RIM to cut thousands in restructuring — reports

8:30 PM reports, restructuring, thousands No Comments

ADEK BERRY / AFP - Getty Images

A woman uses a BlackBerry phone.

Research in Motion, the company that makes the BlackBerry smartphone, is planning a global restructuring that could result in thousands of job cuts, reports say.

Canada’s Globe and Mail newspaper, which originally reported the layoffs on Saturday, said the expected round of layoffs will touch around 2,000 employees, or 12 percent of the company’s workforce.

The newspaper also said the cuts are due to begin on June 1 -- one day before Research in Motion’s first quarter ends. But some expect the announcement even earlier.

A RIM spokeswoman declined to comment on the reports of layoffs. Research in Motion had about 16,500 employees worldwide as of March 2012.

A source close to the company told Reuters the number of impending layoffs could be higher and hit as many as 6,000 employees, affecting Research in Motion’s legal, marketing, sales, operations, and human resources divisions.

“The strategic question is: are you accelerating into a better future or shrinking to a niche operation,” said the source, who declined to be identified due to the sensitive nature of the job cuts.

The job cuts would be the second downsizing in a year for the Blackberry maker as it races to shrink its operations to compete with fierce rivals.

Once a smartphone sector heavyweight, Research in Motion has seen sales fall significantly as it has lost market share to Apple’s iPhone and smartphone makers who use Google’s Android software.

A string of high-profile departures has hit RIM in recent months. On Monday, the company said Chief Legal Officer Karima Bawa has resigned and will soon leave the company.

New chief executive officer Thorsten Heins, who took over from longtime co-CEOs Mike Lazaridis and Jim Balsillie in January, is reorganizing the company and plans to streamline operations and save $1 billion in the fiscal year.

Reuters contributed to this report.

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Facebook has its eyes on Face.com, reports say

6:30 AM Facebook, Facecom, reports No Comments

There's nothing like an acquisition to distract investors from your falling stock price.

Reports in the tech press Tuesday said that Facebook, whose stock is still reeling from the aftershocks of a bungled IPO, is looking to acquire Israel-based face recognition technology company Face.com for around $80 million to $100 million.

The Los Angeles Times reported that rumors of the deal for the startup surfaced in the Israeli press and then were quickly picked up by tech reporters. Several of the reports said that when they contacted Face.com CEO Gil Hirsch, he responded by saying he had no news to share.

Shares of Facebook (FB) were down about 7 percent on Tuesday to just below $30 on a day when most market indices were higher. It was the first time since Facebook's debut on May 18 that its shares dipped below $30, putting the shares about 21 percent below the IPO price of $38 a share. It was also the first time that Facebook options began trading.

Facebook options began trading today on a bearish note. What does this indicate about the stock's future? The FMHR traders weigh in with the play.

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Reports show little evidence of housing rebound

12:00 AM evidence, housing, little, rebound, reports No Comments

By John W. Schoen, Senior Producer
Hopes may be fading for a long-awaited spring rebound in the U.S. housing market.

Two widely watched benchmarks Tuesday signaled that the pace of sales softened and prices fell last month. And a prominent housing economist warned that the market may not stage a major turnaround “in our lifetimes.”

Falling home price were recorded in 20 cities tracked by the Standard & Poor's/Case-Shiller home price index. Prices in the 20 cities fell 3.5 percent year over year, moderating from the previous month's decline of 3.8 percent.

The composite index of 20 cities gained 0.2 percent in February on a seasonally adjusted basis, matching economists' forecasts. But overall, the trend of falling prices has yet to reverse course, according to Maureen Maitland, a Standard & Poor's vice president.

“Some of the annual rates of change are improving,” she told CNBC. “But they're still largely negative. There are very few markets that are seeing positive annual rates of change, and very few rose on a month-over-month basis. So I wouldn't say there were very many bright spots.”

Seven of the cities tracked by the index saw prices drop on a seasonally adjusted basis, while prices in two cities were unchanged. On an unadjusted basis, 16 of the areas slumped further.

Home prices continue to slip as demand remains weak. In a separate report, sales of new single-family home sales dropped in March to their lowest level in four months, but the reading still beat analysts' expectations as the government said sales in prior months were higher than initially thought.

The Commerce Department said sales slipped 7.1 percent in March to a seasonally adjusted annual rate of 328,000 units.

February's sales pace was revised higher to 353,000 units, the fastest pace since November 2009, from the previously reported 313,000 units. Sales for December and January were also revised higher.

Economists polled by Reuters had forecast sales at a 320,000-unit rate in March. The median price for a new home fell 1 percent to $234,500. However, compared to March 2011, the median price was up 6.3 percent.

The National Association of Realtors said Thursday that home resales fell in March, but prices inched higher from a year earlier.

Maitland said the latest data confirm that the housing market has yet to shake off lingering effects of the worst collapse since the 1930s.

“The housing market is still really very low,” she said. “Housing starts, home sales, our numbers are at cycle lows. They're really not showing any turn around at all.”

CNBC's David Faber discusse the Standard & Poor's/Case-Shiller home price data for February, with Maureen Maitland, S&P Indices vice president.

Yale economics professor Robert Shiller told Reuters Insider that a weak labor market, high gasoline prices and a general sense of unease among consumers was outweighing low mortgage rates and would likely keep a lid on prices for the foreseeable future.

"I worry that we might not see a really major turnaround in our lifetimes," said Shiller, who co-created the Case-Shiller index.

He said suburban areas in particular might endure further price declines as high gas prices increase demand for "walkable cities."

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Stocks slip on reports of eurozone downgrades

2:03 PM downgrades, Eurozone, reports, stocks No Comments

NEW YORK — U.S. stocks dropped on Friday, snapping a four-day winning streak after news reports that Standard & Poor's would downgrade credit ratings on several eurozone countries.

The ratings agency was reportedly set to downgrade eurozone countries, including France and Austria, but leave the ratings of Germany and the Netherlands unchanged. French Finance Minister Francois Baroin said the country has been notified of a one-notch cut.

"This is going to destabilize lot of those funding packages because they are all based on the AAA rating, and now you are going to have AA+ for France and Austria, and maybe down two notches for Italy," said Alan Valdes, director of floor operations for DME Securities in New York.

Friday's slide came as investors' focus shifted back to the euro zone's debt crisis.

In recent days, the S&P 500 had reached five-month highs on the back of solid U.S. economic data. The tight relationship between U.S. stocks and the euro has broken down in recent weeks, a sign investors have placed less emphasis on the euro zone's woes.

The Friday selloff shows Europe's debt problems can still make U.S. investors skittish. However, it is notable that the major U.S. stock indexes finished well off the day's lows.

Banks led the decline, as the impending downgrades and lackluster earnings from JPMorgan Chase & Co drove those shares lower. The S&P financial index fell 0.8 percent, making it the worst performer of the 10 major S&P sectors.

The Dow Jones industrial average dropped 48.96 points, or 0.39 percent, to 12,422.06 at the close. The Standard & Poor's 500 Index lost 6.41 points, or 0.49 percent, to 1,289.09. The Nasdaq Composite Index fell 14.03 points, or 0.51 percent, to 2,710.67.

For the week, the Dow rose 0.5 percent, while the S&P 500 advanced 0.9 percent, and the Nasdaq gained 1.4 percent.

Investors will look to earnings next week for insight on how the euro zone's debt woes may affect profits.

"If you get a weak recession or deep recession in Europe, it is going to hurt our companies and bring our market right back down," Valdes said.

JPMorgan Chase slid 2.5 percent to $35.92 after the bank said fourth-quarter profit fell as the European debt crisis weighed on trading and corporate deal-making. Chief Executive Jamie Dimon expressed renewed concerns about the eurozone debt crisis.

The KBW index of bank stocks slipped 0.4 percent, following a streak of gains. The index was still up more than 10 percent for the year.

Bank of America shares fell 2.7 percent to $6.61. Goldman Sachs lost 2.2 percent to $98.96.

Volume was light with about 6.39 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, below the daily average of 6.68 billion.

Declining stocks outnumbered advancing ones on the NYSE by 1,941 to 1,036, while on the Nasdaq, decliners beat advancers 1,666 to 804.

Copyright 2012 Thomson Reuters.

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Reports: Strauss-Kahn gender RS heads to dismissal

3:34 AM dismissal, gender, heads, reports, StraussKahn No Comments

U.S. prosecutors drop sexual assault charges against ex-IMF Chief Dominique Strauss-Kahn in his next court appearance in two weeks or earlier, because of doubts about the credibility of the alleged victim, the New York Post said on Tuesday.

The newspaper cited an unnamed top investigator in the case who said subsequent dismissal of the charges was "Security."

The Wall Street Journal reported, that the fees towards dismissal, but prosecutors said no final decision taken led.

Its source quotes the New York post as saying that the case will not be continued. "We all know that this case is not sustainable," said the source.

"their credibility is now so bad, we know we can rely no way with it," the source added, on the hotel maid, Strauss-Kahn trying to rape accused in a luxury hotel in Manhattan.

The woman complained in turn slander against the New York post on Tuesday, after a series of post article over the weekend was the 32-year-old said "prostitute" and "Hooker" and that she "traded sex for money."

The lawsuit says that the statements are wrong.

Strauss-Kahn, 62, on 14 may at New York JFK airport was arrested and then became Managing Director of the International Monetary Fund.

But revelations that the Prosecutor lied about raped in Guinea in a U.S. asylum request and details of her changed history had over what they did after the incident in Strauss-Kahn-hotel-suite have undermined its credibility and left prosecutors, the burden of a case to.

Video: Prosecutors focus of the Virgin in case of Strauss-Kahn (on this page)

A judge on Friday, Strauss-Kahn released from house arrest and demanding strict bail conditions, although serious charges including sexual assault and remain attempted rape once in force against the man seen a top French presidential candidate.

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"it is not to believe in nothing, from the mouth - which is a shame, because now we can never know happen in this hotel room," said post cited the source of the New York.

The newspaper said, that its source in the Centre of the investigation and spoke only on condition of anonymity stand.

Deputy District Attorney Joan Iluzzi Orbon said the Wall Street Journal that prosecutors were unsure whether the woman would be a credible witness.

"It would have to be that I believed every word that came from the mouth, and I believe the criminal aspect of what has occurred in", Iluzzi Orbon said the paper.

Strauss-Kahn Meanwhile faced a new sexual assault investigation Tuesday, with a young French writer, filing a complaint, claiming that he tried to rape a 2003 book interview.

France taken Banon, discuss his possible return to presidential politics, Strauss-Kahn quickly back to author Tristane marking your account "imaginary" and fight with his own plans one submit criminal defamation.

The dirty Exchange may have deep consequences for the presidential election of 2012 race in France, where the surprise sexual assault against Strauss-Kahn in New York last weakening of case week sparked a heated debate over whether he should return to the policy when the American case against him completely collapses.

The associated press and Reuters contributed to this report.

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Panasonic reports loss, plans to 17,000, painted,

10:05 PM 17000, painted, Panasonic, plans, reports No Comments

TOKYO - Panasonic Corp., Japan's largest domestic appliance manufacturer, about 17,000 jobs cuts more than two years as his loss on restructuring costs and damage caused by the March 11 swell disasters.

President Fumio Ohtsubo said the company optimize all operations to increase profitability, including selling some of their operations and his almost to 367,000 workers to 350,000 by fiscal year end March 2013 reduce is.

Like other Japanese electronics, which South Korea has fought against competition from newcomers and huge players from makers including archrival Sony Corp., Panasonic as Samsung Electronics Co., has the world's leading provider of flat-panel TVs. Panasonic constantly trim its workforce to reduce costs. About a year ago, it had 385,000 workers.

Osaka-based Panasonic recorded a loss in the January March quarter 40.7 billion yen ($ 499 million) on Thursday. The loss was especially to 61 billion yen ($ 748 million) in restructuring costs, it. Panasonic had reported a 8.89 billion yen loss for the same period last year.

The manufacturer of the Viera flat panel TVs and Lumix digital cameras his bottom line said also damage was on 11 March earthquake and tsunami bottlenecks and derated consumer spending in the middle of the subsequent nuclear reactor advised crisis ground to a halt in the north-eastern Japan, the production due to the parts.

Panasonic said it was not give forecasts for the year which began April 1, since it could still charge not the full damage of the disasters. It 21 billion yen ($ 258 million) in operating earnings for the fiscal year ended March 31 shaved said the disasters.

Panasonic has tried to turn in recent years by adapting to a global shift toward cheaper gadgets, including new strategies, you after the addition of Japanese battery and solar panel manufacturer SANYO Electric Co., a subsidiary chisel is.

SANYO's strength lies in cheaper home appliances as well as in solar panel and battery company, which is expected to benefit from more consumer enthusiasm for "green" energy efficient technologies.

Ohtsubo said the company under the brand name Panasonic 9.4 trillion yen ($ 115 billion) in sales for the fiscal year be standardized are targeting by March 2013.

Panasonic hopes, will be no. 1 in the world among the top three global solar panels and lithium-ion batteries, he said.

A turning point operations, taking advantage of the growth in new markets such as India and Viet Nam, come from increasing his flat TV Ohtsubo said.

"It is as much for us against links," he said Central a Osaka satellite feed in Tokyo. "We hope to revive our TV business."

For the three months March 31 Panasonic's global sales dipped 7 percent last year to 2.04 trillion yen ($ 25 billion).

For the fiscal year, it reported 74 billion yen profits (908 million dollars), a reversal from the 103.5 billion yen loss of the previous fiscal year.

A strong yen damage also Panasonic, slashing fiscal year operating profit of 43.9 billion yen (539 million US dollars). A strong yen hurts Japanese exporters by eroding the value of their overseas income.

Copyright 2011, the associated press. All rights reserved. This material may not be published, broadcast, rewritten or distributed.

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Cuba cigar sales by 2 percent in the past year reports

7:20 PM cigar, percent, reports, sales No Comments

HAVANA - exclusive seller and exporter of Cuban cigars Monday said that sales of the island coveted smokes rose recovering 2% in 2010, easily after a fall for two straight years amid the global economic crisis.

Were $ 368 million revenues last year Habanos SA Vice President Javier Terres reporter, until 2009 told US$ 360 million a year.

"We are moderately satisfied" Terres said Festival on the opening day of the 13th International cigars.

It is included the first positive growth in two years, but still down significantly from $402 million in 2007. Sales decreased 3 and 8% respectively in 2008 and 2009.

Also sales tell company officials by increasingly strong anti-smoking regulations in Spain, no. 1 market for the premium Cuban cigars are hand-rolled been injured.

Recently a law makes illegal 2 adopt, Jan. to light up in the European nation tapas bars, restaurants, discos, casinos, airports and even some outdoor areas.

However, Terres Spain said the top buyers in 2010, followed by France and China replaced Germany as the third largest importer.

In Latin America that largest cigar result came in Cuba - mainly from the sale to tourists, followed by Brazil and Mexico.

Washington's half century old trade embargo prevents that Cuban cigars being sold in the United States

Terres, officials said sales similar to its expected this year.

He added that the company is working to develop potential markets in Eastern Europe and the Middle East, and intends, further "Casas del Habano" or "Cigar houses," open where the aromatic Stogies lovers can sample.

There are currently 142 "Casas" around the world.

Habanos SA made its first public recognition also Monday a corruption investigation, the four top executives last year. The probe long been the subject of rumors that increased recently as the designation of origin a new Cuban Vice President of the company.

Marketing Director Ana Lopez said the case is ongoing and no conclusions were reached.

"We do not think that this (the image of the company) has influenced." We continue with the same effort ", said Lopez.

Habanos SA, a joint enterprise consisting of British-owned, Madrid-based Altadis and Cuban State company Habanos S.a., sold 27 premium brands including Cohiba and Montecristo.

More than 1,000 people from 80 countries, including tobacco executives and experts expected the cigar Festival, which runs through Jan. 25.

Copyright 2011 associated press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed are.

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