Patrols and Turkey in Afghan War Zone Thanksgiving Day for soldiers in this valley ringed by towering snowy peaks began with a 6-mile (10-kilometer) slog to aid village schools without desks and windows, and promises to end with five, once scrawny local turkeys soldiers have been fattening up for the past month. Denis D. Gray, AP NEWS - 11 minutes ago
Obama to Head to Copenhagen With Climate Pledge President Barack Obama will head to next month’s Copenhagen climate summit to offer the first US plan to cut carbon emissions, officials said, reviving hopes the closely watched meeting will succeed. Afp, AFP GLOBAL EDITION - 17 minutes ago
Group: Chinese Overinvestment Could Strain Trade China’s stimulus spending has fueled massive overexpansion in industrial capacity that could drive a surge in low-priced exports amid weak global demand, possibly igniting a protectionist backlash abroad, a European business group warned Thursday. Joe McDonald, AP NEWS - 18 minutes ago
Obama to Plead US Case at Global Warming Summit President Barack Obama will commit the United States to substantial cuts in greenhouse gas pollution over the next decade — despite resistance in Congress over higher costs — when he travels to a major climate conference in Copenhagen next month. H. Josef Hebert, AP NEWS - 22 minutes ago
Obama’s Thanksgiving Proclamation President Barack Obama’s Thanksgiving Day proclamation, as released by the White House: The Associated Press, AP NEWS - 23 minutes ago
Dollar Falls to 14-Year Low vs Yen on US Outlook The dollar tumbled to 14-year low against the yen Thursday, adding to pressure on Japan’s beleaguered exporters, amid indications U.S. interest rates will remain low and the Federal Reserve isn’t overly concerned about the dollar’s slide. Malcolm Foster, AP NEWS - 31 minutes ago
Israel’s Lieberman Says Ball in Palestinian Court Israel’s foreign minister said Thursday it is up to the Palestinians to decide whether to resume Mideast peace talks now that Israel has announced a settlement freeze. Aron Heller, AP NEWS - 34 minutes ago
2 Jailed for Beating Crocodile in Bangladesh A court in southwestern Bangladesh has jailed two men for severely beating a pregnant crocodile at an Islamic shrine, a news report said Thursday. Staff, AP NEWS - 41 minutes ago
Police: Dad Visits Strip Club, Leaves Boy in Truck Police say they’ve arrested an Indiana truck driver who went drinking at a strip club after leaving his 5-year-old son in his semitrailer watching cartoons. Staff, AP NEWS - 47 minutes ago
Prime Suspect in Philippine Massacre Surrenders A scion of a powerful pro-government clan suspected in the massacre of 57 people in an election caravan in the southern Philippines turned himself in Thursday amid mounting pressure on the president to crack down on lawlessness and warlords. Aaron Favila and Jim Gomez, AP NEWS - 51 minutes ago
‘Significant’ US Change on Global Warming: Al Gore Barack Obama is leading a “significant” change in US policy towards global warming, Nobel Peace Prize winner Al Gore said, days ahead of the US president’s trip to the global climate summit in Copenhagen. Afp, AFP GLOBAL EDITION - 77 minutes ago
Amazon Countries, France Get Ready for Copenhagen The presidents of eight nations straddling the Amazon basin plus France will meet Thursday in the heart of the Amazon rainforest to lay out a save-the-jungle proposal for next month’s climate change summit in Copenhagen. Afp, AFP GLOBAL EDITION - 77 minutes ago
Philippine Massacre Suspect Denies Killings The Philippine politician accused of masterminding an election-linked massacre that left 57 people dead declared he was innocent on Thursday as he was taken into custody. Afp, AFP GLOBAL EDITION - 77 minutes ago
India Marks One Year After Deadly Mumbai Attacks India marked the first anniversary Thursday of last year’s militant attacks on Mumbai with a show of security and ceremonies to honour the 166 victims killed in the deadly rampage by 10 Islamist gunmen. Afp, AFP GLOBAL EDITION - 77 minutes ago
China Urges Boost to Natural Gas Output, Imports China has urged its big three energy producers to boost gas imports and output after an ongoing shortfall during an unusually early cold snap forced many cities to cut off supply to businesses. Afp, AFP GLOBAL EDITION - 77 minutes ago
Court Should Accept K.Rouge Man’s Remorse: Defence The lawyer for Cambodia’s Khmer Rouge jail chief urged the UN-backed war crimes court Thursday to recognise his client’s remorse in the interests of national reconciliation. Afp, AFP GLOBAL EDITION - 77 minutes ago
Journalists Freed in Somalia Leave Mogadishu Two freelance journalists, one from Canada and the other from Australia, who were freed after 15 months in captivity in Somalia, left Mogadishu by plane on Thursday, witnesses said. Afp, AFP GLOBAL EDITION - 77 minutes ago
S.Korea Labour Groups May Stage Joint Strike South Korea’s two umbrella union bodies threatened Thursday to stage a rare joint strike next month in protest over the government’s plan to weaken unionism. Afp, AFP GLOBAL EDITION - 77 minutes ago
US TRAVEL AND TOURISM ARE GOING NOWHERE The downturn has pummeled U.S. tourism, with airlines and hotels suffering the greatest damage. Despite the dollar’s decline against most other world currencies, fewer travelers are visiting. Sales at publicly traded travel companies in the U.S. are way down, while those in China have seen gains. Tara Kalwarski, BUSINESSWEEK - 82 minutes ago
IT’S NOT A JUNKET, IT’S AN INVESTMENT The bad press surrounding AIG’s infamous October 2008 sales meeting in Dana Point, Calif.--where employees partied at a lavish resort as AIG got billions in a bailout--helped put a chill on the luxury hotel business. Companies ran scared, canceling meetings or switching them to less opulent venues. Maritz Travel, a meetings company, says between October and December of last year it had $150 million in cancellations for 2009 bookings, a big chunk of its typical $600 million in bookings annually. Spending on U.S. events this year will fall almost 13%, says the U.S. Travel Assn. Burt Helm, BUSINESSWEEK - 82 minutes ago
A LIFELINE OF CREDIT FOR THE RECOVERY Lending remains tight, but overall bank standards are relaxing, and that will make it possible for businesses to expand as demand picks up James C. Cooper, BUSINESSWEEK - 82 minutes ago
TRUMP STILL HOLDS CARDS The Donald is back at the table--sort of. After seeing his New Jersey casino empire slide into bankruptcy for the third time, real estate baron Donald Trump on Nov. 17 folded his bid to regain control but didn’t give up his seat. As part of a deal with bondholders, Trump will get a 10% stake in a recapitalized Trump Entertainment Resorts, which owns three Atlantic City casinos. In exchange, Trump and his daughter Ivanka agreed to drop claims against the company. Trump will be free to use his name on other gambling ventures but not in five neighboring states. He and Ivanka quit the board in February. Harry Maurer & Cristina Linblad, BUSINESSWEEK - 82 minutes ago
GM PICKS UP SPEED Sure, it’s not cruising at 70 mph, but at least this looks like forward motion. On Nov. 17, General Motors' first financial results since motoring out of bankruptcy in July showed a $1.2 billion loss in the third quarter. Take away restructuring charges, and the losses come close to $700 million--still red ink, but way shy of the $4.2 billion lost in the same quarter a year ago. GM says it will make a $1 billion payment on a $6.7 billion federal loan in December and pay the Canadian government $200 million. Meanwhile, GM’s former lending arm, GMAC Financial Services, dismissed CEO Alvaro de Molina and replaced him with a board member, former Citigroup executive Michael Carpenter. GMAC, in which GM holds a stake capped at 10%, has twice been bailed out by the Treasury but so far has failed to repair its battered mortgage business. Harry Maurer & Cristina Linblad, BUSINESSWEEK - 82 minutes ago
HOW VENTURE CAPITAL LOST ITS WAY The current focus on fees at VC funds promotes startup flipping, not nurturing Carl Schramm and Harold Bradley, BUSINESSWEEK - 82 minutes ago
STEVE SCHWARZMAN STARTS WARMING UP At the height of the private equity boom, no firm was flying higher than Blackstone Group, the juggernaut founded by Pete Peterson and Steve Schwarzman. In the past couple of years, Blackstone’s profile has been considerably lower than it was in early 2007 when it paid $39 billion for Equity Office Properties in the biggest real estate buyout deal ever. Now, Blackstone is looking tanned, fit, and ready for action. On Nov. 6, Bloomberg reported that the publicly traded Blackstone posted a third-quarter profit of $275.3 million, and in a conference call, Schwarzman said the firm is planning eight or more initial public offerings of companies in its portfolio in coming months. Blackstone has also just launched a fund-management firm in China and (little fish, take note) is finalizing a $2.3 billion deal to buy Busch Entertainment, which owns theme parks like SeaWorld in Orlando. Maria Bartiromo, BUSINESSWEEK - 82 minutes ago
A TRIP’S GREEN OFFSHOOTS President Obama’s visit to Beijing nurtured green tendrils twining between the two largest emitters of greenhouse gases. China’s Suntech Power, the world’s top maker of conventional solar panels, unveiled plans on Nov. 16 to open a factory near Phoenix in 2010. Likewise, Shenyang-based A-Power Energy Generation Systems said it will build a new turbine plant in the U.S. after it was chastised for aiming to use China-made windmills on a proposed Texas wind farm. Meanwhile, Peabody Energy, the No. 1 U.S. coal producer, said it will hook up with China’s biggest utility, China Huaneng Group, to co-develop a power plant in Tianjin designed to capture and store CO2 waste gas. Harry Maurer & Cristina Linblad, BUSINESSWEEK - 82 minutes ago
EMPLOYEE--OR CONTRACTOR? Do some businesses classify workers as contractors to deny them benefits and avoid paying employment taxes? Or is this “independent contractor” status simply a way for companies to render workers more productive and entrepreneurial? In response to our story about employment practices at FedEx ("They’re Employees. No, They’re Not," What’s Next, Nov. 16), readers took up positions on both sides of the debate. Michael Orey, BUSINESSWEEK - 82 minutes ago
BANKS AREN’T PROVIDING ENOUGH LIFELINES Loans backed by the Small Business Administration may be slightly easier to come by these days, as noted in “For Entrepreneurs, Credit Eases--a Bit” (What’s Next, Nov. 2). But this isn’t true for the America’s Recovery Capital Loans, the $35,000 emergency loans intended for viable small businesses. They look good on paper, but try to find a participating SBA bank. I found only two on the California lender list, and they service only existing customers. Business Week, BUSINESSWEEK - 82 minutes ago
KEYON COMMUNICATIONS MAKES ITS CASE “A Broadband Player’s Unorthodox Stock Play” (What’s Next, Nov. 16) suggests that KeyOn Communications' stock performance is directly and solely related to bullish comments by Emerging Growth Research and other analysts. The article argues that EGR did not adequately disclose its ownership of KeyOn stock and implies that KeyOn somehow exerts control over EGR’s disclosure practices. We do not. And we believe EGR properly disclosed its relationship with KeyOn. Not mentioned in the article are KeyOn’s operational performance, balance sheet restructurings, and federal stimulus application submissions (plus a $3 million grant from the State of Illinois if we get the federal dollars). Business Week, BUSINESSWEEK - 82 minutes ago
SEEDS OF A RALLY FOR MONSANTO The world’s No. 1 seed producer, Monsanto (MON), is playing catch-up: It missed the market rally, but that was O.K. with Keith Goddard, president of Capital Advisors Growth Fund, who scouts for blue-chip companies that stumble because of problems he sees as fixable. Gene Marcial, BUSINESSWEEK - 82 minutes ago
AUGMENTED REALITY: NOT THAT REAL YET Why iPhone apps that act as a digital guidebook aren’t quite ready for prime time Stephen H. Wildstrom, BUSINESSWEEK - 82 minutes ago
THE KING OF THE CLOUD Salesforce.com CEO Marc Benioff’s book is a fun, user-friendly guide for entrepreneurs and spectators Steve Hamm, BUSINESSWEEK - 82 minutes ago
TO CONSERVE POWER, CHARGE MORE FOR IT Regarding “Hasta La Vista, Power-Hungry TVs” (New Business, Nov. 9), about California’s plan to ban flat-screen TV models that suck up a lot of electricity: The root cause of California’s power-consumption problem is exposed in the article by the telling statistic that a 42-inch plasma TV uses just $4.50 worth of electricity a month. As long as power is too cheap to conserve, the only tool available to moderate demand is the blunt instrument of regulation. Business Week, BUSINESSWEEK - 82 minutes ago
SUNNIER SKIES AHEAD? The Optimism Meter, a proprietary measure of sentiment and expectations, economic statistics, and market forecasts, clocked in at 46 on Nov. 17, up from 25 on Nov. 2. Developed to evaluate shifts in outlook among individuals, professional investors, and economists, the meter gauges optimism about jobs, the stock market, and growth. Stronger GDP and surging stocks have caused the mercury to rise. Harry Maurer & Cristina Linblad, BUSINESSWEEK - 82 minutes ago
A FRESH DEAL AT CABLEVISION? Even before Cablevision Systems completes the spin-off of its Madison Square Garden (MSG) media, entertainment, and sports unit, the smart-money crowd is looking toward a possible sale of the company’s remaining cable and telecom properties. “The spin-off paves the way for the sale of the rest of Cablevision,” says Mark Boyar, president of Boyar Asset Management, which owns shares. He believes Cablevision (CVC) Chairman Charles Dolan, 83, who controls 70% of the voting stock, is ready to sell. His son, Cablevisison CEO James Dolan, is taking over the MSG operations, and Boyar says it’s logical to expect that in such a situation the Dolans would unload the rest of the company. In the spin-off, investors get one MSG share for each Cablevision share they own. The fifth-largest cable-TV operator, Cablevision has holdings that include cable networks AMC, IFC, and Womens Entertainment. Gene Marcial, BUSINESSWEEK - 82 minutes ago
COMPUTERIZED AID IN HEART SURGERY What draws attention to Stereotaxis (STXS) isn’t just the odd name but its computerized system used in minimally invasive cardiac arrhythmia surgery. Its Niobe System uses computer screen images to steer catheters and guidewires through blood vessels and heart chambers. Gene Marcial, BUSINESSWEEK - 82 minutes ago
How to Play It: Philips Dutch conglomerate Philips is weathering the recession far better than it has previous downturns. In 2001 during the dot-com bust, Philips' shares fell 70% from their peak and took nearly four years to recover. This time, a slimmer Philips is bouncing back faster. After hitting a low of about 11 euros ($16.45) in March, Philips shares are now hovering closer to 19 euros ($28), a 30% gain from the start of the year. Kerry Capell, BUSINESSWEEK - 82 minutes ago
WHAT’S INSIDE PIMCO? Pimco Total Return Fund’s nearly $193 billion in total assets rival the gross domestic product of a small country--of Chile, Singapore, or the Philippines, say. It is the largest mutual fund ever, dwarfing its closest competitor, American Funds' Growth Fund of America, which has $145 billion. Lewis Braham, With Tara Kalwarski, BUSINESSWEEK - 82 minutes ago
BULLISH SIGNS At 1,110, the Standard & Poor’s 500-stock index is up almost 23% for the year, and investors don’t seem to be betting on a pullback. The S&P 500’s short interest ratio--the number of shares borrowed and sold short, divided by a stock’s average daily trading volume--dropped to 2.7 at the end of October, a low not seen since May, when the S&P 500 traded around 900. Tara Kalwarski, BUSINESSWEEK - 82 minutes ago
ONE MESSY BAILOUT Neil Barofsky pulled no punches in his Nov. 17 report about the bailout of AIG, and those emerging with a black eye include every major Wall Street bank and the current Treasury Secretary. Barofsky, Special Inspector General for the Trouble Asset Relief Program, focused on the second phase of the rescue of the floundering insurer: the nearly $30 billion payment to institutions that had entered into credit-default swaps with AIG. The report says the bailout by the New York Fed, which was then led by Timothy Geithner, was poorly handled from the start. First, when a private-sector bailout plan fell through, the Fed had no backup position and quickly lent AIG $85 billion on terms that proved unsustainable. Next the Fed botched negotiations over the $30 billion payout by treating the counterparties--such companies as Deutsche Bank, Goldman Sachs, and Merrill Lynch--with kid gloves and bending over backwards to keep their identities secret. Barofsky also lays out in painful detail the unwillingness of any counterparty except UBS to accept one penny less than top dollar. Harry Maurer & Cristina Linblad, BUSINESSWEEK - 82 minutes ago
TAXPAYERS COME CLEAN Suddenly the urge to confess seems to have smitten certain American citizens. On Nov. 17 the IRS said more than 14,700 tax evaders who held funds in offshore bank accounts have submitted mea culpas in recent months, paying back taxes and penalties. Needless to say, this wasn’t a mysterious crisis of conscience. Rather, the culprits feared painful fines and potential jail time should they have been caught. And the chances of getting nabbed shot up in August when Swiss bank UBS, having admitted criminal wrongdoing in helping clients dodge taxes, agreed to fork over the names of 4,500 people. When worried clients heard that, they came forward in droves. Harry Maurer & Cristina Linblad, BUSINESSWEEK - 82 minutes ago
WHY DRUGMAKERS DON’T TWITTER The FDA has so far failed to craft rules clarifying how companies can participate in online discussions Catherine Arnst, BUSINESSWEEK - 83 minutes ago
A BRIGHTER IDEA FROM PHILIPS Expecting LED prices to fall, the Dutch giant is teaming with partners to customize next-gen lighting systems Kerry Capell, BUSINESSWEEK - 83 minutes ago
ONE-STOP TECH GIANTS On Nov. 11, Hewlett-Packard announced the $2.7 billion acquisition of networking company 3Com, the latest in a line of tech megamergers. It may also be one of the last, according to Canaccord Adams analyst Paul Mansky. He says the deals are a sign of an industry in transition. In the past, companies could choose one provider for networking needs and another for servers or storage. Now, big players are becoming one-stop shops. Ben Levisohn, BUSINESSWEEK - 83 minutes ago
WALK TO CHUCK? Charles Schwab reported on Nov. 13 that client assets totaled $1.35 trillion at the end of October, a 16% increase from one year earlier. Shares of the firm trade at 18.79, but independent research firm Collins Stewart estimates the stock could reach 25 over the next 12 months, citing Schwab’s “strong asset-gathering prowess.” Tara Kalwarski, BUSINESSWEEK - 83 minutes ago
The Stat 10.6% Harry Maurer & Cristina Linblad, BUSINESSWEEK - 83 minutes ago
TOYOTA GETS STUCK IN A PAIR OF RUTS While a strengthening yen eats up profits, the carmaker’s reputation for quality is taking a hit David Welch and Ian Rowley, BUSINESSWEEK - 83 minutes ago
BW’S NEW EDITOR Josh Tyrangiel, a top editor at Time, will soon become the editor of a Bloomberg-owned BusinessWeek. The acquisition of the magazine by the financial data and news giant is expected to close on Dec. 1. Tyrangiel, 37, has been serving as deputy editor at Time and chief of its Web operations. Tyrangiel says his goal will be to create “an indispensable business weekly.” Previously, he worked as a writer for Rolling Stone and Vibe and as a producer at MTV. He succeeds Stephen Adler, who’s resigning when the deal closes. Harry Maurer & Cristina Linblad, BUSINESSWEEK - 83 minutes ago
ABERCROMBIE BARGAINS FOR A REBOUND It hung tough on pricing, and teens took a hike. Now can the paragon of preppy coolness woo them back? Matthew Boyle, BUSINESSWEEK - 83 minutes ago
CHINA’S REVERSE BRAIN DRAIN Beijing is making progress in its effort to lure back top Chinese scientists working overseas Pete Engardio, BUSINESSWEEK - 83 minutes ago
CLOUDY CLIMATE SUMMIT It’s not going to happen in Copenhagen. On Nov. 15, President Obama conceded there isn’t time for the world to work out a legally binding deal to slash climate-altering emissions at December’s climate summit. Instead he is backing a Danish plan to move the scrum of squabbling nations towards a political commitment to tackle global warming, with the legal details to be hashed out later. One key reason for the delay: While climate policy in Washington has changed drastically since Obama succeeded President George W. Bush, Congress hasn’t yet passed legislation requiring emission cuts at home. Besides that, divisions remain wide between developed and developing countries--and even among the wealthy nations themselves. Harry Maurer & Cristina Linblad, BUSINESSWEEK - 83 minutes ago
CONSUMERS DO THEIR BIT Economic tea leaves are often tough to read, but this week’s batch seem mostly to spell “recovery.” U.S. retail sales made a surprising leap, rising 1.4% in October (though just 0.2% excluding autos). Not counting cars, consumers over the past three months have been spending at the snappiest pace since before the crisis. U.S. inflation remains docile, with both wholesale and consumer prices up by 0.3% in October. The 16-nation euro zone seems to be mending, as GDP grew at a 1.5% annual rate in the third quarter. And take a gander at Japan, where GDP jumped at a 4.8% rate--the highest since early 2007. But then there’s housing, where the big trouble began. While economists predicted an uptick, U.S. housing starts tumbled 10.6% in October, and permits dropped 4%, to an annual rate of 552,000. That didn’t discourage investors, who by Nov. 18 had pushed the S&P 500’s gain this year to 23%. Harry Maurer & Cristina Linblad, BUSINESSWEEK - 83 minutes ago
OBAMA IN CHINA Long on theater, short on specifics. Thus go most visits of U.S. Presidents to China, and Barack Obama’s first trip proved no exception. Even as Obama and Chinese President Hu Jintao on Nov. 17 offered a lengthy Joint Statement pledging cooperation on climate change, clean energy, and more military-to-military exchanges, little headway was made on the all-too-real economic and trade stresses plaguing the two nations. An increasingly assertive China, aiming to preserve its export juggernaut to the U.S., frequently berates Washington for what it calls protectionism, citing sanctions this year against Chinese-made car tires and steel pipes. Beijing officials also fret publicly about the tanking dollar and the Fed’s rock-bottom interest rates, which allow investors to borrow cheaply and fuel asset bubbles in Asia. Meanwhile, Obama’s calls for faster appreciation of the Chinese yuan are likely to bounce off a Great Wall of silence. Harry Maurer & Cristina Linblad, BUSINESSWEEK - 83 minutes ago
HEALING CHILE’S MALAISE Despite decades of economic growth, average citizens are dissatisfied--and want better schools and more opportunities Geri Smith, BUSINESSWEEK - 83 minutes ago
INNOVATION GOES DOWNTOWN From Barcelona to Seoul, urban science parks are being built to lure the best minds and the industries of tomorrow Pete Engardio, With Moon Ihlwan In Seoul and Andy Reinhardt In Barcelona, BUSINESSWEEK - 83 minutes ago
A Big Loophole in Cap and Trade How companies may be rewarded for green projects they already had in the works Ben Elgin, BUSINESSWEEK - 83 minutes ago
CAN ADOBE BEAT BACK THE HACKERS? As its software becomes a major means of attack, security experts wonder if it can fight hard enough Aaron Ricadela, BUSINESSWEEK - 83 minutes ago
Wall Street Vs. America Taxpayers are taking another hit as strapped local governments fork over billions in fees on investments gone bad Theo Francis, Ben Levisohn, Christopher Palmeri, and Jessica Silver-Greenberg, BUSINESSWEEK - 83 minutes ago
A BOSS FOR LAZARD Rocked by the unexpected death in October of legendary dealmaker Bruce Wasserstein, investment bank Lazard has chosen to go with a trusted if less celebrated insider. On Nov. 17 the board named Kenneth Jacobs, 51, as CEO. Jacobs, a 22-year veteran and currently head of North American operations, was selected over other internal candidates who had been viewed as more likely picks. Under his tenure, the North American unit has beefed up its presence in midsize deals and opened offices in Boston and Washington. Harry Maurer & Cristina Linblad, BUSINESSWEEK - 83 minutes ago
THESE MEN COULD KILL SARBOX Two tenacious Washington lawyers have the Sarbanes-Oxley Act in their sights--and they just might take it down Theo Francis, BUSINESSWEEK - 83 minutes ago
A CHILL IN BRITAIN With more layoffs looming, it may struggle in 2010, too Stanley Reed, BUSINESSWEEK - 83 minutes ago
HEALTH CARE: GE GETS RADICAL It’s offering only high-deductible, consumer-directed plans. That will save millions but may damage morale Jena McGregor, With Esme Deprez, BUSINESSWEEK - 83 minutes ago
CISCO’S EXTREME AMBITIONS CEO John Chambers is now chasing market share in 30 different categories--and making powerful enemies Peter Burrows, BUSINESSWEEK - 83 minutes ago
VODAFONE’S INDIAN DILEMMA It’s signing up plenty of new customers, but price wars are putting a serious crimp in the carrier’s margins Mehul Srivastava and Mark Scott, BUSINESSWEEK - 83 minutes ago
ASIA’S MBA HOPEFULS LOOK HOMEWARD The U.S. is still the most popular destination for business school applicants from Asia, who now make up 29% of all GMAT takers. But more of the region’s MBA hopefuls are looking closer to home when picking a program. A study from the Graduate Management Admission Council, which administers the GMAT, shows those taking the test in Asia forwarded a lower percentage of their score reports to U.S. schools in 2008 (71%) than they did in 2004 (77%). The number sent to Indian MBA programs was up 470%. B-schools in Singapore received 305% more, and 112% more scores went to programs in China. One reason for the tilt away from American MBA programs: the move by U.S. lawmakers to restrict the hiring of foreigners on H-1B visas. (Most Asians who study in the U.S. hope to stay.) A second reason, says GMAC President and CEO David Wilson, is that Asian B-schools “are stepping up their game in terms of curriculum, students, and faculty.” Frederik Balfour In Hong Kong, BUSINESSWEEK - 83 minutes ago
WHY HOLLYWOOD LOVES TO REPEAT ITSELF With their built-in fan base, sequels are seen as a safe bet in Hollywood. Now research by two academics--one at Cass Business School in London, the other at Texas Christian University’s Neeley School of Business in Fort Worth--shows just how safe. The two studied the take for more than 100 movie sequels released from 1998 to 2006. Comparing those box-office numbers with what was earned by thematically similar standalone films shown around the same time, they found sequels generated an average 27% more revenue. Using their formula, they estimate the upcoming teen vampire film The Twilight Saga: New Moon (the second in the Twilight franchise) should make $34 million more domestically than an upcoming standalone movie about adolescent bloodsuckers. The professors, TCU’s Mark Houston and Cass' Thorsten Hennig-Thurau, also studied the “feedback” effect of follow-up flicks, finding that they’re responsible for boosting DVD sales of their parent films by 1.3 million copies. Mark Scott In London, BUSINESSWEEK - 83 minutes ago
IS THE FED CREATING NEW BUBBLES? Its easy-money policy has Asia worried. But Bernanke says fears of a speculative surge are overblown Peter Coy, With David Henry and Peter Carbonara In New York and Dexter Roberts In Beijing, BUSINESSWEEK - 83 minutes ago
IS IT TIME TO DO AWAY WITH AMERICA’S ‘DEBT BIAS’? Imagine if your spouse lectured you on the evils of junk food but then offered to subsidize your Twinkie habit. Well, that’s pretty much how it is with Americans and the government, argues the New Yorker’s financial columnist, James Surowiecki, in the Nov. 23 issue. The U.S. tax code allows individuals to claim deductions on mortgage interest, up to $1 million, while corporations can write off all the interest on their debt. As a result, the economy suffers from what dismal scientists call a “debt bias.” The tax break encourages homebuyers to make smaller downpayments and take out bigger mortgages. It also inflates housing prices, studies have shown. Similarly, the break makes it up to 42% cheaper for companies to take out debt than to issue equity, estimates the National Economic Council. While the tax system alone can’t be blamed for the current slump, a recent IMF study found that tax distortions likely led American households and companies to take on much more debt than they would have otherwise. Harry Maurer & Cristina Linblad, BUSINESSWEEK - 83 minutes ago
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