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Editors: Bloomberg News moves a combined business/general news budget at 13:30 New York time each business day. Graphics and photos can be found at www.bloomberg.com/photos or www.bloomberg.com/newsfeed.
Stories identified with the prefix PUBLISH in the slug have been shaped for newspaper use, and the suffix -TRIM indicates the original version has been shortened. All move times are New York time. Inquiries should be directed to Jeffrey Tannenbaum in content syndication, firstname.lastname@example.org or 1-212-617- 5392. The main number for the department is 1-212-617-4300.
TOP BUSINESS NEWS
Major companies due to report earnings after the 16:00 close of regular trading in New York: International Business Machines Corp. (IBM).
U.S. Stocks Fall as Germany Damps Optimism on Crisis Solution
U.S. stocks fell, after the biggest weekly gain in the Standard & Poor’s 500 Index since 2009, as Wells Fargo & Co. slumped and a German government spokesman damped optimism of a quick fix to Europe’s debt crisis. Developing. US-STOCKS-FINAL to move by 17:00. By Rita Nazareth. Also see GLOBAL-MARKETS- WRAP, US-OIL-MARKET.
Germany Shoots Down ‘Dreams’ of Swift Euro Crisis Solution
Germany said European Union leaders won’t provide the complete fix to the euro-area debt crisis that global policy makers are pushing for at an Oct. 23 summit. 970. Moved at 10:55. By Tony Czuczka and Rainer Buergin.
Roubini Says Greek Default May Spark Lehman-Magnitude Shock
A Greek default could trigger a global economic shock on the scale of that suffered after Lehman Brother Holdings Inc.’s 2008 failure, said Nouriel Roubini, chairman and co-founder of Roubini Global Economics LLC. 500. Moved at 8:45. By Kati Pohjanpalo.
Wells Fargo Slumps as Lower Revenue Mars Record Quarterly Profit
Wells Fargo & Co., the largest U.S. home lender, dropped as much as 4 percent in New York trading after third-quarter revenue slid and margins narrowed. 500. Moved at 8:05. By Dakin Campbell.
Citigroup Beats Estimates on Accounting Gain, Credit Quality
Citigroup Inc., the third-biggest U.S. bank, said profit rose 74 percent, beating analysts’ estimates on a $1.9 billion accounting gain and a reduction in losses tied to soured loans. 1,280. Moved at 9:05. By Donal Griffin.
Industrial Production in U.S. Increases on Cars, Computers
Industrial production in the U.S. advanced in September on growing demand for automobiles and computers after stalling the prior month, a sign manufacturers are contributing to growth. 850. Moved at 9:50. By Alex Kowalski.
Apple IPhone 4S Sales Top 4 Million in Record Debut Weekend
Apple Inc. sold more than 4 million iPhone 4S devices in the first three days after it was introduced, setting a record as customers lined up at stores from Sydney to San Francisco to be first with the new touch-screen handset. 540. Moved at 10:50. By Adam Satariano.
RIM Offers Companies Free Technical Support After Disruption
Research in Motion Ltd. will offer corporate clients one month of free technical support as it tries to retain customers following one of its worst BlackBerry service disruptions. 400. Moved at 12:00. By Jonathan Browning.
Lowe’s to Close 20 U.S. Stores, Slow North American Openings
Lowe’s Cos., the second-largest U.S. home-improvement retailer, will close 20 U.S. stores, affecting 1,950 workers, and plans to slow its North American expansion next year as it works to improve sales. 330. Moved at 10:40. By Chris Burritt.
Anadarko to Pay BP $4 Billion to Settle Gulf Spill Claims
BP Plc, the operator of the Macondo well in the Gulf of Mexico that was the source of the worst U.S. oil spill last year, said Anadarko Petroleum Corp. will pay $4 billion to settle all claims over the disaster. 600. Moved at 12:10. By Kari Lundgren and Brian Swint.
Toyota-Led Carmakers Brace for $500 Million in Thai Flood Losses
Japanese carmakers led by Toyota Motor Corp. may lose more than $500 million because of Thailand’s worst floods in a half a century, setting back their recovery from the March earthquake and stronger yen. 640. Moved at 1:30. By Anna Mukai and Yuki Hagiwara.
TOP GENERAL NEWS
Obama Criticizes Republican for Blocking His Jobs Proposal
President Barack Obama called on Congress to pass elements of his jobs proposal and attacked Republican alternatives, saying his plan was the “real Americans Jobs Act.” 670. Moved at 11:40. By Julianna Goldman and Roger Runningen.
Explosions Rock Yemen Capital as Army Fights Breakaway Units
Yemen’s capital was rocked by explosions and gunfire as security forces loyal to President Ali Abdullah Saleh battled with tribal opponents and fired at demonstrators. 410. Moved at 7:40. By Mohammed Hatem.
Israeli Families Attempt to Block Palestinian Prisoner Swap
Israeli opponents of a planned exchange of hundreds of Palestinian prisoners for a captive Israeli soldier made a last- ditch legal attempt today to block the deal. 625. Moved at 10:45. By Jonathan Ferziger and Gwen Ackerman.
Kenya Pursues Al-Shabaab Rebels in Somalia After Abductions
Kenya’s government said it has taken “robust measures” to protect the country against al-Shabaab, the rebel group in neighboring Somalia, after foreign tourists and aid workers were abducted. 590. Moved at 10:25. By Eric Ombok and Sarah McGregor.
Bangkok Flood Defenses Holding as Water Besieges Thai Capital
Bangkok’s flood defenses are protecting the Thai capital so far as water from northern dams drains into the Gulf of Thailand after swamping five industrial estates and forcing thousands to flee their homes. 900. Moved at 6:25. By Daniel Ten Kate and Suttinee Yuvejwattana. Also see THAI-FLOOD-BANGKOK.
Wall Street Protests Span Four Continents, Arrests Climb
British police sealed off routes to the London Stock Exchange and Italian officers conducted nationwide raids following protests against economic inequality on four continents. By Howard Mustoe, Elisa Martinuzzi and Michael Heath. 1,130. Moved at 7:50. Also see AXELROD-PROTESTS.
Torture Suits Against Companies Draw U.S. High Court Review
The U.S. Supreme Court agreed to use a case involving units of Royal Dutch Shell Plc to consider whether corporations can be sued under federal laws that protect people in other countries from human rights abuses.
The justices today said they will hear an appeal from a group of Nigerians who say two Shell units were complicit in torture and execution in the country’s Ogoni region from 1992 to 1995. A federal appeals court threw out the case, saying companies can’t be sued under the two-century-old Alien Tort Statute. 500. Moved at 12:05. By Greg Stohr.
Lies About Military Medals Get U.S. Supreme Court Review
The U.S. Supreme Court agreed to decide whether the Constitution’s free speech clause protects people who falsely claim to have been awarded military medals. 430. Moved at 11:55. By Greg Stohr.
Most New York Voters Favor Tax on Millionaires, Siena Poll Says
Almost three-quarters of New York voters favor a tax on millionaires, a poll found, days after several hundred people marched to the homes of some of New York City’s richest financiers to protest economic inequality. 290. Moved at 9:30. By Freeman Klopott.
BUSINESS NEWS FEATURES
Best Buy Sales at Risk as Surgical Shoppers Lose Impulse: Retail
It’s a retail maxim followed by everyone from Best Buy Co. to Foot Locker Inc.: Get shoppers in the door and then sell them stuff they didn’t plan on buying.
Impulse purchases require people to browse the aisles, however, and that’s happening less and less these days because Web-savvy consumers often already know what they plan to buy and simply pick it up and leave, said Bill Martin, the chief executive officer of ShopperTrak. 950. Moved at midnight. By Matt Townsend.
Tesla’s Musk Lobbies Against Lockheed in Bid for SpaceX Launches
As House lawmakers voted on stop-gap legislation to keep the U.S. government running, Elon Musk was in a meeting room just down the hall in the Capitol.
The chief executive officer of Space Exploration Technologies Corp., or SpaceX, was making his pitch for competition in space launches, a development pivotal to his company’s future.
At issue is an Air Force proposal to award a bulk buy of 40 launches over five years to United Launch Alliance LLC, a joint venture of Lockheed Martin Corp. and Boeing Co. that is now the government’s sole provider of medium- and heavy-lift rockets for civilian and military satellites. The Air Force has budgeted about $10 billion for the program during that period. 1,380. Moved at 10:20. By Brendan McGarry.
(GRAPHICS: SPACEX_BGOV_101711. Graphic shows the U.S. Air Force is projected to spend 54 percent more on the Evolved Expendable Launch Vehicle program through fiscal 2016 than was forecasted last year. Size: 3C X 4in. (146.0 mm X 101.6 mm). Bloomberg Government logo. Size: 1C X 2in. (45.9 mm X 50.8 mm). Both available now.)
GENERAL NEWS FEATURES
California Diminished by 1978 Tax Revolt Shows U.S. in Decline
California voters approved Proposition 13 to rein in property taxes that had doubled in 10 years. More than three decades later, that rebellion has mortgaged the state’s future, saddling it with the nation’s highest debt and lowest credit rating.
The measure led to reductions that dropped per-student school spending from seventh to 29th nationally, prompted cities to pursue sprawling retail development to compensate for lost revenue, and pushed the state into budget gridlock, including a $705 million revenue shortfall announced Oct. 10, by requiring two-thirds approval for any tax increase.
“Proposition 13 set up an unfair and dysfunctional two- tiered system of property taxes,” said Kevin Starr, a history professor at the University of Southern California and the author of a series of books on the state. “It choked off a source of revenue, and the lack of that revenue has brought California to the edge.” 2,720. Moved at midnight. By Christopher Palmeri.
Cain’s Social Security Model Risks Miring U.S. in Deeper Debt 9
Herman Cain, the former pizza executive surging in polls for the Republican presidential nomination, wants to replace Social Security with what he called the “Chilean model” of private pension funds. Full adoption of that model may push the U.S. deeper into deficit than Greece.
Chile’s system, introduced under the 1973-1990 dictatorship of Augusto Pinochet, diverted workers’ contributions into privately run funds, slashing government revenue over the next few decades in exchange for a reduction in state pension payments 30 years down the line. 1,225. Moved at 7:20. By Sebastian Boyd.
Cain’s 2012 Campaign Built on the Fly Fights to Keep Momentum
Herman Cain is multitasking, and he may be about to lose his cool.
“You see, this is the part that I really have to show my patience,” Cain says as he autographs a well-wisher’s baseball, gets heckled by a disgruntled Republican voter and crosses a busy street in Concord, New Hampshire -- all while trying to explain to a gaggle of reporters how he can win a third of the black vote in the United States.
His wife reminded him: “‘Herman, remain cool’” during last week’s debate with his Republican rivals in Hanover, Cain said. He did that and more, grabbing the spotlight with his 9-9- 9 tax initiative and hitting back when competitors belittled the plan -- and him -- during the session. 1,290. Moved at midnight. By Julie Hirschfeld Davis.
-0- Oct/17/2011 17:31 GMT