Archive for March 4th, 2008

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Have your eye on an Ionic Breeze air cleaner, a top-of-the-line massage chair, or an interactive droid? You might be out of luck if you were counting on using your Sharper Image gift card. The retailer of whimsical electronics and housewares recently filed for Chapter 11 bankruptcy protection, rendering these cards essentially useless.

Brian Riley — senior analyst with research firm TowerGroup — told MarketWatch that unused Sharper Image gift cards could amount to as much as $25 million. Sales clerks are telling customers the plastic cards are no longer valid for use in stores or on the web. A company hotline states that shoppers can inquire again in mid-March, as company officials are still trying to determine if the cards will ever be honored.

Additionally, Sharper Image rival Brookstone is offering a 25% discount for any shopper who turns in a (worthless) Sharper Image gift card when making an in-store purchase.

The truly disgruntled gift-card holders can investigate filing a petition in court, but the time and costs required would likely outweigh the gift card’s value. Federal law indicates that the holder of the card may have a claim against the bankruptcy estate, but it’s likely a worthless endeavor and Riley notes “There’s a good chance the dollars will be lost.”

Beth Gaston Moon is an analyst at Schaeffer’s Investment Research.

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Cover of Love and ConsquencesDid we learn nothing from A Million Tiny Pieces? Come on, folks. If you’ve got a good story to tell, but it’s largely out of your imagination rather than your memory, consider wiring a novel. The latest scandal to rock the literary world concerns Love and Consequences: A Memoir of Hope and Survival, written by Margaret Jones and billed as a memoir of life as part of a drug gang.

The book was exposed as a fraud and might now be pulled off shelves by its publisher. Talk about consequences. The CEO of Riverhead Books’ parent, Penguin Group (USA), David Shanks, told The Wall Street Journal that a decision to recall the book hasn’t been officially made, but the verdict will arrive as soon as today. Shanks added that “There are enough inaccuracies in the book to make us think that we will need to recall it.”

“Margaret Jones” bills herself as a biracial foster child who came of age in South Central Los Angeles, running with the Bloods street gang and selling drugs. The real power behind the pen, Margaret Seltzer, is white and reportedly grew up comfortably in a suburban home with her biological family and enjoyed a private-school education. At least Pieces author James Frey actually had a history of drug use!

Penguin Group is owned by publishing giant Pearson PLC (NYSE: PSO). About 19,000 copies of the book have come off the printing presses, most of which have likely already been shipped to bookstores.

Beth Gaston Moon is an analyst at Schaeffer’s Investment Research.

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Author raising money for Cambodian school - Kansas City Star

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New banking rules might keep light touch-Bernanke - Reuters


HispanicBusiness.com

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GM (NYSE: GM) now has eight automobile brands. Since some models are built off similar platforms a sedan from Saturn might not be much different from one sold by Chevy. The problem is GM may not be taking sales from Toyota (NYSE: TM). It might be taking sales from itself.

Last year, GM introduced three crossovers according to The Wall Street Journal the Saturn Outlook and GMC Acadia, which are all but identical, and the more luxurious Buick Enclave. There are, of course, only a limited number of crossover buyers. Strong sales for the GMC crossover may hurt Buick.

GM thinks it can manage all of its brands but in a falling domestic car market there’s tiny evidence to show that the company’s plan will work.

It is time to kill some of GM’s brands, save marketing money, and stop most of he competition among cars built by the same parent company. The firm’s weakest brands by sales and falling units are Buick and Saturn. Most of their model are matched by vehicles in the Chevy, GMC, and Pontiac lines.

Shutting down brands is hard, an admission of defeat. But, it is time for GM to let some of its model lines go.

Douglas A. McIntyre is an editor at 247wallst.com.

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Japan Looks to a Robot Future
Rapid City Journal - With more than a fifth of the population 65 or older, the country is banking on robots to replenish the work force and care for the elderly. In the past several years, the government has funded a plethora of robotics-related efforts, including some

Contract win adds to saga of booming South
Seattle Post Intelligencer - If anything the South’s economic improvement and significance has only increased since then, from its increasing prominence in auto manufacturing (Mercedes in Alabama being the latest) to its dominance in banking.

Australian Dollar Falls on Speculation Rate Increases to Pause
Bloomberg - The Aussie is taking a pretty massive hit,” stated Sean Callow, senior currency strategist at Westpac Banking Corp. in Singapore. “It’s a more dovish statement than we expected.

Jousting again at title loans
Memphis Commercial Appeal - Legislation that would mandate reasonable rates on car title loans, introduced in the Senate by Roy Herron, D-Dresden, and in the Home by Memphis Democrat Larry Turner, is pending before the Senate Commerce Committee and the House Utilities, Banking

German stocks - Factors to watch on March 4
Reuters - The past six months of turmoil in global credit markets exposes the limits of capital adequacy stipulations as the main tool in international banking regulation, Deutsche Bank CEO Josef Ackermann stated on Monday. [ID:nL0317657] Separately, India’s

Dollar Close to Record Low Versus Euro on Slumping U.S. Economy
Bloomberg - The Aussie is taking a pretty big hit,” stated Sean Callow, senior currency strategist at Westpac Banking Corp. in Singapore. “It’s a more dovish statement than we expected.

Australian shares close lower after interest rate hike - UPDATE
Forbes - National Australia Bank added 32 cents or 1.2 percent to 27.50 dollars and Australia and New Zealand Banking Group rose 51 cents or 2.4 percent to 21.44 dollars.

Standard Bank receives $5.5 billion equity investment
Nigeria Guardian - ICBC has more than 180 million personal banking customers and 2.5 million corporate banking customers. It has over 16 000 branches and outlets in the People’s Republic of China and almost 100 branches in the rest of the world.

JGB futures retreat from 1-mth high, hit by auction
Forbes - The coupon for the new 10-year bonds was set at 1.4 percent, the lowest since just before the Bank of Japan ended its super-loose monetary policy in March 2006 of flooding the banking system with funds to keep interest rates near zero.

Murthy inducted into HSBC board with emerging market focus
Stockhouse Canada - Global banking major HSBC Holdings Monday inducted Infosys founder N.R. Narayana Murthy as a non-executive director and strengthened its executive board after incurring a record $17.2 billion bad debt charge mainly due to the US sub-prime mortgage

Australia Forecasts Record Commodity Sales on China (Update4)
Bloomberg - The underlying demand from the economic growth of countries like China, India, Vietnam is probably going to continue for another two decades,” Saul Eslake, chief economist at Australia and New Zealand Banking Group Ltd., told reporters at the agency

GM gives Henderson large role
Detroit News - He was director of mortgage banking at General Motors Acceptance Corp., followed by a promotion to vice president of finance at GMAC. In 1994, he took over as head of operations at GM’s sprawling Automotive Components Group, the parts-making division

Rates rise `will hurt families’
News.com.au - The increase in rates appears to make the foreign investors (who have billions lent to the Banking sector) richer, particularly as US rates decline, those with cash investments (I recommend a small majority) with more to spent and those with out

Citi Hones Wealth Focus
Wall Street Journal - The investment-banking group, in the process of eliminating about 4,200 jobs, is prone to last more layoffs. Write to David Enrich at david.enrich@wsj.com

Profits slide at Close Brothers
Financial Times - Close Brothers stated on Monday it planned to continue to expand its current business as interim profits at the banking, corporate finance, asset management and securities trading group slumped following the unsuccessful completion of takeover speaks

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