The Globe and Mail - Americas News

North American roads will never be the same thanks to fuel-efficient fleets

Jeffrey Simpson — Wed, 20 May 2009 00:00 EDT

President Obama swept away years of lawsuits, political fights and jurisdictional rows by imposing new emission standards

When it comes to the Canadian economy, Obama may as well be PM

John Ibbitson — Wed, 20 May 2009 00:00 EDT

The U.S. fuel-economy standard will rise. Canada is going there too, whether we want to or not

HP profit drops on sales slump

Wed, 20 May 2009 00:00 EDT

Hewlett-Packard Co.HPQ-N says its quarterly profit dropped 17 per cent as sales of personal computers and printer ink slumped. The numbers were still in line with Wall Street's forecasts. The company's CFO, Cathie Lesjak, said it's still ''too tough to call'' whether PC sales have hit a bottom. HP earned $1.72-billion, or 70 cents per share. Excluding restructuring and other one-time charges, HP earned 86 cents per share, which matched the average forecast of analysts polled by Thomson Reuters. Sales fell 3 per cent to $27.4-billion. HP says sales would have been up 3 per cent were it not for currency fluctuations. HPQ-N (NYSE) rose 85 cents to $36.58.

Palestinian urges Obama to back up talk with action

Wed, 20 May 2009 00:00 EDT

A key Palestinian official demanded yesterday that President Barack Obama follow up his tough talk with Israeli Prime Minister Benjamin Netanyahu and force Israel to stop West Bank settlement construction and accept a Palestinian state.

Disney exhibit teaches kids how to diversify

MIKE SCHNEIDER — Wed, 20 May 2009 00:00 EDT

Not even the happiest place on Earth is spared the lessons of saving and investing in this era of recession.Walt Disney World's Epcot theme park yesterday opened an interactive game-based exhibit aimed at teaching kids ages 8 to 13 basic lessons in personal finance that would make Scrooge McDuck proud.

Canada, U.S. working 'to harden' border: Clinton

Wed, 20 May 2009 00:00 EDT

The Canada-U.S. border has been a problematic one, Secretary of State Hillary Clinton said yesterday, which is why both countries are working together to ''harden'' the Canadian boundary.

Complaint about Palin's wardrobe rejected by panel

Wed, 20 May 2009 00:00 EDT

The Federal Election Commission has dismissed a complaint over the $150,000-plus designer wardrobe the Republican party bought to outfit vice-presidential candidate Sarah Palin.The good-government group that filed the complaint, Citizens for Responsibility and Ethics in Washington, argued that candidates aren't supposed to use donor money for personal expenses such as clothes. The FEC ruled yesterday that the ban doesn't apply to party money, however.

Black may apply for bail as court reviews case

PAUL WALDIE AND SINCLAIR STEWART — Wed, 20 May 2009 00:00 EDT

Conrad Black is expected to ask to be released from jail while the U.S. Supreme Court reviews his conviction for fraud and obstruction of justice.Legal experts say Lord Black is entitled to apply for bail now that the Supreme Court has agreed to review the case and it is understood that one of his co-defendants, John Boultbee, has already begun the process.

Saks posts smaller loss than expected

Wed, 20 May 2009 00:00 EDT

Luxury retailer Saks Inc. SKS-N reported a loss for the first quarter yesterday as it struggles with the pullback in spending by its wealthy customers. Still, the results beat analysts' expectations as the chain benefited from cost cuts - sending shares up 20 per cent. The operator of Saks Fifth Avenue stores has seen Diego Della Valle, the founder of Italian luxury shoe and handbag maker Tod's SpA become the company's second-largest shareholder in recent weeks after Mexican billionaire mogul Carlos Slim. Saks said it lost $5.1-million, or 4 cents per share, in the first quarter ended May 2. That compares with a profit of $17.3-million, or 12 cents per share, a year earlier.nearly $620-million. SKS-N (NYSE) rose 73 cents to $4.81.

Merkin to cede control of funds that fed to Madoff

Wed, 20 May 2009 00:00 EDT

J. Ezra Merkin, the hedge fund manager who invested billions of dollars of his clients' money with accused Wall Street swindler Bernard Madoff, has agreed to relinquish control of his funds to court-appointed trustees. The attorney general's office had requested the turnover agreement in connection with its civil fraud lawsuit accusing Merkin of convincing clients he was managing their money when he was actually funnelling $2.4-billion to Madoff's ponzi scheme. The deal, which was discussed in court yesterday and was expected to be approved by a judge tomorrow, is not a settlement in the case, the attorney general's office said. Lawyer Andrew Levander said in a statement the handover was part of Merkin's ''continuing efforts to maximize the returns to investors'' and ''provide certainty and stability during the previously announced wind-down of the Ariel and Gabriel Funds.''

Black's lawyer once touted as future high-court judge

SINCLAIR STEWART — Wed, 20 May 2009 00:00 EDT

Conrad Black wasn't the only one feeling lucky Monday morning after the U.S. Supreme Court issued a rare ruling agreeing to review his fraud conviction.Miguel Estrada, the latest in a battalion of lawyers enlisted to represent Lord Black, confessed he was ''elated'' that the nation's highest court would hear the case, given that they only grant petitions on about one in 150 requests.

Stalking horses and use of section 363

RICHARD BLACKWELL — Wed, 20 May 2009 00:00 EDT

What is the ''section 363'' that Chrysler is using to sell some of its assets, and that General Motors is also considering?Section 363 of Chapter 11 of the U.S. Bankruptcy Code governs the sale of property when a company is in court protection from its creditors.

SFK takes more downtime at Quebec, U.S. mills

Wed, 20 May 2009 00:00 EDT

SFK Pulp Fund SFK.DB-T is taking more downtime over the coming months at its mills in Quebec and the United States as it continues to adjust to challenging market conditions ahead of an expected turnaround later this year. The number of workers affected was not immediately known. ''Key drivers of the market show that we are at the bottom and looking for a recovery some time during the end of 2009,'' president and CEO Pierre Gabriel Cote said yesterday. SFK said it expects to remove 23.5 per cent of production at three pulp mills by the summer. Additional cuts are planned for the end of the second quarter and early in the third quarter. SFK units fell two cents to 31 cents.

The church's short memory

Jacqueline Murray — Tue, 19 May 2009 00:00 EDT

History simply does not substantiate claims of celibacy's enduring nature, says Jacqueline Murray

It's not just the economy - our manufacturers lag behind

James Brox — Tue, 19 May 2009 00:00 EDT

Canada needs more innovation and physical capital, says James Brox

Buoyed by housing, U.S. markets post gains

SARA LEPRO AND MADLEN READ — Tue, 19 May 2009 00:00 EDT

Reassuring news about housing and banking yesterday convinced investors to return to the stock market.The Dow Jones industrial average shot up 235 points, its biggest daily point gain in over a month, and made up three-quarters of last week's losses. All the major indexes rose about 3 per cent.

Goldman, Morgan Stanleyapply to repay TARP

Tue, 19 May 2009 00:00 EDT

Goldman Sachs Group Inc. GS-N and Morgan Stanley MS-N have formally asked the U.S. Federal Reserve for permission to repay a combined $20-billion (U.S.) in bailout money. The requests are pending and no decision has been made on whether the investment banks will get approval to repay the money and sever ties with the Troubled Asset Relief Program, according to two people familiar with the matter. They spoke on condition of anonymity because discussions with the Fed are ongoing. The banks have said they want to repay TARP funds so they can operate free of federal limits on executive pay and other restrictions.

The intrinsic costs of auto dealerships

RICHARD BLACKWELL — Tue, 19 May 2009 00:00 EDT

How does reducing the number of dealerships in North America save General Motors and Chrysler significant amounts of money, when most of those dealers are independently owned?While the auto makers don't own the individual dealerships, it costs a lot to supply them with cars and support.

Washington walks fine line with free trade

BARRIE McKENNA — Tue, 19 May 2009 00:00 EDT

The Obama administration is vowing to be a much tougher global cop on trade as it battles mounting economic insecurities and protectionist sentiment at home.U.S. Trade Representative Ron Kirk told a leading U.S. business group yesterday that the recession is making it harder than ever to convince skeptical Americans of the benefits of free trade.

CIA 'confident' nuclear weapons safe from Taliban

Tue, 19 May 2009 00:00 EDT

CIA director Leon Panetta said yesterday U.S. intelligence officials did not know the exact whereabouts of all Pakistan's nuclear weapons but believed they were safe from the Taliban.

Amex to cut 4,000 jobs

Tue, 19 May 2009 00:00 EDT

American Express Co. AXP-N said yesterday it is eliminating about 4,000 jobs as part of a plan to slash another $800-million (U.S.) in costs for the remainder of the year.

A rethinking of monetary policy

KEVIN CARMICHAEL — Tue, 19 May 2009 00:00 EDT

The Great Consensus is coming undone.By raising and lowering short-term interest rates to keep inflation moving at a targeted pace, many central bankers and academics thought they had finally found a monetary policy solution to conquer the booms and busts of the business cycle.

Obama gives Iran deadline to consider better relations with U.S.

PAUL KORING — Tue, 19 May 2009 00:00 EDT

Iran's ruling mullahs have only a few months to take up the offer of better relations with America and must abandon all efforts to join the club of nuclear-armed states, President Barack Obama said yesterday, setting a soft deadline for Tehran.

In rare ruling, court agrees to hear Black's appeal

SINCLAIR STEWART, SIMON HOUPT AND PAUL WALDIE — Tue, 19 May 2009 00:00 EDT

Conrad Black, convicted but not cowed, always maintained he would prevail, that his struggle was a ''play in three acts'' destined to end in redemption.But few believed he had a chance until yesterday, when he defied some daunting odds in a last-ditch effort to overturn his conviction on fraud and obstruction of justice charges.

WERE BLACK'S SERVICES HONEST?

PAUL WALDIE AND SINCLAIR STEWART — Tue, 19 May 2009 00:00 EDT

The U.S. Supreme Court's review of Conrad Black's criminal conviction will not only affect whether Lord Black stays in jail, but will also reshape how corporate fraud cases are prosecuted in the United States.