web.
But building the infrastructure for charging readers is one part of the equation. The other part looks more challenging: getting publishers to make the leap and stop giving news out for free on the web.
Randy Bennett, the senior vicepresident of business development at the newspaper association, said his group initiated the process after a meeting of publishers in May near Chicago. A report that was posted online on Wednesday by the Nieman Journalism Lab at Harvard University includes 11 different responses from technology companies. Google’s proposal may be the most eyebrow raising, if only because the company — which aggregates thousands of articles from media outlets on its news pages — is so closely associated with the freewheeling ethos of an open internet.
Google proposed offering news organizations a version of its Google Checkout system, which is used for processing online payments. It would give readers a place to sign in to an account and then pay for media from a variety of sources without having to punch in their information over and over. And the company says it could offer publishers several pay methods, from basic subscriptions to socalled “micropayments” on a perarticle basis.
Along with the technology heavyweights offering ideas are tiny startups. CircLabs, run by just four people and incubated at the Missouri School of Journalism, is developing a program that would feed news from different sources into a bar across the top of web browsers. Martin Langeveld, the company’s executive vicepresident, said the application will offer both targeted advertising and the option of charging.
Agencies
IBM, Microsoft, Oracle and Google — a company some newspapers blame for helping dig their financial hole — responded to a request by the Newspaper Association of America for proposals on ways to easily charge for news on the web.
But building the infrastructure for charging readers is one part of the equation. The other part looks more challenging: getting publishers to make the leap and stop giving news out for free on the web.
Randy Bennett, the senior vicepresident of business development at the newspaper association, said his group initiated the process after a meeting of publishers in May near Chicago. A report that was posted online on Wednesday by the Nieman Journalism Lab at Harvard University includes 11 different responses from technology companies. Google’s proposal may be the most eyebrow raising, if only because the company — which aggregates thousands of articles from media outlets on its news pages — is so closely associated with the freewheeling ethos of an open internet.
Google proposed offering news organizations a version of its Google Checkout system, which is used for processing online payments. It would give readers a place to sign in to an account and then pay for media from a variety of sources without having to punch in their information over and over. And the company says it could offer publishers several pay methods, from basic subscriptions to socalled “micropayments” on a perarticle basis.
Along with the technology heavyweights offering ideas are tiny startups. CircLabs, run by just four people and incubated at the Missouri School of Journalism, is developing a program that would feed news from different sources into a bar across the top of web browsers. Martin Langeveld, the company’s executive vicepresident, said the application will offer both targeted advertising and the option of charging.
Agencies
Friday, September 11, 2009
Infosys set to acquire consulting firm for $200 million
Infosys Technologies Ltd, India’s second-largest provider of computer-services technology, may buy consulting businesses for as much a s $200 million to attract more clients, the finance chief said.
Infosys also may buy similar-sized businesses that process transactions, or information technology companies, Chief Financial Officer V Balakrishnan, 44, said in an interview in New York. The company isn’t in serious discussions with anybody, he said, declining to name potential targets.
“Acquisitions are a lot like love,” he said. “We’re not in love. We haven’t even started dating anybody.”
Infosys, which is projecting it’s first-ever decline in sales this fiscal year, is turning to new services to increase revenue in the worst recession since the 1930s. Building the consulting division will help the Bangalore-based company compete in the US against International Business Machines Corp, the world’s largest computer-services provider.
Infosys will look primarily in the US and Europe for purchases, said Balakrishnan. The company gets almost 90 per cent of its sales from North America and Europe. It aims to more than double domestic revenue to 5 per cent of total sales, he said.
‘Niche’ markets
The company’s American depositary receipts advanced 0.8 per cent to $47.21 in Nasdaq Stock Market trading yesterday. The shares have gained 92 per cent this year. Each ADR is equivalent to one ordinary share.
The company plans to invest in “niche” markets, such as health care, Balakrishnan said. Infosys isn’t interested in so- called captive units, processing divisions within a specific company, he said.
Infosys is in talks with five to six clients to buy their technology units, B G Srinivas, a senior vice president who heads the software provider’s operations in Europe, said in June. The company is in discussions with two customers in the US and three to four in Europe, he said at the time.
Sales will range between $4.45 billion and $4.52 billion in the year ending March 31, Infosys said on July 10, marginally increasing the lower end of its annual forecast for at least a 3.1 per cent revenue decline made in April. Infosys won’t be able to predict fiscal 2011 demand until clients complete their budgets in January, Balakrishnan said.
Infosys and top-ranked Tata Consultancy Services Ltd won orders from BP Plc, Europe’s second largest oil company, the Indian software providers said last month, signaling clients may be resuming spending on computer services. Infosys declined to give financial details while Tata Consultancy said it may receive as much as $100 million a year from the BP contract.
Agencies
Infosys also may buy similar-sized businesses that process transactions, or information technology companies, Chief Financial Officer V Balakrishnan, 44, said in an interview in New York. The company isn’t in serious discussions with anybody, he said, declining to name potential targets.
“Acquisitions are a lot like love,” he said. “We’re not in love. We haven’t even started dating anybody.”
Infosys, which is projecting it’s first-ever decline in sales this fiscal year, is turning to new services to increase revenue in the worst recession since the 1930s. Building the consulting division will help the Bangalore-based company compete in the US against International Business Machines Corp, the world’s largest computer-services provider.
Infosys will look primarily in the US and Europe for purchases, said Balakrishnan. The company gets almost 90 per cent of its sales from North America and Europe. It aims to more than double domestic revenue to 5 per cent of total sales, he said.
‘Niche’ markets
The company’s American depositary receipts advanced 0.8 per cent to $47.21 in Nasdaq Stock Market trading yesterday. The shares have gained 92 per cent this year. Each ADR is equivalent to one ordinary share.
The company plans to invest in “niche” markets, such as health care, Balakrishnan said. Infosys isn’t interested in so- called captive units, processing divisions within a specific company, he said.
Infosys is in talks with five to six clients to buy their technology units, B G Srinivas, a senior vice president who heads the software provider’s operations in Europe, said in June. The company is in discussions with two customers in the US and three to four in Europe, he said at the time.
Sales will range between $4.45 billion and $4.52 billion in the year ending March 31, Infosys said on July 10, marginally increasing the lower end of its annual forecast for at least a 3.1 per cent revenue decline made in April. Infosys won’t be able to predict fiscal 2011 demand until clients complete their budgets in January, Balakrishnan said.
Infosys and top-ranked Tata Consultancy Services Ltd won orders from BP Plc, Europe’s second largest oil company, the Indian software providers said last month, signaling clients may be resuming spending on computer services. Infosys declined to give financial details while Tata Consultancy said it may receive as much as $100 million a year from the BP contract.
Agencies
Tuesday, September 8, 2009
Check out the 'World's 50 safest banks' list
Not a single Indian bank has made it to the 'World's 50 safest banks' list. This is despite the fact that during recession, when banks in the U.S. and Europe needed government support for survival, banks in India were strong enough to sustain on their own.
New York based Global Finance ranks the banks worldwide annually through a comparison of long-term credit ratings and total assets of the 500 largest banks around the world. Germany's KfW Bankengruppe tops the list, followed by France's Caisse des Depots et Consignations (CDC) and Netherlands' Bank Nederlands Gemeenten (BNG). Credit ratings from Moody's, Standard and Poor's and Fitch have been used for this compilation.
A mid-year update was published by the magazine for the first time in March this year, due to the global financial crisis. All the major banks of Canada earned a spot on the list. Among them the Royal Bank of Canada earned the highest safety score, taking 10th place among the international banks. The only major Canadian bank not present in the list was the National Bank of Canada.
According to the magazine, after two tumultuous years that saw many of the world's most respected banks drop out of the top 50 safest banks list, the dust appears to be settling. Those banks that kept an alert before the financial crisis began have consistently topped the table and maintain their standing among the top echelon in this year's ranking. At the same time, the big name banks that lost their safest bank ranking during the credit crunch are still absent from the list as they struggle to rebuild their credit standing. Also, more than ever customers all around the world are viewing long-term creditworthiness as the key feature of the banks with which they do business.
Agencies
New York based Global Finance ranks the banks worldwide annually through a comparison of long-term credit ratings and total assets of the 500 largest banks around the world. Germany's KfW Bankengruppe tops the list, followed by France's Caisse des Depots et Consignations (CDC) and Netherlands' Bank Nederlands Gemeenten (BNG). Credit ratings from Moody's, Standard and Poor's and Fitch have been used for this compilation.
A mid-year update was published by the magazine for the first time in March this year, due to the global financial crisis. All the major banks of Canada earned a spot on the list. Among them the Royal Bank of Canada earned the highest safety score, taking 10th place among the international banks. The only major Canadian bank not present in the list was the National Bank of Canada.
According to the magazine, after two tumultuous years that saw many of the world's most respected banks drop out of the top 50 safest banks list, the dust appears to be settling. Those banks that kept an alert before the financial crisis began have consistently topped the table and maintain their standing among the top echelon in this year's ranking. At the same time, the big name banks that lost their safest bank ranking during the credit crunch are still absent from the list as they struggle to rebuild their credit standing. Also, more than ever customers all around the world are viewing long-term creditworthiness as the key feature of the banks with which they do business.
Agencies
Saturday, September 5, 2009
Can Mumbai, Bangalore emerge as the global capitals?
The Russian capital as well as Indian cities of Mumbai, Bangalore and Hyderabad have every chance of becoming global capitals on par with cities such as New York, London and Tokyo, according to the latest issue of Forbes magazine.
The influential publication assessed the rapidly changing forces driving the global economy, such as the inflow of capital and labour resources, and the pace of infrastructure development, and looked into the future, ranking the Russian capital alongside Shanghai, Beijing, Sao Paolo, Dubai and the Indian cities of Mumbai, Bangalore and Hyderabad.
"Fifteen years ago, Moscow was in the midst of a particularly grungy interlude, filled with stolid people waiting in lines for shoddy consumer goods. Today, its hotel accommodations - cheap if dinghy a quarter century ago - are among the world's most expensive.
Russia's huge energy industry, which dominates all of Europe, is the key factor driving the transformation," Forbes wrote.
The article, published Wednesday, notes that Moscow has had a radical makeover since the collapse of the Soviet Union. The city, where Moscow State University was the tallest building at 240 meters (787 feet), now has a host of skyscrapers including the three tallest buildings in Europe, the highest of which is still under construction.
"With a population of 10 million, Moscow is already Europe's most populous city and could get bigger yet, particularly if energy prices rise," the magazine said.
Although Forbes expects most global capitals of the future to be outside the Western Hemisphere, it includes Calgary in Canada, Perth in Western Australia and the Texan pair of Houston and Dallas in its list.
But the article does recognise that the current centers of financial and political influence - such as Tokyo, New York, London, Paris, Seoul, Singapore and Hong Kong - will not fade into the background for some time to come.
Agencies
The influential publication assessed the rapidly changing forces driving the global economy, such as the inflow of capital and labour resources, and the pace of infrastructure development, and looked into the future, ranking the Russian capital alongside Shanghai, Beijing, Sao Paolo, Dubai and the Indian cities of Mumbai, Bangalore and Hyderabad.
"Fifteen years ago, Moscow was in the midst of a particularly grungy interlude, filled with stolid people waiting in lines for shoddy consumer goods. Today, its hotel accommodations - cheap if dinghy a quarter century ago - are among the world's most expensive.
Russia's huge energy industry, which dominates all of Europe, is the key factor driving the transformation," Forbes wrote.
The article, published Wednesday, notes that Moscow has had a radical makeover since the collapse of the Soviet Union. The city, where Moscow State University was the tallest building at 240 meters (787 feet), now has a host of skyscrapers including the three tallest buildings in Europe, the highest of which is still under construction.
"With a population of 10 million, Moscow is already Europe's most populous city and could get bigger yet, particularly if energy prices rise," the magazine said.
Although Forbes expects most global capitals of the future to be outside the Western Hemisphere, it includes Calgary in Canada, Perth in Western Australia and the Texan pair of Houston and Dallas in its list.
But the article does recognise that the current centers of financial and political influence - such as Tokyo, New York, London, Paris, Seoul, Singapore and Hong Kong - will not fade into the background for some time to come.
Agencies
Thursday, August 27, 2009
Is Apple iphone set for a launch in China?
Apple Inc is getting closer to clearing the hurdles to start selling iPhones in China, the Wall Street Journal reported on Wednesday.
It is one of the last major phone markets Apple has yet to tap, the paper said. China is the world's largest mobile market with some 687 million subscribers, the paper said, compared with more than 270 million subscribers in the United States.
But Apple faces competition from other smart phones that are set to launch in China in coming months, the paper said. The company must still complete negotiations with state-owned wireless operator China Unicom (Hong Kong) Ltd., which is expected to carry the iPhone, the paper said. Analysts told the paper those talks are nearing conclusion. Apple spokeswoman Natalie Harrison declined comment.
Agencies
It is one of the last major phone markets Apple has yet to tap, the paper said. China is the world's largest mobile market with some 687 million subscribers, the paper said, compared with more than 270 million subscribers in the United States.
But Apple faces competition from other smart phones that are set to launch in China in coming months, the paper said. The company must still complete negotiations with state-owned wireless operator China Unicom (Hong Kong) Ltd., which is expected to carry the iPhone, the paper said. Analysts told the paper those talks are nearing conclusion. Apple spokeswoman Natalie Harrison declined comment.
Agencies
Monday, July 27, 2009
AMD Subsidiary Building $4.2 billion on New York Facility
AMD's manufacturing subsidiary -- Global Foundries is building a $4.2 billion chip manufacturing facility in upstate New York. With its new facility, the AMD spin-off will now be able to directly compete with archrivals Intel and other semiconductor manufacturers.
According to AMD semiconductor manufacturing remains expensive, and hence outsourcing will increase. However, analysts said it will be difficult for the New York chip foundry arm business (fab) to compete with Taiwanese industry leaders.
Chip manufacturers have posted significant losses in recent quarters because they have been unable to run at capacity.
AMD had launched Globalfoundries as a JV with Abu Dhabi-backed Advanced Technology Investment Company in May, a move that led to Intel accusing it of breaching a 2001 patent cross-license agreement.
The U.S. Company holds a 34.2% stake in the venture and ATIC holds the remaining 65.8%. Their New York foundry is scheduled to begin production in 2012, said the company.
CXOtoday.com
According to AMD semiconductor manufacturing remains expensive, and hence outsourcing will increase. However, analysts said it will be difficult for the New York chip foundry arm business (fab) to compete with Taiwanese industry leaders.
Chip manufacturers have posted significant losses in recent quarters because they have been unable to run at capacity.
AMD had launched Globalfoundries as a JV with Abu Dhabi-backed Advanced Technology Investment Company in May, a move that led to Intel accusing it of breaching a 2001 patent cross-license agreement.
The U.S. Company holds a 34.2% stake in the venture and ATIC holds the remaining 65.8%. Their New York foundry is scheduled to begin production in 2012, said the company.
CXOtoday.com
Sunday, June 21, 2009
Will Indian outsourcing benefit from downturn?
The turmoil in the financial market is likely to spell good news for the Indian outsourcing companies, as the downturn will compel multinationals to seek further economies for sustenance in these tough times, Wipro Technologies founder Azim Premji has said.
In an interview to the Sunday Times, Premji insisted that "the Indian outsourcing giants will benefit from this downturn, as all multinationals seek further economies."
Premji's statement comes at a time when the United States President Barack Obama has proposed changes in tax laws to curb outsourcing.
Obama proposing change in tax laws of that country had reportedly said, it's a tax code that says you should pay lower taxes if you create a job in Bangalore, than if you create one in Buffalo, New York.
Premji also voiced its concern about the "creeping tide of protectionism" in the West and said that "If we get into protectionism, then the West is going to get a wave of protectionism in response, and that is going to turn back the clock 20 years".
Premji further warned that it will be America and Europe that will suffer, because they will be excluded from the only growth markets left, in Asia, Africa and China.
CXOtoday
In an interview to the Sunday Times, Premji insisted that "the Indian outsourcing giants will benefit from this downturn, as all multinationals seek further economies."
Premji's statement comes at a time when the United States President Barack Obama has proposed changes in tax laws to curb outsourcing.
Obama proposing change in tax laws of that country had reportedly said, it's a tax code that says you should pay lower taxes if you create a job in Bangalore, than if you create one in Buffalo, New York.
Premji also voiced its concern about the "creeping tide of protectionism" in the West and said that "If we get into protectionism, then the West is going to get a wave of protectionism in response, and that is going to turn back the clock 20 years".
Premji further warned that it will be America and Europe that will suffer, because they will be excluded from the only growth markets left, in Asia, Africa and China.
CXOtoday
Wednesday, June 17, 2009
Will MySpace slash 30% of US staff?
US Internet social networking giant MySpace said Tuesday it would cut 500 jobs, nearly 30 per cent of its domestic staff, in a restructuring aimed at boosting efficiency.
MySpace, a unit of media magnate Rupert Murdoch's News Corporation, said it was cutting payrolls "as part of a plan to restructure itself into a more innovative, efficient, and entrepreneurial business."
The restructuring plan affects all US divisions of the company and the round of job cuts will lower the domestic workforce to 1,000 employees, it said in a statement.
"Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company," said Owen Van Natta, MySpace chief executive.
"I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace. Our intent is to return to an environment of innovation that is centered on our user and our product."
Van Natta, who was named MySpace CEO in April, was a chief revenue officer and vice president of operations for Facebook when he resigned from the rival company in early 2008.
Facebook's popularity has soared amid a surge in social networking in the United States.
Facebook was the top social networking site when ranked by total minutes for the month of April, showing a gain of 700 per cent from a year earlier, according to a recent study by Nielsen Online.
MySpace was in second place, with its total minutes declining from 7.3 billion in April 2008 to 5.0 billion in April 2009.
Agencies
MySpace, a unit of media magnate Rupert Murdoch's News Corporation, said it was cutting payrolls "as part of a plan to restructure itself into a more innovative, efficient, and entrepreneurial business."
The restructuring plan affects all US divisions of the company and the round of job cuts will lower the domestic workforce to 1,000 employees, it said in a statement.
"Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company," said Owen Van Natta, MySpace chief executive.
"I understand that these changes are painful for many. They are also necessary for the long-term health and culture of MySpace. Our intent is to return to an environment of innovation that is centered on our user and our product."
Van Natta, who was named MySpace CEO in April, was a chief revenue officer and vice president of operations for Facebook when he resigned from the rival company in early 2008.
Facebook's popularity has soared amid a surge in social networking in the United States.
Facebook was the top social networking site when ranked by total minutes for the month of April, showing a gain of 700 per cent from a year earlier, according to a recent study by Nielsen Online.
MySpace was in second place, with its total minutes declining from 7.3 billion in April 2008 to 5.0 billion in April 2009.
Agencies
Friday, June 12, 2009
Two Web startups interest AOL
Internet pioneer AOL, which Time Warner plans to spin off into an independent company later this year, announced on Thursday that it had bought two small Web startups focused on local content.
AOL, in a statement, said it had purchased Patch Media Corp., a local news and information platform for local communities, and Going Inc., a platform for sharing information about events in major cities.
Financial terms of the deals were not disclosed.
"Local remains one of the most disaggregated experiences on the Web today -- there's a lot of information out there but simply no way for consumers to find it quickly and easily," said Tim Armstrong, who was hired away from Google this year to become AOL chairman and chief executive.
"It's a space that's prime for innovation and an area where AOL has a significant audience and a valuable mapping service in MapQuest," he said.
"Going forward, local will be a core area of focus and investment for AOL," Armstrong said. "The acquisitions of Patch and Going will help us build out our local network further."
Patch.com is currently available in five local communities in the United States and expects to be available in a dozen by the end of the year.
Going.com provides information for young people about what is going on in major US cities such as New York, Los Angeles, Chicago, Miami and Boston.
"By joining with AOL, we have the opportunity to greatly expand the reach of our platform to more cities both in the US and around the world," said Going chief executive Evan Schumacher.
AOL is currently the number four gateway to the Web after Google, Microsoft sites and Yahoo! and has been trying to refashion itself recently as a popular one-stop portal.
Agencies
AOL, in a statement, said it had purchased Patch Media Corp., a local news and information platform for local communities, and Going Inc., a platform for sharing information about events in major cities.
Financial terms of the deals were not disclosed.
"Local remains one of the most disaggregated experiences on the Web today -- there's a lot of information out there but simply no way for consumers to find it quickly and easily," said Tim Armstrong, who was hired away from Google this year to become AOL chairman and chief executive.
"It's a space that's prime for innovation and an area where AOL has a significant audience and a valuable mapping service in MapQuest," he said.
"Going forward, local will be a core area of focus and investment for AOL," Armstrong said. "The acquisitions of Patch and Going will help us build out our local network further."
Patch.com is currently available in five local communities in the United States and expects to be available in a dozen by the end of the year.
Going.com provides information for young people about what is going on in major US cities such as New York, Los Angeles, Chicago, Miami and Boston.
"By joining with AOL, we have the opportunity to greatly expand the reach of our platform to more cities both in the US and around the world," said Going chief executive Evan Schumacher.
AOL is currently the number four gateway to the Web after Google, Microsoft sites and Yahoo! and has been trying to refashion itself recently as a popular one-stop portal.
Agencies
Friday, June 5, 2009
Is Wal-Mart set to hire over 22,000 people in US?
Retail giant Wal-Mart Stores will hire over 22,000 people this year, a move that will bring cheer to the country’s strained labour market grappling with rising unemployment woes. The retailer, which is one of the least unscathed entities amid the financial turmoil, would be recruiting people for its new and expanded stores nationwide. Wal-Mart has said it would “create more than 22,000 jobs in 2009 to staff new or expanded stores in the US”.
The company would be taking people for positions including store management, pharmacists, human resource managers, customer service associates, cashiers and sales associates. In a statement on Thursday, the retailer said it would create over 1,000 jobs in several individual states. Wal-Mart would generate nearly “1,300 jobs in Arizona; 1,000 jobs in California; 1,300 jobs in Florida; 1,500 jobs in Michigan; 1,200 jobs in New Jersey; 1,000 jobs in South Carolina; 1,200 jobs in Utah and 1,100 in Virginia,” it said.
Last october, Wal-Mart announced plans to open 142 to 157 new or expanded stores in the US. Eduardo Castro-Wright, who is vicechairman of Wal-Mart said the firm is proud to create quality jobs for thousands of Americans during this tough economic time.
“Job creation is just one way in which we’re working hard every day to help people across this country live better,” Castro-Wright noted.
Wal-Mart along with Indian business group Bharti opened their first store in India last week. The joint venture between Bharti Enterprises and Wal-Mart Stores Inc was inked in 2007.
Rattled by the raging economic crisis, the US has seen massive job losses in recent months and the official unemployment rate is well above 9%.
The jobless rate has been on the rise as companies have resorted to trimming their workforce as part of cost-cutting measures. US Federal Reserve chairman Ben S Bernanke on Wednesday said more number of jobs could be lost in the next few months. Wal-Mart has presence in many countries and employs more than 2.1 million associates worldwide.
Agencies
The company would be taking people for positions including store management, pharmacists, human resource managers, customer service associates, cashiers and sales associates. In a statement on Thursday, the retailer said it would create over 1,000 jobs in several individual states. Wal-Mart would generate nearly “1,300 jobs in Arizona; 1,000 jobs in California; 1,300 jobs in Florida; 1,500 jobs in Michigan; 1,200 jobs in New Jersey; 1,000 jobs in South Carolina; 1,200 jobs in Utah and 1,100 in Virginia,” it said.
Last october, Wal-Mart announced plans to open 142 to 157 new or expanded stores in the US. Eduardo Castro-Wright, who is vicechairman of Wal-Mart said the firm is proud to create quality jobs for thousands of Americans during this tough economic time.
“Job creation is just one way in which we’re working hard every day to help people across this country live better,” Castro-Wright noted.
Wal-Mart along with Indian business group Bharti opened their first store in India last week. The joint venture between Bharti Enterprises and Wal-Mart Stores Inc was inked in 2007.
Rattled by the raging economic crisis, the US has seen massive job losses in recent months and the official unemployment rate is well above 9%.
The jobless rate has been on the rise as companies have resorted to trimming their workforce as part of cost-cutting measures. US Federal Reserve chairman Ben S Bernanke on Wednesday said more number of jobs could be lost in the next few months. Wal-Mart has presence in many countries and employs more than 2.1 million associates worldwide.
Agencies
Friday, May 22, 2009
AT&T outlets to sell netbooks across USA
AT&T Inc plans to expand sales of netbook computers to all its stores in an effort to expand wireless services beyond cell
phones.
Ralph de la Vega, the head of AT&T's consumer business, said on Tuesday that the US phone company would directly sell netbooks from Dell Inc, Acer Inc and Lenovo Group Ltd starting this summer.
Until now, only AT&T stores in Atlanta and Philadelphia, and consumer electronics retailers RadioShack Corp and Costco, have been selling the netbooks, which come with AT&T mobile data connections.
"We're taking broadband and really making it mobile," de la Vega said at the Reuters Global Technology Summit in New York.
While sales of netbooks are expected to be boosted by promotions from carriers, some analysts have said that consumer enthusiasm could be muted by the requirement to sign up for two-year wireless service contracts and the $60-a-month data connection fees that come with the devices.
AT&T said in April it was testing a $40-per-month fee for 200 megabytes of data downloads to netbooks, or about 1/25th of the downloads allowed under the $60 service.
AT&T's bigger mobile rival Verizon Wireless, a venture of Verizon Communications Inc and Vodafone Group Plc, started selling netbook computers from Hewlett-Packard Co earlier this week.
Agencies
phones.
Ralph de la Vega, the head of AT&T's consumer business, said on Tuesday that the US phone company would directly sell netbooks from Dell Inc, Acer Inc and Lenovo Group Ltd starting this summer.
Until now, only AT&T stores in Atlanta and Philadelphia, and consumer electronics retailers RadioShack Corp and Costco, have been selling the netbooks, which come with AT&T mobile data connections.
"We're taking broadband and really making it mobile," de la Vega said at the Reuters Global Technology Summit in New York.
While sales of netbooks are expected to be boosted by promotions from carriers, some analysts have said that consumer enthusiasm could be muted by the requirement to sign up for two-year wireless service contracts and the $60-a-month data connection fees that come with the devices.
AT&T said in April it was testing a $40-per-month fee for 200 megabytes of data downloads to netbooks, or about 1/25th of the downloads allowed under the $60 service.
AT&T's bigger mobile rival Verizon Wireless, a venture of Verizon Communications Inc and Vodafone Group Plc, started selling netbook computers from Hewlett-Packard Co earlier this week.
Agencies
Monday, May 18, 2009
Will Seagate layoff 1100 jobs?
Seagate Technology said that it plans to cut about 1,100 jobs from its workforce in a move the computer storage maker expects will reduce costs by about $125 million a year.
The job-cutting move, which affects about 2.5 percent of Seagate's workforce, is aimed at helping the company stay on track toward being cash-flow and earnings positive within its fiscal year 2010. It builds on a 10-percent reduction in jobs announced in January.
As a result of the new plan, Seagate, which competes with storage company Western Digital Corp, expects to take restructuring charges of about $72 million, primarily in the quarter ending in June.
Analysts said Seagate needs to make additional cost cuts like this, which may help it address debt obligations.
"The move will help the company avoid tripping its net leverage ratio debt covenant that was already renegotiated earlier this year," said JP Morgan analyst Mark Moskowitz, in a note to clients. "Seagate shares still face hurdles that could test investors' resolve in the slower summer months."
Seagate has been no stranger to restructuring in recent months as it deals with slow sales in the personal computer industry, which most others has seen demand shrink during the global economic downturn.
Back in December it said it would halt some operations during the holiday season and cut some 5 percent of its workforce.
About one month ago, on the same day that it reported disappointing quarterly gross margins, it eliminated its dividend.
The elimination of the quarterly dividend is expected to trim costs by about $60 million annually, the company said.
In January it replaced Chief Executive Bill Watkins, and Chief Operating Officer David Wickersham resigned. Chairman Stephen Luczo, who relinquished the CEO role to Watkins in 2004, has returned to the position.
Agencies
The job-cutting move, which affects about 2.5 percent of Seagate's workforce, is aimed at helping the company stay on track toward being cash-flow and earnings positive within its fiscal year 2010. It builds on a 10-percent reduction in jobs announced in January.
As a result of the new plan, Seagate, which competes with storage company Western Digital Corp, expects to take restructuring charges of about $72 million, primarily in the quarter ending in June.
Analysts said Seagate needs to make additional cost cuts like this, which may help it address debt obligations.
"The move will help the company avoid tripping its net leverage ratio debt covenant that was already renegotiated earlier this year," said JP Morgan analyst Mark Moskowitz, in a note to clients. "Seagate shares still face hurdles that could test investors' resolve in the slower summer months."
Seagate has been no stranger to restructuring in recent months as it deals with slow sales in the personal computer industry, which most others has seen demand shrink during the global economic downturn.
Back in December it said it would halt some operations during the holiday season and cut some 5 percent of its workforce.
About one month ago, on the same day that it reported disappointing quarterly gross margins, it eliminated its dividend.
The elimination of the quarterly dividend is expected to trim costs by about $60 million annually, the company said.
In January it replaced Chief Executive Bill Watkins, and Chief Operating Officer David Wickersham resigned. Chairman Stephen Luczo, who relinquished the CEO role to Watkins in 2004, has returned to the position.
Agencies
Wednesday, May 13, 2009
Does SAP sees signs of recovery from recession?
SAP Co-Chief Executive Leo Apotheker said the next few months may bring "glimmers of hope" for the global economy.
Apotheker also said he believes the business software maker should stay independent, following fresh speculation in European markets that Microsoft Corp could bid for the German company. The talk was sparked by Microsoft's plans to sell a multibillion-dollar debt issue.
"We're probably starting to see a stabilization of the situation," Apotheker said at a news conference in New York. "We'll probably start to see some glimmers of hope in the second half of the year for the global economy." Global markets will likely see a fuller recovery in 2010, he added.
The S&P 500 and Dow industrials pared losses after his comments. Apotheker, who will become the sole CEO of SAP when Henning Kagermann's retires later in May, declined to comment on the Microsoft speculation, but said he believed it is in SAP's interest to remain independent.
"Our customers believe an independent SAP is the best value they can get," he said. Rumors periodically surface that either IBM or Microsoft might acquire SAP, which sells business management applications to large businesses that neither of those technology giants have in their portfolios.
Apotheker criticized rival Oracle Corp's decision to purchase hardware maker Sun Microsystems Inc, saying that businesses do not want to buy from vertically integrated technology companies that sell software alongside the computers that run it.
"I'm sorry to disappoint you," he said in response to a question on how Oracle's $7.4 billion purchase of Sun might reshape the industry. "It won't affect the industry much."
But Apotheker said SAP will do a few acquisitions "as we go along." SAP announced on Monday that it bought privately held Clear Standards, a small maker of software that helps businesses manage greenhouse gas emissions. Apotheker did not discuss financial terms of the acquisition.
Sterling, Virginia-based Clear Standards sells software that helps companies measure and mitigate greenhouse gas emissions, which contribute to global climate change and are increasingly coming under regulatory scrutiny.
Apotheker also said that previously announced job cuts are progressing as planned at SAP. The company is not planning any more job cuts, he added.
Agencies
Apotheker also said he believes the business software maker should stay independent, following fresh speculation in European markets that Microsoft Corp could bid for the German company. The talk was sparked by Microsoft's plans to sell a multibillion-dollar debt issue.
"We're probably starting to see a stabilization of the situation," Apotheker said at a news conference in New York. "We'll probably start to see some glimmers of hope in the second half of the year for the global economy." Global markets will likely see a fuller recovery in 2010, he added.
The S&P 500 and Dow industrials pared losses after his comments. Apotheker, who will become the sole CEO of SAP when Henning Kagermann's retires later in May, declined to comment on the Microsoft speculation, but said he believed it is in SAP's interest to remain independent.
"Our customers believe an independent SAP is the best value they can get," he said. Rumors periodically surface that either IBM or Microsoft might acquire SAP, which sells business management applications to large businesses that neither of those technology giants have in their portfolios.
Apotheker criticized rival Oracle Corp's decision to purchase hardware maker Sun Microsystems Inc, saying that businesses do not want to buy from vertically integrated technology companies that sell software alongside the computers that run it.
"I'm sorry to disappoint you," he said in response to a question on how Oracle's $7.4 billion purchase of Sun might reshape the industry. "It won't affect the industry much."
But Apotheker said SAP will do a few acquisitions "as we go along." SAP announced on Monday that it bought privately held Clear Standards, a small maker of software that helps businesses manage greenhouse gas emissions. Apotheker did not discuss financial terms of the acquisition.
Sterling, Virginia-based Clear Standards sells software that helps companies measure and mitigate greenhouse gas emissions, which contribute to global climate change and are increasingly coming under regulatory scrutiny.
Apotheker also said that previously announced job cuts are progressing as planned at SAP. The company is not planning any more job cuts, he added.
Agencies
Saturday, March 7, 2009
Motorola ex-CFO sues for firing him
Motorola Inc's former chief financial officer (CFO) has sued the company for firing him, claiming that it was a "retaliatory discharge."
Paul Liska sued the maker of telecommunications equipment in county court in Chicago on February 20, a day after he was fired. The suit is under seal, and no further details were available. Liska did not return calls for comment, and the company did not return an email.
A "retaliatory discharge" usually refers to an employee being fired for doing something that's in the public interest, like being a whistleblower.
Schaumburg, Ill.-based Motorola said in early February that Liska was leaving after less than a year of service. It didn't specify a cause, but Chief Executive Greg Brown implied on a conference call that it was connected to the delayed spin-off of the company's cellphone unit. Liska, a former partner at private equity companies, was seen as a restructuring expert.
However, Motorola revealed in a filing this week that it had terminated Liska "for cause," depriving him of his signing bonus, stock options and severance payment. It didn't specify the cause.
The Wall Street Journal quoted Liska as saying he had been told he been terminated on January 29 without cause. There was no explanation for the discrepancy in dates on when Liska was terminated.
Agencies
Paul Liska sued the maker of telecommunications equipment in county court in Chicago on February 20, a day after he was fired. The suit is under seal, and no further details were available. Liska did not return calls for comment, and the company did not return an email.
A "retaliatory discharge" usually refers to an employee being fired for doing something that's in the public interest, like being a whistleblower.
Schaumburg, Ill.-based Motorola said in early February that Liska was leaving after less than a year of service. It didn't specify a cause, but Chief Executive Greg Brown implied on a conference call that it was connected to the delayed spin-off of the company's cellphone unit. Liska, a former partner at private equity companies, was seen as a restructuring expert.
However, Motorola revealed in a filing this week that it had terminated Liska "for cause," depriving him of his signing bonus, stock options and severance payment. It didn't specify the cause.
The Wall Street Journal quoted Liska as saying he had been told he been terminated on January 29 without cause. There was no explanation for the discrepancy in dates on when Liska was terminated.
Agencies
Sunday, February 1, 2009
Are layoffs raising? Reports say 9,000 job vanishing each day
More and more people are becoming unemployed this year, with nearly 9,000 jobs vanishing worldwide on an average each day in January.
As the financial turmoil continues to rattle world economies, layoffs so far this year have crossed the 2,77,000 -mark with a stunning 80,000 job cuts announced January 26.
Right from electronics to telecom to pharma sectors, about 9,000 jobs were lost on an average every day this month.
Among the entities, construction machinery manufacturer Caterpillar, Japanese electronics major NEC and pharma giant Pfizer have announced over 20,000 job cuts each.
Dutch entities - electronics firm Philips and financial services company ING - together would be axing 13,000 jobs in the coming months.
Caterpillar, Pfizer, telecom firm Sprint Nextel Corp and home improvement retailer Home Depot together accounted for 61,000 lay-off announcements on January 26. The total job cuts announced on that day worldwide had crossed 80,000.
The bankruptcy of American electronics retailer Circuit City is expected to affect 30,000 employees whereas aluminium manufacturer Alcoa would be laying off 13,500 people.
Further, Indian conglomerate Tatas-owned UK steel maker Corus would be reducing its workforce by 3,500.
Other entities which unveiled plans to bring down headcount in January include TDK (8,000), BHP Billiton (6,000), Ericsson (5,000), Corning (4,900), Motorola (4,000), Texas Instruments (3,400), Honda (3,100), Kodak (3,000), Ford Motor (1,200) and Harley-Davidson (1,100).
Companies worldwide are bringing down their workforce as they explore ways to battle the dire economic situation. With consumer and business spending being crimped, many of the developed nations have already entered into recession.
Agencies
As the financial turmoil continues to rattle world economies, layoffs so far this year have crossed the 2,77,000 -mark with a stunning 80,000 job cuts announced January 26.
Right from electronics to telecom to pharma sectors, about 9,000 jobs were lost on an average every day this month.
Among the entities, construction machinery manufacturer Caterpillar, Japanese electronics major NEC and pharma giant Pfizer have announced over 20,000 job cuts each.
Dutch entities - electronics firm Philips and financial services company ING - together would be axing 13,000 jobs in the coming months.
Caterpillar, Pfizer, telecom firm Sprint Nextel Corp and home improvement retailer Home Depot together accounted for 61,000 lay-off announcements on January 26. The total job cuts announced on that day worldwide had crossed 80,000.
The bankruptcy of American electronics retailer Circuit City is expected to affect 30,000 employees whereas aluminium manufacturer Alcoa would be laying off 13,500 people.
Further, Indian conglomerate Tatas-owned UK steel maker Corus would be reducing its workforce by 3,500.
Other entities which unveiled plans to bring down headcount in January include TDK (8,000), BHP Billiton (6,000), Ericsson (5,000), Corning (4,900), Motorola (4,000), Texas Instruments (3,400), Honda (3,100), Kodak (3,000), Ford Motor (1,200) and Harley-Davidson (1,100).
Companies worldwide are bringing down their workforce as they explore ways to battle the dire economic situation. With consumer and business spending being crimped, many of the developed nations have already entered into recession.
Agencies
Wednesday, January 7, 2009
Is IBM likely to layoff 16,000 jobs?
International Business Machines Corp, the biggest technology employer, may cut thousands of jobs this month amid the global economic slowdown, according to the employee group Alliance for IBM.
Employees have been hearing that layoffs will take place in late January, said Lee Conrad, national coordinator of the Alliance, an organization seeking union recognition at Armonk, New York-based IBM. The size of the reduction may be larger than those in the past few years, he said in an interview.
Generally they go in batches of a couple hundred here and a couple hundred there,” Conrad said.
A post on the Alliance’s website said the company may cut 16,000 jobs, which would top the 15,600 eliminated by Chief Executive Officer Sam Palmisano in 2002. The worldwide slump has tightened companies’ technology budgets and IBM may report a 1.6 per cent drop in sales last quarter to $28.4 billion, based on the average analyst estimate.
“There’s likely to be production cutbacks at IBM,” said Timothy Ghriskey, chief investment officer at Solaris Asset Management LLC in Bedford Hills, New York. “There will be job cuts. For now, reducing the workforce to benefit the viability and competitiveness of the company makes sense.”
Solaris, which oversees $2 billion, held 29,000 shares of IBM as of Sept 30.
IBM rose $2.41, or 2.8 per cent, to $89.23 at 4 pm in New York Stock Exchange composite trading. The shares lost 22 per cent last year.
‘Rebalance our workforce’ IBM has frequently pruned its staff over the past few years. The company had two waves of job cuts in 2007, totaling more than 2,000 positions. IBM had $318 million in job-reduction costs that year, compared with $272 million in 2006.
“We constantly rebalance our workforce and continue to invest in growth areas,” said Ian Colley, a company spokesman. He declined to comment further when asked about the Alliance posting.
IBM had 386,558 employees at the end of 2007. Palo Alto, California-based Hewlett-Packard Co, the world’s largest personal-computer maker, had 321,000 as of Oct 31, and Panasonic Corp, based in Osaka, Japan, had 313,594 as of Sept 30.
Agencies
Employees have been hearing that layoffs will take place in late January, said Lee Conrad, national coordinator of the Alliance, an organization seeking union recognition at Armonk, New York-based IBM. The size of the reduction may be larger than those in the past few years, he said in an interview.
Generally they go in batches of a couple hundred here and a couple hundred there,” Conrad said.
A post on the Alliance’s website said the company may cut 16,000 jobs, which would top the 15,600 eliminated by Chief Executive Officer Sam Palmisano in 2002. The worldwide slump has tightened companies’ technology budgets and IBM may report a 1.6 per cent drop in sales last quarter to $28.4 billion, based on the average analyst estimate.
“There’s likely to be production cutbacks at IBM,” said Timothy Ghriskey, chief investment officer at Solaris Asset Management LLC in Bedford Hills, New York. “There will be job cuts. For now, reducing the workforce to benefit the viability and competitiveness of the company makes sense.”
Solaris, which oversees $2 billion, held 29,000 shares of IBM as of Sept 30.
IBM rose $2.41, or 2.8 per cent, to $89.23 at 4 pm in New York Stock Exchange composite trading. The shares lost 22 per cent last year.
‘Rebalance our workforce’ IBM has frequently pruned its staff over the past few years. The company had two waves of job cuts in 2007, totaling more than 2,000 positions. IBM had $318 million in job-reduction costs that year, compared with $272 million in 2006.
“We constantly rebalance our workforce and continue to invest in growth areas,” said Ian Colley, a company spokesman. He declined to comment further when asked about the Alliance posting.
IBM had 386,558 employees at the end of 2007. Palo Alto, California-based Hewlett-Packard Co, the world’s largest personal-computer maker, had 321,000 as of Oct 31, and Panasonic Corp, based in Osaka, Japan, had 313,594 as of Sept 30.
Agencies
Saturday, January 3, 2009
Citigroup to limit top executives' pay, bonuses
The recipient of a $45 billion infusion from the US government, Citigroup Inc on Wednesday said it would place strict limits on management's compensation, including no severance for its top five executives.
Under pressure from lawmakers, Citigroup Chief Executive Vikram Pandit and Chairman Win Bischoff opted to forego their 2008 bonuses. The company's new executive pay limits also feature a clawback provision in which Citigroup can recoup executive pay ``that over time proves to be based on inaccurate financial or other information.''
The compensation restrictions come as the New York-based bank signed an agreement with the federal government to receive an additional $20 billion on top of the $25 billion it received in October. Restrictions on expenses, including the use of corporate aircraft and costs related to entertainment or holiday parties, also will be put in place.
Part of the $700 billion bailout program authorized by Congress, the capital infusions to Citigroup and dozens of other banks are the government's main tool for attempting to stabilize the financial services sector and spur lending between financial institutions and to customers.
Citi said it will issue $20 billion in preferred shares to the Treasury Department, and warrants to buy about 188.5 million shares of common stock at a strike price of $10.61 a share, according to a filing with the Securities and Exchange Commission.
In doing so, members of the company's senior leadership and executive committees will see pay cuts and limits on severance packages, according to a memo sent to Citigroup staff Wednesday.
In the memo, Pandit announced measures that will tie executive pay more closely to performance.
``We are fully committed to paying for high-performance people at all levels of the organization and at competitive rates, in the context of the company's overall financial results,'' Pandit said.
The most senior leaders will be affected the most, Citi said. Pandit said he and Bischoff thought it ``fair'' to forgo their bonuses ``in light of the challenges of the year and the need for compensation elsewhere in the organization,'' the memo said. Robert Rubin, a Citigroup adviser and former Treasury secretary, also will decline a bonus.
Pandit added that senior leadership committee members will see their bonuses ``substantially reduced,'' while executive committee members will have larger proportions of their bonuses in deferred compensation than other employees.
As a condition for receiving government money, lawmakers are making companies reel in bonuses. The congressional backlash and public outrage followed a series of high-profile cases involving Wall Street executives walking away with millions of dollars after their firms received taxpayer money.
Last month, American International Group Inc. said it would be limiting how much it pays its top executives, including granting a $1 salary for 2008 and 2009 to its CEO Edward Liddy.
New York-based AIG has received a roughly $150 billion rescue package from the federal government.
Shares of Citi fell 9 cents to $6.71 Wednesday. The company's stock shed more than three-fourths of its value in 2008.
Source: Agencies
Under pressure from lawmakers, Citigroup Chief Executive Vikram Pandit and Chairman Win Bischoff opted to forego their 2008 bonuses. The company's new executive pay limits also feature a clawback provision in which Citigroup can recoup executive pay ``that over time proves to be based on inaccurate financial or other information.''
The compensation restrictions come as the New York-based bank signed an agreement with the federal government to receive an additional $20 billion on top of the $25 billion it received in October. Restrictions on expenses, including the use of corporate aircraft and costs related to entertainment or holiday parties, also will be put in place.
Part of the $700 billion bailout program authorized by Congress, the capital infusions to Citigroup and dozens of other banks are the government's main tool for attempting to stabilize the financial services sector and spur lending between financial institutions and to customers.
Citi said it will issue $20 billion in preferred shares to the Treasury Department, and warrants to buy about 188.5 million shares of common stock at a strike price of $10.61 a share, according to a filing with the Securities and Exchange Commission.
In doing so, members of the company's senior leadership and executive committees will see pay cuts and limits on severance packages, according to a memo sent to Citigroup staff Wednesday.
In the memo, Pandit announced measures that will tie executive pay more closely to performance.
``We are fully committed to paying for high-performance people at all levels of the organization and at competitive rates, in the context of the company's overall financial results,'' Pandit said.
The most senior leaders will be affected the most, Citi said. Pandit said he and Bischoff thought it ``fair'' to forgo their bonuses ``in light of the challenges of the year and the need for compensation elsewhere in the organization,'' the memo said. Robert Rubin, a Citigroup adviser and former Treasury secretary, also will decline a bonus.
Pandit added that senior leadership committee members will see their bonuses ``substantially reduced,'' while executive committee members will have larger proportions of their bonuses in deferred compensation than other employees.
As a condition for receiving government money, lawmakers are making companies reel in bonuses. The congressional backlash and public outrage followed a series of high-profile cases involving Wall Street executives walking away with millions of dollars after their firms received taxpayer money.
Last month, American International Group Inc. said it would be limiting how much it pays its top executives, including granting a $1 salary for 2008 and 2009 to its CEO Edward Liddy.
New York-based AIG has received a roughly $150 billion rescue package from the federal government.
Shares of Citi fell 9 cents to $6.71 Wednesday. The company's stock shed more than three-fourths of its value in 2008.
Source: Agencies
Wednesday, December 17, 2008
Madoff crambles out to find friends following scam
Bernard Madoff, the longtime Wall Street executive accused of cheating investors around the world out of $50 billion, scrambled to find friends or relatives to guarantee his bond on Tuesday and keep him out of jail.
In Massachusetts, where the disgraced investor long cultivated a loyal group of wealthy individuals, the state's chief securities regulator subpoenaed Bernard L. Madoff Investment Securities and Cohmad Securities Corp, a firm that marketed Madoff investment products.
The two firms must hand over the names and addresses of all local residents who let Madoff invest their money by December 29. They must also deliver notes, emails, meeting agendas related to investments made since 2000, William Galvin, the state's Secretary of the Commonwealth, said on Tuesday.
In New York, Madoff, who was arrested last week, has not yet fully met the conditions of his $10 million bond, according to court papers. He must find three co-signers to guarantee the bond.
If he fails to meet all the conditions, prosecutors could seek to have the 70-year-old Madoff jailed, pending trial. A court hearing was set for Wednesday on bail matters after a Tuesday hearing was postponed.
Madoff, a former chairman of the Nasdaq Stock Market, faces up to 20 years in prison and a maximum fine of $5 million if convicted.
The U.S. Securities and Exchange Commission, which has been accused of missing red flags about Madoff's investment business, is asking its internal watchdog to probe the agency's conduct in the case.
SEC Chairman Christopher Cox said he was "gravely concerned" by the agency's "apparent multiple failures over at least a decade" to thoroughly investigate allegations or seek formal authority to pursue them.
As more banks, hedge funds and wealthy investors around the world realize they fell victim to a man long respected on Wall Street for the steady returns that his funds produced year after year, their outrage has grown.
LAW SCHOOL LAWSUIT
"The names and sizes of those exposed to Bernard Madoff keep growing and most remarkable of all is the concentration of investments made by funds of hedge funds which promise their clients a diversified portfolio," said Philippe Bonnefoy, chairman of the asset allocation committee at Cedar Partners, an investment adviser.
A fund of hedge funds is a basket of funds selected by the manager to spread around risk.
New York Law School sued Ascot Partners LP, an investment firm, general partner J. Ezra Merkin and auditor BDO Seidman LLP on Tuesday over investments with Madoff.
Massachusetts Mutual Life Insurance Co acknowledged its exposure to Madoff after a hedge fund unit invested heavily with him. Tremont Holdings Inc's Rye Investment Management unit lost roughly $3 billion, nearly all of the money the unit managed, people familiar with the matter said.
Madoff is also closely tied to Carl Shapiro, a 95-year-old Boston philanthropist who gave much of his fortune to the city's Beth Israel Deaconess Medical Center and the city's Museum of Fine Arts.
Austria's Bank Medici, a closely held bank serving wealthy clients, also said it was affected by Madoff's scheme, but declined to give a total for its losses.
At the same time, prosecutors and regulators asked people who suspect they lost money to Madoff to come forward.
The U.S. Attorney's Office in New York, which is prosecuting the Madoff case, set up a website for investors who may have been victimized. It also posted an FBI hotline number, 212-384-2359, for investors to call.
SIFTING THROUGH THE PAPERS
Investors were asked to gather any documents related to their Madoff investments and to check the website and others set up by the SEC, the trustee of Madoff's brokerage business and the court-appointed receiver in the case.
Lawyers worried that many of the financial statements that Madoff's firm mailed to clients were not accurate, and that it will take months to sift through the papers.
"This is a mess and it will take much longer than normal," said Douglas Hirsch, a partner at law firm Sadis & Goldberg, describing the work facing the trustee appointed to oversee the liquidation of Madoff's firm.
The Securities Investor Protection Corp, a nonprofit organization that provides limited insurance on investors' accounts, was named as trustee on Monday.
Madoff, who was well-known on the charity ball circuit and supported cancer and diabetes research, also gave about $238,200 to political candidates, parties and committees, mostly Democratic, since 1991, according to the Center for Responsive Politics, which tracks political giving.
U.S. Senator Charles Schumer, a New York Democrat, received $12,000, while U.S. Rep. Edward Markey, a Massachusetts Democrat, received $10,000 over the years, the Center found.
The impact of Madoff's alleged fraud may be felt most severely among hedge funds. For example, the Credit Suisse/Tremont Hedge Fund Index fell 4.15 percent in November, far more than the preliminary 0.7 percent decline reported last week.
Standard & Poor's said it will review public sector entities, such as universities, that invested with Madoff, to see whether their ratings should be cut as a result of their likely investment losses.
Source: Agencies
In Massachusetts, where the disgraced investor long cultivated a loyal group of wealthy individuals, the state's chief securities regulator subpoenaed Bernard L. Madoff Investment Securities and Cohmad Securities Corp, a firm that marketed Madoff investment products.
The two firms must hand over the names and addresses of all local residents who let Madoff invest their money by December 29. They must also deliver notes, emails, meeting agendas related to investments made since 2000, William Galvin, the state's Secretary of the Commonwealth, said on Tuesday.
In New York, Madoff, who was arrested last week, has not yet fully met the conditions of his $10 million bond, according to court papers. He must find three co-signers to guarantee the bond.
If he fails to meet all the conditions, prosecutors could seek to have the 70-year-old Madoff jailed, pending trial. A court hearing was set for Wednesday on bail matters after a Tuesday hearing was postponed.
Madoff, a former chairman of the Nasdaq Stock Market, faces up to 20 years in prison and a maximum fine of $5 million if convicted.
The U.S. Securities and Exchange Commission, which has been accused of missing red flags about Madoff's investment business, is asking its internal watchdog to probe the agency's conduct in the case.
SEC Chairman Christopher Cox said he was "gravely concerned" by the agency's "apparent multiple failures over at least a decade" to thoroughly investigate allegations or seek formal authority to pursue them.
As more banks, hedge funds and wealthy investors around the world realize they fell victim to a man long respected on Wall Street for the steady returns that his funds produced year after year, their outrage has grown.
LAW SCHOOL LAWSUIT
"The names and sizes of those exposed to Bernard Madoff keep growing and most remarkable of all is the concentration of investments made by funds of hedge funds which promise their clients a diversified portfolio," said Philippe Bonnefoy, chairman of the asset allocation committee at Cedar Partners, an investment adviser.
A fund of hedge funds is a basket of funds selected by the manager to spread around risk.
New York Law School sued Ascot Partners LP, an investment firm, general partner J. Ezra Merkin and auditor BDO Seidman LLP on Tuesday over investments with Madoff.
Massachusetts Mutual Life Insurance Co acknowledged its exposure to Madoff after a hedge fund unit invested heavily with him. Tremont Holdings Inc's Rye Investment Management unit lost roughly $3 billion, nearly all of the money the unit managed, people familiar with the matter said.
Madoff is also closely tied to Carl Shapiro, a 95-year-old Boston philanthropist who gave much of his fortune to the city's Beth Israel Deaconess Medical Center and the city's Museum of Fine Arts.
Austria's Bank Medici, a closely held bank serving wealthy clients, also said it was affected by Madoff's scheme, but declined to give a total for its losses.
At the same time, prosecutors and regulators asked people who suspect they lost money to Madoff to come forward.
The U.S. Attorney's Office in New York, which is prosecuting the Madoff case, set up a website for investors who may have been victimized. It also posted an FBI hotline number, 212-384-2359, for investors to call.
SIFTING THROUGH THE PAPERS
Investors were asked to gather any documents related to their Madoff investments and to check the website and others set up by the SEC, the trustee of Madoff's brokerage business and the court-appointed receiver in the case.
Lawyers worried that many of the financial statements that Madoff's firm mailed to clients were not accurate, and that it will take months to sift through the papers.
"This is a mess and it will take much longer than normal," said Douglas Hirsch, a partner at law firm Sadis & Goldberg, describing the work facing the trustee appointed to oversee the liquidation of Madoff's firm.
The Securities Investor Protection Corp, a nonprofit organization that provides limited insurance on investors' accounts, was named as trustee on Monday.
Madoff, who was well-known on the charity ball circuit and supported cancer and diabetes research, also gave about $238,200 to political candidates, parties and committees, mostly Democratic, since 1991, according to the Center for Responsive Politics, which tracks political giving.
U.S. Senator Charles Schumer, a New York Democrat, received $12,000, while U.S. Rep. Edward Markey, a Massachusetts Democrat, received $10,000 over the years, the Center found.
The impact of Madoff's alleged fraud may be felt most severely among hedge funds. For example, the Credit Suisse/Tremont Hedge Fund Index fell 4.15 percent in November, far more than the preliminary 0.7 percent decline reported last week.
Standard & Poor's said it will review public sector entities, such as universities, that invested with Madoff, to see whether their ratings should be cut as a result of their likely investment losses.
Source: Agencies
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