Madoff Gets the Max

A U.S. judge sentenced Ponzi artist Bernard Madoff to 150 years in prison, effectively ruling that the 71-year-old will spend the rest of his life behind bars. It was the maximum sentence possible, and provoked an outpouring of cheers and applause in the courtroom.

U.S. District Judge Denny Chin said the symbolism of the maximum penalty was important. “The fraud here was staggering,” he said after listening to emotional testimony from nine victims of Madoff’s misdeeds.

Source: Reuters

Supreme Court Rules in Employment Discrimination Case

In a closely watched case, the Supreme Court ruled 5-4 to invalidate a Connecticut city’s decision to toss out results of an exam for prospective firefighters on which white candidates scored higher than blacks did. Justice Anthony Kennedy, writing for the majority, said the city’s move violated the 1964 Civil Rights Act barring employment discrimination. Judge Ruth Bader Ginsburg, writing for the minority, said the majority ignored evidence that the test was flawed. She stated that New Haven responded correctly to the biased results. Supreme Court nominee Sonia Sotomayor was one of three judges on an appeals court that upheld the city’s move.

Source: Wall Street Journal

GM Severs Ties with Toyota

The bankrupt U.S. carmaker ended its partnership with Toyota in a California assembly plant they have run together since 1983. GM said it was unable to agree with Toyota on a future production plan at the plant. The Pontiac Vibe, the only GM car made at the plant, will go out of production in August. Toyota makes the Corolla sedan and Tacoma pickup there.

Source: Reuters

Microsoft to Sell Razorfish

Microsoft has appointed Morgan Stanley to find a potential buyer for Razorfish, its digital agency, which it bought as part of a $6 billion takeover of aQuantive in 2007. The value of Razorfish is estimated at up to $700 million, based on 2008 sales of roughly $400 million and profit margins of between 12% and 13%. Razorfish is one of the largest digital agencies in the world.

Source: Financial Times

Vodafone Mulls Bid for British T-Mobile

Vodafone — the world’s largest mobile-phone company — is considering a bid for T-Mobile UK, the British wireless unit of Deutsche Telekom, according to a person familiar with the situation said. Vodafone may make an offer or form a joint venture. The deal would create a company with 35 million subscribers, or 50% of the British market.

Source: Bloomberg

General Motors Accepts Concessions to End Bankruptcy

Struggling U.S. automaker General Motors will accept liability for future product defects as one of several concessions offered to win court approval for a quick sale from bankruptcy. GM also will change terms of its proposed asset sale to mollify objections from over 20 suppliers, and is working to resolve the future of a joint-venture plant with Toyota.

Source: Reuters

Porsche Says It Has Bid from Qatar

After rejecting an offer from Volkswagen to buy the luxury sports-car maker’s operations, Porsche announced that it has received an offer from Qatar to buy the holding company and options that can be converted into VW shares. Porsche said it will now negotiate with the Qatar Investment Authority on a price. VW and Porsche have been trying to come to agreement on a merger for months, and Porsche is heavily burdened by debt it accumulated buying VW shares.

Source: Bloomberg

Anglo American Courts Outside Investors to Block Xstrata

London-listed mining giant Anglo American is talking to potential investors for its Brazilian ore assets as it prepares a detailed response to Xstrata’s $66 billion merger proposal and accelerates the search for a new chairman. Anglo has held informal discussions with Gulf Industrial Investment Company, the Bahrain iron oxide pellet producer, and Sojitz, a Japanese multinational, about acquiring up to 30% in MMX Minas-Rio, the Brazilian iron ore producer it acquired last year for $5.8 billion.

Source: Financial Times

Iraq to Open Oil Fields to Foreigners

Iraq could open its coveted oil fields to foreign companies this week for the first time in nearly four decades — a politically risky move in a country eager to shake off the stigma of occupation. Oil executives remain cautious, but are eager to get a foothold in Iraq, which has the world’s second-largest proven crude reserves and is seen as the major penetrable market for exploration.

Source: Washington Post

Oil Demand Estimates Cut

The International Energy Agency, an adviser to oil-consuming nations, has cut five-year forecast for global crude demand because of the economic slump. The IEA now expects that consumption won’t return to last year’s levels until 2012. The agency cut its oil demand estimates for every year through 2013 by about 3 million barrels a day in its Medium-Term Oil Market Report, released on June 29.

Source: Bloomberg

Obama Praises Climate Change Bill

U.S. President Barack Obama praised the House of Representatives for taking an “extraordinary first step” by passing a climate bill on June 26, adding the legislation could make renewable energy “a driver of economic growth.” Obama said he wanted Congress to strip out a clause that would impose a tariff in 2020 on imports from countries without systems for pricing or limiting carbon dioxide emissions.

Source: Washington Post

Consulting Giants to Merge

Two of America’s largest human-resources consulting firms, Towers Perrin Forster & Crosby and Watson Wyatt Worldwide, have agreed to merge in a deal reflecting recession-induced consolidation in the consulting industry. The combined company, to be called Towers Watson, will have annual sales of roughly $3.2 billion with 14,000 employees.

Source: Wall Street Journal

Stocks: Are Summer Doldrums Here to Stay?

Stocks started the year by shocking investors with big losses, then pleased them with a strong springtime rally. But in the last month, the once-thrilling stock market has been downright boring. That’s because the markets are still finding their feet after the rally of recent months, but could again pick up in the latter stages of the summer.

Source: BusinessWeek

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