Money - AOL Money & Finance

Faced with lurking dangers to the budding recovery, Federal Reserve policymakers are sure to leave a key interest rate at a record low to entice Americans to spend more and help the economic turnaround gain traction.

The economy started to grow again last quarter for the first time in more than a year, although there are uncertainties about the strength and staying power of the recovery, especially after government supports are removed.

Comments (38)Permalink

Chrysler to sell new Fiat designs under Dodge nameplate

By David Schepp | Nov 4th 2009, 4:00PM EST Filed Under: Energy, Company News, Technology, Economy

Chrysler Group LLC plans to introduce three new Dodge brand cars, and possibly a midsized truck as part of a larger plan to rejuvenate the brand and sell more vehicles. The beleaguered automaker also said its finances are improving, reporting it broke even in September and had $5.7 billion in cash on hand. That's up from $4 billion in June, the month in which the company exited bankruptcy protection following a deal with Fiat (FIATY) which gave the Italian automaker a controlling stake in Chrysler.

The three new cars -- a subcompact, a compact sedan and a midsized sedan -- are Fiat designs, the New York Times reported, citing advance copies of presentations given to reporters. The presentations are part of a daylong meeting Chrysler is holding Wednesday at its headquarters in Auburn Hills, Mich., to lay out its five-year plan to reorganize and once again become pro...

Comments (3)Permalink

New York's Cuomo goes after Intel in a major antitrust suit

By Sam Gustin | Nov 4th 2009, 12:50PM EST Filed Under: Company News, Technology, Investing, Hewlett-Packard, Dell, IBM, Intel, AMD

New York State Attorney General Andrew M. Cuomo filed a massive antitrust lawsuit Wednesday against Intel (INTC), accusing the giant chipmaker of violating state and federal laws by using "bribery and coercion" as well as "illegal threats and collusion" to hurt rivals. In particular, the lawsuit accuses Intel of using its market power to hurt rival AMD (AMD), which has long played in Intel's huge shadow.

Cuomo has accused Intel, whose chips power roughly 80 percent of the PCs and server computers sold every year, of paying IBM (IBM) $130 million to bribe Big Blue to put the brakes on AMD's Opteron chip, as well as threatening to scuttle joint projects with IBM if the computer giant used AMD's chips. Intel could face hundreds of millions in penalties.

Comments (5)Permalink

Media World: After 40 years, it's not always a sunny day on Sesame Street

By Jonathan Berr | Nov 4th 2009, 1:30PM EST Filed Under: People, Media

It should be a year of celebration on Sesame Street. With First Lady Michelle Obama kicking off the season for the show's 40th anniversary next Tuesday, the program has no shortage or accomplishments to smile about. Sesame Street has won more than a hundred Emmys, and a handful of its staffers have been there from the beginning, including award-winning cameraman Frank Biondo, and Caroll Spinney, who still plays Big Bird at age 75.

But even as the beloved children's public-TV show turns 40, its milestone is tarnished by the March announcement from Sesame Workshop, the New York-based nonprofit behind the show, that it would lay off a fifth of its staff of 355. Turns out you can't always count on a sunny day sweeping the clouds away.

Comments (2)Permalink

Mobile search: Here's why Apple may take on Google

By Alex Salkever | Nov 4th 2009, 7:15PM EST Filed Under: Technology, Media, Google , Apple, AT&T

The search engine market is likely to get much hotter in the coming year if Apple (AAPL) adds a mobile search engine as the default option on its popular iPhones. Apple has no choice but to enter that game. The Cupertino, Calif. company has been giving (GOOG) a tremendous branding and revenue opportunity -- free of charge -- by incorporating Google Search as the default option in Safari browsers, the only browsers on iPhones.

That the two titans are going to clash, big time, is a foregone conclusion. There have been some warning signs. Google CEO, Eric Schmidt, resigned from (or was asked to leave) Apple's Board of Directors in August. Another Apple director, Genentech CEO Arthur Levinson, left the Google board not...

Comments (0)Permalink

Murdoch dishes on Fox News feuds with White House, MSNBC

By Jeff Bercovici | Nov 4th 2009, 6:45PM EST Filed Under: News Corp.

Rupert Murdoch wants everyone to know that Fox News doesn't start playground fights -- but it's not afraid of them, either.

On a conference call to discuss News Corp.'s (NWS) fiscal first-quarter earnings, the 78-year-old chairman, dialing in from Sydney, Australia, was asked about reports that Fox News had agreed to a "cease-fire" in its war of words with MSNBC, and about a recent White House effort to isolate and discredit his network.

"We did not start this abuse, which we thought went way beyond," Murdoch said about the hostilities with MSNBC, implying that it was the rival network's commentator Keith Olbermann and colleagues who had initiated them. "It was personal and went way beyond -- not on me but on others. Finally, we had to allow people to retaliate. The moment they stop, we'll stop. We don't believe in it, and we don't think it's good business."

Comments (0)Permalink

Illy confronts Starbucks with a low-cost indy strategy

By Sarah Gilbert | Nov 4th 2009, 6:30PM EST Filed Under: Company News, Starbucks

IllyCaffè SpA may not have a company-owned store near you, but it's a good bet you know the company's coffee. Illy's espresso machines and coffee beans are available to purchase online at the company's website, on Amazon.com, and a wide variety of retail outlets. Its art-inspired cups are a favorite of Italiaphiles (a good friend whose husband is Milanese was my introduction to the designer series of tiny espresso cups and saucers). And, after three years of success in Italy, the company has expanded its Artisti del Gusto (Artist of Taste) certification to the U.S., with 28 shops around the country serving Illy coffee, and about 100 more planned by 2012.

In Tuesday's Wall Street Journal, Illy is said to be using this strategy to compete with Starbucks (SBUX) through the "backdoor." It's a bit of a reach -- after all, 128 coffee shops is about 1.1 percent as far-reaching as Starbucks, and far less of a threat to market share than Dunkin'...

Comments (0)Permalink

Bank analyst Richard Bove, sued but unbowed, strikes again

By Tim Catts | Nov 4th 2009, 6:10PM EST Filed Under: Economy, People

Veteran Wall Street analyst Richard Bove caused quite a stir among bankers last summer with a research note that called out 24 mostly small and midsize financial institutions. Bove said they were endangered by rising levels of delinquent mortgages and other toxic assets.

The decision to publish that research has cost Bove plenty. One of the banks he identified as troubled sued him last July. To protect his firm, he quit and joined another company, and he has since been shouldering a monthly legal bill of some $50,000, he says. But he's not backing down. Indeed, in a new report sent to clients Wednesday, he sought to show that most of the banks he criticized more than a year ago haven't fared well since.

Comments (0)Permalink

Will Berkshire Hathaway's retail stock price bring retail investors?

By Douglas McIntyre | Nov 4th 2009, 5:50PM EST Filed Under: Company News, Investing, Johnson & Johnson, Coca-Cola Company, Berkshire Hathaway, Wal-Mart Stores, Wells Fargo & Co.

For years, the price of Berkshire Hathaway (BRK.A)'s Class A and Class B common stock has been priced out of the range of what most retail investors can afford. A share of the less expensive of the two classes, the B, trades at about $3,300.

Berkshire, run by Warren Buffett, announced on Tuesday that its Board of Directors approved a 50-for-1 split of its Class B Common Stock. The transaction still has to be approved by shareholders, but that's nearly a sure thing.

Comments (0)Permalink

Sauvignon and Slurpees? 7-Eleven launches in-house brand of wine

By Bruce Watson | Nov 4th 2009, 5:30PM EST Filed Under: Technology, Economy

On Wednesday, 7-Eleven (SVNDY) released its first in-house brand. This market segment, which has generally been dominated by grocery store brands like Walmart's (WMT) "President's Choice" or Whole Foods' (WFMI) "365 Everyday Value" lines, tends to focus on simple foods with mass appeal foods. However, for its first offering, 7-Eleven decided to raise the bar: It's going for wine.

The chain's new line, Yosemite Roads, will open with two basic offerings: a "fresh and zesty" chardonnay "with notes of apricot, peach and honey," and a "full-bodied cabernet sauvignon with juicy plum overtones." The 750-milliliter bottles will retail for approximately $3.99 apiece, and will be available in most of the company's 15,000 convenience stores, as well as Denny's restaurants, Shell Garden grocery stores, and several retail outlets...

Comments (1)Permalink

How Google's CEO Eric Schmidt keeps the company on the righteous path

By Peter Cohan | Nov 4th 2009, 5:15PM EST Filed Under: Technology, People, Google , Microsoft

Google (GOOG) CEO Eric Schmidt spoke at MIT this afternoon. He had some interesting things to say about the company's place in the world -- and how Google can continue to follow its golden rule, "Don't be evil."

Schmidt came to MIT to honor the memory of one of my MIT professors, Dr. Michael Hammer, who, as I wrote earlier, tragically passed away about 14 months ago. Hammer was most famous for co-authoring Reengineering the Corporation, along with my former boss, James A. Champy. But Hammer received tenure as a computer science professor at MIT before he became a management guru.

Comments (0)Permalink