Top Headlines September 2011 - part 5
ECONOMY September 14, 2011 | 5:55 PM
- CEO announces "Project New BAC" to cut costs by $5 billion, cut jobs by 10%
- Goal is to restore investor confidence and raise company efficiency ratio to 55%
- Investitgations cause 48% stock drop this year
Bank of America Corp. CEO Brian Moynihan says the bank plans to cut costs by $5 billion and slice over 30,000 jobs - or 10% of its workforce - in the largest single job cut this year.
BAC stock rose 1% on September 12 to $7.05 following the announcement.Read more »
BUSINESS September 14, 2011 | 3:01 PM
- HP introduces new security software platforms - Fortify, ArcSight and Tipping Point
- HP aims to increase its role in supplying IT security to large corporations
- HP executives hope company reputation in PC industry will boost sales of new software products
Hewlett-Packard Co. has introduced a variety of new computer security software in view of making use of the past year’s $14 billion in acquisitions.
The software, geared toward helping customers operate their data centers, includes: Fortify Software Security Centre – a product testing the susceptibility of applications to attack; ArcSight Express 3.0 – a computer hardware/software bundle searching for cyber attacks within network activity logs and users’ actions; and Tipping Point Web Application Digital Vaccine – a software detecting harmful network traffic.Read more »
BUSINESS September 13, 2011 | 3:53 PM
- Zagat buy offers reviews and deals on local restaurants, hotels and nightlife using Google maps
- Google estimates 20% of its daily searches are for neighborhood establishments
- Zagat's online home will remain a paid site
Google Inc. has purchased world-renowned dining review expert Zagat Survey in a bid to offer more local content. The acquisition will let people find local reviews and discounts for restaurants, hotels and nightclubs, using Google’s well-known online maps and mobile search engine.
Details of the deal were not released; however it is rumored that Google paid $100 million to $200 million for Zagat Survey. In a blog post, Marissa Mayer, Google vice president for local, maps and location services, said: “Zagat will be a cornerstone of our local offering, delighting people with its impressive array of reviews, ratings and insights. With Zagat, we gain a world-class team that has more experience in consumer based-surveys, recommendations and reviews than anyone else in the industry.”Read more »
BUSINESS September 13, 2011 | 1:56 PM
- McGraw-Hill increasing share repurchase to $1 billion in 2011
- McGraw-Hill Markets unit expected to generate yearly revenue of $4 billion
- Growing markets in China, India and Brazil promise double-digit growth
McGraw-Hill is to divide into two separate companies, with McGraw-Hill Markets centered on capital and commodities markets, and McGraw-Hill Education focused on digital learning and education services.
The divide is to be carried out by the end of 2012 as the first part of a new growth and value plan being implemented by the company to boost shareholder benefits through a threefold approach. The second and third parts of the plan are to cut costs to afford strong operating structures for the new companies and to push share repurchases to $1 billion in 2011. So far in 2011 the company’s share buyback has been in excess of $540 million.Read more »
ECONOMY September 12, 2011 | 5:11 PM
- American Jobs Act to create 1.9 million jobs, lower unemployment by 1%
- Employed to receive additional take-home pay
- Plan to cut social security taxes to 3.1%, senior citizens concerned
US President Obama is proposing a new $450 billion job creation package that includes tax cuts and project funding. The purpose of the American Jobs Act is to employ those who are jobless, while giving those who are working more money.
With lower taxes for employers and employees, Obama hopes people will spend more, thus boosting business for those seeking to employ new talent. US unemployment has remained at over 9% for more than two years. If enacted, the plan is expected to produce 1.9 million jobs and reduce unemployment by over 1%.Read more »
BUSINESS September 12, 2011 | 11:50 AM
- Lufthansa operating margin 3% ahead of Air France in first quarter
- Air France sees red in first and second quarters, facing $6 million debt
- Air France plummets more than 50% on Bloomberg EMEA Airlines Index
Air France-KLM plans to cut costs by between €700 million and €800 million in an effort to better compete with other airlines such as Lufthansa and British Airways.
Still feeling the effects of the financial crisis and weighed down by debt, Europe's biggest airline Air France-KLM is lagging behind its competitors. The airline has directed managers to apply additional savings measures between now and the end of 2011.Read more »
WORLD September 9, 2011 | 11:51 AM
- Ground zero reconstruction costs run to $11 billion
- Insurers hit with bill for $40 billion; government pays $10 billion in compensation
- Taxpayers shell out $4 trillion-$6 trillion in 9/11 ripple effect
The US economy is still feeling the fiscal impact of September 11 as New York readies itself for the ten-year anniversary of the attacks that claimed almost 3,000 lives.
A report compiled by New York comptroller William C. Thompson estimates the cost of the attacks, combining immediate and continuing loss, to be in the region of $83 billion to $95 billion. The immediate loss of wealth to New York City was thought to account for more than $30 billion, including the repair and reconstruction of New York’s buildings and infrastructure.Read more »
BUSINESS September 9, 2011 | 8:52 AM
- GM Chevrolet Volt smart car released to Canadian consumers on September 1
- Volt named 2011 Car of the Year for technological innovation
- Volt hit US market in 2010, but struggles against competitors such as Nissan
GM Canada President Kevin Williams officiated a ceremony to mark the release of GM’s Chevrolet Volt, a hybrid-electric car, to Canadian consumers in Oshawa, Ontario, on September 1.
While the first retail shipment went to GM’s Oshawa location, the smart cars will soon be available at dealerships in Quebec City, Vancouver, Toronto, Ottawa-Gatineau and Quebec for upwards of around CDN $41,550.Read more »
BUSINESS September 8, 2011 | 6:15 PM
- Saab applies for court protection from creditors to avoid falling into bankruptcy
- Carmaker to present creditors a reorganization plan within three weeks
- Saab only sold 30,000 cars last year, some 90,000 less than required to break even
Swedish automaker Saab has filed for bankruptcy protection as it attempts to secure funding to recommence its operations.
Production was halted several months ago when the company could no longer keep up with payments for its suppliers, with workers also having their salaries deferred. In its appeal for court protection, Saab said it would present a restructuring plan to creditors in three weeks’ time.Read more »
ECONOMY September 8, 2011 | 6:09 PM
- Mounting deficit, declining trust in politicians linked to pushing US down in rankings
- Switzerland tops list with Western European countries dominating top ten
- Advanced economies are stagnating while developing markets are rising
The United States has fallen to fifth place on the list of the most competitive economies in the world, according to a survey conducted by the World Economic Forum. Switzerland topped the list for the third year in a row, with Singapore jumping ahead of Sweden to take the second spot. Finland moved up to fourth ahead of the United States.
The World Economic Forum’s survey assesses global economies based on 12 “pillars of competitiveness” such as infrastructure, innovation and macroeconomic environment.Read more »