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Archive for the 'news' Category

Electric Cars Get a Makeover

Wednesday, January 7th, 2009

Jan. 6, 2008 — As mass-produced electric cars come closer to reality, their makers are trying to polish the image of what experts say could be a hard sell in the current recession.

“Please erase your image of electric cars being like golf carts,” a spokesman for Japan’s fourth-biggest automaker said before taking a zero-emission vehicle out for a spin.

“It’s fast, powerful and smooth,” Mitsubishi Motors Corp. spokesman Kai Inada said of the iMiEV electric car, which is due to be launched next year.

Zero-emission vehicles may not be a novel concept for long. Japanese car makers are racing to develop electric cars, and U.S. and European manufacturers have also announced plans to roll them out within a few years.

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The dream of an electric car, which has been around since the time of Thomas Edison, has so far failed to break into the mainstream because of limited battery life that makes such vehicles impractical for most purposes.

But after technological breakthroughs in the development of long-lasting lithium-ion batteries, soon it may not just be Hollywood stars who are zipping around in zero-emission automobiles.

Mitsubishi’s electric car now runs 100 miles on one charge, which takes 14 hours when using a conventional 100 volt outlet on the wall, or 30 minutes to charge 80 percent of the battery using a special quick charger.

With the help of government subsidies, Mitsubishi Motors aims to sell its iMiEV at a price of less than $30,000 as early as 2010.

“The price and the short mileage per charge are the two biggest challenges we must address,” admitted Kazuhiro Yamana, head of Mitsubishi’s public relations department.

“But we expect that technological breakthroughs in lithium-ion batteries will continue, realizing longer distances — for example triple the current distance in 10 years,” he said.

Audio: How to Keep New Year’s Resolutions

Wednesday, January 7th, 2009

Over the weekend, I spoke with WTOP in Washington about how to keep financial New Year’s Resolutions. The main trick is to tell other people what they are, which forces you to get specific about them and also holds you accountable. If you don’t want to share those details with people you know, then you can go online to a site like 43things.com and share your goals with strangers.

LISTEN NOW: Make New Year’s Resolutions Stick

Subscribe to Personal Finance With Kimberly Palmer

Vanguard Study: Target-Date Investors Avoid Extremes

Wednesday, January 7th, 2009

Investors that put their retirement money in target-date funds tend to play it more conservative over time versus those who choose their own mix of funds, according to a new Vanguard study.

The report looks at the behavior of more than 1.24 million participants in retirement plans, including 357,000 who were actively contributing to target-date funds.According to the study, people who didn’t invest in target-dates exhibited greater extremes in their stock holdings: 30 percent held all-stock portfolios, while 16 percent held highly conservative, zero-equity portfolios.

On the other hand, target-fund investors’ stock exposure ranged from 40 percent to 90 percent, depending on their age and time to retirement.

For those in target-date funds, the study also found that stock exposure dips lower over time compared with non-target-date investors. For non-target-date investors, allocations to stocks decreased by less than 10 percentage points between the ages of 25 and 65. Equity allocations of target-date investors, on the other hand, declined more than 40 percentage points over the same age range.

That’s not necessarily a good thing. While one explanation for the difference between target-date investors and those who choose their own mix may be that non-target daters don’t monitor their allocations closely, a growing opinion among financial advisers is that even newly retired investors need to keep a significant amount of their portfolio invested in stocks. [See "6 Blunders that Ruin Retirement Plans.]

The Future of the Stock Market, Revisited

Wednesday, January 7th, 2009

In response to my post yesterday, "What If Stocks Never Go Up Again," a few people commented that such a scenario was so impossible that it was ridiculous to even pose the question.

I have two words for those commenters: Nikkei. Index.

Steve Jobs Might Be Healthier Than Apple’s Customers

Wednesday, January 7th, 2009

It should be a good day for Apple with the annual Macworld Expo in full swing, but does the hype overshadow consumer weakness and questions about first-half guidance?

Analysts predict a modest boost from a round of new of Macs and a peek at Snow Leopard, Apple’s latest operating system, and a few were encouraged by yesterday’s health update from Steve Jobs. Analysts at Kaufman Bros. said yesterday that Phil Schiller’s keynote at the event will be a positive catalyst, and new products could "perhaps accelerate its strong Mac momentum." Today Oppenheimer upgraded Apple following a Dec. 17 downgrade on uncertainty over Job’s health. Apparently his announcement that he’s suffering from a "hormone imbalance" gave analysts enough information to restore faith in management’s continuity.

 

Most agree there’s still upside for Apple, but is the near term is still unclear. Kaufman’s Shawn Wu said says Apple’s Mac OS X operating system that powers Macs and iPhones saw faster market share gains in December, which is an obvious long-term positive. But how does that stack up against, for example, Best Buy’s announcement it is selling refurbished iPhones for $50 less than new ones, and the ongoing wait for a cheaper version of the iPhone?

Today, BMO Capital Markets analyst Keith Bachman sees "continued weakness in consumer and educational buying trends" and cuts his price target from $120 to $108 before MacWorld’s keynote. He says: "We note that Apple, like many of our stocks, currently benefits from negative sentiment, and recognition by buy-side investors that current Street estimates are too high. However, we don’t think Apple will trade well between Macworld and its earnings conference call, with realistic concerns about March quarter guidance. We believe that buying the stock owing to weakness from guidance will prove profitable, given that Apple is typically overly conservative."

Bachman lowered his fiscal ‘09 earnings estimate to $4.60 from $5.11, below consensus of $5.12. He lowered revenue estimates for the March quarter, predicting Apple will guide to $7.1 billion to $7.5 billion on earnings of 75-85 cents a share. Consensus is $8.4 billion and $1.15 a share. That’s a big gap, and the thinking goes that until Apple clarifies its guidance shares could wobble. He writes, "We believe the magnitude of the difference between March-quarter guidance and current Street estimates is likely to pressure shares in the short term."

 Apple traded up 1.1 percent this morning at $95.74.

Economy Could Actually Turn Around Under Barack Obama

Wednesday, January 7th, 2009

President-elect Obama said it himself on Monday: The economy’s about to collapse, and if Congress doesn’t act fast, it will. Everywhere one turns, lousy economic news abounds. Is it possible we’ve been through the worst and this year will be better than last? Not according to most of what we hear in the media. But the possibility exists despite the naysayers.

Yes, car sales are down. Yes, Wall Street’s in the pits. Job losses are dismal and mounting. The housing market? Let’s not even go there. But I believe two factors—low interest rates and low energy costs—could help ignite at least moderate growth before 2009 winds up.

Jerome Idaszak, associate editor of the Kiplinger Letter, cites these additional reasons for measured optimism: 

Inflation will also be low, in the 1%-2% range for 2009, stretching paychecks for those who still have jobs.

And federal spending will be a big help to the economy. President-elect Obama and Congress plan a stimulus of over $800 billion in tax cuts and spending as early as this month. If the money can be put to work quickly—a big if—it will create a few million jobs.

There’s also a new sense of public confidence in Washington. About 70% of Americans say they are optimistic that the Obama administration will be able to spur growth. Economists say confidence is a key element, especially as it relates to consumers. That’s a big plus if Obama can deliver quickly enough to keep the momentum.

  • Read more by Bonnie Erbe.
  • Read more from the Thomas Jefferson Street blog.
  • Read more about the economy.

And So It Begins …

Wednesday, January 7th, 2009

Now this will add plenty of uncertainty to an already nervous business climate. My guy and superanalyst Pete Davis tell me:

Senate Majority Whip Dick Durbin (D-IL) plans to introduce his bill from last year, S.2136, and a similar bill is expected to be introduced in the House.  It would allow non-traditional and subprime first mortgages to be rewritten by bankruptcy judges.   President-elect Obama endorsed the idea during the campaign, so there is a good chance for enactment.  The mortgage industry has fought hard against the idea, saying it would reduce mortgage availability and would increase mortgage interest rates, but that doesn’t seem to have persuaded supporters, who include some Republicans.

Biden To Take Stock In Terror Heartland

Tuesday, January 6th, 2009

Joe Biden is heading to Southwest Asia just days before becoming vice president, a visit that signals the new administration’s plans to make the troubled region an immediate priority.

To protect his security Biden aides won’t say which countries he plans to visit, but the geographic description suggests destinations such as Afghanistan, Pakistan or India.

The Delaware senator is leading the bipartisan congressional trip later this week as chairman of the Foreign Relations Committee, a post he has to resign before becoming vice president on Jan. 20.

An official familiar with the planning of the trip, first reported by CBS News Monday in the Hotsheet Blog, said Biden is going now so the new administration can be ready from its first day to deal with the region.

The official said waiting until after the inauguration would create delays of one to two months for an official White House trip to be organized.

The official spoke on a condition of anonymity because details of the trip are not authorized for public release.

The trip is designed to help Biden and the other foreign policy leaders from the Senate he is taking along to get a baseline, on-the-ground assessment and the policy options in each country so they quickly can formulate policies for the region, the official said. It was suggested by the president-elect’s national security team.

The mountainous border region shared by Pakistan and Afghanistan is widely viewed by intelligence experts as the focal point for Islamic militants loyal to both the Taliban movement and al Qaeda. The U.S. is expected to shift thousands of troops to Afghanistan early in 2009 to join the fight against an increasingly bold insurgency.

Meanwhile, the relationship between long-time nuclear rivals Pakistan and India has been tense in the wake of the deadly November terrorist attacks on the Indian city of Mumbai. The neighbors have fought three wars already, but both say they want to avoid military conflict over Indian allegations that “Pakistani elements” were behind the attacks.

They are not there to speak on behalf of the U.S. government, or convey policy positions for the incoming administration.

Elizabeth Alexander, Biden spokeswoman Joining Biden will be Sen. John Kerry of Massachusetts, the incoming chairman of the committee. Also accompanying the vice president-elect will be Sens. Jack Reed, a Rhode Island Democrat, Susan Collins, a Maine Republican and Lindsey Graham, a South Carolina Republican. Collins and Graham are members of the Armed Services Committee.

By including Republicans, the incoming administration also is signaling a bipartisan approach to national security problems.

Biden spokeswoman Elizabeth Alexander said in a statement that the delegations “will make it clear to foreign leaders that they are not there to speak on behalf of the U.S. government, or convey policy positions for the incoming administration.” But Biden’s new status is sure to create intense interest with leaders of the countries he is visiting, who will be looking to him for guidance on the incoming administration.

Biden was scheduled to be sworn in for a seventh term Tuesday, and Alexander said the trip was one of several reasons he wanted to do so even though he will only serve a couple of weeks.

Alexander said Biden felt it was important to take the oath of office after being elected to the seat, noting that Lyndon Johnson did the same in 1960 when he was vice president-elect. Biden also has transition work to do in the Senate office after 36 years of service and wanted to finish his other work on the Foreign Relations Committee, Alexander said.

Edward Kaufman, Biden’s chief of staff for nearly two decades, was appointed to fill the Delaware seat after Biden resigns until another election will be held in two years.

Nursing Industry Desperate For New Hires

Tuesday, January 6th, 2009

Please, please accept a high-paying job with us. In fact, just swing by for an interview and we’ll give you a chance to win cash and prizes.

Sounds too good to be true, especially in an economy riddled with job cuts in nearly every industry. But applicants for nursing jobs are still so scarce that recruiters have been forced to get increasingly inventive.

One Michigan company literally rolled out a red carpet at a recent hiring event. Residential Home Health, which provides in-home nursing for seniors on Medicare, lavished registered nurses and other health care workers with free champagne and a trivia contest hosted by game-show veteran Chuck Woolery. Prizes included a one-year lease for a 2009 SUV, hotel stays and dinners.

“We’re committed to finding ways to creatively engage with passive job seekers,” said David Curtis, president of the Madison Heights-based company.

Recruiters like Curtis may have little choice. The long-standing U.S. nurse shortage has led to chronic understaffing that can threaten patient care and nurses’ job satisfaction, and the problem is expected to worsen.

The shortage has been operating since World War II on an eight- to 10-year cycle, industry experts say. Each time the number of nurses reaches a critical low, the government adds funding and hospitals upgrade working conditions. But as the deficit eases, those retention efforts fade and eventually the old conditions return, often driving nurses into other professions.

“We recently had a hiring event where, for experienced nurses to interview - just to interview - we gave them $50 gas cards,” said Tom Zinda, the director of recruitment at Wheaton Franciscan Healthcare in the Milwaukee-area city of Glendale. “We really try to get as creative as we can. It’s a tough position to fill.”

Recruiters across the country have tried similar techniques, offering chair massages, lavish catering and contests for flat-screen TVs, GPS devices and shopping sprees worth as much as $1,000.

Even strong salaries aren’t doing the trick. Registered nurses made an average of $62,480 in 2007, ranging from a mean of $78,550 in California to $49,140 in Iowa, according to government statistics. Including overtime, usually abundantly available, the most experienced nurses can earn more than $100,000.

The U.S. Bureau of Labor Statistics predicts about 233,000 additional jobs will open for registered nurses each year through 2016, on top of about 2.5 million existing positions. But only about 200,000 candidates passed the Registered Nurse licensing exam last year, and thousands of nurses leave the profession each year.

Several factors are in play: a lack of qualified instructors to staff training programs, lack of funding for training programs, difficult working conditions and the need for expertise in many key nursing positions.

Cheryl Peterson, the director of nursing practice and policy for the American Nurses Association in Silver Spring, Md., said employers must raise salaries and improve working conditions.

“The wages haven’t kept up with the level of responsibility and accountability nurses have,” said Peterson, whose organization represents nurses’ interests. Chronic understaffing means nurses are overworked, she said, and as burned-out nurses leave the situation spirals for the colleagues they leave behind.

Some hospital departments where experience is vital, such as the emergency room or intensive-care unit, simply cannot hire newly minted nurses. So managers in those areas have even fewer staffing choices.

Nurses qualified to teach aspiring nurses are scarce chiefly because they can make at least 20 percent more working at a hospital, experts said.

“It can be hard to turn down that extra money,” said Robert Rosseter, the associate executive director of the American Association of Colleges of Nursing in Washington, D.C.

Many recruiters have looked for employees overseas, and about one-fourth of the nurses who earned their licenses in 2007 were educated internationally, most in the Philippines and India.

Some health organizations go out of their way to recruit as many nurses as possible even when they’re overstaffed.

Residential Home Health, the home-nursing company in Michigan, is always looking to hire, Curtis said. Even with 375 clinical professionals on staff, his recruiters are eager to sign up as many as 50 more nurses and therapists, hence the Chuck Woolery event.

Zinda, the Milwaukee-area recruiter, said creative recruiting helps to introduce nurses to his hospital. Besides offering interviewees $50 gas cards, he has provided $100 gift cards to the local mall, and created a Facebook page to target younger nurses.

Attracting good candidates is about offering good working conditions, he said, but creative recruiting goes a long way in generating a buzz.

“Bottom line, you need to get people excited about what you’re offering,” he said. “If you don’t, they can easily go elsewhere.”

Treasury Sends Banks Another $15 Billion

Tuesday, January 6th, 2009

The government said Monday it had supplied another $15 billion to seven U.S. banks in the latest round of payments from the $700 billion rescue fund.

The Treasury Department said the biggest payment in the new round totaled $7.58 billion to Pittsburgh-based PNC Financial Services Group Inc.

The latest payments bring the amount the government has committed to buying bank stock as a way of bolstering the financial system to $187.5 billion. Treasury said it has provided support to financial institutions in 41 states and Puerto Rico.

Besides PNC, Treasury provided $3.41 billion to Fifth Third Bancorp of Cincinnati and $1.35 billion to Atlanta-based SunTrust Banks Inc. The announcement Monday covered payments that were made on Dec. 31.

Under the law that established the $700 billion financial rescue program, Treasury has two business days after giving final approval to release the money to make that action public. In many cases, the individual financial institutions publicize that they have received approval for financial rescue support before the official Treasury announcement.

The government is buying stock in banks in an effort to bolster the companies’ balance sheets and spur them to step up lending to fight the worst financial crisis to hit the country since the 1930s.

But critics contend that many banks are not using the government funds for the purposes that Congress intended. An Associated Press survey last month of 21 banks that had received at least $1 billion each in government support found that none of them would provide specific answers to how the money was used.

Besides purchasing bank stock, the government also has tapped the bailout fund to supply support to insurance giant American International Group, and last week released money to General Motors Corp. and its financing arm GMAC LLC.

Treasury also said it had provided an additional $20 billion to Citigroup Inc. on Dec. 31 under a program it has dubbed its “targeted investment program” to provide support for the banking giant. It already had provided Citigroup an initial $25 billion.

Treasury Secretary Henry Paulson said last month when the Bush administration announced it would provide emergency loans to GM and Chrysler LLC that it had committed the first half of the $700 billion rescue program and Congress would need to authorize use of the final $350 billion.

That money cannot be tapped until the administration sends a report to Congress explaining how it plans to use the final $350 billion.

Treasury spokeswoman Brookly McLaughlin said Monday the administration was continuing to have conversations with the economic team of President-elect Barack Obama and with leaders in Congress about release of the final $350 billion.

She said no decision had been made on when the report requesting the next $350 billion would be sent to Congress. Many lawmakers believe that request will be delayed until after Obama takes office on Jan. 20.