May 19, 2008

The Latest Business Headlines from WWJ Newsradio 950

Opposition to Axle Deal | Some workers are unhappy with the tentative agreement the UAW reached with parts maker American Axle and Manufacturing. | Story | Related Podcast

Blues' Chief Pay Above Average | Blue Cross Blue Shield of Michigan's CEO has reportedly been earning more than the national average for similar posts in the insurance industry. | Story

Ford Wants Suit Dropped | The automaker asked a federal judge to throw out a lawsuit by employees who lost more than $6 billion in retirement plans, The Detroit News reports. | Story

Cox Took Meijer Donation | Michigan Attorney General Mike Cox reportedly accepted $2,500 from Meijer amid an investigation into the chain's campaign law violations | Story

Lower Dollar Promotes Expansion | Foreign companies are paying less to be here because of currency and real estate cost differences, Crain's Detroit Business reports. | Story

Stocks Stage Comeback | The Dow Jones Industrial Average was off nearly 100 points at its intraday low on Friday, but finished down just 5.86 points, or 0.1 percent, at 12,986.80. | Story

This Week in 'Your Company'

Web advertising keeps growing fast, report says.

AOL goes after smaller audiences with new Web sites.

World economy could face a big downturn, UN says.

Health care a top election issue.

State faces more budget cuts.

CEO pay fell last year, Mercer report finds.

Today's Worldwide Automotive Report podcast.

UPWARD TREND IN WEB ADVERTISING STILL STRONG; RECORD OF $21.2 BILLION SPENT IN 2007

New data from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PWC) show that Internet advertising in the U.S. is still growing at an astounding rate.

The IAB/PWC Internet Advertising Revenue Report for 2007 shows that in 2007, Internet ad revenues reached a record $21.2 billion, up 26 percent from 2006. That means, the IAB says, that Internet advertising revenues surpassed radio advertising and cable television advertising in total U.S. ad spending.

David Doty, senior vice president of thought leadership and marketing for the IAB, said that growth continues, in part, because more companies that might have been reluctant to advertise on the Web in the past are jumping in.

"As more companies discover the fact that Internet advertising is both accountable and effective," Doty said, "more companies are using it."

Also changing, he said, is the way advertisers are using the Internet. Doty said digital video, for example, has emerged "as a major component" of Web advertising. That's because, as technology advances and the availability of broadband access expands, consumers have come to expect video to be part of the online experience. More...

AOL Sheds its Brand to Draw Specialty Audiences

Unless you're looking carefully, you'll likely miss the fact that the new Asylum Web site for young men is a creation of Time Warner Inc.'s AOL. Same for WalletPop on personal finance, Spinner on indie music and StyleList on fashion. The AOL brand is taking a back seat as the company long associated with dial-up Internet access for the masses quietly launches dozens of sites targeted at specialized audiences. More...

UN Report: World Economy Faces Risk of Big Downturn

The world economy is "teetering on the brink" of a severe downturn and is expected to grow only 1.8 percent in 2008, the United Nations said in its mid-year economic projections Thursday. That rate would be down from a global growth rate of 3.8 percent in 2007. The downturn is expected to continue with only a slightly higher growth of 2.1 percent in 2009. The mid-year update blamed the downturn on further deterioration in the U.S. housing and financial sectors. More...

COMPUWARE ROLLS OUT NEW INITIATIVE: It was a big-time corporate celebration in Campus Martius Park Friday as Compuware Corp. rolled out its Compuware 2.0 initiative. According to the Great Lakes IT Report, thousands of employees packed the park, as the Detroit power-pop outfit The Go rocked out. Then chairman and CEO Peter Karmanos Jr. and president and COO Bob Paul took the stage, congratulating the company on a terrific quarter and a good fiscal year, and pledging more strong growth ahead under the 2.0 initiative. Under the Compuware 2.0 initiative, the company says it will put its emphasis on the products where it is clearly the best in the world -- the IT service management product known as Vantage, IT portfolio management software called Changepoint, and Compuware's traditional mainframe software. For more, including a photo gallery, click here.

HEALTH CARE A TOP ELECTION ISSUE FOR BUSINESS: Voters will do more than choose the next president in November. They will also make a key decision about their health care, according to columnist Keith Girard. "Who should get health insurance, how should they get it, and who pays? Those three questions," Girard writes, "are at the forefront of the current controversy over health care and will provide the framework for the great debate that will begin once the presidential primaries end and the general election begins." To read the entire column, click here.

STATE WILL HAVE TO TRIM SPENDING NEXT YEAR: State economists say lower revenues may force smaller increases in the upcoming budget. The state treasurer and directors of the Michigan Senate and House Fiscal agencies said Friday revenues for the current budget year will be about $61 million less than they expected in January. That's an easy adjustment in a $43.6 billion budget. But dealing with the budget year that starts Oct. 1 will be tougher. The state likely is facing a shortfall of $170 million to $350 million. That could mean K-12 schools, universities and some programs may not get as much as Governor Jennifer Granholm has proposed. More...

CEO PAY AT BIG COMPANIES DROPPED LAST YEAR, MERCER SAYS: In the face of a slowing US economy and weakening corporate performance, CEO total direct compensation at many large companies is declining, according to a study by Mercer LLC. It’s a sign, Mercer says, that boards have heard the message from investors that CEO pay and performance should be linked. More...

OIL PRICES SURGE, SHATTER PREVIOUS RECORD: Oil prices surged more than $3 Friday, shattering a previous record in a spike near $128 a barrel as robust global demand for distillates continued to pull energy futures higher. Light, sweet crude for June delivery rose as high as $127.82 a barrel on the New York Mercantile Exchange, before easing somewhat to trade up $2.64 to $126.76. More...

SAUDIS SEE NO REASON TO BOOST OIL PRODUCTION: Saudi Arabia's leaders made clear Friday they see no reason to increase oil production until customers demand it, apparently rebuffing President Bush amid soaring U.S. gasoline prices. Economists say prices are being driven up by increased demand, not slowed production. Energy-guzzlers China and India are stretching supplies. More...

COMPANY TO OFFER INFORMATION ABOUT MEDICATIONS: In an expansion of its online health-care ratings, Health Grades Inc. is launching a new Web-based prescription drug information and ratings tool. The company will offer information on 4,345 prescription drugs, including which drugs are most commonly prescribed within a class – such as antidepressants – and whether the use of a specific drug is increasing or decreasing. Consumers also will be able to view patient-supplied ratings on the efficacy and tolerance of specific drugs as well as pricing and background information, including side effects, safety warnings and the availability of generics. More...

LAWSUIT FILED OVER IMMIGRATION RAID: The nation's largest single immigration raid, resulting in nearly 400 arrests earlier this week, violated the constitutional rights of workers at a meatpacking plant, a federal lawsuit says. More...

WORLDWIDE AUTOMOTIVE REPORT PODCAST: American Axle workers vote on a new contract. General Motors workers in Lansing head back to their jobs. Pickup truck problems now extend to used vehicles.