June 30, 2008

The Latest Business Headlines from WWJ Newsradio 950

Auto Sales Seen Lower | June sales probably dropped as consumers avoided pickups and SUVs and couldn't find enough fuel-efficient cars, Bloomberg reports. | Story | Related Podcast

Gas Prices Hurt Fishing | The increase in fuel prices to above $4 a gallon has resulted in fewer boats on the lakes, and a decrease in the number of fish being caught. | Story

Ice Companies Probed | A federal grand jury in Detroit is investigating North America's three largest packaged-ice producers, the Detroit Free Press reports. | Story

All in the Family | Plastech owner and CEO Julie Brown and her nine family members were on the financially troubled company's payroll, Crain's Detroit Business reports. | Story

Corruption Probe at City Hall | Federal agents are investigating a possible case of public corruption involving some Detroit City Council members. | Story

DPS Could be Shut Down | The Detroit Public School district's money crisis could force a shutdown of the district. | Story

Stocks Resume After Rough Week | The Dow closed Friday at 11,346.51, a loss of 4.2 percent for the week. The index is at its lowest since September 2006. | Story

This Week in 'Your Company'

Business leaders offer wish lists for new administration.

Stimulus checks having an effect, the government reports.

Wall Street waits anxiously for unemployment numbers.

Much of state budget adopted.

Insurer offers safety training materials to employers.

Small businesses cutting back spending, survey says.

Fed says it averted "contagion" on Wall Street.

Today's Worldwide Automotive Report podcast.

BUSINESS COMMUNITY WEIGHS IN ON WHAT THE NEXT PRESIDENT SHOULD DO FOR MICHIGAN

The two major presidential candidates are listening to Michigan – particularly to the auto industry. So, now that we have their attention what do you want them to hear?

Last week, presumptive Democratic presidential nominee Sen. Barack Obama got an earful from General Motors Corp. CEO Rick Wagoner about how to save the U.S. auto industry. Obama also recently met with a group of business leaders that included Ford Motor Co. CEO Alan Mulally.

Obama’s Republican rival, Sen. John McCain, likewise, has been courting the auto industry – notably by proposing a $300 million government prize to anyone who can develop an auto battery that far surpasses existing technology.

All of this attention highlights the importance of the auto business to the U.S. economy – and Michigan’s importance in the November general election. With that in mind, the Daily Dash asked some business leaders to tell us what they want from the new presidential administration. To read what they told us, click here.

Stimulus Checks Making Economic Waves, Feds Report

The millions of economic stimulus payments gave a massive jolt to household finances in May, sending after-tax incomes up by the largest amount in 33 years. The payments helped boost consumer spending by the largest amount in six months. The Commerce Department reported that disposable incomes surged by 5.7 percent last month. It was the biggest increase since May 1975. The surge in incomes helped boost consumer spending by 0.8 percent, the biggest gain since last November. More...

Investors Focused on This Week’s Jobs Report

All eyes on Wall Street will be watching Thursday for the U.S. Department of Labor's scheduled update on nonfarm payrolls and the nation’s unemployment rate. More...

MUCH OF STATE BUDGET ADOPTED: Michigan lawmakers approved much of the next state budget before they adjourned for a summer break early Saturday, but they still haven't decided exactly how much money will be headed to public K-12 schools. School funding is being held up by a disagreement over Gov. Jennifer Granholm's plan to open smaller high schools in some Michigan cities. More...

HIGHLIGHTS OF NEXT YEAR'S STATE BUDGET: Michigan's state budget plan for the fiscal year that starts Oct. 1 is coming together at the state Capitol with votes that began Friday. More...

INSURER OFFERS SAFETY TRAINING MATERIALS: More than 4 million students will enter the workforce as seasonal workers this summer. Those students can be an asset to your business, but they also are at risk of being injured if proper safety training isn't provided. In fact, student workers are nearly twice as likely as adults to be injured on the job. A Lansing-based insurance company wants to help their employers mitigate that risk. More...

HEALTH CARE BALLOT DRIVE FALLS SHORT: Backers of universal health care have fallen short of getting enough signatures to put the issue before Michigan voters in November. The Healthcare Ballot for Michigan campaign officially ended Friday. The group got about 133,000 signatures. More...

SMALL BUSINESS OWNERS CUT BACK ON SPENDING: More than one-third of small business owners said that their personal financial situation as a whole is getting worse, according to the recent Wells Fargo/Gallup Small Business Index survey. The survey also found that the sluggish economy is affecting small business owners' spending and savings habits. More...

GREAT LAKES COMPACT PROGRESS: The deal is close to ratification on the state level, and supporters are beginning to plot strategy for winning approval from Washington. More...

OIL PRICES TOP $143 A BARREL: Oil prices surged above $143 a barrel for the first time ever Monday, as a weaker dollar spurred investors to seek refuge in dollar-denominated oil futures to hedge against inflation. ''The main factors behind the rise today are the U.S. dollar remains fragile and geopolitical tensions, particularly surrounding Iran,'' said David Moore, a commodity strategist at the Commonwealth Bank of Australia in Sydney. ''That's unsettling for the oil market.'' More...

FED SAYS IT AVERTED 'CONTAGION' ON WALL STREET: The Federal Reserve was scrambling to prevent a ''contagion'' from infecting the nation's financial system when it took unprecedented actions to back a Bear Stearns rescue package and provide emergency loans to big Wall Street firms. The Federal Reserve released documents Friday providing insights into its private deliberations in March that led to those controversial decisions. The Fed's actions came when credit and financial problems were intensifying, threatening to paralyze the entire financial system and plunge the economy into a recession. More...

FED EYES MAKING IT EASIER TO INVEST IN BANKS: The Federal Reserve is looking into making it easier for private equity firms to invest in banks, a move that could usher new capital infusions to cash-hungry banks and help them cope with credit problems. Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson have been encouraging banks to raise more money to rebuild balance sheets that have been hit by billions of dollars in losses from bad investments in mortgage-backed securities. A global credit crisis and financial turmoil have made it increasingly difficult for banks, Wall Street firms and other financial institutions to line up capital. More...

WORLDWIDE AUTOMOTIVE REPORT PODCAST: WWJ Newsradio 950's Jeff Gilbert is keeping a close eye on auto stocks and auto sales. The American Axle CEO gets an $8.5 million bonus. Michigan gets a unique new ethanol plant.

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