More Bad News on Housing

It’s going to get even worse for U.S. home sales, predicts the National Association of Realtors. The trade association said sales and prices this year will sag more than previously expected.

This marks the fourth straight month that the NAR has trimmed back its forecast. It’s now saying that some 6.18 million existing homes will find buyers this year, down from 6.29 in its previous estimate.

Source: Reuters

Stem-Cell Breakthrough

Could this be the end of political wrangling over stem-cell research? Four separate teams of scientists announce in major journal articles that they have succeeded in turning mature cells back into their embryonic state, and that the cells have the same shape-shifting properties as stem cells from embryos.

Source: Wall Street Journal

Ford No. 1 in Quality Rankings

In J.D. Power’s annual survey of new-car quality, Ford grabbed five top category honors, more than any other carmaker. Toyota grabbed the most last year. Ford’s Lincoln LT, Mercury Milan, Mazda MX-5 Miata (Ford owns 37% of Mazda), Mustang, and Lincoln MKZ all led their categories.

Source: Detroit News

U.S. Treasury Notes Fall to 9-Month Low

US Treasury two-year notes fell to a nine-month low, driving yields higher, after a report showed service industries growth at a one-year high. The news followed comments by Federal Reserve Chairman Ben Bernanke that made it clear the Fed believes all the risk on inflation is on the upside. Investors have all but abandoned earlier hopes of a rate cut later this year.

Source: Associated Press

Dow Jones Union Launches an Anyone But Rupert Drive

In what even they call a long shot, the union representing editorial employees of the Wall Street Journal publisher is scrambling to find another bidder to avert the sale of their company to News Corp. Chairman Rupert Murdoch. They’ve lined up grocery store magnate Ron Burkle as an advisor. The Los Angeles billionaire failed in two earlier, high-profile efforts to buy newspaper assets and associates say he isn’t interested in putting up much of his own money for a Dow Jones bid.

Source: Los Angeles Times

FTC Wants to Block Whole Foods Purchase of Wild Oats Markets

The antitrust regulator wants to stop the leading organic supermarket chain from buying rival for $565 million. The FTC wants courts to focus narrowly on the organic food market, where it says a deal will reduce competition and raise prices. Whole Foods counters that it faces growing competition from traditional grocery store operators and that the FTC is being myopic.

Source: Reuters

Colony Capital Bests Carlyle in Fight for Libyan-Owned Oil Firm

Los Angeles-based Colony, which is best known as a property buy-out specialist, will pay $5.8 billion for Switzerland-based Tamoil. The company, which is 100 percent owned by the Libyan government, has refineries and gasoline stations scattered across Europe.

Source: Bloomberg

Best Buy Lawyer Admits Falsifying Emails

A lawyer for US consumer electronics retailer Best Buy admitted to a Seattle court that he had falsified emails and a memo before turning them over to plaintiffs attorneys in a nation-wide class-action lawsuit. The development could lead the judge to find the company liable for tens of millions in damages.

Source: Associated Press

UK Supermarket Leader Tesco Takes Aim at U.S. Market

The row upon row of freezers gracing the typical U.S. supermarket has no rival anywhere in the world—perhaps because consumers elsewhere won’t put up with the tepid tastes and mushy consistency of all too many frozen foods. The British firm may be banking on changing US tastes as it launches a chain of mid-sized stores stocking a wide variety of fresh—not frozen—ready-to-eat foods.

Source: Los Angeles Times

China Becomes Power in Vitamins and Drugs as Safety Concerns Mount

Chinese companies have quietly emerged as the world’s dominant suppliers of vitamins, and by one estimate account for 70 percent of global penicillin production and 50 percent of aspirin. Yet the country has a well-documented problem with fake drugs, and two recent scandals involving toothpaste and pet-food ingredients have only added to concerns.

Source: Miami Herald

Zapping a Plan for a “Clean” Coal Plant

Florida state regulators Spain gave a thumbs-down to a proposal by Florida Power & Light to construct a coal-burning electricity plant near the Everglades. The Public Service Commission ruled unanimously that the plant wouldn’t provide “cost-effective” power. Environmentalists hailed the ruling.

Source: Miami Herald

Citing ‘Major Progress’, GM Chief asks for Patience

The No. 1 US carmaker has cut costs, boosted productivity, and turned a profit in the first six months of this year. Though a majority of analysts surveyed by Bloomberg maintain “sell” ratings on its stock, the shares have mostly traded sideways so far this year.

Source: Bloomberg

Burger King Decides to Give Japan a Try Again

After pulling out of the Japanese market in 2001 amid a prolonged economic slump and fierce competition from McDonalds and local rivals alike, the world’s second-biggest burger chain has decided it just can[‘t stay away from the world’s second-largest economy any longer. The move comes as Japanese restaurant sales rose last year for the first time in a decade.

Source: Reuters